Dynamic modeling to reduce the cost of quality in construction projects

Abstract

In the construction industry, the primary concern of project-based organizations is how to achieve a balance between the optimal level of quality and the associated costs. The cost of quality (COQ) can help to achieve this balance. COQ in construction projects are dynamic in nature and hence should be considered as a complex interrelated system rather than a set of separate individual factors. This research aims to model the complex system of cost of quality and present policies for the reduction of those costs in construction projects. To implement the proposed model, the system dynamics approach is used to determine the impact of prevention and failure costs on the COQ and to analyze designed policies. The qualitative model is created through the causal loop diagrams (CLD) and is analyzed quantitatively using the system dynamics approach for a case project. According to the research results, an increase in training hours and employing experienced labors will decrease the failure cost and will increase the prevention costs, resulting in a reduction in cost of quality. However, based on the simulation results, the use of labor with a higher work experience will provide the largest decrease in the cost of quality.