We consider the Courier Delivery Problem, a variant of the Vehicle Routing Problem with time windows in which customers appear probabilistically and their service times are uncertain. We use scenario-based stochastic programming with recourse to model the uncertainty in customers and robust optimization for the uncertainty in service times. Our proposed model generates a master plan and daily schedules by maximizing the coverage of customers and the similarity of routes in each scenario while minimizing the total time spent by the couriers and the total earliness and lateness penalty. The computational results show that our heuristic improves the similarity of routes and the lateness penalty at the expense of increased total time spent when compared to a solution by independently scheduling each day. Our experimental results also show improvements over current industry practice on two real-world data sets.
This paper aims at conceptualizing and developing a multilevel framework for the Risk Management Capability Maturity Model (RM-CMM), specifically for Complex Product Systems (CoPS) projects. CoPS is a special class of projects, which are high-value, technology-and engineering-intensive products or systems that are typically used to produce consumer goods and services. The embedded and inherent complexity in terms of task and human relations in CoPS projects can be a major source of risk and can contribute to persistent project challenges, failure, and impairment. There is a need to build a progressive risk management capability to deal with the unique characteristics of these complex projects. The proposed CoPS-RM-CMM model defines two broad layers in systems "security" and organizational "robustness." The understanding of complexity inherent in CoPS projects is drawn from the science of complexity and emergence, which provides additional insights into the management of both predictable and emergent risk in CoPS implementation. The proposed model is also built upon a change management framework, which addresses the risk planning and control processes, organizational and people contexts, and technology contents of CoPS.
Complex product systems (CoPS) are high cost, high technology, engineering intensive, business to business capital projects. The maturity of risk management capability can improve the production and performance of such projects. In this paper, a risk management capability maturity model for CoPS projects (COPS-RM-CMM) is proposed. The model is built on the standard five levels of capability maturity namely "initial", "repeatable", "defined", "managed", and "optimized. The model takes on a change management perspective addressing and analyzing issues in the organizational culture, risk management process and risk management knowledge, guided by strategic and performance measurement requirements. Case examples on CoPS project risk management such as those in the marine industry was used to illustrate the delineation and association of risk and capability maturity levels and the pertinent areas of capability.
K e y w o r d s Complex Product Systems, project risk management, capability maturity model
Complex Products and Systems (CoPS) are high value, technology and engineering-intensive capital goods. The motivation of this study is the persistent high failure rate of CoPS projects, Asian CoPS provider's weak capability and lack of specific research on CoPS risk management. This paper evaluates risk management maturity level of CoPS projects against a general CoPS risk management capability maturity model (RM-CMM) developed by the authors. An Asian based survey was conducted to investigate the value of RM to project performance, and Asian (non-Japanese) CoPS implementers' perceived application of RM practices, their strengths and weaknesses. The survey result shows that higher RM maturity level leads to higher CoPS project performance. It also shows project complexity and uncertainty moderates the relationship between some RM practices and project performance, which implies that a contingency approach should be adopted to manage CoPS risks effectively. In addition, it shows that Asian CoPS implementers are weak in RM process and there are also rooms for improvement in the softer aspects of organizational capabilities and robustness.
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