A new traffic engineering and operation of ATM networks is described, which features adaptive virtual path (VP) bandwidth control and VP network reconfiguration capabilities. We call this operation system resilient self-sizing operation. By making full use of self-sizing network (SSN) capabilities, we can operate an ATM network efficiently and keep high robustness against traffic demand fluctuation and network failures, while reducing operating costs. In a multimedia environment, the multimedia services and unpredictability of traffic demand make network traffic management a very challenging problem. SSNs, which are defined as ATM networks with self-sizing traffic engineering and operation capability are expected to overcome these difficulties. This paper proposes VP network operation methods of self-sizing networks for high flexibility and survivability. The VP network operation is composed of adaptive VP bandwidth control to absorb changes in traffic demand, VP rerouting control to recover from failures, and VP network reconfiguration control to optimize the network. The combination of these controls can achieve good performance in flexibility and survivability.