Study On Management Innovation And Health Diagnosis Of Construction Enterprises Based On System Dynamics

Generally, there are many problems in the construction enterprises in China, such as lack of development funds, the lower profit margins, the poor project management skills, the weak technology innovation capacity, and so on. These problems will seriously influence the healthy and sustainable development of construction enterprises. How to solve these problems has became a research highlight of construction management field. The management for construction enterprises relates to lots of complicated and dynamic factors which involve internal structure of the firm, dynamic mechanism, resource stocks, management behavior, external market environment, and so on. System Dynamics theory is applied to the paper to eatablish the dynamic simulation model of management system in enterprises. Based on model simulation, it is previewed that how to influence management system behavior by changing technical and economical parameters together with coporate policy. The simulation results can provide supports for management decision.Management innovation and health diagnostic of construction enterprises were restudied in this paper and the results were obtained as follows:Fisrtly, the System Dynamics model of the capital development plan was constructed to solute the issues in the plan which included multi-objective, time variation, dynamic and multi-feedback property. And the model was applied to compare and select the alternatives of the capital development plan in the case study.Secondly, the SD model of schedule management was constructed to dynamically control the schedule objective for construction in progress. The model was also used to perform policy simulation to select the best strategy when the emergency situations were occurred in the implementation process of the project.Thirdly, the SD model of inventory management was constructed to study how to reduce inventory peak value and cost effectively based on model simulation. Also, the influences of increasing the usage amount of materials due to rework and delaying the procurement time on project cost were analyzed.Fourthly, the SD model of technical innovation was established to analyze the technical innovation capacity of construction enterprises. Then, through the imitation cases study, we could obtain:it was a certain limit to increase technology innovation and staff training inputs to raise capacity and increase of enterprises. When the inputs reached a certain limit, additional input could not significantly increase gross product and profits. And at this time, the focal point of technology innovation should go to improving conversion rate of the patent.Lastly, the health diagnosis index system of construction enterprises was established. And catastrophe theory evaluation method was used to calculate the values of the system. Then, eight listed construction companies were chosen as the cases including "Anhui Water Resources Company Co. Ltd". The assessment value of the company's health status was obtained through calculating and analyzing the index values of "Anhui Water Resources Company Co. Ltd" during 2004 to 2009. And the horizontal comparative analysis between this company and other seven listed companies was made to find the existing problems and the improvement direction in the future.The research results of the paper provide a new idea for breaking through the traditional management ideas and approaches of construction enterprises.