Project Penalty Cost Management, Based on Activity Sensitivity Analysis (BASA)

Document Type : Original Article

Authors

Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Najafabad, Iran

Abstract

Existence of delays is always an inseparable part of projects and subject of fundamental disagreements among their stakeholders in all countries. As delay in projects is equal to increased costs, thus, by having delay and spending too much cost out of the pre-planned cash flow, a project can even reach a point that it will get out of profit. In the present study the researchers believes that, risk of delays should be managed, minimized, shared, transferred or accepted, but it cannot be ignored. Therefore, it must be predicted, covered, managed and optimized. Now, the fact that any delay and prolongation of project time results in significant qualitative and quantitative costs more than the initial estimates shows importance and necessity of research in this area. By providing an innovative method with the help of the Work breakdown Structure, Baseline, Hierarchical Technique and Data Envelopment Analysis (DEA), the researchers will control the risk of projects and even prevent them from occurring.

Keywords

References

  • Abdelhadi Y, Dulaimi MF, Bajracharya A (2019). Factors influencing the selection of delay analysis methods in construction projects in UAE, International Journal of Construction Management, 19(4), 329-340, https://doi.org/10.1080/15623599.2018.1435155.
  • AliNejad Alireza, Simiyari Kavous, (2013). Optimal Project Basket Selection Using the Integrated Approach to Data Envelopment Analysis, Journal of Industrial Management Studies, 28(11), 41-60, COI: JR_JIMS-11-28_003, https://www.civilica.com/Paper-JR_JIMS-JR_JIMS-11-28_003.html.
  • Baykasoglu A., Kaplanoglu V., Durmusoglu Z.D.U., Sahin C. (2013). Integrating Fuzzy DEMATEL and Fuzzy Hierarchical TOPSIS Methods for Truck Selection, Expert Systems with Applications, 40(3), 899-907, https://doi.org/10.1016/j.eswa.2012.05.046.
  • Bazi H., Mirsaeidi S. (2013). Project Delay Analysis considering Financial Payment. 8th International Project Management Conference, At Iran, Tehran, January 2013, https://www.researchgate.net/publication/261988276.
  • Chang H.K., Yu W.D., Cheng S.T., Cheng T.M. (2019). The Use of a Multiple Risk Level Model to Tackle the Duration of Risk for Construction Activity, Construction Management. KSCE Journal of Civil Engineering, 23(6), 2397-2408, DOI: 10.1007/s12205-019-1757-8.
  • Chou H.Y., Yang J.B., (2017). Preliminary Evaluation of BIM-based Approaches for Schedule Delay Analysis. IOP Conference Series: Materials Science and Engineering, 245(6), DOI: 10.1088/1757-899X/245/6/062048.
  • Faroughi, H., Aalaniazar, S.,Mousavipour S.H., Moradi, H., (2018). A Framework for Analyzing the Failure Modes and Its Effects in Fuzzy Conditions for Complicating the Causes of Delays in Kurdistan Provincial Modern Schools Development Projects, Journal of Industrial Management Studies, 45(15), 145-175, COI: JR_JIMS-15-45_006, https://www.civilica.com/Paper-JR_JIMS-JR_JIMS-15-45_006.html.
  • Ghoddousi P., Ansari R., Makui A. (2016). A Risk-Oriented Buffer Allocation Model Based on Critical Chain Project Management. KSCE Journal of Civil Engineering, 21(5), 1536–1548, DOI: 10.1007/s12205-016-0039-y.
  • Golabchi M., Talkhabi H., Parchami J. M., Bemaniyan M. (2015). The Development and Analysis of Claim Package Model in Iran Design–Build Projects. Journal of Management Research in Iran, Tarbiat Modarres University Press, Management Studies in Iran. IQBQ, 18(4), 111-137, URL: http://journals.modares.ac.ir/article-19-1534-fa.html.
  • Hu-Chen Liu, Member, IEEE, Li-En Wang, ZhiWu Li, Fellow, IEEE, and Yu-Ping Hu1 (2018). Improving Risk Evaluation in FMEA with Cloud Model and Hierarchical TOPSIS Method, IEEE Transactions on Fuzzy Systems, 27(1), 84-95, DOI:10.1109/TFUZZ.2018.2861719.
