Target Value Delivery

Target Value Delivery Katherine Copeland, Southland Industries OCTOBER 16, 2017 LCI Education & Training

Lean Construction Institute Provider Number H561 LCI Training Block: Target Value Delivery LCITB.TVD Presenter Name Presentation date

8 LU Credit(s) earned on completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-aia members are available upon request. This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

Course Description Participants will learn what is meant by Target Value Delivery, how it differs from more traditional delivery approaches and some key tools and techniques to implementing the approach. The training will include hands-on workshops to teach the approaches for more integrated learning.

Learning Objectives 01. 02. 03. 04. At the end of this presentation, participants will be able to describe the culture required to support Target Value Delivery. At the end of this presentation, participants will understand how to align project deliverables and customer-defined value. At the end of this presentation, participants will be able to describe the major phases in the Target Value Delivery process and how they relate. At the end of this presentation, participants will be able to describe the tools that support the Target Value Delivery process.

Learning Objectives Participants will be able to describe the attributes of a team culture required to support Target Value Delivery. Participants will understand how to align project deliverables with customerdefined value. Participants will be able to describe the major phases in the Target Value Delivery process and how they relate. Participants will be able to have some first-hand experience with the types of challenges and decisions which typically arise in TVD. 7

Lean Journey Road to Mastery Mastery Competency Understanding Continuous Learning Loop Awareness Unaware 8

Target Value Delivery 8:00 AM Introductions 8:30 AM 9:45 AM Target Value Delivery Presentation/Simulation Break 15 minutes 12:00 PM Lunch 9

Target Value Delivery 1:00 PM Continue 3:00 PM Break 15 minutes 4:45 PM Wrap up and Plus/Delta 5:00 PM Adjourn 10

A New and Coherent way to Manage Work in Projects THREE CONNECTED OPPORTUNITIES PROJECT ELEMENTS Impeccable Coordination Production System Design Collective Enterprise Operating System 12

Six Tenets of Lean Construction 1 2 3 4 Respect for people Optimize the Whole Generate Value Eliminate Waste 5 6 Focus on Flow Continuous Improvement 13

References 14

Target Value Delivery Simulation Introduction of simulation Participants to decide on contract arrangement: Lean Integrated Project Delivery (LIPD) Design-Build Other 10 MINUTES 15

Target Value Delivery (TVD) Overview Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 16

Target Value Delivery (TVD) A disciplined management practice to be used throughout the project to ensure: The facility meets the operational needs and values of the users The project is delivered within the allowable budget That innovation is promoted throughout the process to increase value and eliminate waste. 17

TVD Culture TVD is to be applied holistically to obtain maximum value. Regardless of the project delivery framework, the owner, designers, builders, and key trades must be fully engaged from the onset. 18

Business Case Planning Phase Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 14 CONSTRUCTION Chapter 14 Image courtesy of InsideOut Consulting & Southland Industries PHASES OF TVD 19

Business Case The operational use/benefit proposition described by the owner that initiates the development of the project. The owner-provided purpose or why that becomes the anchor of the project. Sets the Allowable Cost. Includes Value Definition Statements by the owner for the project. 20

Framing the Business Case Could we build X thing for $Y and have it by Z date? Could we open a replacement hospital in Castro Valley, CA for $300 million by early 2013? Could we find a way to increase overall visitor count by X% for a capital expenditure of $1 billion by 2020? 21

Allowable Cost: The absolute maximum Project Cost based on the Business Case. It becomes the subject of the Validation Phase 22

The Project The following slides outline The Project Business Case & relevant information 15 minutes total 23

Owner Business Case OWNER: Anytown Arizona Community Social Services Group MISSION STATEMENT: Strengthen our community by creating living condition stability, economic opportunity and supporting services to those in need. 24

Owner Business Case $4,500,000 Allowable Cost HUD grant and private donations Tiny Home low income housing community of 45 units Approximately 40 x100 lot sizes Unit diversity 250 750SF (Single, Single Parent, Couple + 1 Child) 10 year rent to own model Minimize Utility Costs (100 energy units / month) 25

Allowable Cost Breakdown Land Purchase $1,141,000 Entitlements, Clearing/Grading & Utilities $550,000 Project Administration $225,000 Construction Funding Building, Landscape/Hardscape & Furnish $2,574,000 Rent-To-Own: $1/SF for 10 years, simple payback Max allowable cost = 10 year rent 5% Admin/HOA E.g. 550SF X $1 X120 = $66K 5% = $62,700 ($114/SF) 26

