One of the biggest wastes on a project can be the cost and time delays caused by projects going over budget and having to go through a value engineering process to adjust the scope, layout and/or design. This occurs on traditional projects as the Owner, contractors, trades users work in SILOS with minimal collaboration on value creation.
Target Value Design
Unlike traditional design processes where design, budgeting, and then redesign are an iterative process, a target value design process uses immediate feedback on scope, budget, schedule and quality to inform the development of the design. By adopting a dynamic decision making environment the team can be proactive in determining the needs and wants that will fit into the budget and make the necessary adjustments.
VALUE is not just performance delivered, it is performance delivered at a cost. Target Value Design promotes designing to a detailed estimate, rather than estimating a detailed design.
The process is really straight forward you need to get the team out of there silos, collaborate on what represents value and continually test the solution to the cost the customer is willing to pay. With the right team customer value to a challenging cost can be achieved.
The Target Value Design process is relatively straight forward:
Clearly defined Owner's Project Requirements (The Value Proposition) this includes many things including functionality, cost, sustainable performance ....
Hire the best team based upon qualification for delivering a collaborative high value project, on time and to budget. This involves a open book approach with a design assist fee in case the proposed solution does not meet expectations
Pull plan the design work so that team members focus on the right work in a the right sequence so that no time and effort is wasted pursuing solutions that the project cannot afford
Deliver the design in small batches, working in constant collaboration (Not in Silos) to deliver minimalist design information Just-In-Time to establish feasibility.
Plan design work to enable an early construction start.
Get commitment from the team for regular focused work sessions
Continually test the design to the target cost and make changes often to establish a viable project
Integrate the design to tunnel through cost barriers. Higher performance at less cost is feasible!
Optimize the design to eliminate unnecessary complexity and gold plating
Consider construction processes that lower labour cost. Implement quality control and commissioning to minimize waste and rework costs
Simplify designs to reduce specialty materials and trades. Consider ways to reduce project overhead costs during the design process
With the right team and a Target Value Deliver process it is feasible to deliver projects at 19% less cost. [1] Target Value Design: Current Benchmark, Glenn Ballard