a fuzzy system for evaluating the risk of change in construction projects
TRANSCRIPT
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A fuzzy system for evaluating the risk of change in construction projects
Dr. Ibrahim A. Motawa*1; Prof. Chimay J. Anumba2; and Dr. Ashraf El-Hamalawi2
1Department of Structural Engineering, Mansoura University, EGYPT
2Department of Civil & Building Engineering, Loughborough University, LE11 3TU, UK
ABSTRACT
A major source of risk in construction is the potential changes occurring during the
project lifetime. Changes in construction projects often result from the uncertainty
associated with the imprecise and vague knowledge of much project information at the
early stages of projects. IT systems for change management largely focus on managing
reactive changes, in which changes are recorded and then propagated to the concerned
project members. However, proactive change management is hardly dealt with. Proactive
change management requires estimating the likelihood of occurrence of a change event as
well as estimating the degree of change impacts on project parameters. A fuzzy model is
proposed in this paper to maintain these requirements. The model simulates the
relationships between change causes and effects, and is intended to facilitate proactive
change management on projects.
Keywords: change management, fuzzy models, risk assessment
Introduction
Risks are the uncertain outcomes or consequences of activities or decisions when they are
manageable. The identification of risk sources and estimates is an essential function of
risk management. While many major decisions are made early in the project life that may
take risks into account, the realism of risk estimates increases as the project proceeds.
Despite difficulties associated with the identification of risk sources and estimates, they
are required to be identified as early as possible. The risk impact on any of the project
parameters (such as time or cost) is always modelled on a likelihood distribution function
that represents the risk value and the likelihood of its occurrence, as shown in Figure 1.
The likelihood distribution of risk is produced from cumulative impacts of risk sources on
a specific project. A change is considered one of these sources; its contribution to form
the likelihood distribution is also illustrated in Figure 1. The proposed model in this paper
will help in determining this part of risk, based on the available information at the early
stages of projects. Sources of change in construction include the uncertainties associated
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with the imprecise and vague knowledge of much project information at the early stages
of projects. Other sources of change may also exist but cannot be determined at the early
stages of projects, therefore are not considered in the proposed modelling. The modelling
technique used will enable the project team to trace the source of this risk and therefore
facilitate the development of a proactive action plan to deal with this risk before the
change actually occurs.
Changes in construction projects are considered among the major sources of risks for
projects due to various reasons. They are common, likely and not often immediately well
defined, but time has to be taken to consider the full information on changes. The nature
of change has been addressed in both risk analysis and change management studies. The
following section gives brief on previous related work on the subject.
Previous related work on change management in construction
Change management is an integral process that relates all internal and external factors that
influence project changes. Research projects on managing change in construction have
tended to focus on the identification of factors affecting the success of a change process,
and to introduce guidance for best practice in change implementation. Examples of such
research include: a concept for project change management (Construction Industry
Institute [1]), best practices for managing change efficiently (Construction Industry
Institute [2]), a generic procedure for issuing a change order request (Cox et al [3]), an
analysis method to reduce the overall rate of construction change orders (Stocks and
Singh [4]), best practice recommendations for the effective management of change on
projects (CIRIA [5]), and an advanced project change management system (Ibbs et al [6]).
Several other researchers have investigated the evaluation of change effects on certain
project elements. Hester et al [7] studied construction change order impacts on labour
productivity at the craft level. Ibbs [8] investigated the effect of the size and the time of
change on a project. Hanna et al [9] developed a linear regression model that predicts the
impact of change orders on labour productivity. Williams [10] studied the risk of changes
to safety regulations and its effect on a project. Lee et al [11] developed decision tree
models to classify and quantify productivity losses caused by change order impacts.
