• Plant Journal
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• v.13 no.2
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• pp.39-45
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• 2017

This paper is a study on FEED validation model that can be used in the bidding stage of small utility equipment in offshore plant industry using system engineering technique. Currently, domestic marine plant equipment industry companies are faced with the financial risk of project execution as they enter marine plant. The major cause was the insufficient ability to verify the FEED output from the contractor (Engineering or Procurement and Construction) of the equipment manufacturer (COMPANY or EPC). Therefore, we propose FEED design verification method that simplifies the system engineering method that sequentially applies requirements analysis, function, performance analysis and physical architecture building process. Also, we verified the suitability of the developed model by comparing the results of applying the developed FEED verification model and the verification method that depends on the existing experience for the small utility equipment (Air Compressor).

• Korean Journal of Construction Engineering and Management
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• v.11 no.5
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• pp.3-14
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• 2010

This study investigated and analyzed feasibility analysis case studies, carried out by contractor of EPC LSTK projects in the planning stage to suggest the strategies to solve problems for project improvement. For this, five feasibility analysis case studies of gulf cooperation council (GCC) countries were reviewed and investigated. The results can be summarized as follows: 1) Those factors needed to be analyzed, including cost increase, project delay, quality decrease were insufficiently considered when assessing feasibility. 2) And improvement strategies for three problems mentioned above were suggested based on findings in feasibility analysis. 3) Lastly the process of the project feasibility analysis that can be applied to overseas plant construction project was suggested step by step.

• Plant Journal
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• v.5 no.1
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• pp.51-59
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• 2009

The global plant construction market has grown dramatically since 2000. As the market grows, domestic EPC contractors are expanding to meet its needs and have made great strides in terms of economic indicators from a decade ago. Larger projects involve a number of risk factors, such as volatile oil prices, however, and thus require quantitative and elaborate project management techniques for the ultimate success of a project's profitability. In addition, many Korean companies face difficulties in predicting potential risks and problems due to a lack of experience in dealing with the global market trend toward projects based on the Cost-re(Cost Reimbursable) contract as opposed to those based on the LSTK(Lumpsum Turnkey) contract. This study will examine methods and types of man-hour management according to plant project contract types. Further, it will explore the man-hour management system for successful completion of projects by satisfying the client's needs and enhancing the convenience in engineers' using the system. Additionally, this study will analyze the current system and identify its problems to address potential problems.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.4
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• pp.72-80
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• 2016

The market size of plant projects in overseas is so large that domestic EPC project contractors are actively seeking the overseas projects and then trying to meet completion plans since successful fulfillment of these projects can provide great opportunities for them to expand into new foreign markets. International EPC projects involve all of the uncertainties common to domestic projects as well as uncertainties specific to foreign projects including marine transportation, customs, regulations, nationality, culture and so on. When overseas project gets off-schedule, the resulting uncertainty may trigger unexpected exceptions and then critical effects to the project performance. It usually require much more time and costs to encounter these exceptions in foreign sites compared to domestic project sites. Therefore, an exception handling approach is required to manage exceptions effectively for successful project progress in foreign project sites. In this research, we proposed a methodology for prediction and evaluation of exceptions caused by risks in international EPC projects based on sensitivity analysis and Bayesian Networks. First, we identified project schedule risks and related exceptions, which may meet during the fulfillment of foreign EPC projects that is performed in a sequence of engineering, procurement, preparatory manufacture, foreign shipping, construction, inspection and modification activities, and affect project performance, using literature review and expert interviews. The impact of exceptions to the schedule delay were also identified. Second, we proposed a methodology to predict the occurrence of exceptions caused by project risks and evaluate them. Using sensitivity analysis, we can identify activities that critically affect schedule delay and need to focus by priority. Then, we use Bayesian Networks to predict and evaluate exceptions. Third, we applied the proposed methodology to an international EPC project example to validate the proposed approach. Finally, we concluded the research with the further research topics. We expect that the proposed approach can be extended to apply in exception management in project management.

• Plant Journal
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• v.11 no.1
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• pp.39-49
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• 2015

The objective of this study is to improve the classification structure of commodity code for piping material management which is considered as the fundamental of commodity code and piping material management system. It enhances the efficiency of piping material management directly or indirectly affecting the engineering, procurement and construction in a petrochemical plant projects. To establish an improved code classification structure, this study identifies the problems of former code classification structure in details, as well as the characteristics of other domestic and global EPC company's code classification structures and presents the improved direction considering the recently mega-sized and specialized projects. Accordingly, to efficiently enhance piping material management, the improved code classification structures have been derived from defining suitable code classification structure for specific piping component, adding more standard attribute, expanding the number of code digits and classifying code hierarchy. The results of applying the improved classification structure of commodity code to on-going project have led to reduce the rate of rework from 4.98% to 2.48% for developing purchase description and also have saved working time for executing piping design by 3D modeling from 6 months by two persons to 4 months by a person which is decreased 67% consequently. In addition, the structures of pyramid code management have resulted to accumulation and analysis of the various piping data for other disciplines such as procurement and estimation team which require commodity code information through the company's material control system.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.19 no.4
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• pp.151-160
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• 2019

