SQIT 3033 KNOWLEDGE ACQUISITION IN DECISION MAKING INDIVIDUAL ASSIGNMENT I GROUP A

PREPARED FOR : DR.IZWAN NIZAL B MOHD SHAHARANEE

PREPARED BY :
1) NURUL NAJWA BT GHAZALI (212418)

Date of submission: 6 March 2014

APPLICATION OF DATA MINING IN RISK MANAGEMENT OF CONSTRUCTION PROJECTS

Many constructions projects have been ruined by risk and have not always been dealt with adequately, which are resulted in poor performance. As the construction industry is adapting to information technologies, using data mining technology to manage risk may be a new and efficient way. Data mining can extract useful, interesting, potential, and previously unknown pattern on construction risk management from raw data. Data mining technology aimed at finding unexpected relationship through discoverable, predictable, and pattern matching algorithm. The development of data mining is widely applied in many fields such as shopping bag, insurance, fraud detection, and text categorization. In general data mining can be divided into four main parts which are aggregate data sets for analysis, put forward data to data mining tool, analyze and interpret the result, and apply the result to solve the new problem and new situation. There are five steps in the process of risk management. They are risk identification, risk assessment, risk analysis, risk handling and risk monitoring. The model of the data mining on project risk management as shown in figure1 below:

Figure1: The main process of data mining on project risk management

There are five steps that have been applied in risk management based on data mining. Firstly is identification of data mining object. In this step several questions should be confirmed like, where to start with, which and how many data to be collected, which extent to be reached by data mining. The main point of this step is to study the target of data mining, to define the corresponding measurement criterion, and to implement stratagem. Secondly, the step is data preparation. This step is very important process. In data preparation there are two items that we have pay attention. They are data selection and data pre-processing. In data selection is to search the internal and external data which correspond to the data mining objects and to select data adapt to data mining. Risk factors could be collected based on hierarchical risk breakdown structure (HRBS). Then in data preprocessing is includes data cleaning, solving the problems such as absence, redundancy, and out of data. Next step is establishment of data mining model. The establishment of data mining should be started with analysis of data. Then select variables for establishing model. In risk management not all data may be corresponding to the object of data mining such as they may not all be the risk factors. Then predicted value could be made from the raw data. Next process is selecting a sub set or example to establish the data mining model. Lastly, it is required to transform the variables, in order to make it in according with the algorithm of the model. Fourth step is data mining and results analysis. In this step, implementation of the interpretation and evaluation after the results of the data mining comes out. Proved theoretical knowledge, experiential knowledge and testing set could be applied to analysis the result of the data mining. Final step is knowledge application. The results from the data mining could be applied in practice to handle and monitor risk in construction project after the confirmation from the decision maker. Based on the finding, the manager can predict the risk and the influence of the project by countermeasure.

REFERENCES Deng, X. , Li, Q. , Li, D. , Zhang, E. Application of data mining Risk Management of Construction Projects. Retrieved from www.paper.edu.cn/scholar/downpaper/liqiming-5.