• Title/Summary/Keyword: Project Change Management

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ANALYZING CAUSES OF CHANGE ORDERS IN KOREA ROAD PROJECTS

  • Kang-Wook Lee;Wooyong Jung;Seung Heon Han;Byeong-Heon Yoon
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.1283-1287
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    • 2009
  • The Korean government implemented 259 road projects from 2004 to 2007, valued at $18.4 billion. Change orders of these road projects occurred 8,973 times and, subsequently, caused significant increases in the cost of the projects, approximately up to $4.2 billion (22.8% of the initial budget). These significant problems of huge change orders require a more workable control system for budget management whereas the effectiveness of the government's control is still not satisfied. However, previous approaches and studies mostly limited their analyses to simply classifying the causes of the change orders. This paper investigates the real frequency and cost impacts incurred by each cause of a change order, primarily based on 218 road projects in Korea. The paper then identifies the attributes of change orders through a survey of 204 project participants in that those sources were inevitable or avoided if properly managed. The causes of the change orders are further analyzed with analysis of variance (ANOVA) in connection with contract volume, bid award rate, the contractor's capacity to perform, and the design company's capacity. This study found that if the contract volume is smaller, then the possibility of change orders is higher. Interestingly, if the bid award rate is less than 67.5%, it signifies the highest rate of change orders. In addition, the contractors whose construction ability is assessed as the top-ranked group showed the lowest change order rates. With these results, this paper provides the preventive guidelines for reducing the likelihood of change orders.

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An Integrated Tool Model for the Management of Process and Artifact Management on CBD (컴포넌트 기반 개발에서의 프로세스 관리와 산출물 관리를 통합하는 도구의 모델)

  • Kim Young-Hee;Chong Ki-Won
    • Journal of Internet Computing and Services
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    • v.5 no.4
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    • pp.11-22
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    • 2004
  • Works that improve the process and notify the improved process, the product and the change of tasks to all users are essential in achieving project. Existent project management tools support the definition and the change of project activities, and configuration management tools support version check, workspace management. build management. etc. It costs too much to buy each tool. as well as, it is burdensome to learn usage for various tools. Therefore the web-based integrated tool is proposed to manage the process and artifacts at a time in this paper. The proposed tool defines component based development process model. and achieves recording of process progression, processing the request of change, reporting the progression of each task, product registering and change, version recording, artifact or form search, etc. using ebXML. Furthermore, the stakeholders get the systematic management and standardization by sharing information that are necessary in process achievement and configuration management in distributed environment using the integrated management tool.

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Literature Review of Key Success Factors of Management Innovation Actions in Domestic - Focused on Six Sigma, TQM, Lean Six Sigma, ERP, TPM, BPR, Project Management, System Engineering - (국내 경영혁신 활동의 핵심 성공요인 문헌 연구 - 6시그마, TQM, 린 6시그마, ERP, TPM, BPR, Project Management, System Engineering 중심으로 -)

  • Mun, JeOk;Yoon, SungPil
    • Journal of Korean Society for Quality Management
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    • v.44 no.3
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    • pp.639-648
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    • 2016
  • Purpose: Existing precedent studies include success factors of individual management innovation activities constantly. However, those studies have limitations about the common key success factors of individual management innovation activities. Methods: For this study, we investigate the key success factors using literature research of the most typical management innovation activities adopted and implemented by many companies in Korea, such as 6sigma, TQM, Lean 6sigma, ERP, TPM, BPR, Project Management, System Engineering. Factors emerging repeatedly was combined into common factors and inherent factors that are necessary for the success of individual management innovation activities are designated to essential factors. Results: 'Essential factors for Six Sigma' consist of 5 items. Black belt operating system, personnel management system linkage, the correct management of the data, perform improvement projects associated with financial performance financial result, linked to financial performance improvement project, project progress management. 'Essential factors of TQM' are arranged 4 items. Quality team's independence and role, goal-setting, Quality Information System, corporate's philosophy of quality first. 'Essential factors of Lean Six Sigma' are the selection of value stream which is based on the customer needs and the value creation and identify the project based on the selected value in the company. 'Essential factors of ERP' are investigated 6 items. Ongoing system maintenance and upgrades, the measurement and support of user satisfaction, the operating systems and the policies for the maintenance, IT infrastructure, change adaption condition monitoring, focusing on improving business performance. 'Essential factors for TPM' are arranged 4 items. Motivated and energetic Bottom-Up, CEO's recognition of the importance facility management, long-term perspective of necessity and ongoing patience. 'Essential factors for BPR' are the pursuit of change process and the staff's sense of crisis management. 'Essential factors for Project Management' are the strategy that reduce the risk management skills through risk management and the understanding and organized management for the project participant's needs. 'Essential factors for System Engineering' consist of 2 items. The first is the design for the best balanced system with pre-analysis about the compromise the cost, schedule and the performance. The second is the analysis of large problem into small problems which can solved. We have found the solution considering components of the interface through the systematic perspective. Conclusion: Common factors and essential factors presented in this study will properly help to introduce the individual management innovation activities for the each business sector and implement management innovation. After this study, new literature research that reflect new studies should accomplish steadily.

