Skip to main content
SpringerLink
Log in

Development of a computerized risk management system for international NPP EPC projects

  • Construction Management
  • Published:
KSCE Journal of Civil Engineering Aims and scope

Abstract

Over the past decade, Nuclear Power Plant (NPP) projects have been increasingly forced to cope with potential risks, which seriously impacted achieving the target completion time and cost. NPP projects have frequently exceeded the planned time and cost despite reliable estimates at the start of the project. This was attributed to unpredictable causes at the beginning and to shortage of proper tools to quantitatively analyze the inevitable uncertainties. To overcome these difficulties, computerized systems have been widely proposed in the construction industry as effective aids to proactively control the potential risks and to monitor continuously their status and variation. However, there are few risk management systems focused on NPP projects. In this study, we developed a computer-based risk management system for NPP projects, called Nuclear Risk Management System (NuRMS), which is helpful for furnishing project managers with warning signals as a project is progressing and for tracking the changes in risk variation at a desired confidence level. In developing the NuRMS, the Risk Breakdown Structure (RBS), the weights for risk categorization, computation of the Total Risk Score (TRS), and integration of risk analysis tools with relation-based and cost-loaded activity schedule were core tasks. To demonstrate the efficiency of the developed NuRMS, the system was operated using risk information derived from constructing the auxiliary buildings of Shin-Kori units 3 and 4 located in Korea, as an illustrative case. The results showed the system’s capacities and suggested that it may be applied to a real NPP engineering, procurement, and construction project. The developed NuRMS is expected to assist a project manager in monitoring, tracking, and controlling potential impacts of risk events during the overall implementation of NPP projects.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Al-Bahar, J. F. and Crandall, K. C. (1990). “Systematic risk management approach for construction projects.” Journal of Construction Engineering and Management, Vol. 116, No. 3, pp. 533–546, DOI: 10.1061/(ASCE)0733-9364(1990)116:3(533).

    Article  Google Scholar 

  • Alkass, S., Mazerolle, M., and Harris, F. (1996). “Construction delay analysis techniques.” Construction Management and Economics, Vol. 14, No. 5, pp. 375–394, DOI: 10.1080/014461996373250.

    Article  Google Scholar 

  • Al-Tabtabai, H., Kartam, N., Flood, I., and Alex, A.P. (1997). “Expert judgment in forecasting construction project completion.” Engineering Construction and Architectural Management, Vol. 4, No. 4, pp. 271–293, DOI: 10.1046/j.1365-232X.1997.t01-1-00002.x.

    Article  Google Scholar 

  • Ashley, D. B and Bonner, J. J. (1987). “Political risks in international construction.” Journal of Construction Engineering and Management, Vol. 113, No. 3, pp. 447–67, DOI: 10.1061/(ASCE)0733-9364 (1987)113:3(447).

    Article  Google Scholar 

  • Assaf, S. A. and Al-Hejji, S. (2006). “Causes of delay in large construction projects.” International Journal of Project Management, Vol. 24, pp. 349–57, DOI: 10.1016/j.ijproman.2005.11.010.

    Article  Google Scholar 

  • Baloi, D. and Price, A. D. F. (2003). “Modelling global risk Factors affecting construction cost performance.” International Journal of Project Management, Vol. 221, pp. 261–269, DOI: 10.1016/S0263-7863(02)00017-0.

    Article  Google Scholar 

  • Bu-Qammaz, A. S. (2007). “Risk assessment of international construction projects using the analytic network process.” Dissertation, Middle East Technical University.

    Google Scholar 

  • Cano, A. and Cruz, P. (2002). “Integrated methodology for project risk management.” Journal of Construction Engineering and Management, Vol. 128, No. 6, pp. 473–485, DOI: 10.1061/(ASCE)0733-9364 (2002)128:6(473).

