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Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
1
Development of Systems and Process Models -- Private Landfills Application
J. Darrell Tipton II, P.E.1 Cecelia Wigal, Ph.D., P.E.2
Abstract This paper presents methods and tools to develop systems and process models for the project
development path applied to private solid waste disposal projects. Model development is
performed to establish the level of accuracy needed to reveal business opportunities and to
establish a model suitable for strategic analysis and business development. The models are central
to a comprehensive understanding of how projects in the “heavy-civil” category develop and how
that understanding can be used to further the goals of an engineering consulting company.
The paper discussion emphasizes systems definition and analysis, project development
processes, and solid waste disposal projects. The development path for solid waste disposal
projects is compared to the development path for software and manufacturing projects. Systems
and process modeling software are used to create models from the collected data. Limitations with
regards to data accuracy and software complexity are discussed.
Introduction The goal of the subject research is to determine whether the project development process can be
modeled similar to the way business processes are modeled. Of specific interest is whether a
1 The University of Tennessee at Chattanooga, College of Engineering and Computer Science, 615 McCallie Avenue, Chattanooga, TN 37403, [email protected], Phone: (423) 756-7193, Fax (423) 756-7197. 2 The University of Tennessee at Chattanooga, College of Engineering and Computer Science, 615 McCallie Avenue, Chattanooga, TN 37403, [email protected], Phone: (423) 425-4015, Fax: (423) 425-5229.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
2
systems approach can serve as a basis for establishing project definition and whether existing
business process modeling software can serve as a basis for the model.
The growth in the current state of knowledge concerning the use of systems engineering in
business development is the result of competitive pressures. Specifically, businesses are looking
for ways to define aggregate demand for its products, its market share, threats of substitution for its
products, and, most urgent, trends in each of these areas. Evidence of this is the response of
universities offering training in financial engineering, as a process of research and development of
new profitable financial products and services that meet customer needs (Miskin & Eakins, 2003).
The most revealing trend, however, is the recognition that increasing numbers of businesses are
moving to a systems-based approach to produce greater profits and higher levels of customer
satisfaction. This approach looks beyond company boundaries at the whole process of meeting
client requirements for profit. It forces the business to ask itself “What is it we are trying to do?”
The target population for this analysis is civil engineering projects from the category of
“heavy civil”, public works, or infrastructure. These types of projects generally involve one or
more activities including earthmoving, concrete placement, and structural steel erection.
Software development, assembly line installation, and chemical process projects were not
considered as part of the population for this capstone work. Landfill projects were selected for
detailed analysis and modeling based on the Mr. Tipton’s experience in landfill design,
operation, and closure.
The desired outcome of the exercise is a sufficiently detailed model of the process
associated with developing civil engineering-related projects that reveals business opportunities
beyond the traditional civil engineering consulting services. This model can then be used as a
tool for strategic analysis and business development within the solid waste discipline.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
3
Systems Definitions and Analysis Definitions of a system and of systems analysis extend back to ancient Greek philosophy
concerning positivism and vitalism. A distinction between an open and closed system was
introduced in 1950. Toebes (1979) indicates that the term “system” is context-dependent and is
used to designate entities from concrete to abstract. Toebes defines a system as “a set of sub-
systems and a structure of relationships selected for their bearing on the question asked or goals
pursued and related to selected systems in its environment.” Kenyon Degreene defines a system
as “a set of elements or sub-systems in active interaction as a bounded entity to achieve a
common purpose that transcends that of the elements in isolation” (Wigal, 2003).
The systems approach presented by Meredith (Meredith, et al 1985) emphasizes the
definition of the “problem environment” before defining the problem itself. The problem
environment is defined in broad terms to allow identification of a wide variety of needs having
relevance to the problem. Sharp and McDermott define a process as “a collection of interrelated
work tasks, initiated in response to an event, achieving a specific result for the customer and other
stakeholders of the process” (Sharp, 2001).
Systems engineering recognizes that a system or process has life cycles. The number of
phases in a systems life cycle can vary from three to many (even 22) depending on the application.
(Sage, 2000) Table 1 presents items adapted from a seven-phase life cycle (Sage, 2000). This life
cycle is a breakdown of the three main phases of definition (Phases 1 - 2), development (Phases 3 -
4), and deployment (Phases 5 - 7).
