Article Sidebar

Submitted
June 6, 2023
Accepted
August 28, 2023
Published
August 30, 2023
Download
Full Text PDF
Statistic
Read Counter : 465 Download : 428

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This research proposes an alternative method to solve completion delay issue and optimized the strategy using ISM technical method and Quality Cost Model application.


Design/methodology/approach – Data was acquired from 120 questions from company key persons that involved in project for last 5 years. The instruments processed using ISM analysis to measure the relationship among causes, then using Quality Cost Model to solve.


Findings – This research shows that factors of late payment from client, delays in bank credit processing, bad weather, and design changes by owners are the root causes of delays. Further analysis using the Theory of Constraint (TOC) shows that financial constraint issues influence the decreased throughput and increase operating cost. Further management use five sequential steps to improve the management and P-A-F models as one of strategic cost management tools applied to the root causes to determine the optimum cost strategy to solve the problem.


Research limitations/implications – This research was conducted using a case study method, and the conclusion related to problem and root cause may not be applied totally to other companies, but the framework may be applicable. Future research can investigate other issue using TOC framework, combine TOC with other models to conduct root cause analysis, and the COQ model implementation in shipyard management.


Practical implications – This research demonstrates that management can use Interpretative Structural Modelling (ISM) analysis to determine the root cause, then analyse and overcome the issues using TOC framework. COQ model approach to sharpening the decision, and prioritize the resources allocation.


Originality/value – This research combine ISM, TOC, and PAF Quality Cost Model approach for decision making which can be a management tool in strategic cost management.

Keywords

root cause analysis ISM quality cost model strategic cost management shipyard management