    Article  Google Scholar 

  • Chan, A. P. C., Yung, E. H. K., Lam, P. T. I., Tam, C. M., and Cheung, S. O. (2001). “Application of Delphi method in selection of procurement systems for construction projects.” Construction Management and Economics, Vol. 19, pp. 699–718, DOI: 10.1080/01446190110066128.

    Article  Google Scholar 

  • Chan, E. H. W. and Tse, R. Y. S. (2003). “Cultural considerations in international construction contracts.” Journal of Construction Engineering and Management, Vol. 129, No. 4, pp. 375–381, DOI: 10.1061/(ASCE)0733-9364(2003)129:4(375)).

    Article  Google Scholar 

  • Cheng, E. W. L. and Li, H. (2004). “Contractor selection using the analytic network process.” Construction Management and Economics, Vol. 22, No. 6, pp. 1021–1132, DOI: 10.1080/0144619042000202852.

    Article  Google Scholar 

  • Cheng, E. W. L. and Li, H. (2005). “Analytic network process applied to project selection.” Journal of Construction Engineering and Management, Vol. 131, No. 4, pp. 459–466, DOI: 10.1061/(ASCE) 0733-9364(2005)131:4(459).

    Article  Google Scholar 

  • Chung, S. H., Lee, A. H. L., and Pearn, W. L. (2006). “Analytic Network Process (ANP) approach for product mix planning in semiconductor fabricator.” International Journal of Production Economics, Vol. 96, pp. 15–36, DOI: 10.1016/j.ijpe.2004.02.006.

    Article  Google Scholar 

  • Cox, L. A. (2008). “What is wrong with risk matrices?.” Risk Analysis, Vol. 28, No. 2, pp. 497–512, DOI: 10.1111/j.1539-6924.2008.01030.x.

    Article  Google Scholar 

  • Dikmen, I., Birgonul, M. T., Anac, C., Tah, J. H. M., and Aouad, G. (2008). “Learning from risks: A tool for post-project risk assessment.” Automation in Construction, Vol. 18, pp. 42–50, DOI: 10.1016/j.autcon.2008.04.008.

    Article  Google Scholar 

  • Du, Y. and Parsons, J. E. (2009). Update on the cost of nuclear power, Center for Energy and Environmental Policy Research, MIT, USA.

    Google Scholar 

  • Elkington, P. and Smallman, C. (2002). “Managing project risks: A case study from the utilities sector.” International Journal of Project Management, Vol. 20, No. 1, pp. 49–57, DOI: 10.1016/S0263-7863 (00)00034-X.

    Article  Google Scholar 

  • Hallowell, M. R. and Gambatese, J. A. (2010). “Qualitative research: Application of the delphi method to CEM research.” Journal of Construction Engineering and Management, Vol. 136, No. 1, pp. 99–107, DOI: 10.3844/ajassp.2014.74.84.

    Article  Google Scholar 

  • Han, S. H., Part, S. H., Kim, D. Y., Kim, H., and Kang, Y. W. (2007). “Causes of bad profits in overseas construction projects.” Journal of Construction Engineering and Management, Vol. 133, No. 12, pp. 932–943, DOI: 10.1061/(ASCE)0733-9364(2007)133:12(932).

    Article  Google Scholar 

  • Hess, S. M., Albano, A. M., and Gaertner, J. P. (2005). “Development of a dynamical system model of plant programmatic performance on nuclear power plant safety risk.” Reliability Engineering and System, Vol. 90, No. 1, pp. 62–74, DOI: 10.1016/j.ress.2004.10.006.

    Article  Google Scholar 

  • Hess, S. M., Albano, A. M., and Gaertner, J. P. (2007). “Analysis and insight from a dynamical model of nuclear plant safety risk.” Reliability Engineering and System, Vol. 92, No. 1, pp. 15–29, DOI: 10.1016/j.ress.2005.10.001.