Change management has also been the focus of different IT systems. An integrated
environment for computer-aided engineering was developed by Ahmed et al [12], which
is a blackboard representation that integrates a global database, several knowledge
modules, and a control mechanism to systemize object changes. Peltonen et al [13]
proposed an engineering document management system for changes that incorporated
document approval and release procedures. Spooner and Hardwick [14] developed a
system with rules for coordinating concurrent changes and for identifying and resolving
conflict modifications. Ganeshan et al [15] developed a system to capture the history of
the design process, initiate backtracking, and determine the decisions that might be
affected when changes are made in the spatial design of residential buildings.
Krishnamurthy and Law [16] presented an interesting change management model that
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supports multidisciplinary collaborative design environments. Another change
management system was proposed by Mokhtar et al [17] for managing design change in a
collaborative environment. The model is capable of propagating design changes and
tracking past changes. Soh and Wang [18] proposed a constraint methodology based on a
parametric technique to coordinate design consistency between different geometric
models and to facilitate managing design changes. Hegazy et al [19] introduced an
information model to facilitate design coordination and management of design changes.
Important dependencies between building components were represented by this model to
help identify the ripple effect of changes between components. Also, a reporting system
was used to view the history of all changes made by all disciplines. A more generic IT
system was presented by Karim and Adeli [20] which is an object-oriented (OO)
information model for construction scheduling, cost optimisation, and change order
management. Charoenngam et al [21] developed a Web-based change order management
system that supports documentation practice, communication and integration between
different team members in the change order workflow.
It can be seen from the above that previous work on change management and evaluation
mainly focused either on the identification of the change process, best practice
recommendations for managing change during the project life cycle, or evaluation of the
change effects on a single project parameter. Identification and recommendation are not
enough for managing change effectively, as change management should help in
forecasting possible changes, planning defensive impacts; and coordinating changes
across the entire project. The IT systems developed for change management are, in
general, integrated systems that represent design information, record design rationale,
facilitate design co-ordination and changes, and notify users of file changes. These
systems were developed mainly to deal with reactive changes, particularly design changes.
On the other hand, systems for the evaluation of change effects were developed to
estimate certain change effects, such as productivity loss. However, evaluation of change
effects without relating multiple change causes to multiple change effects (which is the
case for many change events) does not consider the whole case of change.
In the light of the above, the focus of this research was on how to deal with
proactive/reactive changes taken the interdependency between multiple causes and effects
into consideration. A change management system was developed that consists of a model
to identify and forecast potential changes and evaluate their effects, which in turn will
help in estimating the risk value for change. The system also includes a workflow model
that deals with reactive changes. This paper focuses on the principles and structure of the
proactive model of the system. The research problem being addressed is first presented
and is followed by a description of the approach adopted in the development of the model.
The paper presents the IT system architecture of the proposed model and an application
example is used to demonstrate the data input and output of the proposed system. The
benefits of the model are outlined in the concluding part of the paper.
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Research problem
During the early stages of projects, the amount and precision of qualitative information
available makes projects prone to many changes. A well-established methodology to
gather this information and use it for tracking potential changes is required for timely and
accurate prediction of changes throughout the project process. When changes occur, the
investigation for the change consequences relates them to several causes such as design
errors or changes in client requirements, which are actually the direct change causes.
However, these causes are usually based on the amount and precision of information
available at the early stages of the project. Such information often influences the number
of change cases. This is actually a major outcome from the case studies carried out as part
of this research.
The information for building a full cause and effect relationship becomes available as
changes occur and are assessed. However, very little is known about project change at the
very early phases of a project, and thus, traditional change models, that were reviewed in
literature, are inadequate for predicting change events under uncertain conditions.
Therefore, at such early phases it is a challenging task to show correlations and
relationships between the limited information available and the problems that arise in the
later phases of the project life cycle. Existing models for change assessment are largely
based on checklists and definitions of change causes and are mainly used to negotiate
compensation for any disruptive consequences caused by the change. However, prediction
models tend to make subjective assumptions to deal with the events, based on the
experience of the project team.
For a given project, different project characteristics may lead to change. Therefore, the
proposed model targets simulating the cause and effect relationships within change cases
taking these project characteristics into consideration. Figure 2 depicts a typical network
of cause and effect relationships for a change case.
