System dynamics in project management: assessing the impacts of quality failure on project performance

Abstract

It is common in pressure vessel manufacturing to face time completion issue during fabrication process. Small and Medium Enterprise (SME) also facing this difficulties as refer to their ISO audit summary. Mainly almost 50% of the projects are delivered later than the contractual dates. Common software use to come out with time completion are Microsoft Project and Primavera. However these software do not have multi-interface relationship with other variables such as quality and rework during fabrication. Thus in this research, System Dynamics is introduced to get the optimum fabrication time for pressure vessel construction in SME industry which considering rework due to quality error. The causal loop diagram is been identified before running a rework model using Stella software. The input of the task is obtained via the current project schedule of one of the SME company in Pahang, Malaysia. In result and discussion, the duration time for fabrication is obtained when rework is considered during fabrication. By using System Dynamics approach, more variables can have their multi-relation effect which can better forecast and estimate the time of completion.