PDG - Target Value Design at Site

Target Value Design at Site

Target Value Design (TVD) is applied at each project site through a collaborative process involving designers, builders, suppliers, estimators and Owners. Budget (the target value) is a design criterion. The TVD process employs Responsibility-based Project Delivery planning and lean systems thinking.

TVD was used effectively during Prototype Design to weave concerns of end users (inmate-patients, doctors, nurses, security managers, maintenance managers and administrators) and lessons of state-of-the-art lean health care to drive down square footage and attendant costs. At the sites, the Target Cost has been established. Important to the Core Group at the site is the continued driving of costs out of construction.

Collaborative Techniques Contributing to TVD

• Work Structuring -- processes that assist designers and team members in making determinations about cost and value
• BIM: Model Based Estimating -- real-time estimating based upon the Building Information Model
• Value Stream Mapping -- optimizing project flow of materials and work
• Standardized Design Concepts -- set-based design where final choice is deferred until the right combination emerges
• Strategic Sourcing -- optimizing selection of trade partners
• Choosing By Advantages -- collaborative decision process for structuring choices among design sets

TVD Process

The site Core Group develops cross-horizontal clusters. The clusters are managed by the TVD liaison who coordinates weekly meetings and maps results against expected cost.

Key principles:

• All team members understand the business case and stakeholder values
• Cardinal rule: the Target Cost cannot be exceeded and the Target Program and Quality cannot be changed, except by the client
• Cost estimating and budgeting done continuously through intimate collaboration -- 'over the shoulder estimating'
• The Last Planner system coordinates team member actions
• Targets set as stretch goals to spur innovation
• Target cost and scope allocated to cross-functional TVD cluster teams
• TVD cluster teams update cost estimates frequently -- usually every 3 weeks during design development
• Project cost estimate frequently updated (often weekly) and reviewed in weekly meetings
• Cost and quality implications of design alternatives discussed prior to major design time investments
• Design managed with set based strategy
• Continuous cost model updating
• Methods for evaluating tradeoffs and opportunities to maintain total project target

3.1.5 Work Structuring

Once the FPS team develops a site specific chapter selecting from the prototypical kit of parts, the focus transitions to Site Design. The delivery system will include a long series of handoffs between design disciplines and construction trades with the interface involving scope gaps and overlaps. If these gaps are not identified and resolved at the appropriate time during design, they will be detrimental to Project performance during construction. Therefore, the site design process (especially TVD) will involve Work Structuring.

Work Structuring, as used in IPD, is a process that systematically investigates and develops the project delivery system to integrate process and product design in alignment with the supply chain. The goal is to create predictable and reliable work flow from design through construction and into commissioning and operation.

In Work Structuring, planning starts with the design of the entire production system and goes all the way down to the design of individual operations. Process design changes generate both product-based value (what is the best material?) and process-based value (where can we eliminate waste?).

Four Strategies

• BIM (Cost Modeling): Supports design, construction and facilities management to maximize value
• Value Stream Mapping: Identifies the optimized flow of goods and services
• Standardized Design Concepts: Develops a checklist of standard concepts for consistent materials and processes across all sites
• Strategic Sourcing: Ensures most optimized Trade Partners are chosen and lowest total responsible cost obtained

The Work Structuring effort serves as the integrating platform to align tasks. It directly impacts:

• Design Engineering (improving flow and handoff, constructability, BIM strategy, advantage-based design)
• Strategic Sourcing / Supply Chain (leveraging reduction of suppliers)
• Site Logistics (defining control points for Last Planner System)
• Quality and Safety (simplifying on-site installation to assembly and commissioning)

Work Structuring specifically deals with sequencing, scheduling and process design. By optimizing the sequencing and scheduling control of work, it can deliver a product fit-for-purpose, maximize overall program value and minimize waste. Note that value generation has priority over waste reduction.

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