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

Yong-Woo Kim and Sang-Chul Kim

Construction Management and Economics, 2011, vol. 29, issue 2, 163-172

Abstract: 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.

Keywords: Activity-based costing; cost analysis; personal digital assistant; quality inspection (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/01446193.2010.538708

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