Modeling and risk analysis of virtual project team through project life cycle with fuzzy approach

• We determine the most important factors that influence virtual project team.
• A Fuzzy Linear Programming Model is employed to minimize the total project risk.
• Both time and cost constraints are considered as fuzzy.
• The numerical simulations decreased project riskfrom 0.5375 to 0.2144.

The ongoing revolutions in e-business and progresses of IT and communication, has resulted in the increasing number of companies with formal virtual project teams. In such situation, Uncertainty analysis gains more importance, being conducted within risk management framework. In this paper, based on the six phases of risk management procedure in PMBOK methodology, a risk management process in virtual projects is introduced. In qualitative analysis phase (of PMBOK methodology), the most effective factors of project management in virtual project teams are prioritized. In quantitative analysis phase, for the very first time, “Fuzzy Linear Programming Model” is employed to assess project risks based on project life cycle. Also given time and budget constraints, a method for developing appropriate strategies of reacting to each risk factor is introduced. We use GAMS (General Algebraic Modeling System) to select these strategies. Finally, we test our model in a numerical example, as evidence.

The general framework of the proposed risk management model for virtual projects.Figure optionsDownload as PowerPoint slide