Project cash flow analysis in the presence of uncertainty in activity duration and cost

Alexander Maravas, John Paris Pantouvakis

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

The inherent uncertainty and imprecision in project scheduling have motivated the proposal of several fuzzy set theory based extensions of activity network scheduling techniques. Building upon these, a cash flow calculation methodology for projects including activities with fuzzy durations and/or costs is proposed in this paper. According to the proposed approach, the project cash flow is represented by an S-surface (as opposed to the traditional S-curve) ensuing by connecting S-curves at different risk possibility levels. The methodology is exemplified by estimating the working capital requirements in a real world road construction project. Furthermore, the benefits of the methodology and its subsequent computerization are discussed. It is believed that the proposed approach may also be useful for both evaluating project proposals during feasibility studies and for performing earned value analysis for project monitoring and control.

Original languageEnglish
Pages (from-to)374-384
Number of pages11
JournalInternational Journal of Project Management
Volume30
Issue number3
DOIs
Publication statusPublished - Apr 2012
Externally publishedYes

Fingerprint

Scheduling
Road construction
Value engineering
Fuzzy set theory
cost
Costs
methodology
Monitoring
road construction
feasibility study
Uncertainty
analysis
project
Cash flow
Methodology
S-curve
monitoring
Imprecision
Project scheduling
Working capital

Keywords

  • Cash flow
  • Fuzzy project scheduling
  • S-curve
  • S-surface

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Management, Monitoring, Policy and Law

Cite this

Project cash flow analysis in the presence of uncertainty in activity duration and cost. / Maravas, Alexander; Pantouvakis, John Paris.

In: International Journal of Project Management, Vol. 30, No. 3, 04.2012, p. 374-384.

Research output: Contribution to journalArticle

Maravas, Alexander ; Pantouvakis, John Paris. / Project cash flow analysis in the presence of uncertainty in activity duration and cost. In: International Journal of Project Management. 2012 ; Vol. 30, No. 3. pp. 374-384.
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