scholarly journals Improving the cost estimates of complex projects in the project-based industries

2017 ◽  
Vol 7 (2) ◽  
pp. 173-184 ◽  
Author(s):  
Pournima Sridarran ◽  
Kaushal Keraminiyage ◽  
Leon Herszon
Keyword(s):  
Best Practices ◽  
Cost Estimation ◽  
Estimation Accuracy ◽  
Effective Practices ◽  
Accurate Estimation ◽  
Content Type ◽  
Complex Projects ◽  
Cost Implications ◽  
The Cost ◽  
Improve Cost

Purpose Project-based industries face major challenges in controlling project cost and completing within the budget. This is a critical issue as it often connects to the main objectives of any project. However, accurate estimation at the beginning of the project is difficult. Scholars argue that project complexity is a major contributor to cost estimation inaccuracies. Therefore, recognising the priorities of acknowledging complexity dimensions in cost estimation across similar industries is beneficial in identifying effective practices to reduce cost implications. Hence, the purpose of this paper is to identify the level of importance given to different complexity dimensions in cost estimation and to recognise best practices to improve cost estimation accuracy. Design/methodology/approach An online questionnaire survey was conducted among professionals including estimators, project managers, and quantity surveyors to rank the identified complexity dimensions based on their impacts in cost estimation accuracy. Besides, in-depth interviews were conducted among experts and practitioners from different industries, in order to extract effective practices to improve the cost estimation process of complex projects. Findings Study results show that risk, project and product size, and time frame are the high-impact complexity dimensions on cost estimation, which need more attention in reducing unforeseen cost implications. Moreover, study suggests that implementing a knowledge sharing system will be beneficial to acquire reliable and adequate information for cost estimation. Further, appropriate staffing, network enhancement, risk management, and circumspect estimation are some of the suggestions to improve cost estimation of complex projects. Originality/value The study finally provides suggestions to improve cost estimation in complex projects. Further, the results are expected to be beneficial to learn lessons from different industries and to exchange best practices.

Key indexes choosing approach of complex equipment’s development cost based on grey incidence cluster model

2016 ◽  
Vol 6 (1) ◽  
pp. 110-123 ◽  
Author(s):  
Naiming Xie ◽  
Chuanzhen Hu ◽  
Songming Yin
Keyword(s):  
Cost Estimation ◽  
Grey System Theory ◽  
Critical Parameters ◽  
Estimation Accuracy ◽  
Content Type ◽  
Complex Products ◽  
Civil Aircraft ◽  
Complex Equipment ◽  
Key Indicators ◽  
The Cost

Purpose – The purpose of this paper is to establish a combined model for selecting key indexes of complex equipment, and then improve the cost forecasting precision of the model. The problem how to choose the key elements of complex products has always been concerned on many fields, such as cost assessment, investment decision making, etc. Design/methodology/approach – Using Grey System Theory to establish a cost estimation model of complicated equipment is more reasonable under the few data and poor information. Therefore, this paper constructs cost index’s system of complex equipment, and then quantitative and qualitative analysis methods are utilized to calculate the grey entropy between the characteristic parameter and the behavior parameters. Further, establish the grey relational clustering matrix of the behavior sequences by using the grey relative incidence analysis. Finally, the authors select key indicators according to the grey degree. Findings – The experiment demonstrates that the cost key parameters of complex equipment can be successfully screened out by the proposed approach, and the cost estimation accuracy of complicated products is improved. Practical implications – The method proposed in this paper could be utilized to solve some practical problems, particularly the selection of cost critical parameters for complex products with few samples and poor information. Taking the cost key indexes of civil aircraft as an example, the results verified the validity of the GICM model. Originality/value – In this paper, the authors develop the method of GICM model. Taking the data of civil aircraft as an example, the authors screen the key indicators of complex products successfully, and improve the prediction accuracy of the GM (1, N) model by using the selected parameters, which provides a reference for some firms.

Precision navigation system design for Moon penetrator

2016 ◽  
Vol 88 (6) ◽  
pp. 791-798
Author(s):  
Xiaogang Wang ◽  
Wutao Qin ◽  
Yuliang Bai ◽  
Naigang Cui
Keyword(s):  
System Design ◽  
Kalman Filtering ◽  
Navigation System ◽  
Estimation Accuracy ◽  
Line Of Sight ◽  
Accurate Estimation ◽  
Navigation Systems ◽  
Vision Sensor ◽  
Content Type ◽  
Sigma Point

