Risk assessment of marine construction projects using Taguchi Loss Function

Valyani, Amir Reza; Feghhi Farahmand, Naser; Iranzadeh, Soleyman

doi:10.29252/ijcoe.3.3.33

Risk assessment of marine construction projects using Taguchi Loss Function

Authors

Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran

10.29252/ijcoe.3.3.33

Abstract

Today complicated and risky environment makes risk assessment and identification one of the main steps of proper project management and realization of project objectives. Marine construction projects are key and strategic projects, and their specific nature adds to their importance. This study aimed to propose a method for risk assessment and ranking critical risks in marine construction projects in Iran. To this end, the risk assessment team was formed to identify serious marine construction project risks using risk breakdown structure. Afterward, the team defined risk assessment measures. All risks were assessed in each criterion based on the Taguchi loss function. It allowed decision-makers to define a measurable risk threshold for each criterion and assess risks by developing a common language called loss score. Finally, critical risks were determined based on their priority. The results can be used to improve effective risk management, and consequently, project management.

Keywords

20.1001.1.25382667.2019.4.3.4.6

References

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Mohammadi, A. & Jafari, S.M. (2008). Risk management in Marine projects based on PMBOK, https://www.civilica.com/Paper-ICOPMAS08-ICOPMAS08_062.html
Mehdikhani, M. (2015). Risk assessment and aanagement of maritime construction projects by FMEA approaches based on PMBOK, https://www.civilica.com/Paper-NSMI17-NSMI17_012.html
Mehdikhani, M. (2015). Risk assessment and aanagement of maritime construction projects by FMEA approaches based on PMBOK, https://www.civilica.com/Paper-NSMI17-NSMI17_012.html
Khatami Firoozabadi, S.M.A., Vafadar Nikjoo, A., & Shahabi, A. (2013). Identifying the most important project risk categories by considering the cause-and-effect relationships between them in the fuzzy environment, Management Researches in Iran, 17(3).
Khatami Firoozabadi, S.M.A., Vafadar Nikjoo, A., & Shahabi, A. (2013). Identifying the most important project risk categories by considering the cause-and-effect relationships between them in the fuzzy environment, Management Researches in Iran, 17(3).
Golzar Ragheb, S., Mousavi, S.M., Gitinavard, H., Vahdani, B. (2016). Fuzzy Group Adaptive Decision Making Model with Doubt Given the Weight of Decision Makers to Assess Safety Risk in Manufacturing Projects (Shipbuilding), Industrial Engineering Research in Production Systems, 4(7), 93-103.
Golzar Ragheb, S., Mousavi, S.M., Gitinavard, H., Vahdani, B. (2016). Fuzzy Group Adaptive Decision Making Model with Doubt Given the Weight of Decision Makers to Assess Safety Risk in Manufacturing Projects (Shipbuilding), Industrial Engineering Research in Production Systems, 4(7), 93-103.
Lambert, J.H., Haimes, Y., Li, D., Schooff, R., Tulsiani, V., (2001), "Identification, ranking, and management of risks in a major system acquisition", Reliability Engineering & System Safety, 72(3): 315-325. [DOI:10.1016/S0951-8320(01)00009-6]
Lambert, J.H., Haimes, Y., Li, D., Schooff, R., Tulsiani, V., (2001), "Identification, ranking, and management of risks in a major system acquisition", Reliability Engineering & System Safety, 72(3): 315-325. [DOI:10.1016/S0951-8320(01)00009-6]
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Shen, L.Y. & Tam, Vivian. (2002). Implementation of environmental management in the Hong Kong construction industry. International Journal of Project Management. 20. 535-543. [DOI:10.1016/S0263-7863(01)00054-0]
Project Management Institute. (2017). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute.
Project Management Institute. (2017). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute.
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Veritas, N.D., (2002). Marine risk assessment. Offshore Technology Report, http://www.hse.gov.uk
Ebrahimnejad, S., Mousavi, S.M., & Seyrafianpour, H., (2010). Risk identification and assessment for build-operate-transfer projects: A fuzzy multi attribute decision-making model. Expert Systems with Applications, 37, 575-586. [DOI:10.1016/j.eswa.2009.05.037]
Ebrahimnejad, S., Mousavi, S.M., & Seyrafianpour, H., (2010). Risk identification and assessment for build-operate-transfer projects: A fuzzy multi attribute decision-making model. Expert Systems with Applications, 37, 575-586. [DOI:10.1016/j.eswa.2009.05.037]
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Taguchi, G., Elsayed, E.A., & Hsiang, T.C., (1989). Quality engineering in production systems. McGraw-Hill College, London.
Magdalena, R. (2012). Supplier selection for food industry: a combination of Taguchi loss function and fuzzy analytical hierarchy process. The Asian Journal of Technology Management, 5(1), 13-22.
Magdalena, R. (2012). Supplier selection for food industry: a combination of Taguchi loss function and fuzzy analytical hierarchy process. The Asian Journal of Technology Management, 5(1), 13-22.
Pi, W. N., & Low, C. (2005). Supplier evaluation and selection using Taguchi loss functions. The International Journal of Advanced Manufacturing Technology, 26:155-160. [DOI:10.1007/s00170-003-1975-5]
Pi, W. N., & Low, C. (2005). Supplier evaluation and selection using Taguchi loss functions. The International Journal of Advanced Manufacturing Technology, 26:155-160. [DOI:10.1007/s00170-003-1975-5]
Bryan Kethely, R. (2008), Using Taguchi Loss Functions to Develop a Single Objective Function in a Multi-Criteria Context: A Scheduling Example, International Journal of Information and Management Sciences, 19(4), 589-600.
Bryan Kethely, R. (2008), Using Taguchi Loss Functions to Develop a Single Objective Function in a Multi-Criteria Context: A Scheduling Example, International Journal of Information and Management Sciences, 19(4), 589-600.
Zhang, Z. and X, Chu. (2011). "Risk prioritization in failure mode and effects analysis under uncertainty." Expert Syst Appl. 38(1), 206-214. [DOI:10.1016/j.eswa.2010.06.046]
Zhang, Z. and X, Chu. (2011). "Risk prioritization in failure mode and effects analysis under uncertainty." Expert Syst Appl. 38(1), 206-214. [DOI:10.1016/j.eswa.2010.06.046]