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
4
Table 1: 7-Phase System Life Cycle
Phase Description
1. Program Planning Formulating the activities and projects supportive of overall system.
2. Project Planning Increasing interest in the individual specific projects of an overall system
3. System Design Preparing detailed architectures, detailed specifications, drawings, and bills of materials
4. Production Bringing the system to physical reality. 5. Distribution Deploying the product (system) to the consumer (user).
6. Operations Operating and maintaining the system 7. Retirement Phasing out or replacing the system.
Project Development Project development can be viewed in the context of a life cycle similar to a product life cycle.
Typical phases include:
• Research and Development
• Market Introduction
• Growth
• Maturity
• Deterioration
• Elimination or Repositioning
Harold Kerzner’s interpretation of the phases of a project life cycle are shown in Table 2. His
descriptions reflect undertaking the project with emphasis on project management; however his
phase definitions are useful in studying project development.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
5
Table 2: Project Life Cycle (Kerzner, 2003)
Phase Description
Conceptual Preliminary evaluation of an idea including analysis of risk to the company and feasibility of the project. Determine if project is to be competitively bid.
Planning Refinement of elements, identification of required resources to execute the project, and the establishment of time, cost and performance parameters. Performance of cost benefit analysis and feasibility study. Preparation of documents necessary to support the system including the total bid package.
Testing Completion of all documentation, testing, and standardization efforts.
Implementation Integration of project’s end product or service into receiving entity. Includes product life cycle phases.
Closure Reallocation of resources to new projects and divestment of assets. Performance of “lessons learned” analysis for input into next project.
The World Bank Institute and the United Nations have published articles and training
material incorporating a model of the project life cycle for international development projects. The
life cycle was developed by Warren Baum (Baum, 1982). This interpretation is presented in
Figure 1.
Figure 1: Baum's Project Cycle
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
6
The most comprehensive project process applicable to this paper was found during
research of a consortium of specialty firms focused on power generation in remote locations. In
an interview with the President and CEO of this consortium, the following project process was
defined (Ector, 2003).
1. Find and express need.
2. Define stakeholders and assess key relationships.
3. Determine initial project parameters (e.g. quantifying need or demand, willingness and
ability to pay, etc.)
4. Assess project financial value
5. Seek permits.
6. Design project.
7. Construct project.
8. Create project management structure.
9. Perform operations training.
10. Track operations and revenue.
11. Update operation and maintenance status.
Project development is well documented for large infrastructure and power projects as well as
foreign aid projects. Studies of project development in landfills are relatively under documented.
Solid Waste Projects The solid waste literature contains information on regulatory-based and operations issues—for
example, how regional plans satisfy regulatory requirements—but does not address how private
companies operate under market forces. Missing from the literature is how private waste
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
7
companies use financial information for valuation analysis (non-profit and municipal entities use
published cost data when publicly financing their waste disposal projects). However, anecdotal
evidence indicates some convergence between regulatory/municipal operations and commercial
ventures is taking place. Lethlean and Chapman, (2002) use the business process language and
inclusive consultation techniques to formulate a waste reduction plan. Cirko (2000) discusses a
new computer model that considers both the environmental and economic impacts of waste
management. Susan Thorneloe discusses techniques for assessing life cycle costs when accounting
for the complete set of environmental effects and costs associated with the entire life cycle of
municipal solid waste. Unfortunately, it does not address financial and political factors in
calculating costs.
Experts consulted about public and private landfill development provided estimates of
market prices for waste disposal, relative importance of factors contributing to landfill
development, and differences in political factors between public and private landfill development.
Based on this information, the following items are considered relevant to the project development
process from a systems view:
• Political constraints
• Financial requirements
• Environmental issues
• Project management constraints
• Quality management practices
• Value engineering methods
• Societal interests representing a wide range of inputs and outputs
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
8
Process Definition – Applying Systems Analysis The methodology used to model the project process is based on a standard established by the
Integrated Computer Aided Manufacturing (ICAM) program of the United States Air Force.
Integration Definition for Function Modeling (IDEF0) as the process is now called was designed
to provide better analysis and communication tools for improving manufacturing productivity.
The IDEF family of models is based on the concepts of Structured Analysis and Design
Technique (SADT) developed by Douglas T. Ross at SoftTech, Inc. IDEF0 (Integration
DEFinition language 0) focuses on the functional or process model of a system. IDEF1 and
IDEF2 produce models focused on information structure/semantics and dynamic characteristics,
respectively. IDEF3 focuses on a process and object state-transition definition of the system.
