Strategic-Operational Construction Management: Hybrid System Dynamics and Discrete Event Approach

A significant number of large-scale civil infrastructure projects experience cost overruns and schedule delays. To minimize these disastrous consequences, management actions need to be carefully examined at both the strategic and operational levels, as their effectiveness is mainly dependent on how well strategic perspectives and operational details of a project are balanced. However, current construction project management approaches have treated the strategic and operational issues separately, and consequently introduced a potential conflict between strategic and operational analyses. To address this issue, a hybrid simulation model is presented in this paper. This hybrid model combines system dynamics and discrete event simulation which have mainly been utilized to analyze the strategic and operational issues in isolation, respectively. As an application example, a nontypical repetitive earthmoving process is selected and simulated. The simulation results demonstrate that a systematic integration of strategic perspective and operational details is helpful to enhance the process performance by enabling construction managers to identify potential process improvement areas that traditional approaches may miss. Based on the simulation results, it is concluded that the proposed hybrid simulation model has great potential to support both the strategic and operational aspects of construction project management and to ultimately help increase project performance.

[1]  Photios G. Ioannou,et al.  State and Resource Based Construction Process Simulation , 1994 .

[2]  Douglas C. Montgomery,et al.  Response Surface Methodology: Process and Product Optimization Using Designed Experiments , 1995 .

[3]  Terry Williams,et al.  Why Monte Carlo Simulations of Project Networks Can Mislead , 2004 .

[4]  Khaled A El-Rayes,et al.  Resource-driven scheduling of repetitive activities , 1998 .

[5]  David Raffo,et al.  Application of a hybrid process simulation model to a software development project , 2001, J. Syst. Softw..

[6]  Daniel W. Halpin,et al.  SIMPLIFIED SIMULATION SYSTEM FOR CONSTRUCTION PROJECTS , 1998 .

[7]  James M. Lyneis,et al.  Strategic management of complex projects: a case study using system dynamics , 2001 .

[8]  H. Ishi.  Representation of solutions of Hamilton-Jacobi equations , 1988 .

[9]  Khaled A El-Rayes,et al.  Scheduling of repetitive projects with cost optimization , 1993 .

[10]  Jeffrey K. Pinto,et al.  Strategy and Tactics in a Process Model of Project Implementation , 1987 .

[11]  John D. Sterman,et al.  System Dynamics: Systems Thinking and Modeling for a Complex World , 2002 .

[12]  Feniosky Peña-Mora,et al.  Dynamic change management for construction: introducing the change cycle into model‐based project management , 2003 .

[13]  Terry Williams,et al.  Modelling Complex Projects , 2001 .

[14]  Simon Smith,et al.  A new earthworks estimating methodology , 2000 .

[15]  E. W. Davis,et al.  Project Management With Cpm, Pert and Precedence Diagramming , 1983 .

[16]  Amir Tavakoli,et al.  CPM Use in ENR Top 400 Contractors , 1990 .

[17]  Simaan M. AbouRizk,et al.  Simplifying Simulation Modeling through Integration with 3D CAD , 2000 .

[18]  Foad Farid,et al.  Simulation verifies queuing program for selecting loader-truck fleets , 1994 .

[19]  Stephen Maloney,et al.  Large project simulation: a powerful tool for project management analysis , 1988, WSC '88.

[20]  Søren L. Buhl,et al.  How common and how large are cost overruns in transport infrastructure projects? , 2003 .

[21]  Julio C. Martinez,et al.  State-Based Probabilistic Scheduling Using STROBOSCOPE's CPM Add-On , 1997 .

[22]  John Bowers,et al.  System dynamics in project management: a comparative analysis with traditional methods , 1996 .

[23]  Michael Forde,et al.  Analysis of earth-moving systems using discrete-event simulation , 1995 .

[24]  Peter W. G. Morris,et al.  The Anatomy of Major Projects: A Study of the Reality of Project Management , 1988 .

[25]  John D. Sterman,et al.  Business dynamics : systems thinking and modelling for acomplex world , 2002 .

[26]  Tarun Bafna,et al.  Discussion of "Formal Development of Line-of-Balance Technique" , 1992 .

[27]  Feniosky Peña-Mora,et al.  Dynamic planning and control methodology for strategic and operational construction project management , 2006 .