Benchmarking a new design management system using process simulation approach

Abstract

PurposeThe purpose of the paper is to put forward a research‐based argument on the benefits of simulation approach in managing design at an early stage of a project. Having selected an optimal design configuration, the operational uncertainties can be removed and investment decisions are fully justified over the lifecycle of projects.Design/methodology/approachA simulation‐based methodology embodying balanced scorecard (BSC) for measuring the operational and business performance has been synthesised in the research. Multi‐criteria decision analysis (MCDA) has been employed to evaluate the trade‐offs between feasible design alternatives and to select the optimum design configuration.FindingsThe findings show that the integrated framework developed in this research by integrating simulation technology, BSC and MCDA adds significant contributions in improving the current body of knowledge in the design management practices.Research limitations/implicationsThe framework should further be tested by applying to large engineering projects in order for realising the benefits in the decision‐appraisal process. Access to data in large projects before implementation would be the greatest challenge from a commercial‐in‐confidence perspective.Practical implicationsThe framework will help the practitioner's understanding and management of the design configuration in highly complex modern projects. This will allow the decision makers to manage interdependency of complex processes and select optimal designs upfront. The resulting framework will significantly contribute to reducing scope creeps and cost variations and thereby reducing contractual disputes in projects.Originality/valueThe original design of the integrated framework of this kind for managing design complexity in projects adds significant value in the design management practices. The use of simulation embodying BSC and MCDA adds significant novelty in theoretical advancement of contemporary knowledge in the design management profession.