The effects of schedule-driven project management in multi-project environments

Prior work has affirmed the importance of studying project management in multi-project environments. A challenge in these settings pertains to the need to share skilled resources across concurrent projects when project management is schedule-driven and resource capacity is fully committed. To probe into this problem, we use a system dynamics simulation grounded on in-depth fieldwork with a high-performance truck developer. We simulate the effects of capturing resources allocated originally to one project so as to speed up another product development project that started late. Our central contribution is to illuminate how a schedule-driven project management policy can lead to a vicious cycle that degrades the organization's capability to meet the planned project milestones in the long-term. Whilst capturing resources can ensure that a tardy but ‘business-critical’ project is delivered on time, if the organization has no free resource capacity and is also not recruiting more staff, this practice harms the schedule performance of the projects deprived from resources. Further, the workforce's productivity gradually deteriorates as the frequency with which staff switches back and forth between projects increases. These effects compounded cause delays in all the subsequent projects, irremediably degrading the organization's capability to deliver projects on time reliably.

Research highlights► Effects of schedule-driven project management in multi-project product development environments when resources are fully committed. ► Empirically-grounded system dynamics computer-based simulation. ► How schedule-driven project management can lead to a vicious cycle that degrades the long-term multi-project organization's project capability. ► How capturing resources can ensure that a tardy business-critical project is delivered on time, but delays other projects. ► Management of new high-performance truck development projects.