IDEF0 is used in this study to thoroughly define the project development process.
IDEF0 is used to produce a structured representation of functions, activities, or processes
within a system of interest. The resulting model contains cross-referenced hierarchical diagrams,
text, and glossary. The IDEF0 technique is effective because the hierarchical diagrams introduce
levels of increasing detail in gradual fashion.
The hierarchical diagrams consist of an external system diagram (A-1), a context diagram
(A-0), a top-level function diagram (A0), and often between three and six sub-function
decomposition diagrams (A1-A#). The A-1 diagram illustrates the limits or bounds of the system
and conveys the changes that can be made and the changes that result. The A-0 diagram contains
the top-level function (the parent) and the inputs, controls, outputs, and mechanisms (ICOMs)
that enter from, and exit to, systems external to the modeled system. The A0 diagram illustrates
the high-level relationship between the major system sub-functions (the children) as well as the
associated ICOMs defined in the A-0 diagram. The A1 – A# diagrams decompose the sub-
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
9
functions that compose the A0 diagram and illustrate the functional relationships within these
decompositions.
The main components of the diagrams are the functions (or activities or processes)
represented as boxes. The functions are actions, that which is to be accomplished or
transformed, and are described as verbs or verb-noun phrases. ICOMs, (inputs, controls, outputs,
and mechanisms) are represented as labeled arrows. Input arrows represent data or objects being
transformed by the function and terminate on the left side of the function box. Output arrows
represent data or objects produced by the function and initiate at the right side of the function
box. Control arrows represent conditions or guidance required to produce the desired output.
They terminate at the top of the function box. Mechanism arrows represents the supporting
means (physical resources) used to perform the function and terminate at the bottom of the
function box. Figure 2 illustrates these orientations.
Figure 2: IDEF (Function and ICOMs)
Function (Verb-Noun)
Control
Output Input
Mechanism
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
10
Systems Modeling Software Two software packages designed to illustrate systems diagrams using standardized methods were
studied for this application. The first package considered was CORE by Vitech Corporation.
The educational version was limited to fewer activities than are in the process being developed.
AI0Win, by KBSI Inc., had no limitation and was fully compliant with IDEF0 standards.
AI0Win is a key factor in successfully diagramming the project development process due
to user friendly features. These include easy input of system components, automatic tracking of
component connections, and clearly-labeled output. The software also facilitates modeling of the
process by outputting prepared data already in the verb-noun format required by the process
model.
The definition, development, and deployment phases of the project development process
were defined using the AI0Win software. The A0 diagram shows the ICOM relationships
between the three phases. The resultant A1 – A3 diagrams (A1 for definition, A2 for
development, and A3 for deployment) break the break the individual phases into subfunctions
and their ICOM relationships. The result is a rather large diagrammed definition of the process.
Since the model is very large, the conversion of the system model to the process models was
considered in three modules – definition, development, and deployment. This paper addresses
the conversion of the definition module or subsystem. The A1 diagram that defines the main
subfunctions of the definition subsystem constructed using A10Win software is shown in Figure
3.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
11
O3
O1
I3
O2
I1
I2
C2
M3M2 M1
C1 C3 C4
M4
C5
Present Project Concept
A16
Define Project Value
A15
Prepare Conceptual Design
A14
Define Feasibility
A13
Define Stakeholders
A12
Quantify Need
A11
Revisions
Design Go-Ahead
No Go
Conceptual DesignMarket Information
Pro-Forma
Opinion of Construction Cost
Design Parameters
Investment / Funding
Project Parameters
Defined Stakeholders
Needs Defined Needs
Regulations
Machines/EquipmentEngineering Analysis
Financial Analysis
Social ConcernsPolitical Climate
Professional Staff / Experts
Meetings, Faxes, and Letters
Expert Opinion
Figure 3: Typical Systems Subfunction Diagram (A0)
Process Modeling Software Software to model business processes is now coming into widespread use because increasing
competition and customer demands are pushing businesses to think differently and find new
ways to deliver a complete solution, not just a product. Business process modeling goes beyond
the goal of automating processes for cost or quality goals. Business process modeling combines
the discovery, design, and deployment of the business process with the executive, administration,
and supervisory control of the business process to ensure compliance with business objectives
and client requirements.
