• Title/Summary/Keyword: Cost Overrun

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A Process of the Technical Performance Management for A Space Launch Vehicle R&D Project (우주발사체 개발사업을 위한 기술성능관리 프로세스)

  • Yoo, Il Sang;Cho, Dong Hyun;Kim, Keun Taek
    • Journal of the Korean Society of Systems Engineering
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    • v.10 no.2
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    • pp.71-79
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    • 2014
  • To enhance success probability of a system development project, its overall risk level should be minimized through systematically managing schedules, costs, and technical performances. However, Attempts to manage technical performance compared to numerous efforts to control costs and schedules in such projects are deficient. Particularly, a space launch vehicle, a large complex system, development project is much less likely to meet its technical performance objectives due to its technological difficulty, along with schedule delay and cost overrun. The technical performance management (TPM) is a method for tracking and managing technical progress in order to achieve technical performance targets within schedule and budget. In this paper, we investigate applications of the TPM in several space launch vehicle development projects. Then we propose and validate the TPM process to achieve a successful mission in such projects.

A Method for Schedule Simulation Considering Rework and Uncertainty (재작업과 불확실성을 고려한 일정 시뮬레이션 방법론)

  • Kim, Chan-Mook;Park, Young-Won
    • Journal of the Korean Society for Railway
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    • v.12 no.1
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    • pp.135-143
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    • 2009
  • The majority of development projects fail to meet their target schedule and cost, with the overrun typically between 40 and 200 percent. These overruns happen because the planners underestimate the work or do not consider the need to rework at project planning. Representative schedule planning/management techniques such as Gantt Chart, PERT/CPM etc. that are used in domestic project planning are unable to reflect rework. This paper proposes a method to consider rework to provide more realistic estimates at schedule planning. Additionally, to prevent the underestimation of the work this paper proposes a simulation method that calculates a probabilistic estimated schedule and the associated variance based on the random variable modeling of individual task completion dates.

Collaborative Process to Facilitate BIM-based Clash Detection Tasks for Enhancing Constructability

  • Seo, Jung-Ho;Lee, Baek-Rae;Kim, Ju-Hyung;Kim, Jae-Jun
    • Journal of the Korea Institute of Building Construction
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    • v.12 no.3
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    • pp.299-314
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    • 2012
  • One of reasons for introducing Building Information Modeling (BIM) is to support clash detection tasks by means of a 3D product model. In the conventional construction project process, clashes have been found during construction phase. However, it can cause cost overrun and time delay. In order to investigate and correct clash detections at design phase, relevant business process and guide for this task should be provided. This study aims to identify hindrances in clash detection tasks at the design phase and analyze its current process using IDEF0 model. Despite the convenience of IDEF0 as a systems analysis tool, professional participants might have difficulties to understand their own tasks according to business process. For this reason, in this research, Business Process Model and Notation (BPMN) is introduced to provide ideal process and required decision making governance. The provide BPMN model will provide insights for a BIM-based collaborative environment to enhance the constructability through the construction project.

Investigating Main Causes for Schedule Delay in Construction Projects in Bangladesh

  • Rahman, MD. Mizanur;Lee, Young Dai;Ha, Duy Khanh
    • Journal of Construction Engineering and Project Management
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    • v.4 no.3
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    • pp.33-46
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    • 2014
  • Delay is the most common problem in the construction industry. It has many negative effects on project's success in terms of time, cost, quality, and safety. From the literature review, a total of thirty-five factors of delay were selected. These factors were divided into seven groups related to materials, manpower, owner, consultant, contractor, construction, and external problems. This study was carried out to identify the main causes of delay for a construction project through their importance level. The importance level was determined based on the frequency of occurrence and severity of impact. The structured questionnaire has distributed to the respondents who have much experience in construction management in Bangladesh. The results of analysis indicated that top five factors of construction delay according to their level of importance are: (1) price of construction materials increased very rapidly, (2) political situation (revolution/ public strikes), (3) shortages of skilled workers, (4) poor site management and supervision by contractor, (5) incompetent/ immature subcontractors. These findings of this study are expected to be significant contributions to Bangladesh construction industry in controlling current performance of project on time overrun.

The Effect of Task Interdependence and User Participation on Software Development Project Performance (업무상호의존성과 사용자참여가 소프트웨어 개발 프로젝트 성과에 미치는 영향)

  • Hong Myung-Hon;Kim Shinkon;Kim Jeonggon
    • Journal of Information Technology Applications and Management
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    • v.12 no.1
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    • pp.213-229
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    • 2005
  • Cost overrun or schedule delay of the software development project happens frequently despite that software developers continue to make every effort for the effective management of the projects. Previous researches have ascertained that these problems are ascribed to the uncertainty of projects and the improper management of the projects. The purposes of this research are to investigate the impacts of user participation and task interdependence on the performance of the projects and also to find out the appropriate project management method to improve the project performance. Even though the model fitness of the path model is proved to be very high, the verification of the hypotheses showed a variety of results including the four verifications and the one refutation of the hypotheses as well as the suggestion of one alternative hypothesis. The contribution of this research is that the integration model is proposed and verified, comprising the relationship among the user participation, the task interdependence, and the performance of software development projects. A project manager can utilize the implication of this research for an effective management of software development project.

