Event
Avraham Shtub - Maximizing project value and minimizing its waste by integrating project scope and product scope
Monday, April 30

3108 Etcheverry Hall
3:30 p.m. - 4:30 p.m.

Abstract:  Lean Project Management focuses on maximization of the value generated by the project and minimization of waste. Methodologies based on Lean enablers, teamwork, integrated product teams, brainstorming, and look-ahead procedures aspire to maximize a project’s value and minimize waste by focusing on critical success factors.

We propose a new model that jointly considers time, cost, resources and value by combining the project and product scopes. The former involves time, cost, and resource considerations and the latter deals with the product technical performance. Currently, most project management models focus on either project scope (e.g., the Critical Path Method, resource constrained project scheduling models) or product scope (e.g., the House of Quality or Quality Function Deployment). The two scopes are closely related, and both affect the project’s success. Moreover, the two scopes interact; for example, a system, which is designed from scratch, can achieve high technical performance but may be costlier and take longer to design and develop, compared to the reuse or upgrade of an existing system. Thus, combining both scopes in one model advances the resolution of project management problems.

Our model extends the Multimode Resource Constrained Project Scheduling Problem (MRCPSP) that considers time – cost – resource interactions, by introducing into it the concept of value. In MRCPSP, the objective is to minimize the project duration subject to resource and precedence constraints. Activities are performed in one of several modes, where a mode uniquely determines an activity’s duration and its resource requirements. In our model mode can also impact the value. We show how an efficient frontier of design alternatives can be used to maximize the project’s value and to minimize its waste. To teach students the concepts of value and waste, and to train project managers and their teams how to develop and use the efficient frontier we developed a training environment and a decision support tool that integrates Simulation Based Training (SBT) with optimization algorithms.

Bio: Professor Avraham Shtub holds the Stephen and Sharon Seiden Chair in Project Management. He has a B.Sc in Electrical Engineering from the Technion - Israel Institute of Technology (1974), an MBA from Tel Aviv University (1978) and a Ph.D in Management Science and Industrial Engineering from the University of Washington (1982).  He is a certified Project Management Professional (PMP) and a member of the Project Management Institute (PMI-USA).

Professor Shtub is the recipient of the Institute of Industrial Engineering's 1995 "Book of the Year Award" for his Book "Project Management: Engineering, Technology and Implementation" (co- authored with Jonathan Bard and Shlomo Globerson), Prentice Hall, 1994. He is the recipient of the Production Operations Management Society's Wick Skinner Teaching Innovation Achievements Award for his book: "Enterprise Resource Planning (ERP): The Dynamics of Operations Management". His books on Project Management were published in English, Hebrew, Greek and Chinese. He is the recipient of the 2008 Project Management Institute Professional Development Product of the Year Award for the training simulator "Project Team Builder – PTB". Prof. Shtub was a Department Editor for IIE Transactions he was on the Editorial Boards of the Project Management Journal, The International Journal of Project Management, IIE Transactions and the International Journal of Production Research.

He was a faculty member of the department of Industrial Engineering at Tel Aviv University from 1984 to 1998 where he also served as a chairman of the department (1993-1996). He joined the Technion in 1998 and was the Associate Dean and head of the MBA program.  He has been a consultant to industry in the areas of project management, training by simulators and the design of production-operation systems. He was invited to speak at special seminars on Project Management and Operations in Europe, the Far East, North America, South America and Australia. Professor Shtub visited and taught at Vanderbilt University, The University of Pennsylvania, Korean Institute of Technology, Bilkent University in Turkey, Otego University in New Zealand, Yale University, Universidad Politécnica de Valencia, University of Bergamo in Italy.