The time–cost trade-off problem (TCTP) is fundamental to project scheduling. Risks in estimation of project cost and duration are significant due to uncertainty. This uncertainty cannot be eliminated by any scheduling or estimation techniques. Therefore, a model that can represent uncertainty in the real world to solve time–cost trade-off problems is needed. In this chapter, fuzzy logic is utilized to consider affecting uncertainties in project duration and cost. An optimization algorithm based on time-driven activity-based costing (TDABC) is applied to provide a trade-off between project time and cost. The presented model could solve the time–cost trade-off problem while accounting for uncertainty in project cost and duration. This could help generate a more reliable schedule and mitigate the risk of projects running overbudget or behind schedule.
Part of the book: Contemporary Issues and Research in Operations Management
Resources planning and operations are essential concerns and specialty areas within industrial engineering and project management. Crew configuration plays a significant role in resource planning and operations. Crew configuration inefficiency is one of the most common reasons for the low productivity of manpower. Resources planning contains some inherent uncertainties and risks because it is an estimate of unknown values. Many factors affect resource planning. Some of these factors are fuzzy variables such as expert’s judgment, and some of them are random variables such as direct cost of equipment. The objective of this chapter is to present a method that combines fuzzy logic and Monte Carlo simulation (MCS) for the selection of the best crew configuration to perform a certain task. The model presented in this chapter is a joint propagation method based on both the probability theory of MCS and the possibility theory of fuzzy arithmetic. The research outcomes indicate that the presented model can reduce the duration and cost of a certain task, which will help reduce the cost and duration of the project.