Risk based decision support system for effective implementation of projects

Prasanta K. Dey, Stephen O. Ogunlana

Research output: Contribution to journalArticle

Abstract

Conventional project management techniques are not always sufficient to ensure time, cost and quality achievement of large-scale construction projects due to complexity in planning, design and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in government policies and regulations, unforeseen inflation, underestimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk management throughout the project's life cycle. However, the effectiveness of risk management depends on the technique through which the effects of risk factors are analysed/quantified. This study proposes the Analytic Hierarchy Process (AHP), a multiple attribute decision making technique, as a tool for risk analysis because it can handle subjective as well as objective factors in a decision model that are conflicting in nature. This provides a decision support system (DSS) to project management for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and a competitive business environment. The whole methodology is explained through a case application of a cross-country petroleum pipeline project in India and its effectiveness in project management is demonstrated.
Original languageEnglish
Pages (from-to)189-204
Number of pages16
JournalInternational Journal of Risk Assessment and Management
Volume3
Issue number2/3/4
DOIs
Publication statusPublished - 2002

Fingerprint

Project Management
Decision Support Systems
Risk Management
Multiple Attribute Decision Making
Petroleum
Analytic Hierarchy Process
Risk Analysis
Decision Model
India
Risk Factors
Inflation
Life Cycle
Planning
Sufficient
Methodology
Line
Costs
Project management
Decision support systems
Design

Keywords

  • project management
  • time
  • cost
  • quality
  • large-scale
  • construction projects
  • planning
  • design
  • implementation
  • project
  • non-achievement
  • scope
  • government policies
  • regulations
  • inflation
  • underestimation
  • estimation
  • risk management
  • risk factors
  • Analytic Hierarchy Process
  • AHP
  • decision making
  • decision support system
  • DSS
  • cross-country petroleum pipeline project
  • India

Cite this

@article{9cfc5731a7f84bb0a3b43c0986acd1b1,
title = "Risk based decision support system for effective implementation of projects",
abstract = "Conventional project management techniques are not always sufficient to ensure time, cost and quality achievement of large-scale construction projects due to complexity in planning, design and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in government policies and regulations, unforeseen inflation, underestimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk management throughout the project's life cycle. However, the effectiveness of risk management depends on the technique through which the effects of risk factors are analysed/quantified. This study proposes the Analytic Hierarchy Process (AHP), a multiple attribute decision making technique, as a tool for risk analysis because it can handle subjective as well as objective factors in a decision model that are conflicting in nature. This provides a decision support system (DSS) to project management for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and a competitive business environment. The whole methodology is explained through a case application of a cross-country petroleum pipeline project in India and its effectiveness in project management is demonstrated.",
keywords = "project management, time, cost, quality, large-scale, construction projects, planning, design, implementation, project, non-achievement, scope, government policies, regulations, inflation, underestimation, estimation, risk management, risk factors, Analytic Hierarchy Process, AHP, decision making, decision support system, DSS, cross-country petroleum pipeline project, India",
author = "Dey, {Prasanta K.} and Ogunlana, {Stephen O.}",
year = "2002",
doi = "10.1504/IJRAM.2002.002552",
language = "English",
volume = "3",
pages = "189--204",
journal = "International Journal of Risk Assessment and Management",
issn = "1466-8297",
publisher = "Inderscience Enterprises Ltd.",
number = "2/3/4",

}

Risk based decision support system for effective implementation of projects. / Dey, Prasanta K.; Ogunlana, Stephen O.

In: International Journal of Risk Assessment and Management, Vol. 3, No. 2/3/4, 2002, p. 189-204.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Risk based decision support system for effective implementation of projects

AU - Dey, Prasanta K.

AU - Ogunlana, Stephen O.

PY - 2002

Y1 - 2002

N2 - Conventional project management techniques are not always sufficient to ensure time, cost and quality achievement of large-scale construction projects due to complexity in planning, design and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in government policies and regulations, unforeseen inflation, underestimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk management throughout the project's life cycle. However, the effectiveness of risk management depends on the technique through which the effects of risk factors are analysed/quantified. This study proposes the Analytic Hierarchy Process (AHP), a multiple attribute decision making technique, as a tool for risk analysis because it can handle subjective as well as objective factors in a decision model that are conflicting in nature. This provides a decision support system (DSS) to project management for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and a competitive business environment. The whole methodology is explained through a case application of a cross-country petroleum pipeline project in India and its effectiveness in project management is demonstrated.

AB - Conventional project management techniques are not always sufficient to ensure time, cost and quality achievement of large-scale construction projects due to complexity in planning, design and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in government policies and regulations, unforeseen inflation, underestimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk management throughout the project's life cycle. However, the effectiveness of risk management depends on the technique through which the effects of risk factors are analysed/quantified. This study proposes the Analytic Hierarchy Process (AHP), a multiple attribute decision making technique, as a tool for risk analysis because it can handle subjective as well as objective factors in a decision model that are conflicting in nature. This provides a decision support system (DSS) to project management for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and a competitive business environment. The whole methodology is explained through a case application of a cross-country petroleum pipeline project in India and its effectiveness in project management is demonstrated.

KW - project management

KW - time

KW - cost

KW - quality

KW - large-scale

KW - construction projects

KW - planning

KW - design

KW - implementation

KW - project

KW - non-achievement

KW - scope

KW - government policies

KW - regulations

KW - inflation

KW - underestimation

KW - estimation

KW - risk management

KW - risk factors

KW - Analytic Hierarchy Process

KW - AHP

KW - decision making

KW - decision support system

KW - DSS

KW - cross-country petroleum pipeline project

KW - India

UR - http://www.inderscience.com/offer.php?id=2552

U2 - 10.1504/IJRAM.2002.002552

DO - 10.1504/IJRAM.2002.002552

M3 - Article

VL - 3

SP - 189

EP - 204

JO - International Journal of Risk Assessment and Management

JF - International Journal of Risk Assessment and Management

SN - 1466-8297

IS - 2/3/4

ER -