Cost analysis of information technology‐assisted quality inspection using activity‐based costing

Abstract

One of the critical factors in quality control is the efficient management of quality field inspections. A method was developed to assess the cost impact of process improvements in construction jobsite management. Through the development of a prototype quality inspection system together with project database and mobile technology, the efficiency of a quality inspection system as a pilot study is examined. A time‐driven activity‐based costing (ABC) is used in evaluating the quantifying process costs attributable to the implementation of a new field inspection system. Inspection costs were reduced when the current inspection process is replaced by a new inspection prototype process using a project database and mobile technology. The cost analysis results also show that a new approach (1) identifies the inspection activities before and after the re‐engineering process; (2) computes the cost driver rate before and after the re‐engineering process; and (3) enables the performance of the scenario analysis by manipulating the volume of cost drivers under different scenarios.