International Journal of Technology Science and Research IJETSR www.ijetsr.com ISSN 2394 – 3386 Volume 4, Issue 10 October 2017 in Offshore

Aruna Mohan Department of Infrastructure Engineering and Management, Thiagarajar College of Engineering, Madurai, Tamil Nadu

ABSTRACT Offshore projects are characterized as very complex projects, where uncertainty comes from various sources. Offshore projects gather big number of stakeholders, which makes it difficult to control as a whole. Uncertainties are magnified for offshore structures compared to on-land structures owing to the relative severity and unfamiliarity of the ocean environment, the scarcity of data about loads and materials, and the expense of data-gathering.Offshore projects are always unique and risks raises from a number of different sources. It has an inherited risk in all of the processes starting from the conceptual phase of a project, engineering design, placing the bid and going through scheduling, material procurement, construction, changing orders and ending with the commissioning, final payment and closing-up of the project.Due to the undulations prevailing in Offshore projects there is high necessity of risk management in these projects. KEYWORDS – Risk management, Offshore construction, Risk identification

1.1 INTRODUCTION Risk is defined as “the problem or issue which is expressed in the form of probability with its chance of occurrence and the severity of the impact it can cause. It is used in many different ways and with many different words, such as ‘‘’’ or ‘‘uncertainty.’’ Every activity we do is, to a degree, characterized by the presence of risk. It is the expression of the likelihood and impact of an uncertain, sudden and extreme event that, if it occurs, has may impact positively (opportunity) or negatively (threat) on the achievement of a project or program objective.

1.2 OFFSHORE CONSTRUCTION Offshore construction is the installation of structures and facilities in a marine environment, usually for the production and transmission of electricity, oil, gas and other resources.

1.3 RISK IN OFFSHORE CONSTRUCTION Offshore projects are characterized as very complex projects, where uncertainty comes from various sources. Offshore projects gather big number of stakeholders, which makes it difficult to control as a whole. Offshore projects are always unique and risks raises from a number of different sources. It has an inherited risk in all of the processes starting from the conceptual phase of a project, engineering design, placing the bid and going through scheduling, material procurement, construction, changing orders and ending with the commissioning, final payment and closing-up of the project.

1.4 RISK MANAGEMENT Risk management is one among ten knowledge areas.Project Risk Management includes the process of conducting Risk management planning, identification, analysis, response planning, and controlling risk on the project. In recent years, intensive research and development has been done in the area of project risk management. It is widely recognized as one of the most critical procedures and capability areas in the field of project management.

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Fig 1.4: Risk Management Process

1.5 NEED FOR STUDY Risk management is highly recommended in offshore due to the following factors,  More probability of uncertainty at the site.  High adversity.  More deviation in post estimation phase.  Demands high safety and quality. In fact, it is appeared that Offshore construction exposes to serious risks in comparing to other types of construction work, which contributes the potential loss. There is a need for systematic risk management approaches that can help for reducing and controlling risks thus to effectively improve project management. Uncertainties are magnified for offshore structures compared to on-land structures owing to the relative severity and unfamiliarity of the ocean environment, the scarcity of data about loads and materials, and the expense of data-gathering. Due to the undulations prevailing in Offshore projects there is high necessity of risk management in these projects. 1.6 OBJECTIVES OF THE STUDY  Investigate various types of risks in Offshore Construction.  Compare views from various Respondents through Questionnaire towards allocation of risk.  Allocate Risk, categorize its importance, and analyze their effects on project. 2.0 METHODOLOGY With the data gathered through questionnaire survey and having a objective to assess, analyses and respond for the risks occurring in offshore construction, an action plan was prepared. 2.1 ACTION PLAN Action plan for the project was constructed in the form of the flow diagram, consisting of all the task to be performed in a sequential order starting from the Basic parameter study, through various stages

1164 Aruna Mohan International Journal of Engineering Technology Science and Research IJETSR www.ijetsr.com ISSN 2394 – 3386 Volume 4, Issue 10 October 2017 involving collection, compilation, analysis and summarization of results from questionnaire survey. This is shown in figure 2.1

• BASIC STUDY ON RISK MANAGMENTPARAMETERS 1

• LITERATUREREVIEW 2

• DESIGN OFQUESTIONNAIRE 3

• DATACOLLECTION 4

• DATACOMPILATION 5

• ANALYSIS OF COMPILEDDATA 6

• RESULT ANDSUMMARIZATION 7

• CONCLUSION 8

Fig 2.1: Methodology of the project

1165 Aruna Mohan International Journal of Engineering Technology Science and Research IJETSR www.ijetsr.com ISSN 2394 – 3386 Volume 4, Issue 10 October 2017

