• Journal of Construction Engineering and Project Management
• /
• v.4 no.4
• /
• pp.33-40
• /
• 2014

Maximizing the profitability and minimizing the duration of construction projects in extreme weather regions is a challenging objective that is essential for project success. An optimization model is presented herein for the time-profit trade-off analysis of construction projects under extreme weather conditions. The model generates optimal/near optimal schedules that maximize profit and minimize the duration of construction projects in extreme weather regions. The computations in the model are organized into: (1) a scheduling module that develops practical schedules for construction projects, (2) a profit module that computes project costs (direct, indirect, and total) and project profit, and (3) a multi-objective module that determines optimal/near optimal trade-offs between project duration and profit. One example is used to show the impact of extreme weather on construction time and profit. Another example is used to show the model's ability to generate optimal trade-offs between the time and profit of construction projects under extreme weather conditions.

• Journal of the Korea Institute of Building Construction
• /
• v.12 no.2
• /
• pp.169-182
• /
• 2012

In the past, a strategic management of work demands has been increasingly challenged to design-build (DB) firms. Such a management is capable of providing sufficient profitable impact of a project on them. Total project profit is mainly related to actual resources, work completion time, amount of rework, and costs. The degree of recycling work packages in the DB project delivery system is used as a measure of the quality of the performed work. However, there are few models available to evaluate the impact of a demand management strategy on the DB firms and to predict its behavior. We propose a decision-making support model as an aid for assessing the amount of rework and for predicting project profit resulting in a convincible demand management strategy. This model is constructed by using a dynamic feedback approach that can analyze the problems arising in complex managerial systems. For the purpose of illustration, widely acceptable strategies were applied into the model to explore their impacts on the DB firms. The results indicate that the model is helpful for the managers in selecting the most appropriate demand management strategy for successfully achieving their objectives.

• Korean Journal of Construction Engineering and Management
• /
• v.16 no.4
• /
• pp.50-59
• /
• 2015

While the international construction industry for Korean companies have grown in market size exponentially in the recent years, the profit rate of small and medium sized construction companies (SMCCs) are incomparably lower than those of large construction companies. Furthermore, small and medium size companies, especially subcontractor, lacks the judgement of project involvement appropriateness, which leads to an unpredictable profit rate. Therefore, this research aims to create a profit rate prediction model for the international construction project focusing on SMCCs. First, the factors that influence the profit rate and the area of profit zone are defined by using a total of 8,637 projects since the year 1965. Seconds, an extensive literature review is conducted to derive 10 influencing factors. Multiple regression analysis and corresponding judgement technique are used to derive the weight of each factor. Third, cased based reasoning (CBR) methodology is applied to develop the model for profit rate analysis in the project participation review stage. Using 120 validation data set, the developed model showed 11% (14 data sets) of error rate for type 1 and type 2 error. In utilizing the result, project decision makers are able to make decision based on authentic results instead of intuitive based decisions. The model additionally give guidance to the Korean subcontractors when advancing into the international construction based on the model result that shows the profit distribution and checks in advance for the quality of the project to secure a sound profit in each project.

• Culinary science and hospitality research
• /
• v.3
• /
• pp.385-421
• /
• 1997

This study was performed as placing stress on business plan preparation and investing economy analysis centered to cases upon presenting the premises of study for new foundation of food service business. The summarized results are as follows: 1. In the aspect of carrying out process of practical project, establishing the promotion strategy, the facility project program, the menu program, the facility and furniture program, organization & manning schedule, the business operation schedule, review of all laws & provisions and the allout promotion schedule in order were deployed. 2. Analysis of investing economy for review of profitability 1) In case of investment, excluding 600million for the real setate lease among the total investment of 1billion, it was required by 161, 235, 000 for interior project, 161, 110, 000 for facility & equipment, 19, 235, 000 for fittings, 27, 600, 000 for menu plate & uniform, 27, 600, 000 for furniture, 13, 800, 000 for sign article. 2) In case of loss & profit presumed the annual turnover is to be 1, 115, 856, 000 the contigent profit(before tax) is to be 148, 966, 000 which is 13.3% in comparson to the sales amount and the net profit(after tax) for this term s to be 104, 276, 000 which is 9.3% against the sales and the profitable ratio to the equity investment( 500 million) is 20.9% and it satisfies 20% of the premises of study. 3) In case of the payback period will be approximately two(2) years which indicated within three(3) years that is standard of new project evaluation term of ordinary enterprise. 4) In case of internal rate of return it will be 21.5% which is favorable profitability as taking into account of 15% that is standard of new project evaluation by ordinary enterprise based on general downtown money interest. That the investing value of Happy Day profitability is hinted as it is sufficient enough as the case under this study based upon such results and considered that securing supremacy is competitive power in case of commitment will be possible.

• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.1237-1243
• /
• 2005

International construction projects are exposed to various and complicated risk factors stemming from different political, economical, social, and cultural backgrounds, which make contractors entering into international construction to experience severe losses. It implies that overseas markets do not necessarily secure the high return, which is typically expected to in the high risky attempts. Accordingly, contractors need to evaluate various risk factors faced with overseas construction projects that can possibly aggravate the profitability. This paper aims at establishing a valid groundwork for further research on developing the integrated risk management model. For this end, it analyzes the long-term trend of profitability on total of 3,487 projects performed by Korean global contractors in world-wide construction markets during the last four decades. Then, it investigates the possible factors/causes of bad profit that have affected the profitability significantly through the structured surveys of 90 real overseas projects based on the project-specific information and experiences of Korean contractors in overseas markets. Furthermore, it analyzes relative importance of these factors/causes and identifies the important features expected for the risk management of international construction projects. Finally, vital distinctions between success and failure projects and lessons learned to improve profitability are then distilled.

