System dynamics analytical modeling approach for construction project management research: A critical review and future directions

Abstract

Building and infrastructure construction projects can be viewed as a complex system consisting of many subsystems. Over the last two decades, considerable researches that use system dynamics (SD) as an analytical and modeling approach exist to address construction project management issues. However, only few critical reviews have been conducted to provide an in-depth understanding of SD application in construction project management. Moreover, many studies have failed to apply SD accurately. Therefore, the present study aims to gain an understanding of the current state of play and future directions in applying SD method in construction project management research, by undertaking a comprehensive review of 105 relevant articles published from 1994 to 2018. These articles are analyzed in terms of annual publication rate, key papers and their contribution, critical issues in SD application, and research topics. A significant increase in the number of publications in the last five years has been observed. When applying SD method to model construction system, the following aspects must be carefully considered: Model boundary, model development, model test, and model simulation. In addition, SD has been applied in a wide range of research topics, including (1) sustainable construction; (2) design error, rework, and change management; (3) risk management; (4) resource management; (5) decision making; (6) hybrid modeling; (7) safety management; (8) PPP project; and (9) organization performance. Based on the review findings, this study discusses three future research directions, namely, integration of SD with other methods, uncertainty analysis, and human factor analysis. This study can help researchers gain an in-depth understanding of the critical issues in the application of SD in construction management and the state-of-the-art of SD research.

Keywords

system dynamics / construction management / problem and recommendation / research directions / literature review / human factor

References

[1] Ahmad S, Mat Tahar R, Muhammad-Sukki F, Munir A B, Abdul Rahim R (2016). Application of system dynamics approach in electricity sector modelling: A review. Renewable & Sustainable Energy Reviews, 56: 29–37

[2] Akhwanzada S A, Tahar R M (2012). Strategic forecasting of electricity demand using system dynamics approach. International Journal of Environmental Sciences and Development, 3(4): 328–333

[3] Balci O (1994). Validation, verification, and testing techniques throughout the life cycle of a simulation study. Annals of Operations Research, 53(1): 121–173

[4] Barlas Y (1996). Formal aspects of model validity and validation in system dynamics. System Dynamics Review, 12(3): 183–210

[5] Barratt M, Choi T Y, Li M (2011). Qualitative case studies in operations management: Trends, research outcomes, and future research implications. Journal of Operations Management, 29(4): 329–342

[6] Chen L, Fong P S (2013). Visualizing evolution of knowledge management capability in construction firms. Journal of Construction Engineering and Management, 139(7): 839–851

[7] Choudhry R M, Aslam M A, Hinze J W, Arain F M (2014). Cost and schedule risk analysis of bridge construction in Pakistan: Establishing risk guidelines. Journal of Construction Engineering and Management, 140(7): 04014020

[8] Coyle R G (1996). System Dynamics Modelling: A Practical Approach. Boca Raton: CRC Press

[9] Cui Q, Hastak M, Halpin D (2010). Systems analysis of project cash flow management strategies. Construction Management and Economics, 28(4): 361–376

[10] Ding Z, Gong W, Li S, Wu Z (2018). System dynamics versus agent-based modeling: A review of complexity simulation in construction waste management. Sustainability, 10(7): 2484–2497

[11] Fang C, Marle F (2012). A simulation-based risk network model for decision support in project risk management. Decision Support Systems, 52(3): 635–644

[12] Feng C M, Hsieh C H (2009). Effect of resource allocation policies on urban transport diversity. Computer-Aided Civil and Infrastructure Engineering, 24(7): 525–533

[13] Guo B H W, Yiu T W, González V A (2015). Identifying behaviour patterns of construction safety using system archetypes. Accident Analysis and Prevention, 80: 125–141

[14] Han S, Lee S, Peña-Mora F (2012). Identification and quantification of non-value-adding effort from errors and changes in design and construction projects. Journal of Construction Engineering and Management, 138(1): 98–109

[15] Han S, Love P, Peña-Mora F (2013). A system dynamics model for assessing the impacts of design errors in construction projects. Mathematical and Computer Modelling, 57(9–10): 2044–2053

[16] Han S, Saba F, Lee S, Mohamed Y, Peña-Mora F (2014). Toward an understanding of the impact of production pressure on safety performance in construction operations. Accident Analysis and Prevention, 68: 106–116

[17] Ibrahim Shire M, Jun G T, Robinson S (2018). The application of system dynamics modelling to system safety improvement: Present use and future potential. Safety Science, 106: 104–120

[18] Jin X, Xu X, Xiang X, Bai Q, Zhou Y (2016). System-dynamic analysis on socio-economic impacts of land consolidation in china. Habitat International, 56: 166–175

[19] Khan K I A, Flanagan R, Lu S L (2016). Managing information complexity using system dynamics on construction projects. Construction Management and Economics, 34(3): 192–204

