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A Project Portfolio Selection Method for Iranian Private Construction Companies

Hamdieh, Hosna | 2013

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  1. Type of Document: M.Sc. Thesis
  2. Language: English
  3. Document No: 44297 (51)
  4. University: Sharif University of Technology, International Campus, Kish Island
  5. Department: Science and Engineering
  6. Advisor(s): Shadrokh, Shahram
  7. Abstract:
  8. The construction industry is one of the main industries in Iran, and plays a fundamental role in Iran’s economy, because construction has impact on most of other industries by its vast value chain. Selecting right sets of projects is considerably crucial for construction organizations to successfully achieve their competitive advantages and corporate strategies. Due to limited resources and dynamic changes in Iran’s construction business environment, this kind of selection is quite challenging for construction organizations. Beside’s over hundreds of selection tools, techniques, and complex selection frameworks were developed or recommended by academics and practitioners to smooth the progress of project selection. Yet, these theoretical frameworks are not implemented by private construction corporations in Iran. Therefore, this dissertation intends to better understand the academic and practical literature about project portfolio selection; study current practices of project selection that private construction corporations in Iran are using; and propose a framework that is beneficially adaptable to these private construction corporations. Since Project Portfolio Management (PPM) is not practiced in Iranians private construction companies, three simple yet practical frameworks were applied and then all methods were tested by comparing them to a random method. These three methods were a two-stage scoring model, an optimization model, and finally a mixed model (a mixture of the two methods). After implementing these frameworks in Kia Dej Persian (KDP) (an Iranian private construction company) the fallowing results were illustrated: For companies with the intension of gaining higher profit while keeping most of it’s human resource available, the optimization model is the best choice since it provides more reliable portfolios in comparison to the random method. For companies that are thinking about downsizing and using minimum human resource possible, the two-stage scoring model can be a good choice compared to the random method. For companies that want to make a balance between having a reasonable profit and human resource usage, the mixed model may come handy due to the fact that it has chosen a better combination of projects compared to the random method. The recommendations are resulted from the literature review and investigations do not only support the investigated construction corporation, Kia Dej Persian (KDP), to improve the quantity and quality of their investment project portfolio(s) but also facilitate possible adaptation to project portfolio selection by other Iranian private construction corporations
  9. Keywords:
  10. Project Portfolio Management ; Optimization Method ; Project Selection ; Prioriry ; Linear Programming ; Optimization Model ; Iranian Construction Companies ; Two-Stage Scoring Model

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