Applying system dynamics to strategic decision making in construction

Abstract

The author discusses the application of System Dynamics to high-level strategic simulation in construction. In particular, System Dynamics’ strength on representing feedback processes, aggregation, soft variables, and continuous simulation clock for high-level simulation are discussed using real modeling examples. From this exercise, it is concluded that System Dynamics offers a great potential for strategic simulation in construction. Further, the author proposes a comprehensive simulation framework that integrates System Dynamics and Discrete Event Simulation for a strategic decision making process in construction where operational details should be taken into account.

Keywords

strategic project management / construction management / system dynamics / feedback process / hybrid simulation

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Appendix

Work to do = INTEGRAL (Re-execution request on work not completed rate+Re-execution request on work completed rate – Work rate)

Work awaiting QM = INTEGRAL (Work rate – work completion rate – Re-execution request on work not completed rate)

Work completed = INTEGRAL (Work completed rate – Re-execution request on work completed rate)

Work rate = # of workers * Worker’s productivity

Work completed rate = {Work awaiting QM * (1 – uncovered error generation ratio)} / Time for quality management

Re-execution request on work not completed rate = (Work awaiting QM * Uncovered error generation ratio) / Time for quality management

RIGHTS & PERMISSIONS

2017 The Author(s) 2017. Published by Higher Education Press. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0)