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Multi-objective decision analysis for competence-oriented project portfolio selection

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  • Gutjahr, Walter J.
  • Katzensteiner, Stefan
  • Reiter, Peter
  • Stummer, Christian
  • Denk, Michaela

Abstract

This paper develops a multi-objective optimization model for project portfolio selection taking employee competencies and their evolution into account. The objectives can include economic gains as well as gains expressed in terms of aggregated competence increments according to pre-defined profiles. In order to determine Pareto-optimal solutions, the overall problem is decomposed into a master problem addressing the portfolio selection itself, and a slave problem dealing with a suitable assignment of personnel to the work packages of the selected projects over time. We provide an asymptotic approximation of the problem by a linearized formulation, which allows an efficient and exact solution of the slave problem. For the solution of the master problem, we compare the multi-objective metaheuristics NSGA-II and P-ACO. Experimental results both for synthetically generated test instances and for real-world test instances, based on an application case from the E-Commerce Competence Center Austria, are presented.

Suggested Citation

  • Gutjahr, Walter J. & Katzensteiner, Stefan & Reiter, Peter & Stummer, Christian & Denk, Michaela, 2010. "Multi-objective decision analysis for competence-oriented project portfolio selection," European Journal of Operational Research, Elsevier, vol. 205(3), pages 670-679, September.
    • Handle: RePEc:eee:ejores:v:205:y:2010:i:3:p:670-679
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    References listed on IDEAS

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    Cited by:

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    3. Xiong, Jian & Leus, Roel & Yang, Zhenyu & Abbass, Hussein A., 2016. "Evolutionary multi-objective resource allocation and scheduling in the Chinese navigation satellite system project," European Journal of Operational Research, Elsevier, vol. 251(2), pages 662-675.
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    5. Doering, Jana & Kizys, Renatas & Juan, Angel A. & Fitó, Àngels & Polat, Onur, 2019. "Metaheuristics for rich portfolio optimisation and risk management: Current state and future trends," Operations Research Perspectives, Elsevier, vol. 6(C).
    6. Liesiö, Juuso & Salo, Ahti, 2012. "Scenario-based portfolio selection of investment projects with incomplete probability and utility information," European Journal of Operational Research, Elsevier, vol. 217(1), pages 162-172.
    7. Nomeda Dobrovolskienė & Rima Tamošiūnienė, 2016. "Sustainability-Oriented Financial Resource Allocation in a Project Portfolio through Multi-Criteria Decision-Making," Sustainability, MDPI, vol. 8(5), pages 1-18, May.
    8. Jian Xiong & Rui Wang & Jiang Jiang, 2019. "Weapon Selection and Planning Problems Using MOEA/D with Distance-Based Divided Neighborhoods," Complexity, Hindawi, vol. 2019, pages 1-18, November.
    9. Christian Stummer & Elmar Kiesling & Walter J. Gutjahr, 2009. "A Multicriteria Decision Support System For Competence-Driven Project Portfolio Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 379-401.
    10. Meya Haroune & Cheikh Dhib & Emmanuel Neron & Ameur Soukhal & Hafed Mohamed Babou & Mohamedade Farouk Nanne, 2023. "Multi-project scheduling problem under shared multi-skill resource constraints," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 31(1), pages 194-235, April.
    11. Javier Panadero & Jana Doering & Renatas Kizys & Angel A. Juan & Angels Fito, 2020. "A variable neighborhood search simheuristic for project portfolio selection under uncertainty," Journal of Heuristics, Springer, vol. 26(3), pages 353-375, June.
    12. Rong Chen & Changyong Liang & Dongxiao Gu & Joseph Y-T. Leung, 2017. "A multi-objective model for multi-project scheduling and multi-skilled staff assignment for IT product development considering competency evolution," International Journal of Production Research, Taylor & Francis Journals, vol. 55(21), pages 6207-6234, November.
    13. Vilkkumaa, Eeva & Liesiö, Juuso & Salo, Ahti & Ilmola-Sheppard, Leena, 2018. "Scenario-based portfolio model for building robust and proactive strategies," European Journal of Operational Research, Elsevier, vol. 266(1), pages 205-220.
    14. Plaza, Malgorzata, 2016. "Balancing the costs of human resources on an ERP project," Omega, Elsevier, vol. 59(PB), pages 171-183.
    15. Brucker, Peter & Qu, Rong & Burke, Edmund, 2011. "Personnel scheduling: Models and complexity," European Journal of Operational Research, Elsevier, vol. 210(3), pages 467-473, May.
    16. Liesiö, Juuso & Salo, Ahti & Keisler, Jeffrey M. & Morton, Alec, 2021. "Portfolio decision analysis: Recent developments and future prospects," European Journal of Operational Research, Elsevier, vol. 293(3), pages 811-825.
    17. Karl F. Doerner & Vittorio Maniezzo, 2018. "Metaheuristic search techniques for multi-objective and stochastic problems: a history of the inventions of Walter J. Gutjahr in the past 22 years," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(2), pages 331-356, June.

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