Using System Dynamics for Strategic Performance Management in Construction

Date

2020-03-01

Author

Yildiz, Acelya Ecem
Dikmen Toker, İrem
Birgönül, Mustafa Talat

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

322
views

0
downloads

Balanced scorecard (BSC) and strategy maps (SMs) are among the most popular strategic performance management methods that have been proposed in the literature to define, analyze, and monitor performance and strategies. Despite their popularity, BSC and SMs have been criticized for their inability to simulate dynamic interrelations between performance measures and strategies over time. In this paper, a dynamic SM was developed by using system dynamics (SD) modeling based on the BSC framework. This paper describes the dynamic SM, which was conceptualized, formulated, tested, and simulated in collaboration with a construction company, as well as the experiences gained during the model development process. Simulation tests demonstrated that dynamic SMs can be used to improve strategic decision making by assessing the impact of strategies on aggregated measures of performance under different scenarios considering changes in internal processes as well as external conditions. However, the findings also revealed that SD models can have some limitations due to problems of generalization, usability, and validity. The model development process and dynamic SM structure proposed in this study can be used by other companies and researchers to develop similar models and to discover potential limitations of SD modeling.

Subject Keywords

Management Science and Operations Research, General Engineering, Strategy and Management, Industrial relations

URI

https://hdl.handle.net/11511/38623

Journal

JOURNAL OF MANAGEMENT IN ENGINEERING

DOI

https://doi.org/10.1061/(asce)me.1943-5479.0000744

Collections

Department of Civil Engineering, Article

Suggestions

OpenMETU
Core

Understanding drivers of performance in the 3PL industry in Hong Kong Huo, Baofeng; Selen, Willem; Yeung, Jeff Hoi Yan; Zhao, Xiande (Emerald, 2008-01-01) Purpose - The aim of this paper is to develop an overarching framework to better understand drivers of performance in third-party logistics (3PL) linked to the operations strategy literature.
Hybrid Genetic Algorithm with Simulated Annealing for Resource-Constrained Project Scheduling BETTEMİR, ÖNDER HALİS; Sönmez, Rifat (American Society of Civil Engineers (ASCE), 2015-09-01) Resource-constrained project scheduling problem (RCPSP) is a very important optimization problem in construction project management. Despite the importance of the RCPSP in project scheduling and management, commercial project management software provides very limited capabilities for the RCPSP. In this paper, a hybrid strategy based on genetic algorithms, and simulated annealing is presented for the RCPSP. The strategy aims to integrate parallel search ability of genetic algorithms with fine tuning capabili...
Quantiative Methodology for Determination of Cost Contingency in International Projects Sönmez, Rifat; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2007-01-01) This paper presents a quantitative methodology to determine financial impacts of the risk factors during the bidding stages of international construction projects. Project and country data of 26 construction projects from 21 countries were collected for evaluation of the international risk factors. The factors impacting cost contingency were identified using correlation and regression analysis techniques. The results indicated that four factors had major contributions for explaining the variations in the co...
Dissimilarity maximization method for real-time routing of parts in random flexible manufacturing systems Saygin, C; Kilic, SE (Springer Science and Business Media LLC, 2004-04-01) This paper presents a dissimilarity maximization method (DMM) for real-time routing selection and compares it via simulation with typical priority rules commonly used in scheduling and control of flexible manufacturing systems (FMSs). DMM aims to reduce the congestion in the system by selecting a routing for each part among its alternative routings such that the overall dissimilarity among the selected routings is maximized. In order to evaluate the performance of DMM, a random FMS, where the product mix is...
Impact of Resources and Strategies on Construction Company Performance Isik, Zeynep; Arditi, David; Dikmen Toker, İrem; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2010-01-01) Globalized competition and customer needs forced construction companies to measure their performance beyond the financial measures such as profitability, turnover, etc. As qualitative determinants were added to measurement systems, their investigation and evaluation became a major area of research. In this study, the impact of "resources and capabilities," "strategic decisions," "project management competencies," and "strength of relationships with other parties" on "company performance" was investigated. A...

Citation Formats

A. E. Yildiz, İ. Dikmen Toker, and M. T. Birgönül, “Using System Dynamics for Strategic Performance Management in Construction,” JOURNAL OF MANAGEMENT IN ENGINEERING, pp. 0–0, 2020, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38623.