• International conference on construction engineering and project management
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• 2015.10a
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• pp.629-630
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• 2015

'Sabine Pass Liquefaction Project (SPL Project)', a case study in this report, is the first construction project of a U.S. liquefaction facility for shale gas export overseas. This study analyzes the SPL Project to give understanding and a guideline to Korean EPC companies by benchmarking about effective risk-sharing strategies on EPC contracts. This study consists of three parts. The first summarizes the liquefaction process adopted on the SPL Project, named the 'ConocoPhillips Optimized Cascade Process', and compares it with other competitive liquefaction processes. The second introduces the unique features of the SPL EPC contract by comparing it with two other EPC forms of contracts: a FIDIC Silver Book for onshore plant projects and a contract of an offshore oil production (FPSO) project. The third focuses on the complexity of project financing (PF), especially lenders control and impact on the EPC contract such as covenant provisions to constrain variations and changes on the EPC Contract. From these conclusions, it is anticipated that this case study can provide a guideline for successful performance of Korean EPC contractors overseas.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.487-491
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• 2006

As Korea has been industrialized high recently, the constructional plant part which is the major driving force to Korean economic growth is being developed. In spite of the great importance, there are many ill-prepared parts in EPC project management procedure, and working in practice of EPC project management procedure manual is not systematic. That is why the governmental progressive policy on the relevant technology and the establishment of EPC project management procedure are needed. This study was aimed to derive reform measures by analyzing problems of EPC project management procedure manuals which are in use at 13 large-sized construction companies currently. The reform measures which are based on the theory of PMI(Project Management Institute)'s PMBOK(Porjcet Management Body Of Knowledge) are about deriving administration factors to control the project, and EPC project administration factors are derived from the definition of CMAA(Construction Mangement Association of America). The reformed electronic EPC project management procedure manual system is set up by standardizing derived administration factors.

• Korean Journal of Construction Engineering and Management
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• v.9 no.5
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• pp.149-158
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• 2008

Plant construction is being a motive power of national economic growth, because it is a higher value-added business which has enormous influence through other industry. But, plant projects management of the domestic company was poor. So, the development of EPC Business Process Management method has been encouraged. Therefore, this paper performed several researches for setting up the EPC Business Process Management Model for improving plant project management. And the details are as follows. First of all, this study collected the work procedure manuals of 12 large-sized international construction companies. Secondly, from the analyzing gathered EPC work procedure manuals, issues of work procedure manuals were analyzed and improvement plans were drawn out. Basis on this, This study presents a method to improve project management for EPC plant project. 'The Work Procedure Matrix for EPC Management' and 'Key Unit Works for EPC Management' were drawn out by using overseas construction management theories and international regulations. In addition, 'The EPC Business Process Management Models' reformed to the Business process method, that is the set of specifications, documents and procedures used to manage the EPC plant project. And it describes how the EPC work procedure manuals will be used. Finally, this study suggests the model of EPC Business Process Management System. The framework of Plant project management can be clarified by using 'The Work Procedure Matrix'. And 'Key Unit Works' are used to organize the work procedure needed to improve plant projects management. The results of this study will help to improve in project management efficiency for plant construction.

• 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.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.145-150
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• 2013

As a recent global trend, the majority of mega-size plant projects are delivered through EPC (Engineering, Procurement and Construction) contracts, where a single contract is awarded for engineering, procurement, and construction. Under this contracting mechanism, it is challenging for contractors to carry out the projects under traditional project management processes used in design-bid-build projects. A new EPC Plant, the POSCO Special Steel Plant in Changwon, was built successfully at the beginning of 2012 and it is currently in full-scale production. The project has encountered a number of major difficulties however, with some technical and managerial issues through its development process. As summarized in this paper, the authors (as project participants with the contractor) investigated it as a post construction analysis and recorded the Lessons-learned for future project management improvement.

• Plant Journal
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• v.7 no.3
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• pp.48-64
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• 2011

In this work, risks in EPC project for overseas power plant projects are analyzed and risk management methods are suggested to reduce cost and to shorten time. 79% of risks occurred in the engineering phase for S project located in South-East Asia. The impact scales of risks on major project objectives which are cost, time, scope, and quality are analyzed as 3.5, 3.8, 2.7, and 3.7, respectively. The level of impact scales is very similar to each other except the impact scale of scope. The risk management methods suggested in this study have to be applied at the appropriate time to manage risks effectively. After that, risks are managed continuously by monitoring.

• Journal of the Korean Society of Systems Engineering
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• v.6 no.1
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• pp.61-68
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• 2010

Generally EPC management system was simply management concept through the normal S/W. Our LNG Plant R&D Center wanted to the excellent management system from the S/W. So We developed the R&D management S/W and EPC management S/W Built in the Microsoft Project Server. Our system made to the customer Requirements. It was just User Interface protocol. But User Interface has more Weak position, because it makes from the MS Project Servers. Ms Projector server make easy to treat the project on the WBS. EPC parts mixed WBS and normally Ms SQL Database. It has very complicated Structures. Now We planed to make the general Database and Ms Project Server, It' means to the S/W Developer and Schedule Manager ability. We will successfully integrate R&D management system and EPC system and other softwares.

• 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.

• Korean Journal of Construction Engineering and Management
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• v.21 no.3
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• pp.20-27
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• 2020

EPC contractors have made continuous efforts to develop integrated project execution methods to improve the performance of industrial plant project. In particular, the concept of Advanced Work Packaging (AWP) has been recently presented by readjusting the existing "Work Packaging" concept as part of the integrated project execution method from the project life-cycle perspective. However, Korean EPC contractors are still unfamiliar with the AWP implementation. Thus, this study aims to identify the organizational competency factor for effective implementation of AWP. For this purpose, first, this study identified the expected risks in AWP project and the 29 organizational competency factors to manage risks. Second, five experts verified the suitability of factors and supplemented the factors. Finally, 37 factors were identified as organizational competency factors for implementing AWP.

• Journal of the Korea Convergence Society
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• v.10 no.10
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• pp.173-183
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• 2019

The purpose of research is to explore the direction of building a collaborative supply chain, which may enhance the competitiveness of firms and their project-based supply chain. Large-scale plants or large-scale buildings construction is referred to as a EPC project. To identify a collaboration mechanism in the project-based supply chain, the empirical research was conducted on the interrelationship between the absorption capacity of firms participating in the EPC project, the incentive norms, the goal congruence with supply chain, and the ability of respond to changes of the task of supply chain. PLS-SEM was used as an analysis method to verify the research model. It is expected that the results will help inform the need for SCM, the importance of the incentive norms and the goal congruence in the supply chain of EPC project.