Matrix BasedEvaluationofProjectManagementApproaches
Matrix BasedEvaluationofProjectManagementApproaches
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1 Introduction
Project success becomes more and more critical to business performance, however, many
projects still suffer delays, overbudgeting and even failure. CHAOS Annual Reports (see,
e.g. (SGI, 2015)) shows that flexible project management techniques like agile project
management (APM) approaches produce more successful projects, while following
APM, project duration and the budgets can be kept more easily (Chow and Cao, 2008).
The inspiration of this study was to understand why and when agile project management
approaches produce expectedly more successful projects (Research Question 1,
furthermore: RQ1). Should we combine flexible (like agile) and rigid (like traditional)
project management approaches, or not (RQ2)?
Matrix-based methods, along with network planning techniques, are mainly used for
planning and scheduling production development projects according to (Eppinger et al.,
1994; Danilovic and Browning, 2007). While the first version of DSM assumes fix logic
structures, further studies (Yassine et al., 1999; Kosztyán and Kiss, 2010a; Tang et al.,
2010) showed that uncertain relations can be specified between two tasks. According to
(Kosztyán and Kiss, 2010b) probabilities or priorities or just so called score values (of
task completion) can also be assigned to the completion of the tasks. This matrix called as
Project Expert Matrix (PEM). In this way flexible dependencies and uncertain task
completions can also be modeled, which is a key point of modeling flexible, like agile,
projects.
Since, specifying the logic structure is only the first step of project planning and
scheduling, according to (Danilovic and Browning, 2007), one way of extending DSM
method is to specify multiple domains (e.g. costs, resources etc.). Since the traditional
DSM focuses on a single domain, its analysis yields solutions deemed optimal from the
point of view of that domain only (e.g. dependency between tasks). However, the
Domain Mapping Matrix (DMM) provides means to represent interactions and relations
between domains (e.g. task-resources: Who will do these tasks?).
Despite flexible task dependencies and uncertain task completions may produces a great
number of possible project structures, (Kosztyán, 2015) proposes a fast polynomial
method that determines feasible project scenarios and project structures regarding time,
resource and cost constraints. Also orders these feasible project plans by their
probabilities/importance or according to other score values. In order to handle time, cost,
resource demands and constraints, Project Expert Matrix (PEM) is extended to the
Project Domain Matrix (PDM), similarly to extending DSM to DMM. DMMs are already
used for modeling project management problems (see e.g. (Danilovic and Browning,
2007; Browning, 2014), but the PDM can model also the uncertain task completions and
uncertain task dependencies.
In this study, we model a decision maker (project manager), who follows a given project
management approach. Three approaches are distinguished in this study: Traditional
Project Management Approach (hereinafter: TPMA), Agile Project Management
Approach (APMA), and the combination of these approaches, which is a Hybrid Project
Management Approach (HPMA). Each management approach has a toolset of project
management techniques, which is implemented as a computer algorithm (hereinafter:
agent). Several projects, such as software development projects (SDP) and new product
developments (NPD) allow you to follow different kinds of project management
approaches, because tasks (e.g. features to be implemented) can be completed both in
serial and parallel way. Implementing tasks usually prioritized, and some of them will be
postponed to a following project or subproject (e.g., into a so-called sprint or iteration).
Following a traditional project management approach the question is how much it will
cost to implement all these features? Thus, the scope is given and has to be completed,
but time and cost are convertible if necessary. These problems can be specifies as trade-
off problems (see e.g. (Demeulemeester et al., 1996; Feng et al., 2000; Azaron et al.,
2005; Tareghian and Taheri, 2006)).
The traditional project management (TPM) approach is widely supported by traditional
project scheduling methods (see (Brucker et al., 1999) for an excellent summary of
traditional methods). All of these methods based on fix logic structure or a set of
predefined alternatives (Eisner, 1962; Pritsker, 1966). In contrast to traditional
techniques, the agile approach allows and sometimes requires to restructure the project.
In the APMA the question is how many of these features can be included within the given
budget and time interval? The goal is to realize the scope at the highest possible degree.
