• Journal of the Korea Safety Management & Science
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• v.4 no.4
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• pp.15-26
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• 2002

The quantitative evaluation method of the safety management cost was suggested to prevent a gas accident as a major industrial accident. In a gas governor station, process risk assessments such as the fault tree analysis(FTA) and the consequence analysis were performed. Based on process risk assessments, potential accident costs were estimated and the cost-benefit analysis(CBA) was performed. From the cost-benefit analysis for five classification items of safety management cost, the order of the cost/benefit ratio was estimated.

• Smart Structures and Systems
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• v.21 no.2
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• pp.249-255
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• 2018

Many studies in risk management have been focused on management process, contract relation, and risk analysis in the past decade, but very few studies have addressed project risks from the perspective of risk efficiency. This study started with using Fault Tree Analysis to develop a framework for the decision-making support system of risk management from the perspective of risk efficiency, in order for the support system to find risk strategies of optimal combination for the project manager by the trade-off between project risk and cost of project strategies. Comprehensive and realistic risk strategies must strive for optimal decisions that minimize project risks and risk strategies cost while addressing important data such as risk causes, risk probability, risk impact and risk strategies cost. The risk management in the construction phase of building projects in Taiwan upon important data has been analyzed, that provided the data for support system to include 247 risk causes. Then, 17 risk causes were extracted to demonstrates the decision-making support system of risk management from the perspective of risk efficiency in building project of Taiwan which could reach better combination type of risk strategies for the project manager by the trade-off between risk cost and project risk.

• Korean Journal of Construction Engineering and Management
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• v.13 no.2
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• pp.147-155
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• 2012

Recently, various construction projects are invested with plenty capital, manpower and resources. The advanced methods of the construction management is introduced to Korea. However, the cases which get involved in excessive cost frequently occur. We can explain it means that the cost management in the entire phases and the risk factors in its works has not been done yet as expected. Thus, it is necessary to unearth risk factors relative to cost management and analyse them for preventing cost-increasing and the success of projects. In this point of view, this study aims to identify the risk factors of the cost management focused on pre-construction stages from the perspective of construction management which is possible to take part in the whole phases and works in cost management. Also, the impact priority and grade of risk factors to cost-increasing are evaluated by using FMEA.

• Korean Journal of Construction Engineering and Management
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• v.7 no.4 s.32
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• pp.177-183
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• 2006

Risk-based estimation has been successfully introduced into the construction industry. By incorporating historical data associated with probability analysis, risk-based estimate is an effective decision support aid in considering whether to launch a particular project. The industry challenges, however, especially related with management issues, such as labor shortage, wage growth, and supply chain complexity, have often resulted in poor cost performance. The insufficient assessing the project characteristics (i.e., resource availability, project complexity, and project delivery method) can be the main reasons in the poor cost performance. Because the accuracy level of cost performance prediction can be enhanced by extensive evaluation of the subject project characteristics, a new approach for predicting cost performance in an earlier stage of a project can improve the Industry substantiality, in other words, value maximization. The purpose of this paper is to develop a new methodology in developing a risk-based estimate tool by incorporating extensive project characteristics. To do this, an extensive industry survey was conducted from both private and public sectors in building industry in Korea. In addition, significant project characteristics were identified in terms of cost performance indicator. Although the data collection is limited to Korean industry the suggested approach provides the industry with a straightforward methodology in risk management. As many researchers maintained that front-end planning efforts are crucial in achieving the successful outcome in building projects, the new method for risk-based estimation can Improve the cost performance as well as enhance the fulfillment in terms of business sustainability.

• Journal of the Korean Operations Research and Management Science Society
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• v.20 no.1
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• pp.85-99
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• 1995

Increasingly, risk analysis is becoming important ingredients in achieving the successful implementation and application in the area of the project management. The project management system is designed to manage or control the project resources on a given activity within time, cost and performance so called TPPM (Total Productive Project Management). In this research, a risk analysis model misproposed to identify potential problem areas, quantify the risks, and generated the chice of the action that can be taken to reduce the risk. In addition two analysis models are proposed : 1) risk factor model and 2) network simulation model using VERT (Venture Evaluation and Review Technique ). The objective of the remodels is to estimate the schedule, cost performance risks. These proposed quantitative models for project risk analysis are proving its value for the project managers who need to assess the risk of changes in cost, schedule, or performance. The proposed models will be used in the area of project selection, evaluation and the allocation of project resources.