Article Details

License

Copyright (c) 2023 Ngurah Ayu Happy Susilawati, Desi Adhariani

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Susilawati, N. A. H., & Adhariani, D. (2023). Using interpretive structural modelling and quality cost model to solve project completion delay in shipyard case study in PT X. Jurnal Siasat Bisnis, 27(2), 135–155. https://doi.org/10.20885/jsb.vol27.iss2.art2
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abellana, D. P. (2020). A proposed hybrid root cause analysis technique for quality management. International Journal of Quality & Reliability Management, 38(3), 704–721. https://doi.org/10.1108/IJQRM-11-2019-0356
  2. Abeysinghe, N., & Jayathilaka, R. (2022). Factors influencing the timely completion of construction projects in Sri Lanka. PLOS ONE, 17(12), e0278318. https://doi.org/10.1371/journal.pone.0278318
  3. Araújo-Rey, C., & Sebastián, M. A. (2021). An Approach to the Analysis of Causes of Delays in Industrial Construction Projects through Planning and Statistical Computing. Sustainability, 13(7), 3975. https://doi.org/10.3390/su13073975
  4. Assaf, S. A., & Al-Hejji, S. (2006). Causes of delay in large construction projects. International Journal of Project Management, 24(4), 349–357. https://doi.org/10.1016/j.ijproman.2005.11.010
  5. Attri, R., & Dev, N. (2013). Interpretive Structural Modelling (ISM) approach: An Overview.
  6. Basak, P. C., Viswanadhan, K. G., & Sailaja. (2015). Costs of Quality: Exploratory Analysis of Hidden Elements and Prioritization using Analytic Hierarchy Process. International Journal of Supply and Operations Management, 1(4). http://www.ijsom.com/article_2338_d191eaa93a29b9e14288d8feb3a422d3.pdf
  7. Basuki, M., Manfaat, D., Nugroho, S., & Dinariyana, A. (2012). IMPROVEMENT OF THE PROCESS OF NEW BUSINESS OF SHIP BUILDING INDUSTRY. Journal of Economics, Business, and Accountancy | Ventura, 15(2), 187. https://doi.org/10.14414/jebav.v15i2.74
  8. Bolaños, R., Fontela, E., Nenclares, A., & Pastor, P. (2005). Using interpretive structural modelling in strategic decision‐making groups. Management Decision, 43(6), 877–895. https://doi.org/10.1108/00251740510603619
  9. Bonner, S. E., Hesford, J. W., Van Der Stede, W. A., & Young, S. M. (2006). The most influential journals in academic accounting. Accounting, Organizations and Society, 31(7), 663–685. https://doi.org/10.1016/j.aos.2005.06.003
  10. Cardiel-Ortega, J. J., & Baeza-Serrato, R. (2023). Failure Mode and Effect Analysis with a Fuzzy Logic Approach. Systems, 11(7), 348. https://doi.org/10.3390/systems11070348
  11. E Oliveira, E., Miguéis, V. L., & Borges, J. L. (2023). Automatic root cause analysis in manufacturing: An overview & conceptualization. Journal of Intelligent Manufacturing, 34(5), 2061–2078. https://doi.org/10.1007/s10845-022-01914-3
  12. Eraslan, S., & Önal, S. (2021). Kalite Maliyetleri ve Bir Üretim İşletmesinde Uygulaması. OPUS Uluslararası Toplum Araştırmaları Dergisi, 17(35), 1626–1643. https://doi.org/10.26466/opus.824779
  13. Gazali, G. S., & Baroroh, I. (2022). Risk Analysis of the Causes of Delay in Ship Construction (Case Study of KM CL 9E Ship Construction). BERKALA SAINSTEK, 10(4), 235. https://doi.org/10.19184/bst.v10i4.32674
  14. Ghunaim, N. M., & Jaaron, A. A. M. (2021). The Influence of Cost of Quality on the Performance of Food Manufacturing Companies: An Empirical Study. The TQM Journal, 34(4), 788–806. https://doi.org/10.1108/TQM-01-2021-0026
  15. Gupta, M. C., & Boyd, L. H. (2008). Theory of constraints: A theory for operations management. International Journal of Operations & Production Management, 28(10), 991–1012. https://doi.org/10.1108/01443570810903122
  16. Gupta, M., Ko, H.-J., & Min, H. (2002). TOC-based performance measures and five focusing steps in a job-shop manufacturing environment. International Journal of Production Research, 40(4), 907–930. https://doi.org/10.1080/00207540110097185
  17. Hansen, D. R., & Mowen, M. (2018). Cornerstones of cost management (Fourth edition). Cengage Learning.
  18. Harlan, F. B., & Resda, D. P. (2019). Mitigation of Delay Risk in Ship Construction Project With Lean Approach. Advances in Social Science, Education and Humanities Research, 377.
  19. Heizer, J., Render, B., & Munson, C. (2019). Operations Management (13th ed). Pearson Education Canada.
  20. Hossain, K. A., & Zakaria, N. M. G. (2017). A Study on Global Shipbuilding Growth, Trend and Future Forecast. Procedia Engineering, 194, 247–253. https://doi.org/10.1016/j.proeng.2017.08.142
  21. Huff, D. S., & Lynaugh, K. M. (2001). Utilization of Root Cause Failure Analysis in the Investigation of Marine Deck Fitting Failures. Naval Engineers Journal, 113(1), 93–100. https://doi.org/10.1111/j.1559-3584.2001.tb00015.x
  22. Ibrahim, H. (2015). Risk analysis for mega commercial projects [American University in Cairo (AUC)]. https://fount.aucegypt.edu/etds/1218?utm_source=fount.aucegypt.edu%2Fetds%2F1218&utm_medium=PDF&utm_campaign=PDFCoverPages
  23. Jacobs, F. R., & Chase, R. (2020). Operations and Supply Chain Management (16th ed.). McGraw-Hill Education.
  24. Jafari, A., & Rodchua, S. (2014). Survey research on quality costs and problems in the construction environment. Total Quality Management & Business Excellence, 25(3–4), 222–234. https://doi.org/10.1080/14783363.2013.824715