APMA and TPMA seem to be different approaches, however the real SDPs and NPDs
frequently combine the TPM and APM techniques. The combination of APM and TPM
methods (see e.g. (Fernandez and Fernandez, 2008; Rahimian and Ramsin, 2008; Tyagi
et al., 2014)) is often called as a hybrid project management (HPM) approach.
A HPMA combines traditional and agile approaches. This approach can also be modeled
by computer algorithms. Generating different kind of flexible project structures and using
different kind of agents (which simulates the project management approaches through the
decisions of project managers) may help us to answer: Why following agile project
management approaches produces more successful projects (RQ1)? Should we combine
approaches in order to increase the chance of project success (RQ2)?
Although the reliability of Chaos Reports' results are criticized by several scholars (see,
e.g. (Eveleens and Verhoef, 2010; Lech, 2013), their objective classification of project
success (SGI, 2015) became widely used by both scholars and practicing project
managers; thus in this paper this classification is used.
This study follows the classification of the Chaos Reports (SGI, 2015) that categorizes
projects into 3 classes:
1. The project is successful; if project scope is satisfied within the
time/cost/resource constraints.
2. The project is challenged; if project scope is satisfied, time, cost or resource
demands are higher than the pertinent constraints, but these demands are within
an expanded (but permissible) tolerance.
3. The project is failed otherwise.
One of the most interesting results of the Chaos Report was that the IT projects managed
by agile project management approaches was 3 times more successful than the traditional
waterfall projects. This considerable result is confirmed by other surveys and scholars
(see, e.g. (Belout and Gauvreau, 2004; Lech, 2013; Dan, 2016)).
Most success criteria (like involving customers to the development process, strong
executive support, being capable to cope with emergent requirement, etc.) require
adaptive and flexible thinking for the project management. In the agile project
management approach the completion of the project is more flexible, and project
structure can adapt to the customer's claims.
In this research we focus only the success criteria of Chaos Report. Why could be more
successful a project management approach than another ones.
2 Applied methods
Since numerous (more than 10,000) project plans are generated and explored, only fast,
exact, polynomial algorithms are used as agents. For example studies on time-cost trade-
off problems (TCTP) have been using various kinds of cost functions such as linear
(Fulkerson, 1961), convex (Lamberson and Hocking, 1970), concave (Falk and Horowitz,
1972), discrete (De et al., 1995, 1997) or stochastic (Feng et al., 2000). In this study the
continuous version of TCTP (furthermore, CTCTP) is used, because this method can be
solved within a polynomial computation time.
If the cost function is linear, the problem can be solved with a very fast algorithm (see,
e.g. (Ahuja et al., 1991; Orlin, 1993), therefore in the simulation phases, linear cost
function have been considered and the Orlin’s method is used in order to accelerate the
run of the proposed traditional and hybrid project management agents.
We developed a project generator to produce different types of project plans. Only the
value of complexity (number of nodes, connectivity factor (cf) and ratio of supplementary
tasks and dependencies (hereafter flexibility factor, ff)) need to be specified to create the
logic domain of a single project. The result is a n by n+4 PDM matrix, which contains an
n by n logic domain (LD), n by 2 time domain (TD), and n by 2 cost domain (CD)
respectively.
The values of time and cost demands followed [0, 20] and [0, 30] uniform distributions,
respectively.
To define a project with a desired complexity an upper triangle matrix have been created.
The size of the matrix (the number of rows) will specify the number of nodes/tasks. The
connectivity factor sij ( a ) affects the number of the dependencies in the project's logic
domain. The probability of that the j-th task follows the i-th task is specified by the
sij (a) = min( j − i − 1 + a)−1,3 ,1) function, where j>i; i,j∈ℕ⁺ and a∈ℝ⁺. If a is 1 then
the critical path contains all the tasks, lower a values give fewer task dependencies in the
off-diagonal cells, therefore we get a more parallel project structure. In this simulation
a∈{0,1} and furthermore we called a as connectivity factor (cf). cf=0 produces a more
parallelized project structure. If cf∈ℤ⁺, the algorithm produces cf number of parallel
paths. In the next step the necessity of the task implementation and the previously defined
strict predecessor-successor relations between the tasks (selected randomly) are relaxed at
a given ratio of tasks and dependencies (ff alternates between 0.05 and 0.2 with a 0.05
step), and the score values modified from 1 to a uniform distributed value between 0.5
and 1.
