An application of zero–one goal programming in project selection and resource planning – a case study from the Woodward Governor Company

Abstract

This paper deals with a project for the Aircraft Controls Group but the model is applicable to all companies that have multiple projects to select and limited resources. The zero–one goal programming (GP) model of this paper focuses on a specific component in the engine control system that has been identified as a potential growth area. Woodward has performed a detailed market analysis and has selected several potential engine programs to pursue. Decisions must be made to determine most advantageous programs to pursue in light of limited resources including capital, personnel and machinery. Therefore, a quantitative method is required for determining which programs to pursue and when they should be pursued. The GP model described in this paper has been developed to determine which programs to pursue in an effort to maximize profit over a four-year period, develop machine procurement plans and estimate personnel requirements. Scope and purpose This paper addresses the quantitative methodology for determining possible implementable solutions to project selection problems in Woodward Governor Company using computers. Also, this paper describes how mathematical methodology can be used for the actual real-world business applications. The purpose of this paper is to present an application of goal programming as an aid in project selection. The model determines most advantageous project to pursue in light of limited resources including capital, personnel and machinery by utilizing a quantitative methodology. The model is applied in a real-word setting and implementation procedure and results are discussed.