• International conference on construction engineering and project management
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• 2013.01a
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• pp.338-343
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• 2013

Integrated Project Delivery (IPD) as a delivery method fully capitalizes on an integrated project team that takes advantage of the knowledge of all team members to maximize project outcomes. IPD is currently the highest form of collaboration available because all three core project stakeholders, owner, designer and contractor, are aligned to the same purpose. Compared with traditional project delivery approaches such as Design-Bid-Build (DBB), Design-Build (DB), and CM at-Risk, IPD is distinguished in that it eliminates the adversarial nature of the business by encouraging transparency, open communication, honesty and collaboration among all project stakeholders. The team appropriately shares the project risk and reward. Sharing reward is easy, while it is hard to fairly share a failure. So the compensation structure and the contingency in IPD are very different from those in traditional delivery methods and they are expected to encourage motivation, inspiration and creativity of all project stakeholders to achieve project success. This paper investigates the compensation structure in IPD and provides a method to determine the proper level of contingency allocation to reduce the risk of cost overrun. It also proposes a method in which contingency could be used as a functional monetary incentive when established to produce the desired level of collaboration in IPD. Based on the compensation structure scenario discovered, a probabilistic contingency calculation model was created by evaluating the random nature of changes and various risk drivers. The model can be used by the IPD team to forecast the probability of the cost overrun and equip the IPD team with confidence to really enjoy the benefits of collaborative team work.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.17-24
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• 2016

Many organizations have transformed their business in order to survive and compete in the future. They generate projects by creating a vision, using strategies and objectives with funds aligning strategies and make efforts to complete them successfully because project success leads to business success. All projects have triple constraints such as scope, time, and cost to be completed. Project cost performance is a key factor to achieve project goals and which is mostly related with risks among various cost drivers. Projects require a cost estimation method to complete them within their budget and on time. An accurate budget cannot be estimated due to the uncertainties and risks. Thus some additional money should be funded in addition to the base budget as a contingency reserve for identified risks and a management reserve for unidentified risks. While research on contingency reserve for identified risks included in project budget baseline have been presented, research on management reserve for unidentified risks included in total project budget is still scarce. The lack of research on estimation method and role of the management reserve have made project managers little confidence to estimate project budget accurately with reasonable basis. This study proposes a practical model to estimate budgets including contingency and management reserves for not only project cost management but also to keep the balance of organization's total funds to maximize return on investments for project portfolio management. The advantages of the proposed model are demonstrated by its application to construction projects in Korea and the processes to apply this model for verification are also provided.

• Journal of Electrical Engineering and Technology
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• v.4 no.3
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• pp.353-359
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• 2009

This paper proposes a novel technique for calculating the security costs that properly includes ramping constraints in the operation of a deregulated power system. The ramping process is modeled by a piecewise linear function with certain assumptions. During this process, a ramping cost is incurred if the permissible limits are exceeded. The optimal production costs of the power producers are calculated with the ramping cost included, considering a time horizon with N-1 contingency cases using contingency constrained optimal power flow (CCOPF), which is solved by the primal-dual interior point method (PDIPM). A contingency analysis is also performed taking into account the severity index of transmission line outages and its sensitivity analysis. The results from an illustrative case study based on the IEEE 30-bus system are analyzed. One attractive feature of the proposed approach is that an optimal solution is more realistic than the conventional approach because it satisfies physical constraints, such as the ramping constraint.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.49 no.6
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• pp.305-311
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• 2000

This paper presents a hybrid algorithm for solving optimal power flow(OPF) in order to enhance a systems capability to cope with outages, which is based on combined application of evolutionary computation and local search method. The efficient algorithm combining main advantages of two methods is as follows : Firstly, evolutionary computation is used to perform global exploitation among a population. This gives a good initial point of conventional method. Then, local methods are used to perform local exploitation. The hybrid approach often outperforms either method operating alone and reduces the total computation time. The objective function of the security constrained OPF is the minimization of generation fuel costs and real power losses. The resulting optimal operating point has to be feasible after outages such as any single line outage(respect of voltage magnitude, reactive power generation and power flow limits). In OPF considering security, the outages are selected by contingency ranking method(contingency screening model). The OPF considering security, the outages are selected by contingency ranking method(contingency screening model). The method proposed is applied to IEEE 30 buses system to show its effectiveness.