Software packages that specialize in business process modeling were evaluated for
applicability, availability, and affordability. Proforma Corporation’s ProVision suite is suitable
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
12
for optimizing organizational operations by representing the composition and reflecting issues of
timeliness, cost, and, quality. Its model components can be adjusted and analyzed to measure the
effects of the change. ProVision goes beyond traditional business models representing
hierarchical relationships by analyzing business processes that move across organizational
boundaries. It models business processes that are initiated by an event, consume resources,
perform activities, and produce goods and services. The model allows the user to analyze event
timeliness, resource consumption, process quality, and product quality. The cost of this model at
the time of the study, however, exceeded the project budget and thus prohibited its use.
Process Model’s ProcessModel4 is a process engineering tool specifically designed for
visualizing and analyzing business processes. It combines flowcharting with simulation to
present an animated model to support decision-making. Decisions regarding cycle time,
throughput capacity, and resource utilization are made easier when the process can be seen
operating as a system. ProcessModel4 uses input data in the form of elements, connections, and
operational information about the elements and connections to simulate a process. This format is
similar enough to the activity and ICOM structure of the system analysis; thus this software can
be used to convert the system definition of the AI0Win software to a business process.
ProcessModel4 also provides process capability not found in AI0Win. For example,
durations are assigned to travel times along the connections between elements and input queue
size, processing capacity, and output queue size are defined for each activity, resource, and
connection. Activity, resource, or connection cost or value for each use and/or each hour of use of
that activity, resource, or connection can also be entered.
ProcessModel4 is a discrete state model, acting on one change at a time through careful
tracking of a system clock. This inherent feature is well suited for modeling operations and
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
13
manufacturing processes that are tightly scheduled and integrated. The project process for heavy
civil projects, however, is not a discrete state process. Heavy civil projects span a larger number of
functional areas but activity durations are sufficiently long enough that overlaps in activities are
deemed to have a negligible effect on the model’s usefulness.
Creating the Process Model Creating the process model based on the systems model revealed a key difference between the two.
ProcessModel4 does not use mechanisms and controls as explicit elements or connections. A
convention was created, to treat both mechanisms and controls as resources for the activity. The
effectiveness of a mechanism in facilitating the activity is described by a resource’s availability.
The effectiveness of a control in regulating the activity is described by the operational data
assigned to the connection between the resource and the activity. Control of the activity is
achieved by limiting the resource to less than required by the activity. Facilitating the activity is
achieved by supplying the resource without constraints. For example, in the systems model,
professional staff is defined as a control for the activity of defining the feasibility of the project and
engineering analysis is defined as a mechanism by which the activity is performed. In the process
model, however, professional staff and engineering analysis are both defined as resources but the
amount of time the professional staff is available is initially set less than the amount of time
assigned to complete the activity. The amount of time the engineering analysis resource is
available is initially set as more than what is required to complete the activity.
The initial state of the process model is based on the operational information defined by
the systems model. Using the initial state, the model produces utilization information for each
resource and cost/value information assigned to each unit produced during the simulation.
An illustration of the process model is presented in Figure 4.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
14
Figure 4: Process Model Diagram
Testing the Process Model Unfortunately, ProcessModel4 cannot output data for decision making using only the inputs
established for activity sequence, duration, and cost. A simple process consisting of two inputs, a
process and two storage entities was built to test the conditional routing feature and the input
distribution pattern assignable to connections. Figure 5 illustrates the simple model. Table 3
presents a summary of the operational data.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
15
Figure 5: Simple Process Model
Table 3: Simple Model Operational Data
Object Name Output Text Output ID Output Number
Customer (Entity) Process 3 3
Customer (Entity) Process 3 3
Process Item2 12 5
Item3 25 6
Item (Entity)
Item (Entity)
This simple model is presently being analyzed and perfected. Upon completion of the
analysis, a second qualitative model that yields actionable information to support a go or no-go
decision will be developed. This second model will investigate the project viability by varying the
quality of the inputs. The variation would consist of an integer score assigned to two or three
quality states or conditions and a corresponding probability for each quality state. For example, an
investor input can be assigned a value of 1, 2, or 3 based on a ratio of the investor’s available funds
to historical project costs. The likelihood of each ratio occurring is based on a user-defined
Need
Funds
Process Item2
Item3
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
16
distribution (based on a survey of experts). Table 4 presents values and distributions for selected
entities and resources for the second model.
