Analyzing Buffer for Time, Cost, and Inventory in Construction Project - A System Dynamic Model Approach

Abstract

In construction projects, the effective management of buffers for time, cost, and inventory plays a pivotal role in determining successful outcomes. This research delves into an analysis of these buffers through a system dynamic approach. An extensive literature review highlighted various factors influencing buffers within construction endeavors. A quantified literature score helped gauge the severity of each factor. To corroborate and complement the literature findings, an exhaustive survey was undertaken with industry experts, aiming to gain insights into buffers associated with time, cost, and inventory. Utilizing the Pareto Rule, these expert inputs, coupled with the literature score, facilitated the identification and prioritization of 15 salient factors. A subsequent in-depth survey elucidated the polarity and severity of these factors. Vensim software was employed to design an Influence Matrix and Causal Loop Diagrams, which captured the intricate interrelationships among the factors. A Stock Flow Diagram spotlighted three predominant factors: unforeseen site conditions, economic dynamics, and project complexity. Another crucial determinant, the project buffer, emerged as being significantly influenced by the three. Simulations underscored an upward trend over time for unforeseen site conditions, economic dynamics, and project complexity, while the project buffer showed a concomitant decrease. The conclusions drawn from this study provide industry stakeholders with invaluable insights for strategic buffer allocation and effective management. Moreover, the research sheds light on the dynamic nature of construction projects and the inherent uncertainties they entail. By understanding the intricacies and interplay between these factors, project managers and stakeholders can preemptively address potential setbacks, optimizing resource allocation and ensuring timely project delivery. Ultimately, this study not only enriches the academic discourse on construction management but also offers pragmatic solutions to real-world challenges, promoting efficiency and sustainability in the construction sector. Furthermore, this research stands as a beacon for future studies aiming to integrate system thinking into construction management methodologies. The emphasis on unforeseen site conditions, economic dynamics, and project complexity equips professionals with a holistic perspective, fostering proactive rather than reactive strategies, and ensuring that projects remain resilient in the face of evolving challenges.