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Cost analysis of information technology-assisted quality inspection using activity-based costing

Listed author(s):
  • Yong-Woo Kim
  • Sang-Chul Kim
Registered author(s):

    One of the critical factors in quality control is the efficient management of quality field inspections. A method was developed to assess the cost impact of process improvements in construction jobsite management. Through the development of a prototype quality inspection system together with project database and mobile technology, the efficiency of a quality inspection system as a pilot study is examined. A time-driven activity-based costing (ABC) is used in evaluating the quantifying process costs attributable to the implementation of a new field inspection system. Inspection costs were reduced when the current inspection process is replaced by a new inspection prototype process using a project database and mobile technology. The cost analysis results also show that a new approach (1) identifies the inspection activities before and after the re-engineering process; (2) computes the cost driver rate before and after the re-engineering process; and (3) enables the performance of the scenario analysis by manipulating the volume of cost drivers under different scenarios.

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    Article provided by Taylor & Francis Journals in its journal Construction Management and Economics.

    Volume (Year): 29 (2011)
    Issue (Month): 2 ()
    Pages: 163-172

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    Handle: RePEc:taf:conmgt:v:29:y:2011:i:2:p:163-172
    DOI: 10.1080/01446193.2010.538708
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