Document Type : Research Paper
Authors
1 Ph.D. Candidate in Industrial Management, Management Department, Faculty of Management and Economics, University of Guilan, Rasht, Iran
2 Associate Professor, Management Department, Faculty of Management and Economics, University of Guilan, Rasht, Iran
3 Assistant Prof., Management Department, Faculty of Management and Economics, University of Guilan, Rasht, Iran
4 Associate Prof., Management Department, Faculty of Management and Economics, University of Guilan, Rasht, Iran
Abstract
This study investigated the impact of improvement strategies on key performance indicators in the Water and Wastewater industry using a System Dynamics approach. The main objective was to develop models for simulating the complex relationships between strategies and performance variables to enhance sustainability and performance management. Performance indicators were divided into two categories: input indicators (including the accounts receivable period, per capita debt of subscribers, non-revenue water, and the share of labor costs to sales) and output indicators (such as asset turnover ratio, per capita subscriber coverage, market growth, and employee professionalism). Based on the existing literature, policy documents, reports from Water and Wastewater companies, and expert opinions, 14 improvement strategies were identified and defined to enhance performance. Subsequently, two system dynamics models were designed to analyze these indicators, with mathematical functions defined for each variable. The results showed that the application of these strategies led to a reduction in the accounts receivable period and the share of labor costs to sales, as well as improvements in the asset turnover ratio, per capita subscriber coverage, market growth, and employee professional qualifications. This research proved that system dynamics modeling is a valuable tool for strategic decision-making and performance enhancement in the Water and Wastewater sector.
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