A Decision Model to Estimate Contingency Budget for Complex Equipment Development Projects

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.

• Periodical: Advanced Materials Research (Volumes 860-863)
• Pages: 3078-3081
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.860-863.3078
• Online since: December 2013
• Authors: Jun Wei Zeng, Fa Jie Wei, Fang Wu
• Keywords: Complex Equipment Development Project, Contingency Plan Budget, Copula, Risk Dependency

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