Webinar Title: Target Value Delivery
Speaker: Glenn Ballard
Organisation: University of California Berkeley
Date: 27th November 2019
“Target Value Delivery of Construction Projects” will explain what Target Value Delivery is, how it works, and the benefits it provides. It is meant for everyone who touches or is touched by a built environment project: owners, designers, constructors, users, neighbors….
Target Value Delivery is standard practice in Lean Product Development of automobiles, clocks, and refrigerators. Buildings, highways, and tunnels are different; principally because they must be assembled where they are to be used, and become so large that eventually workers must move through the product rather than have the product moved through fixed workstations. Clear targets and aligned interests are vital necessities in the delivery of such built environment projects, in part because coordination must be achieved through plans, not through layout of interconnecting conveyor systems.
In the webinar, an argument will be made that the natural target for built environment projects is net benefits in use over the life of the constructed asset (building, highway, tunnel, etc.). This is the primary target from which supporting targets are set; e.g., for functionality, cost, and delivery date. Steering to those targets differs in design, construction and use of the constructed asset–and will be explained in the webinar.
One example of Target Value Delivery benefits: In 2012, Sutter Health reported that they had used Target Value Delivery and supporting Lean methods on 22 projects above $10 million, some much larger. No projects were over budget, no projects were completed late, all buildings (in their case) were fit for purpose, and the average cost was 3.4% below target and 15% below market. That persuaded Sutter Health to commit their capital program to Lean Project Delivery, of which Target Value Delivery is a key element.