Table 1 shows a PDM matrix, where cf=1, ff=0.2, n=30. Diagonal values of the LD
represent the score of task completions. 1 means, that the task has to be completed, if this
value is lower than 1 the (agile) project manager can decide whether this task will be
included in the project or will be excluded from it (and will be scheduled to the next
(sub)project). The off-diagonal value 1 represents a strict dependency between tasks, if
this value (score of dependency) is lower than 1, but greater than 0, an (agile) project
manager can decide how to complete these tasks i.e. it is performed in a parallel or a
sequential way.
durations are assigned to the tasks. Similarly, minimal (maximal) project cost occurs, if
every uncertain task completion is excluded (included) and the minimal (maximal) cost
demands are assigned to the tasks. Since every score value of the uncertain task
completion is greater than 0.5 in this case, according to Eq. (1) the minimal (maximal)
value of the total project score occurs if every task are excluded (included).
min max
Each range of the theoretical minimal ( cx ) and maximal ( c x ) values of
time/cost/score demands ( cx ) is treated as 100%, the theoretical minimal is the 0% (see
Eq.s (2-3)).
In this study cx % ∈{0.0,.0.1,..,1.0}. “x”=”c” and “x”=”t” are upper cost and time
constraints, while “x”=”s” represents a lower score constraints, which models the
minimal requirements of the customers.
Three project management agents (TPMa, APMa, HPMa) are implemented to test which
approach is least sensitive for the changes of the constraints and demands. When
implementing TPMa, we used a modified – matrix-based version of – (Orlin, 1993)'s
algorithm. In this case, the project manager must follow the project plan. There is no way
to restructure the project plan or exclude uncertain (less prioritized) tasks, however, in the
range tmin , tmax task durations can be reduced in order to keep deadlines. Every time
[ ]
reduction may cause the increase of costs, however, (Orlin, 1993)’s method will give us
the local minimum of project duration (considering that every flexible dependency and
every uncertain task completion is included to the project plan) if there are feasible
solutions.
When implementing APMa (Kosztyán, 2015)’s Exact Project Ranking algorithm is used.
In this case, there is no way to reduce time demands of tasks. We assume that every tasks
scheduled with normal task demands (tmax , cmin ), however, flexible dependencies can be
resolved, while the TPS is greater than the specified score constraint (cs) uncertain task
completions can be ignored from the project.
HPMa is based on (Kosztyán, 2014)’s algorithm. This agent can also reduce the project
duration and can restructure the project simultaneously.
3 Simulation results
In the simulation 11,420 PDM matrices and constraints had been generated. Every PDM
matrix has been solved by the three project management agents. TPT, TPC and TPS
values are calculated for every proposed project structures. Normalized project values are
specified for feasible projects as follows:
TPC TPT TPS
c% := max min
, t % := max min , s% := max min (4)
c − cc
c ct − ct cs − c s
If we consider only the successful projects, c%, t%, s% are lower or equal than 1. Lower
values mean lower project cost, duration and lower project scores.
While lower c%, t% values are positive property of project management agent, because it
means projects can be completed with less cost/time demands than the budget/deadline,
lower project scores may produce lower customer satisfaction.
After using an Analysis of Variance (ANOVA) method, all independent variable
(ff,cf,N,xPMa) were significant, and the adjusted Eta square were 0.734. Since the
limitation of pages, just the summary table is shown (see Table 2).
The simulation results show that agile project management approaches can almost triple
the ratio of successful projects of the traditional approaches. Table 2 shows that APMa’s
advantage is more significant (RQ1) if projects are more flexible (see ff factor), this
advantage is less considerable if the project is more rigid. Table 2 also shows, that hybrid
project management agent can produce even more successful project compared to the
agile agent.
While HPMa can produces the most of the successful and the shortest projects, Table 2
shows that APMa produces the cheapest projects, and if a project can be managed by
TPMa, this approaches guarantee only that all features will be implemented.
