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Two sister cities, Rosencrantz and Guildenstern, have both decided to each build a new library for their citizens. Both cities have roughly the same budget (100 million coins) and a schedule of 3 years (for both design and construction).
Target Value Delivery (TVD) is “a management practice that drives the design [and construction] to deliver customer values within project constraints” (Ballard, 2009). It is an application of Taiichi Ohno’s practice of self-imposing necessity as a means for continuous improvement (Ballard, 2009).
Set-based Design (SBD) is a design methodology that has many applications in the architecture, engineering, and construction (AEC) industry. It was discovered when researcher studied the engineering and design process at Toyota . Known as the “second Toyota paradox”.
In Lean Construction, we recognize that there are inherent wastes in every production system. Our objective is often to identify and reduce the wastes. Just as construction and design have been conceptualized as production systems, it can be argued that research is also a production system.
The International Group For Lean Construction (IGLC) is an international conference started in 1993. The IGLC brings together an international community of researchers and industry practitioners each summer to advance the research and practical applications of Lean Design and Construction.
According to the US Bureau of Labor Statistics, there are 6.5 million people working in the US construction industry in 2016. The average construction worker is statistically more likely to work in a small or medium business than a large multi-billion company.
Around the world, shared risk and reward contracts are becoming more prevalent. In the United States several forms of agreements for construction projects including: Sutter Health’s Integrated Form of Agreement (IFOA), the ConsensusDocs 300, and American Institute of Architects (AIA) contracts.
Research on Target Value Design (TVD) has found that TVD projects are delivered 15% to 20% below market price1. Additionally, TVD projects are more likely to achieve predictable cost performance outcomes while carry less contingency than projects that do not use TVD2.
Project cost overrun is a common problem around the world. A study of 258 projects in 20 nations revealed that cost escalation occurred in 9 out of 10 projects. The study found that on average the final cost was 28% higher than the forecasted cost. Cost overrun is a serious problem because it makes construction investment projects risky.