Infrastructure Project Scope Definition Using Project Definition Rating Index

Bingham, Evan; Gibson, G. Edward

doi:10.1061/(asce)me.1943-5479.0000483

Cited by 43 publications

(19 citation statements)

References 12 publications

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“…The methods that have been widely used to evaluate the success of projects are the PDRI [37] and the front-end loading (FEL) index [38]. This study also includes an additional nine references in which other overseas and domestic plant projects have been assessed.…”

Section: Identification Of Overseas-project Risk Factorsmentioning

confidence: 99%

“…The major risk factors are identified in Table 2 using the most influential profitability impact factors given in the previous section. The list of 66 elements of the business-version PDRI was originally identified and categorized according to 10 references [37][38][39][40][41][42][43][44][45][46][47]. The elements were weighted in order of importance using the inputs from 15 experienced project managers and estimators who each have between 10 and 20 years of experience.…”

Section: Trizmentioning

confidence: 99%

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A Probabilistic Alternative Approach to Optimal Project Profitability Based on the Value-at-Risk

Kim

2018

Sustainability

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This paper focuses on an investment decision-making process for sustainable development based on the profitability impact factors for overseas projects. Investors prefer to use the discounted cash-flow method. Although this method is simple and straightforward, its critical weakness is its inability to reflect the factor volatility associated with the project evaluation. To overcome this weakness, the Value-at-Risk method is used to apply the volatility of the profitability impact factors, thereby reflecting the risks and establishing decision-making criteria for risk-averse investors. Risk-averse investors can lose relatively acceptable investment opportunities to risk-neutral or risk-amenable investors due to strict investment decision-making criteria. To overcome this problem, critical factors are selected through a Monte Carlo simulation and a sensitivity analysis, and solutions to the critical-factor problems are then found by using the Theory of Inventive Problem Solving and a business version of the Project Definition Rating Index. This study examines the process of recovering investment opportunities with projects that are investment feasible and that have been rejected when applying the criterion of the Value-at-Risk method. To do this, a probabilistic alternative approach is taken. To validate this methodology, the proposed framework for an improved decision-making process is demonstrated using two actual overseas projects of a Korean steel-making company.

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Section: Identification Of Overseas-project Risk Factorsmentioning

confidence: 99%

Section: Trizmentioning

confidence: 99%

A Probabilistic Alternative Approach to Optimal Project Profitability Based on the Value-at-Risk

Kim

2018

Sustainability

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“…Hwang et al identified a total of 30 CSFs through a literature review, and proposed a prioritization order after conducting interviews with 40 experts for the Singapore Green Business Parks project [8]. The PDRI that was developed by CII is one of the most demonstrative study achievements using CSFs [12][13][14]39]. While previous studies were limited to the assignment of priorities among the CSFs, the PDRI provides weights for each CSF and checks the levels of the definitions to predict the performance with a weighted score that ranges from 0 to 1000 points [12][13][14]39].…”

Section: Performance Prediction With the Csfsmentioning

confidence: 99%

“…The PDRI that was developed by CII is one of the most demonstrative study achievements using CSFs [12][13][14]39]. While previous studies were limited to the assignment of priorities among the CSFs, the PDRI provides weights for each CSF and checks the levels of the definitions to predict the performance with a weighted score that ranges from 0 to 1000 points [12][13][14]39]. A lower point total indicates better project performance.…”

Section: Performance Prediction With the Csfsmentioning

confidence: 99%

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Development of a Program Definition Rating Index for the Performance Prediction of Construction Programs

Cha

Kim²,

Hyun

et al. 2018

Sustainability

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Abstract:Program management is the structured and strategic process of managing multiple projects at a high level to maximize benefits. The essentials of programs include high costs and long implementation periods, and thus, the negative impacts caused by the failure of program management are more significant and greater than that of a project. Therefore, to achieve high program performance, it is essential for program management to be well defined during the early stages. However, the existing research is mainly focused on the performance prediction methodologies for projects, while the research pertaining to programs has concentrated on identifying the qualitative critical success factors (CSFs). Thus, this study developed a methodology for predicting the program performance. Forty-five CSFs were identified herein from literature review and expert interviews, then grouped through factor analysis. In addition, the Program Definition Rating Index (PgDRI) was developed by calculating the weights of the proposed CSFs through structured equation modeling in order to evaluate the quantitative program performance. For validation, the PgDRI was applied to three in-progress cases, and the PgDRI scores were compared with the actual performance of each case. The PgDRI developed in this study can contribute to the body of knowledge pertaining to program management by quantifying the performance management of a program. In addition, the PgDRI can be utilized in the performance management of a program in terms of the cost and schedule by allowing practitioners to apply the PgDRI repeatedly to the major decision-making processes during the early stages of a program.

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