Systems thinking and CMM for continuous improvement in the construction industry

Abstract

Purpose The purpose of this paper is to present a capability maturity model (CMM) developed to implement continuous improvement in small and medium scale construction companies (SMSCC) in Nigeria. Design/methodology/approach A multi-strategy approach involving qualitative studies of SMSCC in Nigeria was conducted. Semi-structured interviews were conducted with purposively selected construction experts in Nigeria to identify variables essential for continuous improvement in SMSCC. Data collected were thematically analysed using NVIVO. Subsequently, a system thinking approach is employed to design and develop the CMM for implementing continuous improvement SMSCC, by exploring possible relationships between the variables established. Findings CMM provided a five-level approach for the inclusion of investigated variables such as team performance; culture; structure; post-project reviews, financial risk management, waste management policy and cost control. These variables are factors leading to continuous improvement in SMSCC, implementable within a six to seven and a half years’ timeline. Practical implications The system thinking model revealed cogent archetypes in the form of reinforcing loops that can be applied in developing the performance of SMSCC. Continuous improvement is feasible. However, it takes time to implement. Further longitudinal studies on the cost of implementing continuous improvement through CMM a knowledge transfer project can be initiated. Originality/value A methodical strategy for enhancing the effectiveness and operations of SMSCC in developing countries can be extracted from the causal loop diagram and the CMM.

AHP-Systems Thinking Analyses for Kaizen Costing Implementation in the Construction Industry

“…A favourable government construction policy can enhance the management strategy. Omotayo et al [27] argued that improving the strategic…”

“…A favourable government construction policy can enhance the management strategy. Omotayo et al [27] argued that improving the strategic management of a construction company may promote the essence of innovation through training and thus, improve the communication in an organisation.…”

“…Systems thinking has been described as an analytical tool for expressing complex independent decision-making issues, whereby causal loop diagrams are used to create relationships between influential attributes [27,57,58]. Systems thinking is the first stage in the development of a dynamic system [59,60].…”

“…However, the responses are dissimilar The purpose of creating the causal loop diagram is to identify unidentifiable attributes. For a successful investigation into the adoption and implementation of kaizen costing in the Nigerian construction industry, there is a need to provide a system thinking model through the cause-and-effect approach [27]. The positive organisational structure creates effective strategic management.…”

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

“…Kaizen costing emphasises on continuous improvements, as opposed to phased improvements in the production process to reduce costs (El Dardery, 2017). Kaizen has been identified as effective techniques for construction waste reduction, improved quality of the final product, improved profitability, and competitiveness of a company (Kaur & Kaur, 2013;Martin, 1993;Smadi, 1993;Omotayo et al, 2019). The use of kaizen in construction can be combined with the traditional costing systems for enhanced effectiveness by improving the number of productive working hours (Budugan & Georgescu, 2009).…”