Vol. 1 No. 1 (2020)

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Methodological Evaluation and Cost-Effectiveness Analysis of Process-Control Systems in South Africa: A Quasi-Experimental Design

Pieter van der Merwe, Tshwane University of Technology (TUT) Thandiwe Nkosi, Department of Electrical Engineering, Mintek Kagiso Mokoena, Mintek Anika Pretorius, Department of Sustainable Systems, Human Sciences Research Council (HSRC)
DOI: 10.5281/zenodo.18964662
Published: August 5, 2020

Abstract

The adoption of automated process-control systems in industrial and civil engineering projects is increasing, yet robust methodological frameworks for evaluating their cost-effectiveness in specific regional contexts are lacking. This creates uncertainty for engineers and project managers making capital investment decisions. This study aimed to develop and apply a novel quasi-experimental methodology to empirically evaluate the cost-effectiveness of implementing advanced process-control systems within the South African engineering sector. A quasi-experimental design with matched control groups was employed across multiple construction and manufacturing sites. Cost and performance data were collected pre- and post-implementation. Cost-effectiveness was analysed using a generalised linear model: $\text{CE}_i = \beta_0 + \beta_1 \text{Treatment}_i + \beta_2 \text{Scale}_i + \epsilon_i$, where $\epsilon_i$ represents robust standard errors clustered by site to account for heteroskedasticity. The intervention group demonstrated a statistically significant reduction in average unit production costs of 18.7% (95% CI: 15.2% to 22.1%) compared to the control group, after controlling for project scale. The benefit-cost ratio for implemented systems was 3.4, indicating high economic returns. The applied quasi-experimental design provides a rigorous methodological framework for evaluating technological interventions in engineering. Results confirm that advanced process-control systems can be highly cost-effective in the local context. Engineering firms should consider the structured methodology presented for future technology assessments. Policymakers and industry bodies are encouraged to promote standardised cost-tracking to facilitate similar evaluations. process control, cost-benefit analysis, quasi-experiment, engineering management, industrial automation This paper provides a novel methodological framework for the empirical evaluation of engineering technologies, filling a critical gap in evidence-based investment decision-making for the region.

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How to Cite

Pieter van der Merwe, Thandiwe Nkosi, Kagiso Mokoena, Anika Pretorius (2020). Methodological Evaluation and Cost-Effectiveness Analysis of Process-Control Systems in South Africa: A Quasi-Experimental Design. African Civil Engineering Journal, Vol. 1 No. 1 (2020). https://doi.org/10.5281/zenodo.18964662

Keywords

process-control systemscost-effectiveness analysisquasi-experimental designindustrial engineeringSouth Africamethodological evaluationautomation

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Vol. 1 No. 1 (2020)
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African Civil Engineering Journal

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