Project Time-Cost Trade-Off Optimization by Maximal Flow Theory

Abstract

Time and cost are related on projects. Project managers are frequently required to make time-cost trade-offs. With the complexity of large projects and the schedule impact of time-cost modifications, decisions on time-cost optimization are usually done on a hit or miss basis. This technical note presents an innovative technique that can be used to automate and optimize the time-cost trade-off process. The technique is based on “maximum flow–minimal cut” theory. The method is an improvement over current practice.