The proposed methodology for the change prediction model includes the identification of
prediction set elements (namely: project characteristics, change causes, and change
effects); and the relationships between these elements. At this stage, the model assumes
that the elements of each set are independent from the other elements in the same set.
Project characteristics (F) are factors or aspects that have an influence on the project and
may lead to change. Change causes (C) are the direct causes of a specific change event
when it occurs; these are likely to be because of the existence of certain project
characteristics. Change effects (E) are the change consequences on project parameters.
Two measures, R1 and R2, have been targeted to represent the degree of dependency
between F’s and C’s and between C’s and E’s, respectively. They actually represent the
sensitivity of the impact of one set of elements to variations in another set of elements.
The model elements (F, C and E) are detailed elsewhere: Motawa et al [22].
The model then uses these prediction elements and their relationships to generate the
likelihood of change occurrence and change effects on project parameters. The approach
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for modelling these relationships is illustrated in Figure 3 using an example of three
project characteristics (F), three change causes (C) and two change effects (E). The
analysis is undertaken for the expected change effects, considering all causes of change
under specific project characteristics. In order to estimate the likelihood of change
occurrence and change effects, which reflect the risk and uncertainty around the change
occurrence, it is proposed to represent the prediction elements as follows:
Fi = the degree of influence of project characteristics on a specific project which may lead
to change;
Rij = the sensitivity of a change cause occurrence to variations in the project
Characteristics;
Rjk = the sensitivity of the change impact to variations in the change causes.
The relationship between these elements are formed and combined to produce the
cumulative relation, as shown by Equation 1:
jk
lkmi
ki
mjni
jiijijkiji RRFRRFf
,
1,
,
1,
*,, ………………………….…. Eqn.(1)
The inner summation in the calculation of Eqn.1 gives the likelihood of change
occurrence while the overall calculation results in the change impacts. The model
attempts to predict change impacts on project parameters using data that are realistic to
obtain, while limited data (documented) are only available from previous projects and
many of the above elements can only be expressed in linguistic terms. This means that the
model will simulate the uncertainty, the subjectivity of the impact and variations of these
sets of elements. Different approaches have been investigated to develop this model,
which in turn will determine the amount of risk for change. The following section
discusses the most suitable one, and outlines why other approached were discarded.
Determining the risk of change
Modelling uncertainty and variations of subjective variables has been the focus of many
systems such as: Rule-based systems, Neural Networks-NN, and fuzzy systems. For the
problem in hand, it was concluded from the case studies undertaken as part of the research
project that:
Much of the information available for the change cases is always vague.
Change consequences might lead to dispute, therefore, detailed analyses and
investigation of the change causes and effects are required. This needs close
observation for the simulation route of cause and effect relationships.
These reasons make approaches such as rule-based systems and NN inappropriate for
modelling change prediction. Rule-based systems need the information on change events
to be represented in the form of well-defined rules. This is inappropriate in this case
because the available information on the recorded change events cannot be encapsulated
in rules explicitly and it is difficult to formulate a complete and accurate set of rules to
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capture the expertise required and the issues involved. On the other hand, NN systems
were found inappropriate, as they neither provide details of variable manipulations nor the
rationale for the conclusions drawn. Therefore, fuzzy systems were found the most
suitable approach for modelling the problem domain.
Fuzzy Modelling
A fuzzy model represents a real problem using fuzzy variables, algorithm, and/or rules.
Fuzzy set theory was first developed by Zadeh [23] as a mathematical approach to
representing uncertain and imprecise information. It provides approximate but effective
descriptions for highly complex, ill-defined mathematical systems. It effectively supports
linguistic imprecision and vagueness. Fuzzy systems, based on fuzzy sets and fuzzy logic,
can be used for the purposes of modelling, prediction, classification, and control.