  25. Ketokivi, M., & Choi, T. (2014). Renaissance of case research as a scientific method. Journal of Operations Management, 32(5), 232–240. https://doi.org/10.1016/j.jom.2014.03.004
  26. McDermott, R. E., Mikulak, R. J., & Beauregard, M. R. (2009). The basics of FMEA (2nd ed). Productivity Press.
  27. Melendez, J. R., ZOGHBE Nuñez, Y. A., MALVACIAS Escalona, A. M., ALMEIDA, G. A., & LAYANA Ruiz, J. (2018). Theory of Constraints: A systematic review from the management context. Revista Espacious, 39. https://www.revistaespacios.com/a18v39n48/a18v39n48p01.pdf
  28. Mello, M. H., Strandhagen, J. O., & Alfnes, E. (2015). The role of coordination in avoiding project delays in an engineer-to-order supply chain. Journal of Manufacturing Technology Management, 26(3), 429–454. https://doi.org/10.1108/JMTM-03-2013-0021
  29. Modhiya, S., & Desai, D. (2016). A Review on Cost of Quality Methodology and Hidden Costs in Manufacturing Industries. REST Journal on Emerging Trends in Modelling and Manufacturing, 2(4).
  30. Nave, D. (2002). How To Compare Six Sigma, Lean and the Theory of Constraints A framework for choosing what’s best for your organization. QUALITY PROGRESS. https://nzbef.org.nz/wp-content/uploads/2019/05/Guide-How-To-Compare-Six-Sigma-Lean-and-TOC.pdf
  31. Olalere, T. (2011). Methodology in Accounting Research: A Critique of Taxonomy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1921192
  32. Orouji, M. (2016). Theory of constraints: A state-of-art review. Accounting, 45–52. https://doi.org/10.5267/j.ac.2015.12.004
  33. Pinto, J. K. (2020). Project management: Achieving competitive advantage (Fifth edition, global edition). Pearson.
  34. Prihandono, M. (2017). ANALISIS RISIKO PADA PEMBANGUNAN KAPAL (STUDI KASUS PADA PEMBANGUNAN KAPAL TANKER PERTAMINA 3500 DWT DI PT DUMAS TANJUNG PERAK SHIPYARDS [Institut Sepuluh November]. https://repository.its.ac.id/46587/1/9114201504-Master_Theses.pdf
  35. Priya, B., Biswas, I., Thürer, M., & Avittathur, B. (2023). How to finance the supply chain when you are small? Clearance sale and loan payment timing in financially constrained supply chains. International Journal of Production Economics, 263, 108934. https://doi.org/10.1016/j.ijpe.2023.108934
  36. Ronen, B., & Pass, S. (2008). Focused operations management: Achieving more with existing resources. Wiley.
  37. Rounaghi, M. M., Jarrar, H., & Dana, L.-P. (2021). Implementation of strategic cost management in manufacturing companies: Overcoming costs stickiness and increasing corporate sustainability. Future Business Journal, 7(1), 31. https://doi.org/10.1186/s43093-021-00079-4
  38. Saha, R. (2022). Quantitative and Qualitative Approaches to Accounting Research. International Journal of Multidisciplinary Research & Reviews, 1(2), 1–6. https://doi.org/10.56815/IJMRR.V1.I2.2022/1-6
  39. Santhoshn, S., & Melwynrego, A. (n.d.). Evaluation of defect correlations with quality, delivery and cost. International Journal of Mechanical and Materials Engineering, 2018.
  40. Schiffauerova, A., & Thompson, V. (2006). A review of research on cost of quality models and best practices. International Journal of Quality & Reliability Management, 23(6), 647–669. https://doi.org/10.1108/02656710610672470
  41. Schroeder, R., Rungtusanatham, M. J., & Goldstein, S. (2021). Operations Management in the Supply Chain, Decision and Case (8th ed.). McGraw-Hill Education.
  42. Shahhossein, V., Afshar, M. R., & Amiri, O. (2017). The Root Causes of Construction Project Failure. Scientia Iranica, 0(0), 0–0. https://doi.org/10.24200/sci.2017.4178
  43. Shrivas, A., & Singla, H. K. (2022). Analysis of interaction among the factors affecting delay in construction projects using interpretive structural modelling approach. International Journal of Construction Management, 22(8), 1455–1463. https://doi.org/10.1080/15623599.2020.1728486
  44. Simatupang, T. M., Wright, A. C., & Sridharan, R. (2004). Applying the theory of constraints to supply chain collaboration. Supply Chain Management: An International Journal, 9(1), 57–70. https://doi.org/10.1108/13598540410517584
  45. Stopka, O., Zitrický, V., Ľupták, V., & Stopková, M. (2023). Application of specific tools of the Theory of Constraints – a case study. Cognitive Sustainability, 2(1). https://doi.org/10.55343/cogsust.48
  46. Sunindijo, R. Y., Hadikusumo, B. H. W., & Phangchunun, T. (2014). Modelling service quality in the construction industry. International Journal of Business Performance Management, 15(3), 262. https://doi.org/10.1504/IJBPM.2014.063026
  47. Tambunan, T. (2022). A conceptual framework of quality cost chain in strategic cost management. The TQM Journal. https://doi.org/10.1108/TQM-09-2021-0281
  48. Wu, Z., Liu, W., & Nie, W. (2021). Literature review and prospect of the development and application of FMEA in manufacturing industry. The International Journal of Advanced Manufacturing Technology, 112(5–6), 1409–1436. https://doi.org/10.1007/s00170-020-06425-0
  49. Xu, X., & Birge, J. R. (2004). Operational Decisions, Capital Structure, and Managerial Compensation: A News Vendor Perspective. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.652564