Toward the Application of a Critical-Chain-Project-Management-based Framework on Max-plus Linear Systems

  • Takahashi, Hirotaka;Goto, Hiroyuki;Kasahara, Munenori
    • Industrial Engineering and Management Systems
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    • v.8 no.3
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    • pp.155-161
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    • 2009
  • We focus on discrete event systems with a structure of parallel processing, synchronization, and no-concurrency. We use max-plus algebra, which is an effective approach for controller design for this type of system, for modeling and formulation. Since a typical feature of this type of system is that the initial schedule is frequently changed due to unpredictable disturbances, we use a simple model and numerical examples to examine the possibility of applying the concepts of the feeding buffer and the project buffer of critical chain project management (CCPM) on max-plus linear discrete event systems in order to control the occurrence of an undesirable state change. The application of a CCPM-based framework on a max-plus linear discrete event system was proven to be effective.

Proposal for Improvement on the Task of Construction Project Management Service(CM) for the Customized Service Project of the Public Procurement Service (조달청 맞춤형서비스 사업에 대한 '감독 권한대행 등 건설사업관리용역(CM)' 과업내용 개선방향)

  • Lee, Jong-Tae;Yun, Hyun-Do
    • Korean Journal of Construction Engineering and Management
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    • v.22 no.3
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    • pp.3-11
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    • 2021
  • The construction project manager must clearly carry out the activities of each construction stage specified in the 'Task Description'. In this study, 'design change' and 'completion process' were classified as core tasks in consideration of the frequency and importance of tasks. And, by analyzing the actual construction project, the task contents for the core work were standardized. This laid the foundation for the ordering office, construction project management technicians, and builders to clearly understand the business areas of construction project management and fulfill their responsibilities for their respective tasks.

Conflicting Factors in Korean Construction Industry

  • Acharya Nirmal K.;Lee, Young-Dai;Kim, Jung-Ki
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.2 s.30
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    • pp.171-180
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    • 2006
  • Change is inevitable and is a reality of construction projects. Most construction contracts include change clauses and allowing contractors an equitable adjustment to the contract price and duration caused by change. However, the actions of a contractor can cause a loss of productivity and furthermore can result in disruption of the whole project because of a cumulative or ripple effect. Because of its complicated nature, it becomes a complex issue to determine the cumulative impact (ripple effect) caused by single or multiple change orders. Furthermore, owners and contractors do not always agree on the adjusted contract price for the cumulative impact of the changes. A number of studies have attempted to quantify the impact of change orders on project costs and schedule. Many of these attempted to develop regression models to quantify the loss. However, regression analysis has shortcomings in dealing with many qualitative or noisy input data. This study develops ANN models to classify and quantify the labor productivity losses that are caused by the cumulative impact of change orders. The results show that ANN models give significantly improved performance compared to traditional statistical models.

A Study on the Construction of Knowledge Base in a Project Management System by Using SOM

  • Yoon, Kyung-Bae;Park, Jun-Hyeong;Wang, Chang-Jong
    • Proceedings of the IEEK Conference
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    • 2002.07c
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    • pp.1764-1767
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    • 2002
  • Recent explosive increases in information 'volume have led to a rapid development or a change of information technology which stores, searches, and manages a vast amount of information. It is considered that an effective share and utilization of a large amount of digital information produced by work performances is a pivotal element which can make decisive contributions to a great success of business management. This common property of information reflects a changing social paradigm including a change of business processes. This paper is aimed at designing and embodying the construction of knowledge base in an efficient project management system using unsupervised data mining techniques in order to extract information and utilize it as knowledge about standard data (statistical data, template etc.,), size prediction and a danger precaution notice which are needed for a plan and a scheduling of a new project from data coming from already-established projects.