Purpose Penetrator plays an important role in the exploration of Moon and Mars. The navigation method is a key technology during the development of penetrator. To meet the high accuracy requirements of Moon penetrator, this paper aims to propose two kinds of navigation systems. Design/methodology/approach The line of sight of vision sensor between the penetrator and Moon orbiter could be utilized as the measurement during the navigation system design. However, the analysis of observability shows that the navigation system cannot estimate the position and velocity of penetrator, when the line of sight measurement is the only resource of information. Therefore, the Doppler measurement due to the relative motion between penetrator and the orbiter is used as the supplement. The other option is the relative range measurement between penetrator and the orbiter. The sigma-point Kalman Filtering is implemented to fuse the information from the vision sensor and Doppler or rangefinder. The observability of two navigation system is analyzed. Findings The sigma-point Kalman filtering could be used based on vision sensor and Doppler radar or laser rangefinder to give an accurate estimation of Moon penetrator position and velocity without increasing the payload of Moon penetrator or decreasing the estimation accuracy. However, the simulation result shows that the last method is better. The observability analysis also proves this conclusion. Practical implications Two navigation systems are proposed, and the simulations show that both systems can provide accurate estimation of states of penetrator. Originality/value Two navigation methods are proposed, and the observability of these navigation systems is analyzed. The sigma-point Kalman filtering is first introduced to the vision-based navigation system for Moon penetrator to provide precision navigation during the descent phase of Moon penetrator.

scholarly journals Construction tender price estimation standardization (TPES) in Malaysia

2018 ◽  
Vol 25 (3) ◽  
pp. 443-457 ◽  
Author(s):  
Salihudin Hassim ◽  
Ratnasamy Muniandy ◽  
Aidi Hizami Alias ◽  
Pedram Abdullah
Keyword(s):  
Neural Network ◽  
Coming Out ◽  
Cost Estimation ◽  
Influential Factors ◽  
Estimation Accuracy ◽  
Content Type ◽  
Estimation Process ◽  
Price Estimation ◽  
Fuzzy Neural ◽  
Artificial Neural Network Method

Purpose The pre-tender estimation process is still a hazy and inaccurate process, despite it has been practiced over decades, especially in Malaysia. The methods evolved over time largely depend on the amount of information available at the time of estimation. More often than not, the estimate produced during the pre-tender stage is far more than the tender cost of the project and sometimes, it is perilously underestimated and caused major problems to the client in the monetary planning. The purpose of this paper is to determine the most influential factors on the deviation of pre-tender cost estimation in Malaysia by conducting a survey. Design/methodology/approach Fuzzy logic, combined with artificial neural network method (fuzzy neural network) was then used to develop an estimating model to aid the pre-tender estimation process. Findings The results showed that the model is able to shift the cost estimation toward accuracy. This model can be used to improve the pre-tender estimation accuracy, enabling the client to take the necessary early measures in preparing the funding for a building project in Malaysia. Originality/value To the authors’ knowledge, this is the first study on tender price estimation standardization for a construction project in Malaysia. In addition, the authors have used factors from literature for the model, which shows the thoroughness of the developed model. Thus, the findings and the model developed in this study should be able to assist contractors in coming out with a more accurate tender price estimation.

Dimensions of cost misperceptions obstructing the adoption of sustainable buildings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel Ekung ◽  
Isaac Odesola ◽  
Michael Oladokun
Keyword(s):  
Delphi Study ◽  
Risk Perceptions ◽  
Green Building ◽  
Cost Information ◽  
Sustainable Buildings ◽  
Content Type ◽  
Self Study ◽  
Emerging Issues ◽  
The Cost ◽  
Improve Cost

PurposeAcross the globe, the dearth of certainty about the cost of sustainable buildings (SBs) remains a critical disincentive to their adoption. This study explored the factually incorrect knowledge about the cost of SBs and their implications on adoption.Design/methodology/approachThe study adopted sequenced mixed qualitative and quantitative approaches involving a literature review, Delphi study and survey. Semi-structured and structured self-study questionnaires were administered to a random sample of green building experts, researchers and registered construction professionals with deep knowledge of SB. The dataset from 254 stakeholders was analysed for commonality, principal components and critical misperceptions using multivariate approaches.FindingsThe predominant misperceptions in the study linked low adoption of SB to cost premium, portray cost premium as a property of luxury sustainable features and suggest related practices are suitable for exemplary projects only. The critical misperceptions produced various misinterpretations that inhibit the adoption of SB through the dearth of policies, increased complexities and inflation of budget to curb perceived risks.Practical implicationsThe study buttressed the imperative to improve cost information, knowledge, skills and stakeholders' risk perceptions to increase SB adoption. The results provide insight into the regional misperceptions and knowledge gaps that could explain the low adoption of SB in a typical emerging green market.Originality/valueThe study showed that the prevalent knowledge about the cost of SB among construction stakeholders are unsupported beliefs and directs attention to emerging issues critical to SBs' adoption in emerging markets.