2.1.1 DESIGN OF QUESTIONNAIRE Design of a questionnaire related to the allocation of risks, importance and effects of these risks in offshore construction was done after identifying various risk factors, identification tools, analysis tools and response strategies pertaining to offshore constructions through a brief literature study. The questionnaire was designed so that respondent can give their best preferences and scale the risk factors qualitatively through which the further process was implemented. The questionnaire consists of two sections: Background Information and Risk Management Process. Background information gives details about the respondent such as type of respondent, their experience in offshore projects, type of the project and term of the project. 2.1.2 DATACOLLECTION Data collection was carried out by questionnaire survey. Questionnaires were distributed in Institute of engineers meeting and got a good number of respondents. Some questionnaires were mail to the respondents working or who had previously worked in the field. 2.1.3 DATACOMPILATION The data was compiled from the collected data through various respondents. During compiling, feedbacks from ten respondents were selected which revealed all vital information’s and others were rejected for compilation. The compilation is based on plurality voting method. 2.1.3.1PLURALITY VOTING METHOD In this method, the component which receives maximum response among many is taken as the value for the component. Based on this method each risk factor was rated in five scales. The scales which received maximum response was considered as the rating of the risk factors. 2.1.4 DATAANALYSIS The compiled data was analyzed so that the risk can be managed by prioritizing the risk factors on the basis of its likelihood of occurrence and degree of impact. The data analysis was done in following sequential steps.  Risk FactorAllocation  Risk CategorizationChart  Relative ImportanceChart  ParetoAnalysis  ControlChart  Risk Mode and EffectAnalysis(RMEA)  RiskScore  Risk Response Planning  Venn Diagram 2.1.4.1 RISK ALLOCATION MATRIX

Fig 2.1.4.1: Risk Allocation Matrix

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 Red color represents Risk factors falling under Severe Risk Categories.  Yellow color represents Risk factors falling under Moderate Risk Categories.  Green color represents Risk factors falling under Low Risk Categories. 2.1.4.2 RISK CATEGORIZATION In risk categorization eight types of risk was categorized on the basis of percentages of intensity of factors affecting each type of risk. Table 2.1.4.2: Risk Categorization Table PERCENTAGE OF PERCENTAGE OF S.No TYPES OF RISK SEVERE RISK MODERATE RISK

1 Project specific risk factor 50 50 2 Contractor specific risk factor 40 60

3 consultant specific risk 100 - factor 4 specific risk factor 100 -

5 Resource specific risk factor 66.67 33.33 6 External environmental specific risk 60 40 factor 7 Finance specific risk factors 60 40 8 Contract clause specific risk factor 66.67 33.33

Architect- consultant Risk Factor and Project Manager Specific Risk Factor falls completely under Severe Risk Category. Based on this analysis the above two Factors must be given Higher Importance. External Environmental Specific Risk Factors and Finance Specific Risk Factors must be given Lesser Importance, Since it has less percentage of severe risk factors.

Fig 2.1.4.2: Risk Categorization Chart

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2.1.4.3 PARETO ANALYSIS Pareto analysis is commonly referred to as “80/20” rule, under the assumption that, in all situations, 20% of causes determine 80% of problems. In risk management it allows management to focus on those risks that have most impact on the project. The following chart is 80-20 chart for the various risk factors.The risk factors occurring on the right side of the red line indicates important risk factors and on the right side indicates trivial risk factors.

Fig 2.1.4.3: Pareto analysis chart 2.1.4.4 RISK MODE AND EFFECT ANALYSIS (RMEA) RMEA is systematic proactive method for evaluating types of risk mode of risk, assigning priority number, identifying the effects and suggesting effects based risk response strategy.The quadrant which is shaded indicates the most critical Risk Categories. Risk factor falling under this category requires prior management compare to other Risk factors

Fig 2.1.4.4: Risk score graph

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3.0 RESULTS AND DISCUSSION The following table depicts the critical risk factors in each type of analysis. Table 3.0: Comparative Risk Factors Table RISK FACTOR RIIPARETO ANALYSIS RISK SCORE ALLOCATION ANALYSIS CLIMATIC NATURE OF TIME RISKTIME RISK CLIMATIC NATURE THE AREA OF THE AREA

SELECTION OF FAULTY UNFAVOURABLE SOCIAL UNFAVOURABLE SOCIAL CHANCES OF MATERIALS ENVIRONMENT ENVIRONMENT PROJECT MANAGER QUITING THE PROJECT