[20] Khanzadi M, Nasirzadeh F, Alipour M (2012). Integrating system dynamics and fuzzy logic modeling to determine concession period in BOT projects. Automation in Construction, 22: 368–376

[21] Lee S (2017). Applying system dynamics to strategic decision making in construction. Frontiers of Engineering Management, 4(1): 35–40

[22] Lee S, Han S, Peña-Mora F (2009). Integrating construction operation and context in large-scale construction using hybrid computer simulation. Journal of Computing in Civil Engineering, 23(2): 75–83

[23] Lee S, Peña-Mora F, Park M (2005). Quality and change management model for large scale concurrent design and construction projects. Journal of Construction Engineering and Management, 131(8): 890–902

[24] Lee S, Peña-Mora F, Park M (2006a). Web-enabled system dynamics model for error and change management on concurrent design and construction projects. Journal of Computing in Civil Engineering, 20(4): 290–300

[25] Lee S H, Peña-Mora F, Park M (2006b). Dynamic planning and control methodology for strategic and operational construction project management. Automation in Construction, 15(1): 84–97

[26] Leveson N, Dulac N, Marais K, Carroll J (2009). Moving beyond normal accidents and high reliability organizations: A systems approach to safety in complex systems. Organization Studies, 30(2–3): 227–249

[27] Li Y, Taylor T R (2014). Modeling the impact of design rework on transportation infrastructure construction project performance. Journal of Construction Engineering and Management, 140(9): 04014044

[28] Li Z, Shen G Q, Alshawi M (2014a). Measuring the impact of prefabrication on construction waste reduction: An empirical study in China. Resources, Conservation and Recycling, 91: 27–39

[29] Li Z, Shen G Q, Xue X (2014b). Critical review of the research on the management of prefabricated construction. Habitat International, 43: 240–249

[30] Liang X, Shen G Q, Bu S (2016). Multiagent systems in construction: A ten-year review. Journal of Computing in Civil Engineering, 30(6): 04016016

[31] Lo W, Lin C, Yan M (2007). Contractor’s opportunistic bidding behavior and equilibrium price level in the construction market. Journal of Construction Engineering and Management, 133(6): 409–416

[32] Love P, Holt G D, Shen L Y, Li H, Irani Z (2002). Using systems dynamics to better understand change and rework in construction project management systems. International Journal of Project Management, 20(6): 425–436

[33] Love P E, Edwards D J, Irani Z (2008). Forensic project management: An exploratory examination of the causal behavior of design-induced rework. IEEE Transactions on Engineering Management, 55(2): 234–247

[34] Love P E, Mandal P, Li H (1999). Determining the causal structure of rework influences in construction. Construction Management and Economics, 17(4): 505–517

[35] Mbiti T K, Blismas N, Wakefield R, Lombardo R (2011). System archetypes underlying the problematic behaviour of construction activity in Kenya. Construction Management and Economics, 29(1): 3–13

[36] Motawa I, Anumba C, Lee S, Peña-Mora F (2007). An integrated system for change management in construction. Automation in Construction, 16(3): 368–377

[37] Nasirzadeh F, Afshar A, Khanzadi M (2008). Dynamic risk analysis in construction projects. Canadian Journal of Civil Engineering, 35(8): 820–831

[38] Nasirzadeh F, Mazandaranizadeh H, Rouhparvar M (2016). Quantitative risk allocation in construction projects using cooperative-bargaining game theory. International Journal of Civil Engineering, 14(3): 161–170

[39] Nasirzadeh F, Nojedehi P (2013). Dynamic modeling of labor productivity in construction projects. International Journal of Project Management, 31(6): 903–911

[40] Ogunlana S O, Li H, Sukhera F A (2003). System dynamics approach to exploring performance enhancement in a construction organization. Journal of Construction Engineering and Management, 129(5): 528–536

[41] Onat N C, Egilmez G, Tatari O (2014). Towards greening the US residential building stock: A system dynamics approach. Building and Environment, 78: 68–80

[42] Ozcan-Deniz G, Zhu Y (2016). A system dynamics model for construction method selection with sustainability considerations. Journal of Cleaner Production, 121: 33–44

[43] Park M (2005). Model-based dynamic resource management for construction projects. Automation in Construction, 14(5): 585–598

[44] Park M, Ji S H, Lee H S, Kim W (2009). Strategies for design-build in Korea using system dynamics modeling. Journal of Construction Engineering and Management, 135(11): 1125–1137

[45] Parvan K, Rahmandad H, Haghani A (2015). Inter-phase feedbacks in construction projects. Journal of Operations Management, 39–40: 48–62

[46] Peña-Mora F, Li M (2001). Dynamic planning and control methodology for design/build fast-track construction projects. Journal of Construction Engineering and Management, 127(1): 1–17