• Asia pacific journal of information systems
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• v.3 no.1
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• pp.190-213
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• 1993

The information revolution is sweeping through the global economy. Information technology is transforming the structure of competition. The successful implementation of information technology is dependent on the effectiveness of information systems planning. However, it is very difficult to select an appropriate methodology for information systems planning given an organization situation. A contingency model is proposed on the selection of an appropriate approach depending upon the organizational situation. Although the contingency framework is not yet theoretically proved, the approaches suggested here turned out to be of benefit to the cases of the two real world projects studied. These approaches attempt to combine Business Systems Planning of IBM and Critical Success Factors in two different manners to make planning process more efficient and effective.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.106-118
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• 2007

Little attention has been focussed on a precise definition and evaluation mechanism for project management risk specifically related to contractors. When bidding, contractors traditionally price risks using unsystematic approaches. The high business failure rate our industry records may indicate that the current unsystematic mechanisms contractors use for building up contingencies may be inadequate. The reluctance of some contractors to include a price for risk in their tenders when bidding for work competitively may also not be a useful approach. Here, instead, we first define the meaning of contractor contingency, and then we develop a facile quantitative technique that contractors can use to estimate a price for project risk. This model will help contractors analyse their exposure to project risks; and also help them express the risk in monetary terms for management action. When bidding for work, they can decide how to allocate contingencies strategically in a way that balances risk and reward.

• Korean Business Review
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• v.5
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• pp.161-183
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• 1992

This paper has an aim to look into whether it is possible for us to make an approach the budgeting control with the theory of human relation. This is only a traditional method and also it is open to criticism. I think modem budgetion control should be debeloped by the contingency theory. As the environment is changing continuously, the budgeting control system which can be adapted for this change should be built up. This paper consists of management control, human relation model method and changes of budgeting control.

• Journal of the Korean Statistical Society
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• v.13 no.1
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• pp.1-19
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• 1984

A random effects model of a one-way layout contingency table is developed using a Dirichlet-multinomial distribution. A test statistic, say $T_k$, is suggested for detecting Dirichlet-multinomial departure from a multinomial distribution. It is shown that the $T_k$ test is asymptotically superior to the classical chi-square test based on the asymptotic relative efficiency. This superiority is further evidenced by a Monte Carlo simulation.

• Journal of the Korean Data and Information Science Society
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• v.27 no.1
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• pp.245-254
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• 2016

Many surveys provide categorical data and there may be one or more missing categories. We describe a nonignorable nonresponse model for the analysis of two-way contingency tables from small areas. There are both item and unit nonresponse. One approach to analyze these data is to construct several tables corresponding to missing categories. We describe a hierarchical Bayesian model to analyze two-way categorical data from different areas. This allows a "borrowing of strength" of the data from larger areas to improve the reliability in the estimates of the model parameters corresponding to the small areas. Also we use a nonignorable nonresponse model with Bayesian uncertainty analysis by placing priors in nonidentifiable parameters instead of a sensitivity analysis for nonidentifiable parameters. We use the griddy Gibbs sampler to fit our models and compute DIC and BPP for model diagnostics. We illustrate our method using data from NHANES III data on thirteen states to obtain the finite population proportions.

• Journal of Information Technology Applications and Management
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• v.16 no.2
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• pp.1-21
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• 2009

The balanced scorecard(BSC) framework is a tool for strategic decision making and task support that aims for efficiency in performance management and strategy execution. BSC evolved from an old performance management practice, which tended to be limited to a finance-only perspective, to a new system of corporate management looking at corporate tasks from a multi-dimensional, future-inclined value perspective. This form of BSC amounts to a framework capable of driving management innovation and renewing the ways in which companies conceive their strategy and perform their operations. Since BSC draws integrally on user participation, it can be expected that users' satisfaction with BSC systems is an important factor in systems' success or failure. However, previous studies of the BSC system have not yet considered it as a theoretical model, specifically examining BSC system and task characteristics. To date, only a few studies have put forward plans for the implementation and use of BSC systems, and these studies have the common limitation of failing to consider the circumstances or theoretical structure of the companies for which a BSC system is being proposed. This paper then begins to fill some of this gap by characterizing the BSC system from the perspective of contingency theories. Contingency theories can be particularly useful in the Korean context in exploring how different companies use the BSC system in ways determined by their unique environmental characteristics, which may also determine the performance factors behind the application of a company's particular BSC system. In order to provide concrete suggestions for implanting and using the BSC system from a contingency theory perspective, this study sets out to determine the relationships between the contingency variables affecting BSC system performance and BSC system property variables(in given cases) through an empirical analysis. The study takes into account the perspective from which contingency theory is to be applied in individual cases, sets contingency and BSC property variables with reference to the BSC system user's environment and BSC system's character, and frames initial hypotheses concerning corporate structure and environmental variables and BSC system performance variables with reference to previous studies. A survey was then conducted on users in Korean companies that have implemented the BSC system in order to verify the research model and understand results.