A systems thinking approach for incremental reduction of non-physical waste.

Omotayo, Temitope; Olanipekun, Ayokunle; Obi, Lovelin; Boateng, Prince

Abstract

Purpose: Continual cost reduction of overhead costs of building projects can realign the concept of post-contract cost control towards value-driven construction projects and stakeholders’ satisfaction. This study synthesised and analysed the viable continuous improvement measures critical for waste reduction during the execution phase of a building project. Design/methodology/approach: A review of existing literature facilitated a list of continuous improvement measures. This literature review findings enabled a Likert-scale questionnaire which was administered to two-hundred and fifty (250) small- and medium-scale construction companies (SMSCC) in Nigeria. Multiple linear regression statistical tests deduced the significant cost reduction measure from which a causal loop diagram was designed to indicate continuous improvement measures during the execution phase of a building project. Findings: Cogent construction activities associated with overhead costs were deduced from the statistical tests as being payment of suppliers and sub-contractors and purchase orders. An all-inclusive casual loop model for cost reduction through waste minimisation in construction projects as a viable oriented mechanism for meeting clients' requirements was developed. Practical implications: The causal loop continuous improvement model recognised external and internal factors which are crucial for SMSCC to focus on for their organisational growth and performance enhancement. Originality/value: A focus on non-physical waste in construction organisations potentially addresses behavioural challenges for continuous improvement.

Citation

OMOTAYO, T., OLANIPEKUN, A., OBI, L. and BOATENG, P. 2020. A system thinking approach for incremental reduction of non-physical waste. Built environment project and asset management [online], 10(4): construction 4.0 and circular economy, pages 509-528. Available from: https://doi.org/10.1108/BEPAM-10-2019-0100

• Journal Article Type: Article
• Acceptance Date: May 14, 2020
• Online Publication Date: Jul 6, 2020
• Publication Date: Sep 30, 2020
• Deposit Date: Jul 30, 2020
• Publicly Available Date: Jul 30, 2020
• Journal: Built environment project and asset management
• Print ISSN: 2044-124X
• Electronic ISSN: 2044-1258
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 10
• Issue: 4
• Pages: 509-528
• DOI: https://doi.org/10.1108/BEPAM-10-2019-0100
• Keywords: Continuous improvement; Cost control; Cost reduction; Post-contract; Systems thinking
• Public URL: https://rgu-repository.worktribe.com/output/954035