[47] Peña-Mora F, Park M (2001). Dynamic planning for fast-tracking building construction projects. Journal of Construction Engineering and Management, 127(6): 445–456

[48] Perrenoud A J, Smithwick J B, Hurtado K C, Sullivan K T (2016). Project risk distribution during the construction phase of small building projects. Journal of Management Engineering, 32(3): 04015050

[49] Prasertrungruang T, Hadikusumo B (2008). System dynamics modelling of machine downtime for small to medium highway contractors. Engineering, Construction, and Architectural Management, 15(6): 540–561

[50] Rodrigues A, Bowers J (1996). The role of system dynamics in project management. International Journal of Project Management, 14(4): 213–220

[51] Senge P M, Forrester J W (1980). Tests for building confidence in system dynamics models. System Dynamics, TIMS Studies in the Management Sciences, 14: 209–228

[52] Shadpour A, Unger A J, Knight M A, Haas C T (2015). Numerical DAE approach for solving a system dynamics problem. Journal of Computing in Civil Engineering, 29(3): 04014054

[53] Shin M, Lee H S, Park M, Moon M, Han S (2014). A system dynamics approach for modeling construction workers’ safety attitudes and behaviors. Accident Analysis and Prevention, 68: 95–105

[54] Sterman J D (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. New York: McGraw-Hill Education

[55] Tang Y H, Ogunlana S O (2003). Modelling the dynamic performance of a construction organization. Construction Management and Economics, 21(2): 127–136

[56] Wan S K, Kumaraswamy M, Liu D T (2013). Dynamic modelling of building services projects: A simulation model for real-life projects in the Hong Kong construction industry. Mathematical and Computer Modelling, 57(9–10): 2054–2066

[57] Wang F, Ding L, Love P E, Edwards D J (2016). Modeling tunnel construction risk dynamics: Addressing the production versus protection problem. Safety Science, 87: 101–115

[58] Wang J, Li Z, Tam V W (2015). Identifying best design strategies for construction waste minimization. Journal of Cleaner Production, 92: 237–247

[59] Wang J, Yuan H (2016). System dynamics approach for investigating the risk effects on schedule delay in infrastructure projects. Journal of Management Engineering, 33(1): 04016029

[60] Williams T M (2000). Safety regulation changes during projects: The use of system dynamics to quantify the effects of change. International Journal of Project Management, 18(1): 23–31

[61] Wing C K (1997). The ranking of construction management journals. Construction Management and Economics, 15(4): 387–398

[62] Xiong B, Skitmore M, Xia B (2015a). A critical review of structural equation modeling applications in construction research. Automation in Construction, 49: 59–70

[63] Xiong W, Yuan J F, Li Q, Skibniewski M J (2015b). Performance objective-based dynamic adjustment model to balance the stakeholders’ satisfaction in PPP projects. Journal of Civil Engineering and Management, 21(5): 539–547

[64] Xu X, Wang J, Li C Z, Huang W, Xia N (2018). Schedule risk analysis of infrastructure projects: A hybrid dynamic approach. Automation in Construction, 95: 20–34

[65] Xu Y, Sun C, Skibniewski M J, Chan A P, Yeung J F, Cheng H (2012). System dynamics (SD)-based concession pricing model for PPP highway projects. International Journal of Project Management, 30(2): 240–251

[66] Ye G, Yuan H, Shen L, Wang H (2012). Simulating effects of management measures on the improvement of the environmental performance of construction waste management. Resources, Conservation and Recycling, 62: 56–63

[67] Yuan H (2012). A model for evaluating the social performance of construction waste management. Waste Management, 32(6): 1218–1228

[68] Yuan H, Chini A R, Lu Y, Shen L (2012). A dynamic model for assessing the effects of management strategies on the reduction of construction and demolition waste. Waste Management, 32(3): 521–531

[69] Yuan H, Shen L (2011). Trend of the research on construction and demolition waste management. Waste Management, 31(4): 670–679

[70] Yuan H, Shen L, Hao J J, Lu W (2011). A model for cost-benefit analysis of construction and demolition waste management throughout the waste chain. Resources, Conservation and Recycling, 55(6): 604–612

[71] Yuan H, Wang J (2014). A system dynamics model for determining the waste disposal charging fee in construction. European Journal of Operational Research, 237(3): 988–996

[72] Zhang X, Wu Y, Shen L, Skitmore M (2014). A prototype system dynamic model for assessing the sustainability of construction projects. International Journal of Project Management, 32(1): 66–76

[73] Zheng X, Le Y, Chan A P, Hu Y, Li Y (2016). Review of the application of social network analysis (SNA) in construction project management research. International Journal of Project Management, 34(7): 1214–1225

[74] Zou P X W, Zhang G, Wang J (2007). Understanding the key risks in construction projects in China. International Journal of Project Management, 25(6): 601–614

RIGHTS & PERMISSIONS

2020 Higher Education Press