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Frontiers of Engineering Management
Analysis of synergy degree and its influencing factors in hydropower EPC project management
Jiwei ZHU(), Hua GAO, Jiangrui WANG
State Key Laboratory of Eco-hydraulics in Northwest Arid Region, Xi’an University of Technology, Xi’an 710048, China; Research Center of Eco-hydraulics and Sustainable Development, The New Style Think Tank of Shaanxi Universities, Xi’an 710048, China; Department of Engineering Management, Xi’an University of Technology, Xi’an 710048, China
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The use of engineering procurement construction (EPC) mode is currently a trend in hydropower engineering construction. The clarification of the internal relationship between hydropower EPC projects and the realization of synergy has great significance in improving management efficiency and implementation effect. In this work, a three-dimensional system and a system model of hydropower EPC project management synergy are constructed. The mechanism and factors that influence the degree of management synergy are analyzed on the basis of management synergy theory. Furthermore, the evaluation index system and the degree of synergy model are established, and grey relational analysis is utilized to identify the key factors that affect the synergy degree. Thus, this study aims to facilitate the hydropower EPC project management synergy, provide a quantitative method for synergy degree evaluation, and propose corresponding promotion strategies. Results show that the order degree of each subsystem presents a steady upward trend. Specifically, the order degree of the subsystem at the trial operation stage is low, which is the major restriction on the further improvement of the synergy degree of EPC project management. The key factors in improving the synergy level of hydropower EPC project management are mainly concentrated in the information and organization synergy subsystems, including the construction degree of information platform, the performance of functions, the timeliness of information transfer, and the functions of the information platform.

Keywords hydropower project      EPC mode      synergy degree model      grey relational analysis     
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Jiwei ZHU
Jiangrui WANG
Jiwei ZHU,Hua GAO,Jiangrui WANG. Analysis of synergy degree and its influencing factors in hydropower EPC project management[J]. Front. Eng, 26 March 2020. [Epub ahead of print] doi: 10.1007/s42524-020-0098-0.
网址:     OR
Fig.1  3D system of hydropower EPC project management synergy.
Fig.2  System model of hydropower EPC project management synergy.
Subsystem Order parameter Ordinal parameter component
Information synergy S1 Information transfer A1 Timeliness of information transfer B11
Accuracy of information transfer B12
Degree of information transfer B13
Information platform A2 Construction degree of information platform B21
Functions of information platform B22
Benefits of information platform B23
Adaptability of information platform B24
Organization synergy S2 Organization architecture A3 Organization management level B31
Organization management span B32
Departmental settings B33
Organization synergy A4 Performance of functions B41
Inter-organization synergy B42
Organization standardization degree B43
Leadership attention B44
Process synergy S3 Process management A5 Process interconnection B51
Process reengineering B52
Process control A6 Process risk control effectiveness B61
Process safety control effectiveness B62
Business synergy S4 Target setting A7 Uniformity of business objectives B71
Definiteness of objectives at each stage B72
Synergy of objectives B73
Quality of target management process B74
Business level A8 Progress control level B81
Cost control level B82
Quality control level B83
Resource synergy S5 External resources A9 Political resources B91
Economic resources B92
Legal resources B93
Natural resources B94
Internal resources A10 Resource demand definition B101
Normativity of resource approval process B102
Rationality of resource allocation B103
Logistics smoothness B104
Institution synergy S6 Institution development A11 Degree of perfection of the system B111
Clearness of metrics B112
Institution effect A12 Adaptability of institutions and organizations B121
Institutional incentive effect B122
Institutional deterrence strength B123
Tab.1  Evaluation index system
Order 1 2 3 4 5 6
Design stage B21 B11 B22 B41 B23 B24
0.2500 0.2332 0.2290 0.2278 0.2256 0.2256
Procurement stage B21 B11 B22 B32 B24 B41
0.2500 0.2461 0.2378 02349 0.2346 0.2320
Construction stage B42 B21 B41 B32 B43 B33
0.2515 0.2500 0.2482 0.2470 0.2447 0.2441
Trial operation stage B11 B21 B23 B22 B41 B43
0.2500 0.2445 0.2395 0.2387 0.2368 0.2360
Tab.2  Ranking of synergy degree and correlation degree of ordinal parameter components at each stage
Fig.3  Order degree of subsystems.
Subsystem Design stage Procurement stage Construction stage Trial operation stage
Information synergy S1 0.4767 0.5056 0.5526 0.4676
Organization synergy S2 0.5319 0.5477 0.5368 0.5027
Process synergy S3 0.6267 0.6449 0.6643 0.6115
Business synergy S4 0.6099 0.6585 0.6728 0.5863
Resource synergy S5 0.6552 0.6631 0.6693 0.6217
Institution synergy S6 0.5367 0.5927 0.6453 0.5480
Tab.3  Order degree of subsystems
Fig.4  System synergy degree at different stages.
Rank range [-1, -0.6] (-0.6, -0.2] (-0.2, 0] (0, 0.2] (0.2, 0.6] (0.6, 1]
Synergy level High disharmony Moderate disharmony Low disharmony Low synergy Moderate synergy High synergy
Tab.5  Evaluation criteria for synergy degree
Synergy subsystem Promotion strategies
Information synergy ① Develop standard systems (data exchange, information classification and coding, information delivery, and data application standards)
② Improve an engineering data center (data acquisition, exchange, conversion, storage, and management)
③ Develop a project management platform (integrated presentation layer, user layer, decision-making layer, application layer, and docking with external system)
Organization synergy ① Improve the organizational structure (clarify the responsibilities of each functional department and give full play to their role)
② Solve organizational conflicts (analyze the root causes and influencing factors of organizational conflicts and propose methods for solving the conflicts)
③ Leaders must participate and pay attention (leaders should strengthen their awareness at the overall planning stage to ensure the implementation of the project in the entire construction life cycle)
Process synergy ① Clarify the information on process handover (define the boundary of each process and the information type, content, and handover method of each process integration)
② Optimize workflow (design a workflow to meet the needs of project management and project implementation)
Business synergy ① Set clear business objectives (decompose the project structure and unify the business objectives according to the multi-level characteristics of the project)
② Establish a collaborative work mechanism (establish a business collaborative work mechanism and integrate resources under the guidance of management collaborative thought)
③ Establish a project management system (standardize project management and realize the specialization, standardization, and refinement of the management system)
Resource synergy ① Supervise external resources (strengthen the supervision of all parties, coordinate the relationship between internal and external resources, and make full use of external resources)
② Formulate systems to regulate the use of internal resources (plan as a whole before the start of the project, and make regulations on possible conflicts over systematic resources based on previous experience)
Institution synergy ① Formulate EPC rules and regulations (EPC project development, EPC model transformation, coordinated development, and so on)
② Develop a risk sharing mechanism (understand the subject, object, and method of risk sharing and improve the contract terms)
③ Develop benefit sharing mechanism (design a relatively fair way of income distribution)
④ Formulate a reward and punishment system (provide reward and inflict punishment according to the contract and relevant systems to promote the goal of coordinating all participants in the project)
Tab.6  Promotion strategies of each synergy subsystem
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