Estimating Activity Costs: How the Provision of Accurate Historical Activity Data from a Biased Cost System Can Improve Individuals' Cost Estimation Accuracy

2007 ◽  
Vol 19 (1) ◽  
pp. 133-159 ◽  
Author(s):  
Dan L. Heitger
Keyword(s):  
Cost Estimation ◽  
Estimation Accuracy ◽  
Activity Data ◽  
Research Attention ◽  
Cost System ◽  
Initial Cost ◽  
Activity Cost ◽  
Historical Activity ◽  
The Cost ◽  
Activity Costs

An integral component of effective cost control and performance evaluation is the ability to accurately estimate relationships between activities and overhead costs (i.e., activity costs). Individuals using a single cost pool system often have to rely on memory of historical activity data when estimating activity costs. If individuals' recall of data is representative of the historical data, then reliance on memory should not be detrimental to cost estimation accuracy. However, individuals often possess incorrect initial beliefs about activity costs. These incorrect beliefs are expected to serve as an anchor from which individuals make insufficient adjustments when estimating activity costs based on memory of historical activity data. Multiple cost pool systems frequently provide biased standard rates; however, such systems also provide accurate historical activity data when individuals estimate costs. I extend prior accounting research by experimentally examining whether a multiple cost pool system's provision of accurate historical activity data improves activity cost estimation for individuals with incorrect cost beliefs even when the cost system also provides biased standard rates. The main contribution of the study is its finding that the multiple cost pool system's provision of historical activity data improves individuals' adjustments from their incorrect initial cost beliefs when estimating activity costs, thereby increasing their estimation accuracy. The results suggest that this improved adjustment from incorrect initial cost beliefs occurs because the provision of historical activity data improves individuals' recognition of how wrong their initial cost beliefs were in reality. This result is achieved even though the cost system provides biased standard rates. The ability of flawed cost systems to improve individuals' activity cost estimation in other such ways has received little research attention and is important because of its potential for improving managerial decision making.

Cost analysis error? Exploring issues relating to whole-life cost estimation in sustainable housing

2014 ◽  
Vol 19 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Brian Sloan ◽  
Olubukola Tokede ◽  
Sam Wamuziri ◽  
Andrew Brown
Keyword(s):  
Cost Estimation ◽  
Cost Models ◽  
Binomial Theorem ◽  
Value Analysis ◽  
Content Type ◽  
Zero Carbon ◽  
The Cost ◽  
Whole Life Costing ◽  
The Impact ◽  
Whole Life Cost

Purpose – The main purpose of the study is to promote consideration of the issues and approaches available for costing sustainable buildings with a view to minimising cost overruns, occasioned by conservative whole-life cost estimates. The paper primarily looks at the impact of adopting continuity in whole-life cost models for zero carbon houses. Design/methodology/approach – The study embraces a mathematically based risk procedure based on the binomial theorem for analysing the cost implication of the Lighthouse zero-carbon house project. A practical application of the continuous whole-life cost model is developed and results are compared with existing whole-life cost techniques using finite element methods and Monte Carlo analysis. Findings – With standard whole-life costing, discounted present-value analysis tends to underestimate the cost of a project. Adopting continuity in whole-life cost models presents a clearer picture and profile of the economic realities and decision-choices confronting clients and policy-makers. It also expands the informative scope on the costs of zero-carbon housing projects. Research limitations/implications – A primary limitation in this work is its focus on just one property type as the unit of analysis. This research is also limited in its consideration of initial and running cost categories only. The capital cost figures for the Lighthouse are indicative rather than definitive. Practical implications – The continuous whole-life cost technique is a novel and innovative approach in financial appraisal […] Benefits of an improved costing framework will be far-reaching in establishing effective policies aimed at client acceptance and optimally performing supply chain networks. Originality/value – The continuous whole-life costing pioneers an experimental departure from the stereo-typical discounting mechanism in standard whole-life costing procedures.

What is project alliance capability?

2017 ◽  
Vol 10 (2) ◽  
pp. 404-422 ◽  
Author(s):  
Anna-Maija Hietajärvi ◽  
Kirsi Aaltonen ◽  
Harri Haapasalo
Keyword(s):  
Best Practices ◽  
Empirical Evidence ◽  
Empirical Research ◽  
Design Methodology ◽  
Organizational Capabilities ◽  
Project Delivery ◽  
Research Approach ◽  
Content Type ◽  
Complex Projects ◽  
Practical Implications

Purpose Project alliancing – a project delivery model used in delivering complex projects – demands new organizational capabilities for successful project implementation. The purpose of this paper is to define the concept of project alliance (PA) capability and to identify the elements that constitute an organization’s PA capability. Design/methodology/approach This study provides empirical evidence of PA capability based on an investigation of participants’ experiences of Finnish construction and infrastructure alliance projects. The adopted research approach is qualitative and inductive. Findings The paper conceptualizes PA capability and defines the elements that constitute an organization’s PA capability, including important activities in the pre-formation, development and post-formation phases of PAs and the contractual, behavioral, relational, and operational skills that organizations need for successful alliance project initiation and implementation. Practical implications The identified alliance project activities are targets for routinization and best practices that organizations can deploy from one project to another. The identified skills indicate areas in which organizations should build and develop expertise. Originality/value There is limited empirical research on the elements defining an organization’s capability to bid, manage and operate in alliance projects. This study presents some preliminary thoughts to augment knowledge of the successful initiation and management of alliance projects and to suggest why some organizations may be more successful than others in alliance projects.

