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

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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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