Table 4: Entity State Scores and Distributions Entity State Score Distribution Needs Severe
Moderate Slight
3 2 1
30% 50% 20%
Investment / Funding >5x Historic Cost 1-4x Historic Cost <1x Historic Cost
5 3 1
20% 60% 20%
Market Information High Prices Medium Prices Low Prices
1 2 3
25% 55% 20%
Social Concerns Active Inactive
1 2
65% 35%
Political Climate Favorable Unfavorable
2 1
55% 45%
Professional Staff Extensive Knowledge Moderate Knowledge Limited Knowledge
5 3 1
65% 20% 15%
Regulations Pervasive Extent Limited Extent
1 2
60% 40%
Model and Process Limitations and Roadblocks The completion of the model is dependent on overcoming a number of roadblocks and
limitations. A key roadblock is the difficulty in mastering the ProcessModel software.
ProcessModel4 is a powerful program and once the learning curve is traveled, the model results
of a modeled definition, development, and deployment system life cycle phases will be
presented. However, as is for all simulation models and output analysis, the system model and
ultimately the process model of the project development process are only as accurate as the data
provided as inputs, controls, and mechanisms. The data collected from the literature and expert
opinions is deemed current but is not universally applicable to all projects in the population.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
17
Findings and Analysis The findings below explain the results of the data collection and analysis portions of the project.
The findings also explain the significance of the limitations and the changes to the process used.
1. The data collected regarding development of heavy-civil projects in general, and private
landfills in particular, are sufficiently robust. The process established in this report
correlates well with processes for software and product development. The data indicate use
of similar terminology and sequencing to describe and order major phases.
2. The systems diagrams produced by the AI0Win software illustrate clearly the project
development process. The diagrams are in IDEF0 format resulting in better
communication among systems engineers and system users.
3. The step of creating a convention for converting mechanism and control data output from
the systems model to resource data and connection data before input into the process
model reduces the author’s confidence in answering the high-level question.
4. The process model for only the project definition phase demonstrates the methodology.
However, present model operation without the decision-making capability provides
limited immediate use in business development or strategic management efforts.
5. The parameters assigned to inputs and resources in the process model are not output by the
systems model. The majority of values for input for activity duration and cost were based
on expert opinion.
6. The functional areas spanned by heavy civil projects are more susceptible to variations in
output behavior than those in a manufacturing or operations process. Accurately assessing
the impact of political and social controls to a system, along with the corresponding
probability of that impact requires more data.
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
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Conclusions This paper defines a means, using systems analysis techniques, to comprehensively define the
project development process for ease of understanding and conversion for modeling purposes.
The paper describes how ProcessModel4 software can be used to develop the resultant process
model. The purpose of this model is to increase ease and quickness of discovering business
opportunities in the development process. In addition, it can better inform stakeholders of
variations in key inputs and their influence on project scope.
Completing a model of all three phases is expected to reveal points along the waste
disposal supply chain where a power (the means to create a favorable position) and value exist.
Knowledge of these points is assumed to be a key factor in developing strategies for business
development in consulting engineering.
Recommendations The following recommendations are based on the results of the paper and the knowledge gained
during the study. Specific recommendations to improve the process model are followed by general
recommendations for subsequent use of systems analysis and process modeling in business
development.
Important to improving the model is accuracy with which the activity duration and cost
values reflect reality. Values for each input and resource need updating to keep the model current
with market conditions. Relative weights and probabilities for each state of input and resource
need to be adjusted for project location and economic conditions.
Future landfill-specific issues should be considered for modeling given the potential for
increased consulting opportunities, potential cost savings to landfill operators, and potential
reductions in overall risk of widespread groundwater contamination. These include:
Abstract 002-0318
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico,
April 30 – May 3, 2004.
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• Suitability of the capacity and price structure of individual local landfills for
regionalization and/or consolidation
• Viability of strategy to regionalize landfills along the corridor of I-75 in Tennessee
• Impact of technology developments on cost reduction of waste disposal
More generally, the value of consulting services not currently provided by traditional
engineering firms, but used by solid waste project stakeholders, are suitable for investigation
using the methods and tools presented here. These services include:
• Market research focused on locations of future solid waste disposal facilities,
• Value engineering for existing facilities and upcoming expansions that incorporates the
wider systems view,
• Financial consulting to provide project valuation and recommendations for capital and
cost structure to increase project returns,
• Operations consulting to provide process improvement recommendations, and
• Strategic consulting to increase the client’s power in value chains present in the client’s
environment.
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