  • Iranmanesh, Hosain, Plitan, Mehdi, Mohammadlo, Hamid (2009). Comparison of delay analysis methods for construction projects and implementation of the timing windows method for a real project, the first conference of the thermal power industry, COI: Powerplant01_008, https://civilica.com/doc/61301.
  • James Champman Robert (2019). Exploring the Value of Risk Management for Projects: Improving Capability through the Deployment of a Maturity Model, IEEE Engineering Management Review, 47(1), 126-143, First Quarter, DOI: 10.1109/EMR.2019.2891494.
  • Kobryń Andrzej (2017). DEMATEL as a weighting method in multi-criteria decision analysis, Multiple Criteria Decision Making (MCDM), Vol. 12, DOI: 10.22367/mcdm.2017.12.11.
  • Momeni A., Kheirkhah A.S. (2006) A Model for Preventing Delays in Projects with a Dynamic Decision Approach, Second International Project Management Conference, COI: IPMC02_058, https://www.civilica.com/Paper-IPMC02-IPMC02_058.html.
  • J. Keane & A. F. Caletka (2015). Delay Analysis in Construction Contracts, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom 2nd Edition.
  • Parchami Jalal, M. and Shoar, S. (2017). A hybrid SD-DEMATEL approach to develop a delay model for construction projects, Engineering, Construction and Architectural Management, 24(4), 629-651. https://doi.org/10.1108/ECAM-02-2016-0056.
  • Qazi Abroon, Dikmen Irem (2019). From Risk Matrices to Risk Networks in Construction Projects, IEEE transactions on engineering management, 32(2), 86-97, DOI:10.1109/TEM.2019.2907787.
  • Rahnama Roodposhti Fereydoun, Rooholelm Vahid (2016). Portfolio management with heuristic optimazation, Tehran, Islamic Azad University, Science and Research Branch, First edition, http://lib.seo.ir/faces/home.jspx.
  • Ramli M.Z. (2017). Study of factors influencing construction delays at rural area in Malaysia, Journal of Physics, Vol. 1049, Conference Series 1049 012017.
  • Rao Aamir Khan, Warda Gul (2017). Emperical study of critical risk factors causing delays in construction projects, IEEE International Conference on Intelligent Data Acquisition and Advanced Computing Systems: Technology and Applications (IDAACS), DOI:10.1109/IDAACS.2017.8095217.
  • Rooholelm Vahid, Shiroyezad Hadi (2017). Selection, ranking and optimal project portfolio optimization under the conditions of contraction policy with Dimetel combined method and Data Envelopment Analysis in Mobarakeh Steel Company Development Projects, Ninth National Conference on Data Envelopment Analysis, COI: DEA09_087, https://www.civilica.com/Paper-DEA09-DEA09_087.html.
  • Sackey S, Kim BS. (2019). Schedule Risk Analysis using a Proposed Modified Variance and Mean of the Original Program Evaluation and Review Technique Model, KSCE Journal of Civil Engineering, Construction Management, 23(4), 1484–1492 , DOI 10.1007/s12205-019-1826-z.
  • Shahsavand, P., Marefat, A. and Parchamijalal, M. (2018), "Causes of delays in construction industry and comparative delay analysis techniques with SCL protocol", Engineering, Construction and Architectural Management, 25(4), 497-533, https://doi.org/10.1108/ECAM-10-2016-0220.
  • Sheikh Aboumasoudi, Abbas (2016). Design of Value Chain Models in Multistage Production Systems to Achieve Effective Profit Management Strategy, Isfahan, Isfahan University Press, Second Edition, ISBN: 978-613-9-46012-0.
  • Sheng-Li Si, Xiao-Yue You, Hu-Chen Li and Ping Zhang (2019). DEMATEL Technique: A Systematic Review of the State-of-the-Art Literature on Methodologies and Applications, Mathematical Problems in Engineering, Volume 2018, Pages 33, Article ID 3696457, https://doi.org/10.1155/2018/3696457.

Sweis, R., Moarefi, A., Amiri, M., Moarefi, S. and Saleh, R. (2019). Causes of delay in Iranian oil and gas projects: a root cause analysis, International Journal of Energy Sector Management, 13(3), 630-650, https://doi.org/10.1108/IJESM-04-2018-0014

International Journal of Finance & Managerial Accounting
Volume 5, Issue 19 - Serial Number 19
December 2020
Pages 117-133

Files

Share

How to cite

Statistics