IMPACT OF MATERIAL QUALITY ON PRODUCTION AND CONSTRUCTION EFFICIENCY: A QUALITY-TO-PERFORMANCE TRANSMISSION MODEL FOR STEEL FABRICATION

Анотація

Material quality in steel fabrication is widely acknowledged as a factor in production outcomes, yet the causal chain from specific material parameters to measurable production and construction results has not been formalized as a quantitative model at the small and medium enterprise level. This article develops a Quality-to-Performance Transmission Model that traces how four input material parameters (certification level, dimensional accuracy, surface condition, mechanical property consistency) propagate through the fabrication process to affect production efficiency metrics and construction-phase outcomes. The model is constructed from comparative operational data at Kharkiv Stal LLC (Ukraine), contrasting production performance during a period of mixed-source procurement (2013–2016, including non-certified material) with performance after full transition to certified suppliers holding EN 10204 type 3.1 inspection documents (2019–2025). Transition to certified sourcing was associated with rework rate reduction from 8–12% to 2–3%, first-pass yield improvement from 82–88% to 95–97%, and material-related production stoppages declining from 5–8 to 1–2 events per month. Total cost of ownership analysis demonstrates that certified steel, despite a 5–10% purchase price premium, is associated with 15–25% lower aggregate production and post-delivery costs compared to non-certified alternatives. Client reports indicate measurable reduction in on-site structural adaptation requirements for projects supplied with fully certified material. The proposed model clarifies how procurement-stage decisions are transformed into measurable operational risks across cutting, welding, assembly, and delivery workflows. Its application provides small and medium steel fabricators with a practical basis for supplier selection, incoming inspection prioritization, and total-cost evaluation of certified material sourcing.

The proposed model also emphasizes the strategic role of documented material traceability in reducing production uncertainty and improving supplier selection decisions. Its application may support steel fabrication enterprises in strengthening quality control practices, optimizing procurement policies, and improving the reliability of construction outcomes.