Table 2. Summary of the simulation results (c%, s%, t% are calculated only for successful projects,
f/a= feasible / all projects) and the project triangle for the successful projects
Summary table c% s% t% f/a
xPMa n ff
0.05
cf =0 cf =1
0.36 0.63
cf =0 cf =1
1.00 1.00
cf =0 cf =1
0.13 0.53
cf =0 cf =1
0.47 0.24
Project Triangle for Successful Projects
0.10 0.50 0.69 1.00 1.00 0.26 0.68 0.30 0.12
30 APMa HPMa TPMa
0.15 0.55 0.85 1.00 1.00 0.36 0.81 0.20 0.06
0.20 0.69 0.82 1.00 1.00 0.47 0.87 0.13 0.07 t%
0.05 0.37 0.65 1.00 1.00 0.18 0.68 0.46 0.13
0.10 0.52 0.74 1.00 1.00 0.29 0.81 0.30 0.09
TPMa 60
0.15 0.60 0.85 1.00 1.00 0.43 0.84 0.19 0.08
0.20 0.67 0.80 1.00 1.00 0.58 0.89 0.12 0.03
0.05 0.35 0.74 1.00 1.00 0.20 0.76 0.50 0.13 47%
0.10 0.48 0.73 1.00 1.00 0.28 0.85 0.28 0.08
90
0.15 0.57 0.83 1.00 1.00 0.46 0.88 0.14 0.03
39%
0.20 0.65 0.89 1.00 1.00 0.56 0.89 0.09 0.04
0.05 0.21 0.19 0.87 0.87 0.51 0.54 0.20 0.36
0.10 0.32 0.29 0.84 0.86 0.42 0.54 0.35 0.56 34%
30
0.15 0.41 0.39 0.84 0.83 0.40 0.49 0.43 0.55
0.20 0.47 0.45 0.85 0.85 0.45 0.47 0.50 0.64
0.05 0.25 0.23 0.87 0.86 0.46 0.56 0.26 0.51
0.10 0.38 0.36 0.88 0.89 0.47 0.52 0.45 0.71 38%
APMa 60
0.15 0.43 0.42 0.85 0.87 0.42 0.48 0.48 0.72
0.20 0.47 0.48 0.85 0.88 0.42 0.46 0.62 0.72
0.05 0.25 0.22 0.89 0.84 0.50 0.55 0.31 0.61
50%
0.10 0.36 0.35 0.88 0.88 0.44 0.51 0.43 0.77
90
0.15 0.43 0.43 0.87 0.88 0.40 0.48 0.53 0.69 86% 53%
0.20 0.49 0.47 0.88 0.86 0.42 0.49 0.64 0.77
0.05 0.35 0.55 0.94 0.92 0.14 0.39 0.69 0.59
89%
0.10 0.45 0.55 0.90 0.88 0.21 0.45 0.72 0.65
30
0.15 0.49 0.57 0.87 0.84 0.24 0.42 0.72 0.62 s% c%
0.20 0.54 0.58 0.87 0.86 0.31 0.44 0.68 0.67
0.05 0.35 0.55 0.93 0.89 0.17 0.47 0.75 0.64
0.10 0.45 0.55 0.92 0.90 0.24 0.49 0.76 0.76 100% t% c% s% f /a
HPMa 60
0.15 0.49 0.57 0.88 0.87 0.27 0.47 0.74 0.75
0.20 0.50 0.57 0.86 0.88 0.34 0.44 0.76 0.75
APMa 47% 38% 86% 53%
0.05 0.32 0.53 0.94 0.85 0.18 0.46 0.82 0.76 HPMa 34% 50% 89% 73%
0.10 0.43 0.56 0.92 0.89 0.24 0.47 0.78 0.82
90
0.15 0.46 0.56 0.88 0.89 0.28 0.46 0.81 0.72 TPMa 39% 53% 100% 18%
0.20 0.52 0.56 0.90 0.86 0.33 0.47 0.78 0.79
6 Acknowledgement
The research is supported by János Bolyai Fellowship, Hungarian Academy of Science.
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