Cost and duration are two of the most important factors in the successful assessment of a construction project. In order to set appropriate cost and duration targets for individual projects, the targets must first be established based on accurate productivity information from the planning stage. In Korea, the cost and duration of a construction activity are estimated using standardized productivity information provided by the Korean Standard of Estimate (KSE). However, the KSE standardized productivity information may not fully reflect the characteristics of an individual project, given its unique nature. Thus, cost and duration targets set based on the KSE for productivity may be unreasonable and/or unattainable. To address this issue, this paper suggests a simulation-based approach where actual field productivity information is utilized to set more realistic cost and duration targets and to optimize resource allocation, including crew assembly. Specifically, a CYCLONE model is developed for reinforced concrete work that is typically a critical activity in multi-housing projects, which account for 35% of public construction projects in Korea. Experimental application of the simulation model confirmed its promising potential for assisting construction managers in calculating productivity through sensitivity analysis and in planning and controlling efficient resource management.