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Formulating Risk Mitigation Strategies on the Engineering, Procurement and Construction (EPC) Project in Mini Hydro Power Plant Development
Article from Journal - ilmiah nasional - terakreditasi DIKTI
Jurnal Aplikasi Manajemen vol. 13 no. 2 (Jun. 2015)
page 175 - 185.
mini hydro EPC project
The demand for electricity in Indonesia has been escalating rapidly for the past years. One of the priorities to fulfill the demand is by developing mini hydro power. However, the potential risk of implementation can arise at any stages of EPC process. XYZ is a EPC contractor company facing problems in managing risk. The objectives of this study are to identify risks and measuring the magnitude of the risk and develop effective risk mitigation strategies. Data analysis was conducted by determining the relative importance index (RII). There are 12 factors (22,64%) were categorized as very significant risks (80 RII 100). The respondent considers that the level grade in reliability and availability plant are the highest risk factor. The twelfth rank was taken by inaccuracy of engineers’ estimations during the preparation of material take over (MTO)/bill of quantity (BQ). Improvement in the company’s human resources is a major concern of the respondents, because the main weight of the respondent’s assessment of the strategy group was the dominant risk factor based on analitical hyrarchy process (AHP).
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