The classical dependency structure matrix (DSM) can effectively deal with iterative schedules that are highly coupled and interdependent, such as the design process and the concurrent process. Classical DSM generally follows the assumption that the least iteration occurs to achieve the shortest completion time. Nevertheless, the assumption may not hold because tasks ought to be re-visited several times if the design qualities do not meet the requirements. This research proposed a novel iterative scheduling model that combines the classical DSM concept with quality equations. The quality equations were used to determine the number of tasks that ought to be re-visited for fulfilling quality requirements during the iterative design process. Moreover, resources for concurrent activities are generally limited in the real world. Resource allocation should be incorporated in scheduling to avoid the waste and shortage of resources on a design project. This research proposed a new iterative scheduling model based on the classical DSM to optimize the iterative activities’ structure in terms of minimizing completion time with the consideration of design quality under resource constraints. A practical design schedule was introduced to demonstrate the applicability of the proposed DSM algorithm.