The quality of the fuzzy approximation depends predominantly on the quality of
engineering judgment (subjective knowledge) and human expertise used to identify the
fuzzy input variables. For this reason, the development of fuzzy sets for the identified
input variables is often considered the most important step in developing the fuzzy
system. Therefore, a fuzzy algorithm for change prediction using Equation 1 is
considered. The estimation of the problem variables (Fi, Rij, and Rjk) will be simulated as
fuzzy numbers on a scale of 0 - 10 (where ‘0’ represents the ‘no relationship/effect’ and
‘10’ represents the ‘very strong relationship/effect’). The membership function of this
numerical scale is shown in Figure 4-a. A linguistic scale is also proposed in case of using
linguistic judgment for the problem variables, shown in Figure 4-b. The sum and the
product of fuzzy sets are computed using the extension principle, described in Equations 2
and 3, where 'A' and 'B' are fuzzy numbers. For the defuzzification process to convert the
membership function of the final summation into a crisp (non-fuzzy) value, the centre of
area method is used. The fuzzy algorithm for the model is fully detailed elsewhere:
Motawa et al [24].
A · B = 1
0
).(
BA = 1
0
).(
BA ………………………………….…….………Eqn.(2)
A+ B = 1
0
).(
BA = 1
0
).(
BA ………………………………..……………Eqn.(3)
The fuzzy model described above was implemented in a software system for operational
purposes (Motawa et al [25]). The system is designed as a Java package of components
with their supporting classes, beans, and files. Figure 5 shows the architecture of the
system and the relationships between its various components. Briefly, the main
components of the system are:
1. Database: The system efficiency depends on the quality of a well-designed database.
The system database contains two kinds of information: (1) data collected from the
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case studies carried out regarding the prediction elements of change. A set of tables
were designed to store the required information for this database as well as the system
outputs; and (2) case-base, which represents specific knowledge tied to specific
situations of a change case, also represents knowledge at an operational level; that is,
how a change case was carried out or how a piece of knowledge was applied or what
particular strategies for accomplishing a change case were used. Each case in the case-
base is composed of three major parts: change case description, system outcome and
actual case scenarios. The description specifies the situation in a change case (i.e. the
means by which the case was affected). The outcome indicates the analysis of the
fuzzy results after the change case is modeled. The actual case scenario outlines any
elements that have arisen during the implementation of change and have not been
taken into account for modelling.
2. Project data: these are interface frames “JFC (Swing) Frames” (Java Foundation
Class) that provide users with interactive tools. They are used to locate the input data,
which are selected from the database and/or entered directly by the user.
3. Modelling change cases: this is a Java code that translates the fuzzy model for change
prediction and effects into the computer program. The system allows both numerical
and linguistic estimation for each element.
4. Output form: this is a JFC Frame that displays the system outputs.
5. The archive is a documentation system for all information on the change case and the
system output.
A set of links has been designed to navigate from page to page and to run the system’s
functions.
System application/operation
The example shown here is based on one of the case studies used in the development of
the model. The case study project involved extending a store building (to almost a
doubled size) and refurbishing the existing one. The case study focused on constructing
the floor of the building. The original construction plan for the floor had been completely
changed. During the construction phase, a floor survey was investigated by a new
European regulation on floor surfaces. The outcome of the survey was: the floor would
not meet the new standards and the floor was damaged in places and therefore either
needed to be replaced or repaired. Different options were proposed to deal with the case
as shown in Figure 6. The information regarding the change case, in terms of the project
characteristics, change causes and effects are presented in Tables 1, 2 and 3. The fuzzy
variables, in this example, are described in numerical format. In Table 1, the project
characteristics (Fi) and the fuzzy estimates for its influence on the likelihood of the
change occurrence are shown. The project team defined four characteristics for this
project that may have influence on the project. For example, ‘the external pressures
bearing on client’ (F1) was given the estimate of ‘7.0’ as a fuzzy weight for its influence.
