Integration of Lean Six Sigma into earned value management using system dynamics

Abstract

A Few Lean Six Sigma (LSS) papers were studied during the construction project’s progress. This study proposes the integration of LSS, system dynamics (SD), and earned value management (EVM) as a comprehensive toolkit for datadriven decision-making. Significant waste- and quality-related interdependencies were identified using DEMATEL techniques with 27 Saudi construction experts. SD with two interdependent models of waste causes (WCs) and quality causes (QCs) were utilized to assess the project’s performance. Two metrics were employed: the sigma rating and the value-added ratio in the EVM generated by the developed SD model. The findings indicated that eliminating WCs had little impact on enhancing the project performance in the early stages of the project. The impact increased with the progress of the project. The improvement of the project quality was minimal for “increases of errors and omissions in design documents” and maximum for “increasing morale and attitude affect the quality of the project”