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W6_Eman_Using Decision Making to compare which better O&M with local contractor or global O&M contractor.



1.     Problem Definition

In our company, we have 4 stages to develop a project:

1-    Planning stage

2-    Development stage

3-    Implementation stage

4-    Client & Contract Interface stage

In development stage, it is mentioned to include the Operation and Maintenances (O&M) contractors but it is not necessary to be local, so the question is why the developer which is (project company) is not hiring a local contractor for O&M, so we will compare between two of them to know the answer to the question.

2.     Identify the Feasible Alternative

These are the 2 alternatives:

1-    O&M contractors globally

2-    O&M with local contractors

3.     Development of the Outcome for Alternative


I am going to apply Multi Attribute Decision Making (MADM) technique to see which one is better O&M contractors globally or O&M with local contractors.
Figure1: Decision Making Process
4.     Selection Criteria 
The following criteria will be considered:
1-    Experience
2-    Capacity
3-    When is the last project establish
4-    Staff
5-    Specialists in
O&M contractors g;obally
(STOMO international)
O&M with local contractors
(Al Ghubrah Power and Desalination Co. SAOC (GPDCo))
Experience
Since 1997
Since 2005
Capacity
3,890 MW and 14206.5 MGD
432 MW and 37 MGD
When is the last project establish
2016
It is the only plant running by this company
Staff
153,090 employees worldwide
221 employees
Specialists in
Electricity generation, Distribution, Desalination, natural gas, nuclear and renewable energy.
Electricity generation and desalination.

Table1: Criteria Analysis Comparison

5.     Analysis and Comparison of the Alternative
I will use Grid Analysis, it is a useful technique for making a decision and most effective when you have a number of good alternatives, the comparison of the above criteria are ranked (2=best &/or Yes & 1=worst &/or No) as shown below:
STOMO international
Al Ghubrah Power and Desalination Co. SAOC (GPDCo)
Experience
2
1
Capacity
2
1
When is the last project establish
2
1
Staff
2
1
Specialists in
2
1
Total
10
5

Table 2: Weight Assessment

6.     Selection of the Preferred Alternative
The result from the analysis above show us that, STOMO international is preferred, because it is known globally and more experience in many field.

7.      Performance Monitoring and the Post Evaluation of Result
The local O&M contractors need more experience and projects to brand themselves and get projects, but for now the global O&M contractors are doing well and It is recommended to see the market every time when we need to establish a new project.

References

2.     Multiple Attribute Decision Making Based on Cross-Evaluation with Uncertain Decision Parameters https://www.hindawi.com/journals/mpe/2016/4313247/

3.     Grid Analysis. (n.d.). Retrieved from http://www.mbatools.co.uk/Toolbox/DecisionMaking/gridanalysis.htm


5.     Al Ghubrah Power and Desalination Co. SAOC (GPDCo) http://gpdco.co.om/


Comments

  1. Dr. PDGNovember 30, 2017 at 9:13 AM

    Great case study but I have to caution you about using REAL COMPANY NAMES.... The whole world can see this blog posting so I would urge you to use pseudonyms in place of real company names.

    Other than that, TECHNICALLY you did a great job!!!

    BR,
    Dr. PDG, Jakarta

    ReplyDelete

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