Title: Total cost management of interdependent projects
Authors: Elton Fernandes, Luis E. Valdiviezo
Addresses: Federal University of Rio de Janeiro, COPPE/UFRJ, Centro de Tecnologia, sala F-110, Cidade Universitaria, liha do Fundao, Caixa Postal 68501, CEP 2 1945-970, Rio de Janeiro - RJ, Brazil. Federal University of Rio de Janeiro, COPPE/UFRJ, Centro de Tecnologia, sala F-110, Cidade Universitaria, liha do Fundao, Caixa Postal 68501, CEP 2 1945-970, Rio de Janeiro - RJ, Brazil
Abstract: This paper develops a methodology based on Portfolio Analysis to select a configuration of interdependent projects. Several methodologies were developed to help selection of investment projects. These methodologies do not consider inter-project dependency. The decision to minimise some kind of costs in a project may have as consequence a very large cost for the whole system. This is particularly true for large projects as Energy Transmission and Generation, Roads, Railways, Airports, etc. To assess different options a combinatorial problem is formulated. Resolving this problem will lead to a viable solution which maximises the performance of the system and minimises risk. A case is simulated to show different performances and cash flows during projects development.
Keywords: total cost management; ABC system; cost function; interdependent projects.
International Journal of Technology Management, 1997 Vol.13 No.1, pp.15-24
Published online: 15 Aug 2003 *Full-text access for editors Access for subscribers Purchase this article Comment on this article