Developing an integrated management system for optimising project options

Abstract

Purpose -This paper aims to discuss the development of an integrated management system (IMS) by linking quantitative and qualitative decision parameters with a view to rank and optimise capital projects. Roles and impacts of the non-financial criteria have been combined with traditional financial criteria for decision-making and management processes in dynamic project environment. Design methodology/approach -Both tangible and intangible information associated over project life cycle have been integrated and the dynamic operating environment is evaluated in proactive decision-making process. In this research, a closed loop feedback system incorporating stakeholder's input with project's business objectives has been developed. The triple bottom line has been employed as decision-making criteria. While the architecture, communication protocols and conceptual modelling framework of the overall system are briefly discussed, modelling of soft issues and underlying impacts have been discussed in details. The overall functionality of the system has been established incorporating a multi-criteria decision hierarchy module and a number of intelligent functions. Integration of the system is achieved through a common database and appropriate user's interfaces. Findings -The capability and functionality of the system prototype have been discussed with the focus on a road infrastructure project. Implementation of the model has been highlighted with appropriate examples. Practical implications -The initial design of the model is based on data gathered from a real life project. The practical implication of the prototype is significant for holistic analysis of investment decisions on complex projects. Originality/value -The stated modelling technique of soft issues (e.g. overall satisfaction level and stakeholders benefit values) along with project's financial objectives in an integrated framework will benefit all industry sectors.

Adding Value in Construction Design Management by Using Simulation Approach

“…Development of computer-aided process simulation techniques have accelerated in recent years. However, its use for project definition, management practices and life cycle investment decisions is not widespread (Doloi, 2007). The application and influence on setting the benchmarks for management practices within the complex project management framework has proven to be a significant contribution in this research.…”

“…A thorough analysis of these objectives is an important requirement to determine the optimum project selection from the available competing alternatives. Simulation based project evaluation and decision analysis adds significant value in evaluating such alternatives by reducing uncertainties in design, implementation and operations with a greater confidence Doloi, 2007). Use of process simulation technique assists in analysing feasible design solutions based on technical, functional and operational aspects of projects.…”

“…These LCOFs are usually derived based on the Triple Bottom Line (TBL) principles (Doloi, 2007). Fig.2 represents the perspective that Lifecycle Design Management (LCDM) takes, as opposed to the perspective adopted by the traditional design management practices.…”

“…However, good project design is not restricted to detailed design coupled with attention to interrelationships between physical parts and elements. Design must be analysed and evaluated at a deeper level and in relation to the project's operational environments (Cleland, 2004;Doloi, 2007). Design configuration and scope of projects must reassess and readjust to ensure that the objectives are met at the end.…”

“…These trade-offs are then analysed using Multi-criteria Decision Modelling (MCDM) technique (Doloi, 2007) to locate the optimal solution among those which meet the target criteria. Details of MCDM techniques can be found in Doloi (2007) and Jaafari et al (2004). As already stated, an appropriate conceptual model to facilitate holistic evaluation and management of project's complexity is not currently available.…”