• Journal of the Korean Operations Research and Management Science Society
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• v.35 no.4
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• pp.33-53
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• 2010

When purchase prices of a raw material fluctuate over time, the total purchasing cost is mainly affected by reordering time. Existing researches focus on deciding the right time when the demand for each period is replenished at the lowest cost. However, the decision is based on expected future prices which usually turn out to include some error. This discrepancy between expected prices and actual prices deteriorates the performance of inventory models dealing with fluctuating purchase prices. In this paper, we propose a new inventory model which incorporates not only cost but also risk into making up a replenishment schedule to meet each period's demand. For each replenishment schedule, the risk is defined to be the variance of its total cost. By introducing the risk into the objective function, the variability of the total cost can be mitigated, and eventually more stable replenishment schedule will be obtained. According to experimental results from crude oil inventory management, the proposed model showed better performance over other models in respect of variability and cost.

• Computational Structural Engineering : An International Journal
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• v.2 no.1
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• pp.19-23
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• 2002

A reliability-based cost-benefit model for the risk management of oil platforms in the formulation of optimal decisions based on life-cycle consideration is proposed. The model is based on structural risk assessments and the integration of social issues and economics into the management decision process. Structural risks result from the platform's exposure to the random environmental loading associated with the offshore site where it is located. Several alternative designs of a typical platform are proposed and assessed from the cost-effectiveness viewpoint. This assessment is performed through the generation of cost/benefit relationships that are used, later on, to select the optimal design.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.488-493
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• 2013

Accurate initial cost estimates are essential to effective management of construction projects where many decisions are made in the course of project management by referencing the estimates. In practice, the initial estimates are frequently derived from historical actual cost data, for which standard distribution-based techniques are widely applied in the construction industry to account for risk associated with the estimates. This approach assumes the same probability distribution of estimate errors for any selected estimates. This assumption, however, is not always satisfied. In order to account for the probabilistic nature of estimate errors, an alternative method for measuring the risk associated with a selected initial estimate is developed by applying the Bayesian probability approach. An application example include demonstrates how the method is implemented. A hypothesis test is conducted to reveal the robustness of the Bayesian probability model. The method is envisioned to effectively complement cost estimating methods that are currently in use by providing benefits as follows: (1) it effectively accounts for the probabilistic nature of errors in estimates; (2) it is easy to implement by using historical estimates and actual costs that are readily available in most construction companies; and (3) it minimizes subjective judgment by using quantitative data only.

• Korean Journal of Construction Engineering and Management
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• v.10 no.1
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• pp.78-90
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• 2009

Recently, operation of highway is the complex digital Infrastructure based on complicated IT. The application of IT is increasing more and more in digital Infrastructure. Though IT is very convenient, if unpredicted operating risk of highway occurs, widespread damage can be large. When operating risk of highway occurs, road users are out of smoothly-run service because of the operating interruption. This risk causes unpredicted operating management cost and additional maintenance cost. It will excess over the planned operating cost, which may leads to users's unsafety and operator's insolvency because of income loss. Until now, related studies to find out the risk are not sufficient. The purpose of this study is to suggest risk cost items and to estimate the reasonable risk cost by using simulation method in case of occurring the huge power failure at the operating digitalized highway. This study indicates the several plans to hedge against risk cost and the management of highway project. From now on, it will be used as basic data to confirm the soundness of operating system in Digital Infrastructure.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.29 no.1
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• pp.94-100
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• 2006

The risk management is an organized method for identifying and measuring risk and for selecting, developing, and implementing options for the handling of risk. The risk management covers all programatic and technical factors which affect the system development performance, cost, and schedule. While technical issues are primary concern for systems engineering, the three elements(performance, cost, and schedule) must be balanced for a successful risk management process. This paper proposes the risk management process for the KSLV-I(Korea Space Launch Vehicle-I) program using computer-aided systems engineering tool, Cradle. The risk management process of KSLV-I program is similar to the general risk management process, but it has its own specific features to manage large-scale complex characteristics of KSLV-I program.