Identifying and prioritizing of risks in electric industry development projects (Case study: transmission and high distribution of Khorasan Regional Electric Co.)

Document Type : Research Paper

Authors

1 Faculty of Engineering, Ferdowsi University of Mashhad, I.R. Iran

2 Faculty of Industrial Engineering, Sadjad Institute of Higher Education, Mashhad, I.R. Iran

3 Dept. of Industrial Engineering, Young Researchers Club, Islamic Azad University, Firoozkooh, I.R. Iran

4 Khorasan Razavi Regional Electric Company, I.R. Iran

Abstract

Each year many large scale national projects face execution problems. In this regard, risk
management can play a significant role in identifying and taking proper measures. In this research,
using Project Management Body of Knowledge (PMBOK), a risk management procedure has been
designed and implemented in transmission and high distribution power lines of Khorasan Regional
Electric Company. First, using the results obtained from field studies and other information gathering
tools, different kinds of risks in transmission and high distribution power lines have been identified.
Next, risks analysis have been carried out based on probability of occurrence, ease of detection,
manageability as well as their impact on project goals. The rate of goals achievement was taken into
account by three criteria including time, cost and quality of execution. This followed by classification
of the risks, through risk breakdown structure, and then their prioritization. The results show that
budget shortage, sanctions issues, improper selection of project team, have been the main risks in the
projects considered in this research. The proposed approach in this study, with minor modifications,
may be employed to manage the risks in other large scale national projects.

Keywords


1. Z. Ashtiyani, M. (translator) (2008). A Guide to the Project Management Body of Knowledge. 4th. Ed. Adineh Pub. Co., Iran.
2. Nazari, A., Jaberi, M., and Sadegh Amal Nik, M. (2013). “Developing a Risk Management Model for Project Based Organizations.” Journal of Industrial Engineering, Vol. 47, No. 1, 93-104.
3. Baghishani, V. and Hoseini, S. J. (2008). “Risk analysis and management using three dimension method and its results in North Khorasan Province Electricity Dispatching Co.” 13th Electric Power Distribution Conference, Iran.
4. Liu, M. and Wu, F. F. (2007). “Risk management in a competitive electricity market.” Electrical Power and Energy Systems, 29, 690-697.
5. Wyk, R. V., Bowen, P., and Akintoye, A. (2008). “Project risk management practice: The case of a South African utility company.” International Journal of Project Management, 26, 149-163.
6. Zhe, L., Ke, L., Kaibi, W., and Xiaoliu, S. (2012). “Research on Financial Risk Management for Electric Power Enterprises.” Systems Engineering Procedia, 4, 54-60.
7. Jamali, D. and Naraghi, M. (2010). “Identification of the investment risks in power plants using B.O.O (Case study: Iran Thermal Power Plant).” 2th International Conference on Development of Financing System, Iran.
8. Zegordi, S. H., Rezayinik, E., Nazari, A., and H. Chobar, F. (2011). “Proposing a model for risk reduction in power plant projects based on multi-objective optimization approach and fuzzy analytical hierarchy process.” Quarterly Energy Economics Review, Vol. 8, No. 31, 161-195.
9. Zayed, T., Amer, M., and Pan, J. (2008). “Assessing risk and uncertainty inherent in Chinese highway projects using AHP.” International Journal of Project Management, 26, 408-419.
10. Lemos, T., Eaton, D., Betts, M., and Almeida, L. T. (2004). “Risk management in the Lusoponte concession-a case study of the two bridges in Lisbon Portugal.”, International Journal of Project Management, 22, 63-73.
11. Mousavi, S. M., Tavakkoli-Moghaddam, R., Azaron, A., Mojtahedi, S. M. H., and Hashemi, H. (2011). “Risk assessment for highway projects using jackknife technique.” Expert Systems with Applications, 38 (5), 5514-5524.
12. Zeng, J., An, M., and Smith, N. J. (2007). “Application of a fuzzy based decision making methodology to construction project risk assessment.” International Journal of Project Management, 25, 589-600.
13. Wang, Y-M. and M. S. Elhag, T. (2007). “A fuzzy group decision making approach for bridge risk assessment.” Computers & Industrial Engineering, 53, 137-148.
14. An, M., Baker, C., and Zeng, J. (2005). “A fuzzy-logic-based approach to qualitative risk modelling in the construction process.” World J Eng, 2(1), 1-12.
15. Jafarnejad, A. and Y. Zenoz, R. (2008). “A Fuzzy Model of Ranking Risks at Petropars Company’s Excavation of Oil Well Projects.” Journal of Industrial Management, Vol. 1, Issue 1, 21-38.
16. Jabbari, M., Asilian, H., Mortazavi, S. B., Zarringhalam, A., Hajizadeh, E., and Khavanin, A. (2009). “Risk Assessment and Management of Petrochemical Transportation Pipelines.” Journal of Industrial Engineering, Vol. 3, No. 1, 13-23.
17. Wang, J. and Sun, Y. (2012). “The Intuitionistic Fuzzy Sets on Evaluation of Risks in Projects of Energy Management Contract.” Systems Engineering Procedia, 3, 30-35.
18. Aven, T., Vinnem, J. E., and Wiencke, H. S. (2007). “A decision framework for risk management, with application to the offshore oil and gas industry.” Reliability Engineering and System Safety, 92, 433-448.
19. Bannerman, P. L. (2008). “Risk and risk management in software projects: A reassessment.” The Journal of Systems and Software, 81, 2118-2133.
20. H. Mojtahedi, S. M., Mousavi, S. M., and Makui, A. (2010). “Project risk identification and assessment simultaneously using multi-attribute group decision making technique.” Safety Science, 48 (4), 499-507.
21. Yousefi, O., Naseri, P., and Nilipour Tabatabaei, A. (2014). “Project Risk Assessment Model Using Multi-Objective Decision-Making Approach (case study: the earth dam project Asalooye).” Journal of Industrial Engineering, Vol. 48, No. 1, 125-135.
22. A Guide to the Project Management Body of Knowledge (PMBOK Guide), (2013). 5th Ed. Project Management Institute, Inc. Pub. Co.