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There currently exist documented project implementation risk analysis and management processes that can be applied to pipeline projects [1]. The more macro type methodology of Reference [1] can be combined with the more detailed analysis presented in this paper to achieve better management of project cost and schedule, and presents an opportunity for the pipeline industry to reduce overall project cost and schedule overruns. Given the significant number of very large, prospective pipeline projects in the world today, many with challenging economic viabilities, effective risk analysis and management may very well make the marginal difference if a particular project proceeds or not.

During the life cycle design and implementation of a pipeline system, there exist a number of opportunities for system optimization analysis. Such analysis has traditionally involved the use of linear programming and simulation techniques. However, these approaches have limitations as more complex problems are considered with more involved and complex criteria. The Ostrofsky Design-Planning Optimization Morphology (OD-POM) is especially powerful because it can handle non-linear objective functions including probabilistic variables. This approach allows the assessment of the interaction among the criteria so that consideration can be given to each criteria as independent. Because of its rigor and sophistication, the methodology compares alternatives in a much more accurate manner for the given data than less comprehensive approaches (for example, linear programming). This example includes the subjective criteria, explicitly in a quantifiable manner and allows the evaluation of the relative importance of the criteria.Copyright © 2002 by ASME