• Journal of Animal Environmental Science
• /
• v.3 no.1
• /
• pp.49-56
• /
• 1997

Most of Korean broiler farms are constructed with vinyl houses. Such types of broiler farms might be cheaper in terms of cost, but poor in terms of environment condition. According to enlargement of broiler farm size, high value production systems or automatic facilities are introduced in this field. However, investment may not always guarantee the profit of the management. Therefore, it is necessary to undertake the investment analysis before decision making for the investment. Under the assumption that 870 Pyoung(≒$3.3㎡) of a broiler farm within 1,740 Pyoung(≒3.3㎡) of land is built with the producing capacity of 50,000 heads of chicken in a time. The total investment is calculated to be 600 million won(1,000 won≒$1.1), and out of them 58.1% is provided by the owner, 31.6% from the government loan, 5.8% from government subsidy, and 5.3% from other agencies or banks. The expected profit of the broiler farm is 64.6 million won(1,000 won≒$1.1) per year. The IRR calculated is 0.0808 which means that the rate to profit of this project would be 8.1%. This also means that for this investment the interest rate of the capital provided should be less than 8.1% per year. Considering that the current opportunity cost of the own capital is 8.5% this project is not so attractive for those who is going to build broiler farms mainly with their own capital. In other words this project would not be profitable, unless the average interest rate of the loans provided for this project is less than 8.1% per year.

• Journal of Construction Engineering and Project Management
• /
• v.1 no.3
• /
• pp.28-37
• /
• 2011

Domestic construction companies are suffering from financing difficulties in the wake of the economic slump in Korea and abroad. During this economic slump, real estate investment trusts (REITs), facilitators for improving financing and stimulating construction businesses, have increasingly expanded since their introduction in 2001. However, in terms of growth speed and marketing size, Korean REITs are falling behind those of other nations. The purpose of this study is to suggest a method for composing a portfolio using the Markowitz portfolio selection model to stimulate REITs. The main contents are as follows. First, a comparative analysis was conducted of increased REIT profit with the application of the Markowitz model and the average REIT profit rate from July 3, 2007, to July 21, 2008, during the investment analysis periods. The results showed that the total profit rate from the Markowitz model was about 10% higher than the average REIT profit rate. Second, the sensitivity was analyzed according to the portfolio's data-gathering and replacement cycle to measure the optimum cycle and yield. The six-mouth profit data collection period showed about 16% higher profits with the Markowitz model than with the REITs. The two-week portfolio change period resulted in about 11% higher profits with the Markowitz model than with the REITs.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2007.11a
• /
• pp.129-134
• /
• 2007

In 1996, GS E&C became the first in the industry to adopt a Project Management System using EVM(Earned Value Management) to link schedule with profit/loss. In 2006, the TPMS(Total Project Management System) was completed by adding the concept of Lean Construction and JIT(Just In Time) to the Project Management System. This was done with the purpose of reducing waste and creating optimal work processes. This has been implemented on all sites and has enabled drastic increase of productivity. The portal provides customized information to the client, inspector and subcontractor personnel. Since various parties are receiving information that suits their requirements and is easy to use, usage has increased and since they are on the same platform, quick decisions and information sharing is possible. The purpose of the PMIS's success model in construction projects, this paper tests and proves the TPMS's efficiency and productivity to Dongnam Distribution Complex project.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.21 no.7
• /
• pp.184-190
• /
• 2020

In this study, two analyses were conducted in relation to the defense procurement agency. The first was a questionnaire survey conducted by defense business personnel to quantitatively measure the effectiveness of the defense procurement agency's utilization. In the second, the appropriate standard for brokerage fees was developed, the actual work of the defense procurement agency in overseas sales was surveyed, and the brokerage profit of the general product was applied to the defense procurement agency's brokerage profit data. Using the defense procurement agency was 1.07 times more effective than not using it, and the appropriate brokerage fee varied according to the project size. For medium / small projects, 5.1 ~ 8.7% of the total project cost is an appropriate brokerage fee, compared to 1.2 ~ 1.8% for big-scale projects. The government's appropriate brokerage fee is not fixed, but is elastically applied according to the size of the total project cost, and it is appropriate to analyze the characteristics of the project and identify and adjust the required activity cost in advance.

• Journal of KIBIM
• /
• v.7 no.3
• /
• pp.40-48
• /
• 2017

It only takes one failed project to wipe out an entire year's profit, when the projects are not managed efficiently. Additionally, escalating costs of materials and a competitive local construction market make subcontractors a challenge. Subcontractors have finite resources that should be allocated simultaneously across many projects in a dynamic manner. Significant scheduling problems are posed by concurrent multi-projects with limited resources. The objective of this thesis is to identify the effect of productivity changes on the total cost resulting from shifting crews across projects using a descriptive model. To effectively achieve the objective, this study has developed a descriptive cost model for a subcontractor with multi-resources and multi-projects. The model was designed for a subcontractor to use as a decision-making tool for resources allocation and scheduling. The model identified several factors affecting productivity. Moreover, when the model was tested using hypothetical data, it produced some effective combinations of resource allocation with associated total costs. Furthermore, a subcontractor minimizes total costs by balancing overtime costs, tardiness penalties, and incentive bonus, while satisfying available processing time constraints.