EQUIPMENT SELECTION OF FAULTY SELECTION OF FAULTY NO FORMAL BREAKDOWN MATERIALS MATERIALS TRAINING

UNQUALIFIED WORK NO FORMAL TRAINING NO FORMAL TRAINING LABOUR SHORTAGE/STRI KE

POOR INVENTORY USE OF MANAGEMENT USE OF MANAGEMENT SIZE OF THE PROJECT MANAGEMENT AND PLANNING TOOLS AND PLANNING TOOLS

SIZE OF THE PROJECT INSUFFICIENT DATA INSUFFICIENT DATA USE OF COLLECTION FOR DESIGN COLLECTION MANAGEMENT AND FOR DESIGN PLANNING TOOLS

USE OF MANAGEMENT CLIMATIC NATURE OF CLIMATIC NATURE OF INEFFECIENT AND PLANNING TOOLS THE AREA THE AREA TRAINING OF HUMAN RESOURCES

INEFFECIENT TRAINING EXTENSION OF TIME EXTENSION OF TIME LACK OF OF HUMAN RESOURCES LEADERSHIP QUALITY AND MONITORING CHANCES OF PROJECT POOR INVENTORY POOR INVENTORY LACK OF SPARES MANAGER QUITING THE MANAGEMENT MANAGEMENT PROJECT

EXTENSION OF TIME SIZE OF THE PROJECT SIZE OF THE PROJECT EQUIPMENT BREAKDOWN - LABOUR SHORTAGE/ LABOUR SHORTAGE/ UNQUALIFIED WORK FORCE LOW PRODUCTIVITY AND LOW PRODUCTIVITY AND UNFAVOURABL E - EFFICIENT OF EQUIPMENTEFFICIENT OF ECONOMIC EQUIPMENT FLUCTUATION From this comparative study 15 risks were shortlisted on the basis of common occurrence. These risk were correlated with control charts in the analysis and their occupancy in upper control are and lower control area

1169 Aruna Mohan International Journal of Engineering Technology Science and Research IJETSR www.ijetsr.com ISSN 2394 – 3386 Volume 4, Issue 10 October 2017 were shown in Pie chart.The following are the 15 types of risks,  Timerisk  Selection of faultymaterial  No formaltraining  Use of management and planningtools  Climatic nature ofarea  Unqualified workforce  Size of theproject  Insufficient data fordesign  Unfavorable economicfluctuations  Chances of project manager quitting theproject  Laborshortage  Inefficient training of humanresources  Lack of leadership quality andmanagement  Equipmentbreakdown  Unfavorable political environment

4.0 SUMMARY AND CONCLUSION This thesis was concluded by providing suitable suggestions for the different types of risk factors occurring in offshore construction.The following table gives the generic suggestions to overcome the critical risk. Table 4.0: Generic Suggestion Risk Factores Risk Risk Suggestions category strategy Size of the project SR RAC Make use of WBS. Partnership must be encouraged Climatic nature of the area SR RAC Maximum preventive measures must be taken. Insufficient data collection for SR RT Handle the responsibility to proper firm. design Use of management and planning SR RT Appoint experienced project managers. tools Inefficient training of human SR RT Appoint a proper trainer. resources Lack of leadership quality and SR RT Choose a person with inbuilt leadership monitoring skills. Chances of project manager quitting SR RT Recommend for a prior notice. the project Selection of faulty materials SR RAV Follow standard material prescriptions. Equipment breakdown SR RM Replace the equipment as soon as possible. Labour shortage /strike SR RAC Try to fulfill the labour needs. No formal training SR RT Objective based training must be given. Unfavorable economic fluctuations SR CP Adopt flexible financial plans Unfavorable political environment MR RAC Plan in advance suitable measures. Time risk SR RM Perform proper scheduling and tasking.

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This study discusses the risk factors affecting the offshore construction. It studies the importance of risk factors based on their probability of occurrence and degree of impact. By the use of previous studies in risk management 38 risk factors were identified and combined into 8 major groups relating to their sources. This study is made by field survey through a structured questionnaire directed to the people working in offshore construction. Those will give the statement of the problem, study objectives, study scope and need for the study. It was shown that there are many risk factors affecting the offshore construction. The field survey was composed of 10 members working in this field. The questionnaire had two parts: one part for general information about the respondents and the second related to the respondents opinion on probability of occurrence and impact of risk factors. The data was compiled by plurality voting method. All collected data were analyses by several methods. From this analysis critical risk factors were shortlisted and risk response suggestions were given.

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