Resource Flow based Order Selection Method in Project Cost Estimation Process

Nobuaki Ishii, Yuichi Takano, Masaaki Muraki

2017

Abstract

Since the project price is fixed in EPC (Engineering, Procurement, and Construction) projects, the contractor should devote significant resources to the cost estimation process to realize the accurate cost estimation and then accept profitable projects from clients in competitive bidding situations. However, it is impossible for any contractor to devote sufficient resources to all the orders because of the resource constraints. In this study, a multistage project cost estimation process model, consisting of pre-evaluation, order selection, man-hour allocation, and a series of cost estimation steps, is developed. Then, this study devises a resource flow based order selection method and man-hour allocation method to provide successful results to clients and to maximize the contractor’s profits under the limited resources. Specifically, those methods dynamically select orders to estimate cost at each order arrival and allocate the resources to the selected orders, respectively. The effectiveness of our method is demonstrated through simulation experiments using the developed model.

Paper Citation

in Harvard Style

Ishii N., Takano Y. and Muraki M. (2017). Resource Flow based Order Selection Method in Project Cost Estimation Process . In Proceedings of the 7th International Conference on Simulation and Modeling Methodologies, Technologies and Applications - Volume 1: SIMULTECH, ISBN 978-989-758-265-3, pages 155-162. DOI: 10.5220/0006481901550162

in Bibtex Style

@conference{simultech17,
author={Nobuaki Ishii and Yuichi Takano and Masaaki Muraki},
title={Resource Flow based Order Selection Method in Project Cost Estimation Process},
booktitle={Proceedings of the 7th International Conference on Simulation and Modeling Methodologies, Technologies and Applications - Volume 1: SIMULTECH,},
year={2017},
pages={155-162},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006481901550162},
isbn={978-989-758-265-3},
}

in EndNote Style

TY - CONF
JO - Proceedings of the 7th International Conference on Simulation and Modeling Methodologies, Technologies and Applications - Volume 1: SIMULTECH,
TI - Resource Flow based Order Selection Method in Project Cost Estimation Process
SN - 978-989-758-265-3
AU - Ishii N.
AU - Takano Y.
AU - Muraki M.
PY - 2017
SP - 155
EP - 162
DO - 10.5220/0006481901550162