EPC companies to continue operating overseas, it is increasingly becoming apparent that risk is no longer something to be avoided but a subject to be managed. During the bidding stage, the requirements, specifications and project line items within the bid package must be studied in details to analyze the various risk factors in order to avoid cost overruns. However, reviewing vast quantities of bidding documents is time consuming and labor intensive and is not an easy task and this is where automated information technology can help. For this study, I have constructed an ITB analysis model based on Watson AI that can analyze and apply vast amount of documents more effectively in a short time. Configuration of the Watson Explorer AI architecture for AI-based ITB risk management model research, the selection of learning procedures and analysis subjects, and the performance evaluation criteria were defined, and a test bed was constructed to conduct a pilot research. Consequently, I verified the effectiveness of the analytical time reduction and the quality of its results and VOC operations by professionals.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.204-209
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• 2006

Despite the recent depression of the construction industry, overseas plant market especially Middle East plant market is booming owing to the high oil price. Since many Middle Eastern countries are placing orders of big scale projects based on the high oil price, Korean EPC contractor are trying to get over the depression through theses plants. Presently, since the plant market is in prosperous condition in general, it is not hard to get overseas orders; however the original licenses that requirehigher technology and high added values are exclusive for advanced engineering companies which great difficulty is predicted for developing countries like us to join the crowd. Therefore, the objective of this study is to propose establishment of material management system on the filed to gain optimized effect of material management in connection with procurement system that all the procurement related personals execute tasks in advanced level by systemizing the task operation within the knowledge and task ability in time for plant construction procurement as a method to strengthening the competitiveness of Korean companies.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.491-494
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• 2007

Recently Gas & Oil plant construction projects are increasing in the world. The EPC (Engineering, Procurement and Construction) company, which participate in the plant projects, should possess the pertinent engineering license and procurement skill to create high added-value. It is because the procurement is very substantial to cover 70% of the total project cost. Nonetheless, there exist various risks involved in the procurement process due to the characteristics of the construction projects with long duration and complicated process as well as the procured goods or services subjected to various logistics. The objective of this paper is to analyze proper process in the procurement and to identify various information and document. Also to analyze procurement process, the principal data are derived from the interview with experts and specialty contractors of plant project. The result of this study would widely be used as a guide to the procurement personnel in forecasting the risks in advance.

• Korean Journal of Construction Engineering and Management
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• v.16 no.5
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• pp.65-76
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• 2015

FEED (Front End Engineering and Design) is the key area that determines the competitiveness of procurement and construction in the EPC contracts especially in terms of the added value. Nevertheless, previous researches in FEED have been limited to the process and deliverable of design work or the particular management business function (e.g. System Engineering, collaboration, information etc.). In this context, the purpose of this study is to propose a comprehensive FEED structure and its functions from the project management perspective throughout the whole project life-cycle for thermal power plants. Proposed FEED business procedures are classified into three levels; First level is the classification of FEED business phases, the second level defines major FEED management functions, and the third level is detailed FEED functions. A survey using proposed FEED functions and assessment variable was conducted in order to analyze the current status and the areas for future improvement. It is expected that the proposed structure, functions, and evaluation methodology for FEED management will contribute to effective practice of FEED as well as to improvement of competitive capability for engineering, procurement, and construction (EPC) companies.

• Journal of Digital Convergence
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• v.16 no.6
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• pp.75-84
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• 2018

Although many logistics companies are interested in project logistics, the existing research has been limited to the growth potential of project logistics market and the high barrier and importance of project logistics. This study analyzes using DEA the operational efficiency of forwarding companies registered in major overseas construction EPC companies and performing logistics services for overseas plant construction projects. For efficiency analysis, Super-SBM analysis and Malmquist analysis are used among DEA analysis techniques. As a result of the Super-SBM analysis, DMU 5 ranked first at 1.807. DMU 5 is more efficient than the other large corporations because it has the stable supply of its parent company H and the smallest input and output variables among the large corporations. As a result of Malmquist analysis, TCI, which is a technological development, showed a fluctuation while TECI showed a relatively stable variation. In addition, there is a difference in scale between major companies and small and medium sized companies. So, it is necessary to identify the efficiency improvement strategy for each group and apply it to the practical work.