A Case Study on the Success Factors of Target Value Design

Tillmann, Patrícia; Do, Doanh; Ballard, Glenn

doi:10.24928/2017/0324

Cited by 16 publications

(14 citation statements)

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“…The latest years, collaborative project delivery methods with early contractor involvement (Lloyd-Walker and Walker, 2015;Fischer et al, 2017;Engebø et al, 2020b;Wondimu et al, 2020) and Target Value Design (TVD) (Ballard and Reiser, 2004;Ballard and Pennanen, 2013;Do et al, 2015) have received increased attention. Successful application of TVD in construction has been reported (e. g. Ballard and Reiser, 2004;Ballard and Pennanen, 2013;Denerolle, 2013) However, some TVD projects experience final costs that exceed target costs (Ballard et al, 2015;Tillman et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Development of Target Cost for a High-Performance Building

Engebø¹,

Torp²,

Lædre³

2021

Annual Conference of the International Group for Lean Construction

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Target costing aims at making both cost and value to drivers for design. Still, few have studied how this is done in a high-performance building project, where a set of parameters beyond the typical cost, schedule, and quality parameters are optimised. Here we explore how a construction project team collaborated to reach the owner's allowable cost during design using observations and document study. The findings show that the owner should precisely describe expectations before starting Target Value Design. If not, the owner will get disengaged or develop suspicion towards provided cost estimates. Furthermore, we argue that the typical development of expected cost can inhibit a high-performing design team. The expected cost typically starts at the owner's allowable cost, increases drastically during design, and has to be substantially reduced. The consequence is that a highperforming team's mood moves from optimism towards realism and eventually into a realm where challenges occur. The domain where challenges arise is when the project team must substantially reduce the expected cost to reach an acceptable level. To remain high-performing throughout, the project team should avoid a drastic increase in expected cost in the initial stages.

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Section: Introductionmentioning

confidence: 99%

Development of Target Cost for a High-Performance Building

Engebø¹,

Torp²,

Lædre³

2021

Annual Conference of the International Group for Lean Construction

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“…Alves, et al [55] Presenting various techniques commonly used for TVD and applicable to the IPD context. Tillmann, et al [56] Discussed the underlying mechanisms of cost estimation within IPD-oriented projects and exploring the factors that influence success.…”

Section: Pishdad-bozorgi and Srivastava [21]mentioning

confidence: 99%

Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)

et al. 2020

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Integrated project delivery (IPD) is a mode of project procurement recognised as facilitating superior project performance. However, this success is contingent on effective cost management practices that share cost data with all project stakeholders in an accurate, timely and transparent manner. Despite an extensive literature on aspects of cost management, none identifies the essential ingredients required of an effective cost management system, sufficiently robust to support successful IPD projects. Candidate cost management augmenting practices are drawn from the literature, and presented for scrutiny in questionnaire form, to fifty IPD experienced experts, based in the USA, UK and Australia. Findings reveal activity-based costing (ABC) to be effective at identifying overhead costs and creating accounting transparency. Similarly, earned value management (EVM), in combination with ABC, is effective at developing mathematical models for equitable risk-reward distribution. Moreover, web-based management systems, as supported by Building Information Modelling (BIM), are effective at generating trust and collaboration on which IPD success depends. A questionnaire survey using purposive sampling was conducted to assess the factors driving success of implementing IPD regarding cost management process. The contribution to knowledge made by this paper is in identifying requisite support mechanisms essential to elevate traditional cost management practices to the higher standard needed to ensure IPD delivery success.

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“…Target Value Design (TVD) is a management practice that was first successfully applied in construction in 2002 (Ballard and Reiser 2004). Subsequently, target value design began to be used to name target costing in construction (Tillmann et al 2017) that was developed by Toyota (Feil et al 2004). Within the last decade, the perspective of designing to target costing has become broader, and thus the term target value design has changed to target value delivery.…”

Section: Strategies To Generate Valuementioning

confidence: 99%

Does Your Decision-Making Process Protect Customer Value?

Schöttle¹,

Arroyo²,

Christensen³

2020

Annual Conference of the International Group for Lean Construction

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Project teams make several decisions while designing and building construction projects impacting customer value. Most decisions are made without deliberate attention and based on the present individual's knowledge and experience in order to comply with an often unrealistic schedule. However, some decisions require deliberate considerations and cross-disciplinary review. What might seem insignificant for one discipline might have a huge impact in other parts of the scheme. We claim that values (beliefs) impact decisions and thereby the value (outcome). This paper explores how Choosing by Advantages (CBA) supports the making of deliberate decisions based on values and thereby helps to deliver value for a project. Based on a literature review, this paper will discuss procedures to make cross-disciplinary decisions using CBA principles to deliver value.

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A Case Study on the Success Factors of Target Value Design

Cited by 16 publications

References 0 publications

Development of Target Cost for a High-Performance Building

Development of Target Cost for a High-Performance Building

Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)

Does Your Decision-Making Process Protect Customer Value?

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