The team also estimated the dependency values between each change cause and project
characteristics. For example, a fuzzy value of ‘8.0’ was given to the relationship between
the change cause (C1) and the project characteristic (F1). No relationship is given between
(F1) and (C5). These values express the sensitivity of the change causes occurrence to any
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variations in the project characteristics. High values for these sensitivities can be noticed
in Table 2; such as between C1 & C2 and F1, all dependencies with F2, and between C4 and
F4. The team also defined the dependency between the change causes and effects in the
same way, as shown in Table 3.
The model output, shown in Tables 4 and 5, represent the likelihood of the change
occurrence and the amount of change effect on the defined project parameters (E1, E2).
The model output can be used in the following ways:
1. The project tasks of every change case should be modelled on a project management
program. This group of tasks is subjected to certain risks that are defined by the
project team at the planning stage. The model output for the defined change case has
given the likelihood of the change cause ‘Delays in decision making’ as 12.7%. This
risk value can be used to represent the effect of this risk on the project tasks of this
change case. For example, the durations of the tasks affected by ‘Delays in decision-
making’ will have a 12.7% increase on the original estimate.
2. For a successful project, the project parameter ‘Loss of workflow’ should have a zero
value (No loss). For the studied project, the change occurrence has given an effect of
36.71% on this parameter. This estimate can be used for measuring the project
success and also in the case of dispute resolution where the sources of the change
causes can be traced through the cause and effect relationships defined by this model.
The above model has been developed in a software application. A typical user of this
model is the project team who are expert in estimating the accuracy of the project
information at the early stages of projects. The model is best used at the planning stage.
The user can use this software following scenario below:
1. The user starts the application by connecting to the system database, which displays a
list of prediction elements or archived cases.
2. The user selects an element for the change case by clicking on its name from the
appropriate list. This action causes the application to build a list of elements for each
specific change case. Figure 7 shows the change case elements of constructing the
floor of a store building. Input data required for the fuzzy model include fuzzy
weights for the selected project characteristics. The data also include fuzzy values for
the sensitivity of a change cause occurrence to variations in the project characteristics
and fuzzy values for the sensitivity of the change impact to variations in the change
causes (the relationship between the case elements).
3. The user can add more elements, which are not included in the database, where
applicable, to the studied change cases. The system has the capability either to update
the original database by the additional elements or to save them only for this specific
change case.
4. For a new change case, system users can integrate the case base to obtain information
regarding a similar change case together with related parameters and elements. This
enables further estimation and analysis.
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5. The results are shown in Figure 8, which demonstrates the likelihood of occurrence of
each cause of change and the amount of impact that the change will have on each
project parameter.
Conclusions
Change, as a source of risk, requires to be estimated to help in determining the overall risk
value on a certain project parameter. The focus of change management in construction
was on the identification of the change process, the best practice of change
implementation within a project, the evaluation of change effects on specific project
parameters, and IT systems for managing reactive changes and facilitating co-ordination
of design changes. However, modelling construction change should consider the link
between: 1) project characteristics that lead to change 2) causes of change, 3) the
likelihood of change occurrence, and 4) the change consequences. Relating multiple
change causes to multiple change effects is a major role for modelling change in
construction. This research has focused on identifying and forecasting potential changes
and evaluating the impact of changes before they actually occur. A fuzzy model was
proposed in this research to estimate the likelihood of occurrence of a change event and to
predict the effect of change on project parameters using data available at the early stages
of projects. This paper presented the main components and functionalities of this model.
The fuzzy model relates the set elements of project characteristics to the occurrence of
change causes, and hence determines the overall change impact on project parameters.
These elements are treated as fuzzy set numbers or linguistic variables, combined and
processed through a fuzzy relation formula to map their impact on project parameters.
An example was presented to illustrate the working of the model, which includes a
simulation of the effects of multiple change causes. The model was developed as a
software application for operational use. This modelling approach is intended to enable
the project team to test the sensitivity of the likelihood of change occurrence and the
effects of change on project parameters due to variations in these sets of elements. This is
useful in alerting the project team to changes so as to take corrective action and to
minimize the disruptive effect of changes. The model is useful for dealing with proactive
changes by identifying/tracking the main project characteristics that have an influence on
change causes. It also gives the contribution of change to the overall risk estimate that
could be used for risk analysis.
