A Multi-Objective Project Portfolio Formation Model: Case Study of Lithuanian Transport Sector

Abstract

The paper is devoted to develop a decision support system based on multi-objective constrains and implementation of Lean and Six Sigma concepts for project portfolio formation problem in transport sector. A multi-objective model, that facilitates the formation of the efficient project portfolio based on the set of objectives pursued by the organization as well as on the variety of constraints and limitations of projects implementation, was suggested. The importance of Lean and Six Sigma methodologies deployment in the project portfolio formation process is accentuates in the paper. Lean and Six Sigma methodologies play an important role in nowadays’ business environment, as companies are embracing these initiatives to support cost reductions and quality improvements in order to be competitive market players. To implement these developments decision makers face with the problem of efficient project portfolio selection that would meet the multiple objectives and satisfy variety of constraints. The suggested methodology is tested in a case study of Lithuanian transport sector and exemplifies the practical application of this model. The robustness of the methodology can be tested by conducting several case studies in other Lithuanian industries. The article is relevant to both industry practitioners and researchers.