Risk Analysis And Recommendations To Improve The Logistics Cost Performance Of The EPC Project At Remote Area
Keywords:EPC project, engineering, construction, control system, logistic, remote location, cost performance.
The EPC and construction projects generally have a high level of complexity, and uncertainty. The changes that have occurred in the engineering, construction, control systems, and sub-logistics stages will impact logistics cost performance and finally affect the project margins, weak of project control, and high risk. The purpose of this study is to determine the variable risk that affects the performance of logistics costs, to obtain high-risk identification of engineering, construction, and system control variables that affect the performance of logistics costs and to determine the risk responses and recommendations to improve logistics cost performance on EPC projects in remote locations. Data was collected from literature studies, interviews with respondents, and experts. By 51 respondents' answers, the risk was identified are 30 factors in terms of the probabilities and impact. The method through descriptive analysis, validity & reliability testing, and qualitative risk analysis. Further, the follow-up of risk results would carry out through proactive and reactive mitigation. This research found 7% of the variables were extreme, and 93% were high-risk categories. Thus it indicates that all variables affect the logistics costs performance where the remote project locations are one of the main factors in increasing the logistics costs.
How to Cite
Copyright (c) 2023 Ferdi Firdausy
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.