Simulation as a tool for re-engineering construction processes

The construction industry is the largest industry in the United States. Accordingly, its condition and efficiency is critical to the economy. Unfortunately, the construction industry's well being is at risk as documented by several Construction Industry Institute (CII) task forces and many other researchers. Business Process Re-engineering (BPR) is the latest management philosophy. BPR is particularly relevant to the construction industry because of its premise to simplify complex processes, integrate data, streamline information flow, and eliminate rework. To adopt BPR, construction companies need a formal BPR methodology that is capable of handling complex processes. Existing BPR methodologies use simplistic tools and follow inadequate approach to re-engineering. This study advocates the use of discrete event simulation as a tool that overcomes these shortcomings. Two simulation models are built and used to test the effectiveness of simulation as a dynamic tool, and enabler of a system approach. These models introduce several "complex" and "simple" mechanisms that govern the interactions between "decision" and "system" variables. These mechanisms provide insights into the effects of overlap, changes, and re-engineering efforts on the cycle time and cost of a construction project. Finally, a case study is used to illustrate the side effects of sub-optimization within BPR efforts.