    Article  Google Scholar 

  • He, X., Tong, J., and Chen, J. (2007). “Maintenance risk management in Daya Bay nuclear power plant: PSA model, tools and applications.” Progress in Nuclear Energy, Vol. 49, pp. 103–112, DOI: 10.1016/j.pnucene.2006.10.004.

    Article  Google Scholar 

  • Joglekar, N. R. and Ford, D. N. (2005). “Product development resource allocation with foresight.” European Journal of Operational Research, Vol. 160, pp. 72–87, DOI: 10.1016/j.ejor.2003.06.021.

    Article  MATH  Google Scholar 

  • Jung, Y. S. and Kang, S. H. (2007). “Knowledge-based standard progress measurement for integrated cost and schedule performance control.” Journal of Construction Engineering and Management, Vol. 133, No. 1, pp. 10–21, DOI: 10.1061/(ASCE)0733-9364(2007)133:1(10)).

    Article  Google Scholar 

  • Karimiazari, A., Mousavi, N., Mousavi, S. F., and Hosseini, S. (2011). “Risk assessment model selection in construction industry.” Expert Systems with Applications, Vol. 38, 9105–9111, DOI: 10.1016/j.eswa.2010.12.110.

    Article  Google Scholar 

  • Klinke, A. and Renn, O. (2002). “A new approach to risk evaluation and management: Risk-based, precaution-based, and discourse-based strategies.” Risk Analysis, Vol. 22, No. 6, pp. 1071–1094, DOI: 10.1111/1539-6924.00274.

    Article  Google Scholar 

  • Krane, H. P., Rolstadas, A., and Olsson, N. O. E. (2010). “Categorizing risks in seven large projects-which risks do the projects focus on?.” Project Management Journal, Vol. 41, pp. 81–86, DOI: 10.1002/pmj.20154.

    Article  Google Scholar 

  • Ngai, E. W. T and Wat, F. K. T. (2005). “Fuzzy decision support system for risk analysis in e-commerce development.” Decision Support Systems, Vol. 40, pp. 235–255, DOI: 10.1016/j.dss.2003.12.002.

    Article  Google Scholar 

  • Marco, A. D. and Thaheem, M. J. (2014). “Risk analysis in construction projects: a practical selection methodology.” American Journal of Applied Sciences, Vol. 11, No. 1, pp. 74–84, DOI: 10.3844/ajassp.2014.74.84.

    Article  Google Scholar 

  • Meade, L. M. and Sarkis, J. (1998). “Analyzing organizational project alternatives for agile manufacturing processes: An analytical network approach.” International Journal of Production Research, Vol. 37, pp. 241–261, DOI: 10.1080/002075499191751.

    Article  MATH  Google Scholar 

  • Meade, L. M. and Presley, A. (2002). “R&D project selection using the analytic network process.” IEEE Transactions on Engineering Management, Vol. 49, No. 1, pp. 59–66, DOI: 10.1109/17.985748.

    Article  Google Scholar 

  • Patterson, F. D. and Neailey, K. (2002). “A risk register database system to aid the management of project risk.” International Journal of Project Management, Vol. 20, pp. 365–374, DOI: 10.1016/S0263-7863(01)00040-0.

    Article  Google Scholar 

  • Petrangeli, G. (1984). “An approach to risk management for the next Italian nuclear power plants and reflections on applicability to other industrial activities.” Environment International, Vol. 10, pp. 501–506, DOI: 10.1016/0160-4120(84)90057-6.

    Article  Google Scholar 

  • PMI (2009). Practice standard for project risk management, 1st edition, Project Management Institute. Newtown Square, UK.

    Google Scholar 

  • Raz, T., Shenhar, A. J., and Dvir, D. (2002). “Risk management, project success and technological uncertainty.” R&D Management, Vol. 32, pp. 101–109, DOI: 10.1111/1467-9310.00243.

