The Impact of Engineering Process on the Construction Cost of HVDC Offshore Wind Energy Converter Station: A system dynamics approach
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- Department of Geography 
Aibel As, a Norwegian based service company, which has core businesses on the oil, gas and renewable energy sectors, needed improved work performance with a reduced cost of construction. For the purpose the company requested an in depth study to one of its first wind energy project, DolWin Beta. A recent internal study of the company shows that the man-hours used in recently completed projects and on projects that are near to their completions, have significantly increased compared to similar previous projects. This is of concern because the engineering processes are the cornerstones that all the company's activities are founded on. A multiphase system dynamic model that represents the engineering process of the company was built on the basis of previously developed and tested project structures. Simulations describe the behavior generated by the interaction of customized engineering phases and a project management structure. Each phase explicitly models the impacts of work process, resource capacity, scope, and targets on three engineering activities: regular processing, quality assurance, and rework. Project performance is measured in cost, cycle time, and quality. The model was calibrated to the DolWin Beta project of Aibel AS. Sensitivity tests indicate that two of performance measures (cost and quality) are more sensitive to the work precedence relations and minimum quality assurance parameters. Comparison between the simulated and historical record of the DolWin Beta engineering process shows that the model replicates the actual work progress during most of the development period. The model was also applied to the investigation of schedule completion date policies for improved project performance. Seven different schedule completion scenarios were tested. Model simulations indicate that internal deadlines, in addition to the project deadline, are vital for the successful completion of engineering works. We found that project could be more benefited when internal deadlines for engineering process is set to around 1/5 of the planned project deadline.