Simulation-Based Management of Construction Companies under the Circular Economy Concept—Case Study

Abstract

Society and the business world are paying more and more attention to the Circular Economy (CE) principles. The construction industry is no stranger to this issue, and the companies are transitioning towards sustainable production models. However, it is not easy to predict when and to what extent a company implements the CE. To measure this process, a scorecard, that includes the main Key Performance Indicators (KPIs) of the construction industry, related to the CE, was designed. Thus, the objective of this article is to design and test the CE-dashboard applicable to the construction industry. To do it, firstly, a literature review is performed. The next step is the selection of the KPIs collected in the literature, more suitable for reporting information about CE. Afterwards, a simulation based on the Monte Carlo technique performs. After multiple iterations, this method establishes the most probable KPI values as a result, which will be confronted with the limits used in the scorecard. With all this information, the dashboard emerges in Qlik software. Finally, a test of this dashboard takes place according to the information about KPIs from one of the leading Spanish companies (General Contractor (GC) building company). This step brings the validity of the created measurement instrument.

Keywords

• Circular Economy
• construction industry
• Key Performance Indicators
• Circular Economy Index
• dashboards