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A decision model to estimate contingency budget for complex equipment development projects

  • Jun Wei Zeng
  • , Fa Jie Wei
  • , Fang Wu*
  • *Corresponding author for this work
  • Beihang University
  • China National Institute of Standardization

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Development of equipment is a complex process, which exposures to a great number of risks. Hence, many researchers suggest that organizations need to improve their ability to identify and to manage associated risks. To improve the risk management in complex equipment development projects, a pragmatic procedure is suggested to determine the size of a project's contingency plan budget at any specified level of certainty. Considering the interaction among risk factors, a method based on common risk factors and copula functions is used to model and quantify positive dependence between risks.

Original languageEnglish
Title of host publicationEnergy Development
Pages3078-3081
Number of pages4
DOIs
StatePublished - 2014
Event3rd International Conference on Energy, Environment and Sustainable Development, EESD 2013 - Shanghai, China
Duration: 12 Nov 201313 Nov 2013

Publication series

NameAdvanced Materials Research
Volume860-863
ISSN (Print)1022-6680

Conference

Conference3rd International Conference on Energy, Environment and Sustainable Development, EESD 2013
Country/TerritoryChina
CityShanghai
Period12/11/1313/11/13

Keywords

  • Complex equipment development project
  • Contingency plan budget
  • Copula
  • Risk dependency

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