The Role of System Dynamics in Project Management: A Comparitive Analysis with Traditional Models

Abstract

The increasing rate of change to which organizations are exposed, along with the growing complexity of projects and of the environment, has highlighted some weaknesses of traditional approaches in coping with the strategic issues of project management. System Dynamics models provide a useful tool for a more systematic management of these strategic issues. There have been a number of applications of System Dynamics in project management; this experience permits a tentative comparison with the more traditional approaches and to examine the particular benefits of system dynamics. The conflicts of options between their supporters stress the different perspective underlying the two approaches. The comparison of the two approaches is focused on the "view" of the project management process. Although they both assume a system perspective, identifying a cycle of planning, implementation and control, the level of detail in which they consider the project system is different. Traditional models support the project manager in the operational problems within the process, while System Dynamics models provide more strategic insights and understanding about the effectiveness of different managerial policies. For effective project management both operational and strategic issues have to be handled properly. This paper suggests an approach to combining the lessons of system dynamics and traditional models within a single, integrated project management methodology.