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Target value design: using collaboration and a lean approach to reduce construction cost

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Listed:
  • Daria Zimina
  • Glenn Ballard
  • Christine Pasquire

Abstract

Target costing is an effective management technique that has been used in manufacturing for decades to achieve cost predictability during new product development. Adoption of this technique promises benefits for the construction industry as it struggles to raise the number of successful outcomes and certainty of project delivery in terms of cost, quality and time. Target value design is a management approach that takes the best features of target costing and adapts them to the peculiarities of construction. The concept of target value design is introduced based on the results of action research carried out on 12 construction projects in the USA. It has been shown that systemic application of target value design leads to significant improvement of project performance—the final cost of projects was on average 15% less than market cost. The construction industry already has approaches that have similarities with elements of the target value design process or use the same terminology, e.g. partnering and target cost contracts, cost planning, etc. Following an exploration of the similarities and differences target value design is positioned as a form of target costing for construction that offers a more reliable route to successful project outcomes.

Suggested Citation

  • Daria Zimina & Glenn Ballard & Christine Pasquire, 2012. "Target value design: using collaboration and a lean approach to reduce construction cost," Construction Management and Economics, Taylor & Francis Journals, vol. 30(5), pages 383-398, March.
    • Handle: RePEc:taf:conmgt:v:30:y:2012:i:5:p:383-398
    DOI: 10.1080/01446193.2012.676658
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    References listed on IDEAS

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    1. Yasuhiro Monden & Kazuki Hamada, 2000. "Target Costing and Kaizen Costing in Japanese Automobile Companies," World Scientific Book Chapters, in: Japanese Cost Management, chapter 5, pages 99-122, World Scientific Publishing Co. Pte. Ltd..
    2. Yasuhiro Monden, 2000. "Japanese Cost Management," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number p159, August.
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    Cited by:

    1. Ergo Pikas & Bárbara Pedó & Algan Tezel & Lauri Koskela & Markus Veersoo, 2022. "Digital Last Planner System Whiteboard for Enabling Remote Collaborative Design Process Planning and Control," Sustainability, MDPI, vol. 14(19), pages 1-27, September.
    2. Oluseyi Julius Adebowale & Patricia Omega Kukoyi & Iyabo Mercy Olagoke & Badmus Ademola, 2020. "Towards Improving Project Performance Indicators in South African Construction Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 1-12.
    3. Seunguk Na & Inkwan Paik, 2019. "Reducing Greenhouse Gas Emissions and Costs with the Alternative Structural System for Slab: A Comparative Analysis of South Korea Cases," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    4. Christine Pasquire, 2012. "Positioning Lean within an exploration of engineering construction," Construction Management and Economics, Taylor & Francis Journals, vol. 30(8), pages 673-685, April.
    5. Gabriel Jobidon & Pierre Lemieux & Robert Beauregard, 2021. "Building Information Modeling in Quebec’s Procurement for Public Infrastructure: A Case for Integrated Project Delivery," Laws, MDPI, vol. 10(2), pages 1-16, June.
    6. Gökhan Demirdöğen & Nihan Sena Diren & Hande Aladağ & Zeynep Işık, 2021. "Lean Based Maturity Framework Integrating Value, BIM and Big Data Analytics: Evidence from AEC Industry," Sustainability, MDPI, vol. 13(18), pages 1-27, September.
    7. Lauri Koskela & John Rooke & Mohan Siriwardena, 2016. "Evaluation of the Promotion of Through-Life Management in Public Private Partnerships for Infrastructure," Sustainability, MDPI, vol. 8(6), pages 1-23, June.
    8. Mohammadsoroush Tafazzoli & Ehsan Mousavi & Sharareh Kermanshachi, 2020. "Opportunities and Challenges of Green-Lean: An Integrated System for Sustainable Construction," Sustainability, MDPI, vol. 12(11), pages 1-12, May.
    9. Tobias Onshuus Malvik & Agnar Johansen & Olav Torp & Nils O. E. Olsson, 2021. "Evaluation of Target Value Delivery and Opportunity Management as Complementary Practices," Sustainability, MDPI, vol. 13(14), pages 1-19, July.

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