Formulation and solution of an optimal control problem for industrial project control

In this paper, we consider the monitoring and control of industrial projects that are performed by executing different activities within a given time duration. Hereby, it is desired to apply project control to each activity in order to avoid unexpected deviations in the project cost, respecting that...

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Bibliographic Details
Published in:Annals of operations research 2019-09, Vol.280 (1-2), p.337-350
Main Authors: Schmidt, Klaus Werner, Hazır, Öncü
Format: Article
Language:English
Subjects:
Business administration
Business and Management
Combinatorics
Construction industry
Control theory
Cost control
Decision making
Humanities and Social Sciences
Industrial project management
Methods
Nonlinear programming
Operations research
Operations Research/Decision Theory
Optimal control
Optimization
Ordinary differential equations
Original Research
Process controls
Project management
Theory of Computation
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Summary:In this paper, we consider the monitoring and control of industrial projects that are performed by executing different activities within a given time duration. Hereby, it is desired to apply project control to each activity in order to avoid unexpected deviations in the project cost, respecting that the amount and cost of project control needs to be limited. We model the general setting of industrial project control as an optimal control problem with the goal of maximizing the cost reduction ( savings ) when applying control, while meeting constraints on the control effort. We then prove that it is optimal to apply a constant control effort to each activity during a given time duration. Consequently, we show that the exact optimal control solution can be obtained by nonlinear programming. We illustrate our results by an application example from the construction industry.
ISSN:0254-5330
1572-9338
DOI:10.1007/s10479-019-03262-7