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An Exploratory Study on the Relative Importances of the Critical Success Factors in an ERP Project (ERP 프로젝트 주요 성공요인의 상대적 중요도에 대한 탐색적 연구)

  • Han, Sang-Cheol;Lee, Gil-Hyung
    • Journal of Information Technology Services
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    • v.4 no.1
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    • pp.57-69
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    • 2005
  • The ERP system which has been adopted as a tool for integration of information systems and for innovation of business process. And it is regarded to be able to maximize the productivity of business process and achieve process innovation based on the best practice incorporated in the ERP. To achieve process innovation through ERP, strong sponsorship from top management and building consensus through the entire organization is required to be backed UP. There are many cases of the failure of Process Innovation due to reluctance of corporate members to change. In the result of the case study, it seems to be difficult to build the consensus of the related groups to ERP project. There are still argues after project, on whether the project was success or not. Through the AHP analysis for the success factors, it is explored that the reason is that several groups of the company had different expectation for the project. And to achieve the aimed process Innovation, the project members in the related departments should build the consensus of expectation on the project.

Predicting Construction Project Cost using Sensitivity Analysis in Stochastic Project Scheduling Simulation (SPSS) (확률 통계적 일정 시뮬레이선 - 민감도 분석을 이용한 최종 공사비 예측)

  • Lee Dong-Eun;Park Chan-Sik
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.4 s.26
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    • pp.80-90
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    • 2005
  • Activity durations retain probabilistic and stochastic natures due to diverse factors causing the delay or acceleration of activity completion. These natures make the final project duration to be a random variable. These factors are the major source of financial risk. Extending the Stochastic Project Scheduling Simulation system (SPSS) developed in previous research; this research presents a method to estimate how the final project duration behaves when activity durations change randomly. The final project cost is estimated by considering the fluctuation of indirect cost, which occurs due to the delay or acceleration of activity completion, along with direct cost assigned to an activity. The final project cost is estimated by considering how indirect cost behaves when activity duration change. The method quantifies the amount of contingency to cover the expected delay of project delivery. It is based on the quantitative analysis to obtain the descriptive statistics from the simulation outputs (final project durations). Existing deterministic scheduling method apply an arbitrary figures to the amount of delay contingency with uncertainty. However, the stochastic method developed in this research allows computing the amount of delay contingency with certainty and certain degree of confidence. An example project is used to illustrate the quantitative analysis method using simulation. When the statistical location and shape of probability distribution functions defining activity durations change, how the final project duration and cost behave are ascertained using automated sensitivity analysis method

Improving Outsourced ISD Project Performance : Focusing on Conflict and Conflict Resolution Facilitation (아웃소싱을 통한 정보시스템 개발성과 향상방안 : 갈등 및 갈등해결 촉진을 중심으로)

  • Cho, Dong-Hwan;Lee, Ho-Geun;Lee, Choong-Cheong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.1
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    • pp.71-105
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    • 2008
  • Various stakeholders within and outside of the organization are involved and participate in the outsourced IS development. As their interests and goals are different conflict arises in the process of their interaction, and it is an important factor affecting outsourcing success. The study focuses on the conflict between client users and vendor, i.e. main conflict in the outsourcing project, and examines the relationship of conflict with project success, the antecedents of conflict, and investigates the effectiveness of conflict resolution facilitation. An integrated conceptual model is developed grounded on is outsourcing, IS development, project management, and organizational behavior literature. Nine specific hypotheses on the conflict in outsourcing projects are proposed, and data collection and analysis are performed with 214 ISD outsourcing projects. Results indicated that the conflict between client users and vendor in outsourcing projects was found to have negative effects on project success. Main causes affecting conflict were examined, and relative influences of these causes were clarified. Recently internal IT personnel have been faced their role change with the increase of outsourcing, and the importance of their conflict resolution facilitation was highlighted.