    Article  Google Scholar 

  • Rohrer, R. J. and Nierode, C. F. (1996). “Simple method for risk assessment of nuclear power plant refueling outages.” Nuclear Engineering and Design, Vol. 167, pp. 193–201, DOI: 10.1016/S0029-5493(96)01190-9.

    Article  Google Scholar 

  • Rowe, G. and Wright, G. (2011). “The Delphi technique: Past, Present, and Future Prospects -Introduction to the Special Issue.” Technological Forecasting and Social Change, Vol. 78, pp. 1487–1490, DOI: 10.1016/j.techfore.2011.09.002.

    Article  Google Scholar 

  • Saaty, T. L. (1996). Decision making with dependence and feedback: the analytic network process, RWS Publications, Pittsburgh, USA.

    Google Scholar 

  • Slovic, P., Finucane, M., Peters, E., and MacGregor, D. G. (2004). “Risk as analysis and risk as feelings: some thoughts about affect, reason, risk and rationality.” Risk Analysis, Vol. 24, pp. 311–322, DOI: 10.1111/j.0272-4332.2004.00433.x.

    Article  Google Scholar 

  • STUK (2006). Management of safety requirements in subcontracting during the Olkiluoto 3 nuclear power plant construction phase, Nuclear Reactor Regulation.

  • Tserng, H. P., Yin, S. Y. L., Dzeng, R. J., Wou, B., Tsai, M. D., and Chen, W. Y. (2009). “A study of ontology-based risk management framework of construction projects through project life cycle.” Automation in Construction, Vol. 18, No. 7, pp. 994–1008, DOI: 10.1016/j.autcon.2009.05.005.

    Article  Google Scholar 

  • Walewski, J. and Gibson, E. (2003). International project risk assessment: Methods, procedures, and critical factors, A Report of the Center for Construction Industry Studies, University of Texas, Austin, UAS.

    Google Scholar 

  • Wang, S., Wahab, M. I. M., and Fang, L. (2011). “Managing construction risks of AP1000 nuclear power plant in China.” Journal of Science System Engineering, Vol. 20, No. 1, pp. 43–69, DOI: 10.1007/s11518-011-5157-y.

    Article  Google Scholar 

  • Wu, J. S. and Apostolakis, G. E. (1992). “Experience with probabilistic risk assessment in the nuclear power industry.” Journal of Hazardous Materials, Vol. 29, pp. 313–345, DOI: 10.1016/0304-3894(92) 85040-8.

    Article  Google Scholar 

  • Zhi, H. (1995). “Risk management for overseas construction projects.” International Journal of Project Management, Vol. 13, No. 4, pp. 231–237, DOI: 10.1016/0263-7863(95)00015-I.

    Article  MathSciNet  Google Scholar 

  • Zwikael, O. and Ahn, M. (2011). “The effectiveness of risk management: An analysis of project risk planning across industries and countries.” Risk Analysis, Vol. 31, No. 1, pp. 25–37, DOI: 10.1111/j.1539-6924.2010.01470.x.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Construction Management Division, Construction & Economy Research Institute of Korea, Seoul, 06050, Korea

    Wi Sung Yoo

  2. Korea Electronic Power Corporation E&C, Gyeongsangbuk-do, 39660, Korea

    Jaewoong Yang

  3. Dept. of Civil and Environmental Eng., Incheon National University, Incheon, 22012, Korea

    Sanghyeok Kang

  4. Central Research Institute, Korea Hydro and Nuclear Power Co., LTD, Daejeon, 34101, Korea

    Sanghyun Lee

Authors
  1. Wi Sung Yoo
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jaewoong Yang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sanghyeok Kang
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Sanghyun Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sanghyeok Kang.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Yoo, W.S., Yang, J., Kang, S. et al. Development of a computerized risk management system for international NPP EPC projects. KSCE J Civ Eng 21, 11–26 (2017). https://doi.org/10.1007/s12205-016-0784-y

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12205-016-0784-y

Keywords

Search

Navigation