Managing risks in the project pipeline.
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Managing risks in the project pipeline.

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  • English

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    • Abstract:
      This research focuses on how to manage the risks of project costs and revenue uncertainties over the long-term, and identifies significant

      process improvements to ensure projects are delivered on time and as intended, thus maximizing the miles paved and minimizing financial

      risks to the organization. A dynamic simulation model is validated and tested by researching 50 historical projects, collecting data about

      these projects, and validating the key inputs for the simulation. A variety of parametric studies, including simulating the effects of various

      revenue scenarios, are performed and conclusive results are reached. Both Core Strategies, focusing on how to load and manage the

      project pipeline, and System and Organizational Improvement Strategies are identified. By implementing these strategies and minimizing

      the amount of projects held “on the shelf” and employing practices that minimize the risks of incurring Holding Costs due to revenue

      shortfalls, savings can be maximized. Applying new strategies and improving processes will allow the department to better manage the risks

      facing transportation projects in the project pipeline. Estimated cost savings are between 2 and 4 percent of the total budget; this would

      amount to a total savings of 90 million dollars, for a budget of 3 billion dollars over a ten-year period. The results of the research are

      enabling WYDOT to maximize the performance benefits from their asset management efforts.

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