As a limitation for the model use, the model assumes at this stage of development that the
elements of each set are independent from the other elements in the same set. The model
considers only the sources of change that can be determined at the early stages of projects.
Therefore, information that may cause changes such as irrational behaviours of the project
stakeholders and also information resulted from the project progress, are not included.
The estimations, given by the project team, to the accuracy of the project information at
the planning stage and how these estimations are linked with change events, will affect
the accuracy of the model results.
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References
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Table 1: Project characteristics of the floor case
ID Project characteristics Fuzzy estimates
F1 External pressures bearing on client (re-location, changing needs) 7.0
F2 Building and statutory regulations 8.0
F3 Quality issues 4.0
F4 Skills and Knowledge 3.0
Table 2: The dependency between project characteristics and change causes
ID Change causes F1 F2 F3 F4
C1 Revised client requirements 8.0 7.0 3.0 4.0
C2 Schedule pressure 8.0 8.0 4.0 4.0
C3 Lack in Design Information 3.0 9.0 4.0 2.0
C4 Delays in decision making 4.0 8.0 3.0 7.0
C5 Unforeseen events and site conditions 0.0 6.0 3.0 3.0
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Table 3: The dependency between change causes and effects
ID Change effects C1 C2 C3 C4 C5
E1 Re-organise and schedule the work
methods, production schedules and
deliveries
8.0 9.0 8.0 8.0 7.0
E2 Loss of workflow 5.0 6.0 4.0 9.0 5.0
Table 4: The likelihood of occurrence of change causes
ID Change causes Likelihood of occurrence
C1 Revised client requirements 13.8
C2 Schedule pressure 15.0
C3 Lack in Design Information 11.7
C4 Delays in decision making 12.7
C5 Unforeseen Events and site conditions 7.3
Table 5: The change impact on project parameters
ID Change effects Value of impact
E1 Re-organise and schedule the work methods, production
schedules and deliveries
50.23
E2 Loss of workflow 36.71
Figure 1. Likelihood distribution function for risk impact on a project parameter
the risk impact on the project parameter
Change contribution to the risk value
Initial estimate of the project parameter
–ve % +ve %
1.0
0
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Figure 2. Cause and effect relationships within change cases
Figure 3. Analysis of cause-and-effect relationships for a change case
Figure 4-a. The membership function of the change prediction elements (numerical scale)
Rjk
Rij
Project characteristics (F)
Change causes (C)
Change effects (E)
Rj1
Ri2 Ri3 Ri1
C1
F1
F2 F3
E1
C2
F1
F2 F3
C3
F1
F2 F3
Rj2
Ri2 Ri3 Ri1
C1
F1
F2 F3
E2
C2
F1
F2 F3
C3
F1
F2 F3
0 1 2 3 4 5 6 7 8 9 10
1.0
µ
14
Figure 4-b. The membership function of the change prediction elements (linguistic scale)
Figure 5. Architecture of the Change Prediction System
3. Modelling change cases
run the Fuzzy model of
change prediction
query tag prediction
elements
2. Project
data
5. Change
cases archive
populate prediction
elements/case
display prediction
elements/case
4. Output
form
display prediction
output
Update archive model experience
Case-base
User
1. Database
Generate
1.0
µ
0 1 2 3 4 5 6 7 8 9 10
very low low moderate high very high
15
Figure 6 The change options for the floor construction
(2) Overlay
tiles with new
(3) Patch
repair
Survey to confirm
assumption made
Ok
Failed
(1) Initial proposal (Replacement with Terrazzo)
Testing of the screed
below the existing tiles (1) Terrazzo floor
Failed Passed
Tiles testing
(4) Replace
with new
Implement
option (4) if the
survey confirm
the assumption
If not, implement
option (5)
‘patch/repair
screed’ lay new
tiles as overlay
This option was
expected as the
most likely
option from the
beginning