Managing uncertainty in major equipment procurement in engineering projects

A better management of time uncertainty in major equipment procurement in engineering construction projects can significantly contribute to project performance. A survey study shows that time buffer is a popularly used approach to protect project schedule from activity duration variation and uncerta...

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Bibliographic Details
Published in:European journal of operational research 2006-05, Vol.171 (1), p.123-134
Main Authors: Yeo, K.T., Ning, J.H.
Format: Article
Language:English
Subjects:
Applied sciences
Construction
Critical chain project management
Equipment acquisition planning
Exact sciences and technology
Inventory control, production control. Distribution
Operational research and scientific management
Operational research. Management science
Operations research
Project management
Project management and scheduling
Studies
Supply chain management
Supply chains
Uncertainty
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Summary:A better management of time uncertainty in major equipment procurement in engineering construction projects can significantly contribute to project performance. A survey study shows that time buffer is a popularly used approach to protect project schedule from activity duration variation and uncertainty. The problem is that there are repetitive time allowances inserted in the procurement supply chain process and these time buffers are used ineffectively, thus leading to considerable time wastage. Relevant lessons from supply chain management and critical chain project management are combined and applied to create an enhanced critical supply chain management model for major equipment procurement to achieve better management of time uncertainty. This model does not perceive uncertainty purely as a threat, but also as an opportunity to reduce procurement cycle times.
ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2004.06.036