System Dynamics in The Management of Power Plant EPC Projects

Abstract

Project management is a unique discipline with its own tools and techniques such as WBS, Gantt, PERT/CPM and etc. However, because these tools inherently use a static approach, they may provide users with unrealistic estimates and may also ignore the feedback processes and nonlinear relationships of a project or the challenge of today's dynamic projects. The purpose of this article is to coordinate and improve the quality in project management for project-oriented companies in the power plant industry. Also, this research focuses on EPC power plant projects, but the model is ready for implement in other industries with minor modifications. Relationships in EPC projects are complex and dynamic in nature. As a result, a stronger understanding of their dynamics facilitates their management and creates a source of competitive advantage. In addition, the dynamics of relationships can create effective management philosophies and principles to achieve organizational benefits. This research provides a comprehensive and integrated model for managing power plant projects using different management functions. Dynamic hypotheses were developed through interviews with experts and field specialists. After that, a simulated model was formulated using system dynamics modeling. The model was quantitatively and qualitatively validated using a real project. Finally, several policies were examined through extensive simulation to analyze their effects.