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Utilization of Failure Examples in Detail Design for Oil and Petrochemical Plant Project (석유화학 플랜트 프로젝트 상세설계 실패사례활용방안에 대한 연구)

  • Kang, Tae-Young;Moon, Seung-Jae;Yoo, Hoseon
    • Plant Journal
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    • v.5 no.2
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    • pp.62-67
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    • 2009
  • The capability of design and engineering of global EPC companies has long been equalized through past similar construction experiences. Among various key factors in the success of EPC project, the capability of engineering is considered to be the most important factor since the engineering is preceding activities of EPC contract. The failure of engineering may adversely affect the subsequent procurement & construction activities and in turn may cause cost overrun or schedule delay. Therefore, an EPC company needs to continue to improve the engineering capabilities for the success of project. The engineering capabilities can be further improved if the EPC company should prevent recurrence of similar design faults that were previously committed. This study is intended to present how to make the most of the failure examples from previous projects towards a success of project. Failure is but a stepping stone to success. The EPC company can obtain useful lessons from the analysis of past failure examples.

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Barriers of Last Planner System: A Survey in Vietnam Construction Industry

  • Khanh, Ha Duy;Kim, Soo Yong
    • Journal of Construction Engineering and Project Management
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    • v.3 no.4
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    • pp.5-11
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    • 2013
  • Construction industry is overwhelmed by delay and often has suffered cost and time overrun. In this context, Last Planner System (LPS) has been considered as a very useful tool for the management of the construction process. Many previous studies have reported its effectiveness in construction performance. This study aims to evaluate the level of importance of the Last Planner processes in the Vietnam construction industry (VCI), and analyze the existing barriers when implementing these processes in construction management. These barriers were collected based on previous studies from International Group for Lean Construction (IGLC). A survey was carried out through questionnaire. The respondents are been experienced people in construction project management. There are four processes of LPS that were investigated including master schedule, phase schedule, lookahead plan, and weekly work plan. The results showed that master schedule is the most important item when performing a construction project in the VCI. The highest degree of agreement belongs to 'owner - contractor' pair with 77.1% importance indices; whereas the lowest belongs to 'consultants - contractors' pair with 63.8% importance indices. Eventually, three barrier factors were extracted from factor analysis technique with 62.2% of variance explained.

Stakeholders' Perception of the Causes and Effect of Construction Delays on Project Delivery-A Review

  • Gandhak, Prajyot;Sabihuddin, Syed
    • Journal of Construction Engineering and Project Management
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    • v.4 no.4
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    • pp.41-46
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    • 2014
  • Indian Construction industry is large, volatile, and requires tremendous capital outlays. Typically, the work offers low rates of return in relation to the amount of risk involved. A unique element of risk in the industry is the manner in which disputes and claims are woven through the fibre of the construction process. Delay is generally acknowledged as the most common, costly, complex and risky problem encountered in construction projects. Because of the overriding importance of time for both the Owner and the Contractor, it is the source of frequent disputes and claims leading to lawsuits. The growing rate of delays is adversely affecting the timely delivery of construction projects. Presently construction industries are facing a lot of problems, considering that a paper assess construction stakeholder's perception to the causes of delays and its effects on project delivery. And also one case study is considered in this paper to elicit responses from construction stakeholders. The primary aim of this paper is to identify the perceptions of the different parties regarding causes of delays, the allocation of responsibilities and the types of delays, and method of minimizing the construction delays.

Interrelationship Analysis between Causal Factors of Construction Defect Using Association Rule Mining

  • Lee, Sang-Deok;Han, Sang-Won;Hyun, Chang-Taek
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.627-628
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    • 2015
  • Construction defect which can causes economic damage such as schedule delay, cost overrun is a considerably important factor in construction industry. In general, a construction defect features a difficulty to find out causes precisely because it occurs when several interrelated causes combine. Yet, studies have tried to understand the interrelationships between factors are limited. In addition, despite of a tremendous amount of construction data, it's not still enough to analyze them, but tends to depend on experience or know-how of practitioners. Thus, it is necessary to identify underlying causes in influential factors by utilizing related data. This paper analyses Interrelationships between causal factors using Association Rule Mining to discover root causes of construction defects. Confidence and Lift that can be used for presenting the interrelationships of the causes were extracted from 1241 cases in 30 projects in Korea. It is expected that this paper allows the construction managers to discover key factors and make right decisions to reduce occurrence of construction defects. Furthermore, analysis of interrelationships can improve understanding of structural patterns of construction defects.

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Optimization Methodology for Sales and Operations Planning by Stochastic Programming under Uncertainty : A Case Study in Service Industry (불확실성하에서의 확률적 기법에 의한 판매 및 실행 계획 최적화 방법론 : 서비스 산업)

  • Hwang, Seon Min;Song, Sang Hwa
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.4
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    • pp.137-146
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    • 2016
  • In recent years, business environment is faced with multi uncertainty that have not been suffered in the past. As supply chain is getting expanded and longer, the flow of information, material and production is also being complicated. It is well known that development service industry using application software has various uncertainty in random events such as supply and demand fluctuation of developer's capcity, project effective date after winning a contract, manpower cost (or revenue), subcontract cost (or purchase), and overrun due to developer's skill-level. This study intends to social contribution through attempts to optimize enterprise's goal by supply chain management platform to balance demand and supply and stochastic programming which is basically applied in order to solve uncertainty considering economical and operational risk at solution supplier. In Particular, this study emphasizes to determine allocation of internal and external manpower of developers using S&OP (Sales & Operations Planning) as monthly resource input has constraint on resource's capability that shared in industry or task. This study is to verify how Stochastic Programming such as Markowitz's MV (Mean Variance) model or 2-Stage Recourse Model is flexible and efficient than Deterministic Programming in software enterprise field by experiment with process and data from service industry which is manufacturing software and performing projects. In addition, this study is also to analysis how profit and labor input plan according to scope of uncertainty is changed based on Pareto Optimal, then lastly it is to enumerate limitation of the study extracted drawback which can be happened in real business environment and to contribute direction in future research considering another applicable methodology.