• International conference on construction engineering and project management
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• 2015.10a
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• pp.415-419
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• 2015

Engineering is a value-adding process applying knowledge and skills in the construction industry that includes the planning, feasibility study, project management (PM), front end engineering and design (FEED), detail design, procurement, construction, supervision, and operation. Among these engineering activities, FEED is defined as a comprehensive design practice in the early design phase focused on conceptual design and basic design. It is a particularly influencing area that determines the competitiveness of procurement and construction capability of construction firms (KNIN 2013). Nevertheless, previous studies in FEED have been limited to the design process, deliverable, or particular management technique (e.g. system engineering, collaboration, information etc.). In this context, the purpose of this study is to propose a comprehensive FEED business process structure for project management of thermal power plant construction projects encompassing the entire project life cycle. And an assessment methodology for FEED functions was developed. It is expected that the proposed structure of FEED functions and FEED evaluation methodology will contribute to improvement of competitive capability of engineering, procurement, and construction (EPC) companies.

• 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.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2014.05a
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• pp.18-19
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• 2014

As issued the development of energy resources, EPC work process through the IT technology is essential for efficient business management, and systematic management of data generated in this process is needed. In domestic, the research related to system development for the collection and management of construction data detected in the field has been done continuously, but pipeline business target the long-distance in extreme cold weather, almost no cases have been studied up to now. Therefore, this research is aimed to derive the data item for efficient management in EPC Stage of pipeline business in extreme cold weather. WBS system of EPC work are classified easily at two levels, data items can be divided based on the type of document. In the future I will be expected to be the foundation of the systematic management of data generated in the EPC step-by-step of pipeline business.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.2
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• pp.67-72
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• 2018

In the EPC(Engineering Procurement and Construction) project of the plant, procurement engineering has a profound effect on the profitability of the project. It is important that the procurement specifications are well written to ensure that procurement engineering works properly. In the meantime, the procurement specifications have been created by the experience of the person in charge because there was no system for helping procurement engineering. To cope with this situation, we are developing a procurement engineering management support system (PeMSS). This paper describes how to implement a knowledge-based service in the procurement engineering management support system. First, we briefly introduce the PeMSS, the knowledge base application field, and how to apply it. The parts that requires knowledge-based service are parsing the requirements in the PDF (Portable Document Format) file and management of the document provided by the supplier of the equipment.

• Plant Journal
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• v.7 no.2
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• pp.39-43
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• 2011

Due to the recent uncertainty of market situations such as the escalation of petroleum prices, increased production capacities of plants, limitations of the available EPC (Engineering, Procurement, Construction) contractors, and the increase of raw material prices, EPC contractors have had a tendency to include a higher reserve contingency in the lump-sum turnkey contract price. In order to overcome the changes in the market, the plant project construction industry has started to apply the converted lump-sum turnkey contract in plant construction market. This study was focused to find the associated risks and to analyse the identified risks on recent trend of application of the new contract type, which is the converted lump-sum turnkey contract. It was recognized from the analysis that quality and cost have more high priority risks than other project objectives. This paper also suggests the mitigation plan for identified risks to achieve project objectives appropriate to the converted lump-sum turnkey project from the viewpoint of an EPC contractor keeping transparency with owner.

• Journal of the Korean Professional Engineers Association
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• v.42 no.1
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• pp.49-53
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• 2009

Wind energy development and wind farm construction request multi-disciplinary study and coordination to pursuit economically and technically feasible project that may deliver a viable business model. This paper is to provide the study and coordination procedure with key management factors about the wind energy resource assessment and engineering design for EPC(Engineering, Procurement and Construction) contract for the successful business development.

• Korean Journal of Construction Engineering and Management
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• v.15 no.3
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• pp.47-57
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• 2014

LNG plant projects tend to be implemented in overseas owing to its characteristics, so their project management scheme is somewhat different from those of general projects. Value chain in a LNG plant project includes exploration/production of gases, physical liquefaction/chemical conversion processes, transportation and storage. Key factors in the chain include liquefaction process (including ultra-low temperature liquefaction) to convert natural gas into liquid materials or fuel, and Front End Engineering Design (FEED) package, as well as Engineering, Procurement and Construction (EPC) technology comprising control, operation and construction. Success of a complex LNG plant project implemented in overseas depends on decision-making process in project management. Accordingly, to develop a decision-making model in of plant construction, the study extracted none factors in project management by EPC stage and assessed importance of each factor. The result showed that items in both project management and project risk management are important. Especially, the study developed a decision-making model in the construction stage of a LNG plant project based on the project management factors and importance assessment. The developed decision-making model would lay groundwork in building a decision-making system in construction stage of project management.

• 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.

• 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).

• 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.