Abstract for: System Dynamics Applications Award: "Managing the Dynamics of Projects and Changes at Fluor"
The System Dynamics Applications Award is presented by the Society as often as once every two years for the best real world application of system dynamics. The best application will be based primarily on demonstrated measurable benefit to an organization through the use of system dynamics, and secondarily for new ideas that improve the art of applying system dynamics, or for relating work to existing system dynamics literature and/or other disciplines. The winner of the 2009 award is "Managing the Dynamics of Projects and Changes at Fluor" by Kenneth Cooper and Gregory Lee. Presentation Executive Summary: We designed, built, tested, and implemented a model-based system to aid project management at Fluor Corporation. The model is set up for and tailored to each engineering and construction project. It is then used to foresee future cost and schedule impacts of project changes, and most important, test ways to avoid the impacts. This “Change Impact Assessment” system has now been used on well over 100 different Fluor projects, a number that is growing rapidly each year. Hundreds of project managers and planners have been trained in the ongoing internal use of the system. In addition to providing a better understanding of the project-wide effects of changes, the cost savings for Fluor and its clients has now grown beyond $1.3 billion.