scholarly journals Evaluation of non-cost factors affecting the life cycle cost: an exploratory study

2016 ◽  
Vol 14 (4) ◽  
pp. 818-834 ◽  
Author(s):  
Ayedh Alqahtani ◽  
Andrew Whyte
Keyword(s):  
Life Cycle ◽  
Survey Data ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Accurate Estimation ◽  
Capital Operation ◽  
Building Projects ◽  
Content Type ◽  
Factors Affecting ◽  
Cost Factors

Purpose This paper aims to identify the main non-cost factors affecting accurate estimation of life cycle cost (LCC) in building projects. Design/methodology/approach Ten factors affecting LCC in building project cost estimates are identified through literature and interviews. A questionnaire survey is conducted to rank these factors in order of priority and provide the views of cost practitioners about the significance of these factors in the accurate estimation of LCC. The data from 138 construction building projects completed in UK were collected and analysed via multiple regression to discover the relationship between capital and LCCs and between non-cost factors and cost estimation at each stage of the life cycle (capital, operation, maintenance and LCC). Findings The results of analysis of existing LCC data of completing project and survey data from cost professionals are mostly consistent with many literature views and provide a reasonable description of the non-cost factors affecting the accuracy of estimates. Originality/value The value of this study is in the method used, which involves analysis of existing life data and survey data from cost professionals. The results provide a plausible description of the non-cost factors affecting the accuracy of estimates.

scholarly journals Survey Methodology for a Collection of Technical Drawings

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Aggeliki Natsikou ◽  
Konstantina Tsantiri ◽  
Spiros Zervos
Keyword(s):  
Best Practices ◽  
Water Supply ◽  
Cost Estimation ◽  
Survey Methodology ◽  
Historical Archive ◽  
Information Studies ◽  
Technical Specifications ◽  
The Cost

Abstract The YAMP (Projects and Specifications Archive Department) historical collection is part of the collections of technical drawings owned by the Historical Archive of Athens Water Supply and Sewerage Company (EYDAP S.A.). The survey of the collection, which is presented here, was commissioned by the Company to the Department of Archival, Library & Information Studies, University of West Attica, Greece. The objectives of the survey were the documentation of the condition of the collection, the determination of the technical specifications, and the cost estimation for its conservation. Several aspects of the survey methodology are presented, mainly the documentation step, which was planned to collect all the essential data, and the process of the cost estimation. Automation and parameterization of the calculations necessary for the documentation and the cost estimation are discussed in detail. The results of the survey and the recommended best practices for the optimization of the management of the collection are briefly outlined.

Cost assessment of multi-tenancy for a 5G broadband network in a dense urban area

2020 ◽  
Vol 22 (2) ◽  
pp. 53-70
Author(s):  
Juan Rendon Schneir ◽  
Konstantinos Konstantinou ◽  
Julie Bradford ◽  
Gerd Zimmermann ◽  
Heinz Droste ◽  
...  
Keyword(s):  
Cost Model ◽  
Access Network ◽  
Cost Savings ◽  
Economic Benefits ◽  
Mobile Service ◽  
Content Type ◽  
Broadband Network ◽  
Cost Implications ◽  
The Cost ◽  
Network Sharing

Purpose 5G systems will enable an improved transmission performance and the delivery of advanced communication services. To meet the expected requirements, operators will need to invest in network modernisation, with the radio access network being the most expensive network component. One possible way for operators to reduce this investment would be via sharing of resources by means of a multi-tenancy concept. This implies that a mobile service provider may use the common infrastructure of one or various infrastructure providers, whereby it provides services to multiple tenants. This paper aims to study the expected cost savings in terms of capital expenditures (CAPEX) and operational expenditures (OPEX) that can be achieved when using a cloudified 5G multi-tenant network. Design/methodology/approach A cost model was used. The study period is 2020-2030 and the study area consists of three local districts in central London, UK. Findings This paper describes that the total cost reduction achieved when using multi-tenancy for a 5G broadband network in comparison with the case where operators make the investment independently ranges from 5.2% to 15.5%. Research limitations/implications Further research is needed to assess the cost implications of network sharing for 5G on a regional or nationwide basis. Originality/value Very little quantitative research about the cost implications of network sharing under 5G networks has been published so far. This paper sheds light on the economic benefits of multi-tenancy in a 5G broadband network.

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