Abstract
The incessant reportage of cost overruns and abandoned projects in contemporary literature have accentuated the need for a re-examination of the nature of the cost management strategies deployed to these projects. This study explores the potential of kaizen costing strategy to engender effective cost management within construction project delivery systems in developing countries. Data collected during this study were analysed using the analytic hierarchy process (AHP) and systems thinking approaches to determine the criticality of the factors influencing the effective implementation of kaizen costing. Seven (7) archetypes leading to final causal loop diagram identified the incorporation of the plan–do–check–act approach to project and cost planning, the budgeting system of the construction companies, overhead cost reduction during construction and the overall procurement process. Executing these archetypes will potentially reduce high overhead costs, project cost and time overruns, as well as enhance construction industry sector growth policies and construction organisation corporate governance.
Highlights
Koskela [1] suggest a shift in the construction paradigm from the traditional approach with an emphasis on eliminating waste and associated non-value adding activities
This study aims to evaluate the criticality of the aforementioned factors in Section 2 for a systemic implementation of kaizen costing as a planning and execution tool for cost control on construction projects by construction organisations in a developing country such as Nigeria
This study aimed to develop a causal loop diagram for the adoption of kaizen costing in the Nigerian construction industry
Summary
Koskela [1] suggest a shift in the construction paradigm from the traditional approach with an emphasis on eliminating waste and associated non-value adding activities. Lean construction emerged in the mid-90s and its applications have since been explored by various researchers [2,3,4,5,6,7]. Since the mid-90s, the construction industry has been trying to adopt new concepts such as target-value design, target costing, and whole life costing as a panacea for the prevailing challenges of time and cost overrun [8,9]. The concept of lean construction is aimed at reducing material, resources, time and cost constraints [10,11,12]. Lean construction has been criticised for its application drawbacks in terms of production demands, standardisation of construction procurement and execution processes, the cost of training of employees, requirement for cohesive teamwork, supplier constraints, decrease in construction employee morale when changes occur and the requirements for managerial changes [11,12,13,14]
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