Project Site 4.6 Acre Parcel 40 x100 Lot subdivisions Main site, utility and roadworks by owner 27

Project Plot 40 100 100 40 28

Owner Provided Benchmark Project Total SF 225 Notes Includes 40 SF Loft $/SF $109 Total Cost $24,525 Foundation & Framing $3,188 13% Skin & Roofing $3,679 15% Glazing $1,962 8% Systems (MEP/E) $4,415 18% Interiors (Incl Carpentry & Doors) $4,905 20% Finishes, Fixtures Furnish & Equip $2,943 12% Design & Permitting $1,962 8% Landscape & Hardscape $1,472 6% Year Completed 2015 Inflation to 2017 5% Location Cityville, MI Geographic Cost Index Diff to Anytown, AZ -8% Yearly Energy Costs $55 29

Owner Provided Benchmark Project Total SF 390 Notes Includes 90 SF 2 nd Fl $/SF $116 Total Cost $45,240 Foundation & Framing $3,434 14% Skin & Roofing $4,415 18% Glazing $2,943 12% Systems (MEP/E) $3,679 15% Interiors (Incl Carpentry & Doors) $4,415 18% Finishes, Fixtures Furnish & Equip $2,453 10% Design & Permitting $1,962 8% Landscape & Hardscape $1,226 5% Year Completed 2015 Inflation to 2017 5% Location Cityville, MI Geographic Cost Index Diff to Anytown, AZ -8% Yearly Energy Costs $65 30

Owner Provided Benchmark Project Total SF 360 Notes Single Floor $/SF $108 Total Cost $38,880 Foundation & Framing $3,188 13% Skin & Roofing $4,415 18% Glazing $1,472 6% Systems (MEP/E) $4,169 17% Interiors (Incl Carpentry & Doors) $4,660 19% Finishes, Fixtures Furnish & Equip $3,924 16% Design & Permitting $1,472 6% Landscape & Hardscape $1,226 5% Year Completed 2015 Inflation to 2017 5% Location Cityville, MI Geographic Cost Index Diff to Anytown, AZ -8% Yearly Energy Costs $40 31

Value Definition Statements Define what the customer wants from the process. Are composed of high level statements that describe expected outcomes, or value that the project will deliver. Should not be ranked or weighted. Should include all stakeholder input. 32

Value Definition Statements To Create: Community & environment fosters respect and restoration of self esteem. Sustainable design for reasonable future costs to residents and association. Economic stabilizing opportunity for community residents. Safe environment for residents. Equity building opportunity based on target rent model. Stakeholder alignment from from all CCSS programs (Housing, Food, Jobs, Health, Publications). Create added value opportunities through savings. 33

Transition to Validation Phase 34

Validation Phase Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 35

Validation Phase The project team determines whether the project is viable based on the outputs of the Business Case Phase. Output is team understanding and alignment: Scope definition Value Definition & CoS Target Cost 36

Target Cost The cost goal established by the delivery team as the target for its design and delivery efforts. Should be set at less than best-in-class past performance. Creates a sense of necessity to drive innovation and waste reduction into the design and construction process. 37

Steps to Defining Success Value Definition output informs Conditions of Satisfaction (CoS) Value Definition Statements 38

Core Components Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 39

Team Forming/Organization Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 40

Early Team Involvement Effort/Effect 1 2 PD: Pre-design SD: Schematic design DD: Design development CD: Construction documentation PR: Procurement CA: Construction Administration OP: Operation 4 1 2 Ability to impact cost and functional capabilities Cost of design changes 3 3 4 Traditional design process IPD design process PD SD DD CD PR CA OP Graphic courtesy of Patrick MacLeamy AIA / HOK Time

Characteristics of High Performing Teams 1 A high performing team is built on a strong foundation of trust among all members. 2 There is a culture of respect that enables members to effectively delivery against CoS. 3 High performing teams break down barriers through innovation and continuous improvement. 4 They break down traditional silos to maximize skills and optimize performance. 42

Team Forming Exercise How would you go about building your team? What characteristics would be important? What interview questions might you ask? 15 MINUTES 43

Conditions of Satisfaction (CoS): Are developed by the team informed by the Value Definition Statements. Measureable statements that inform a project team about which tests a project must pass to be accepted as a success. Inform the decision-making process of the team. 44

Conditions of Satisfaction Exercise: Develop some CoS for the project 15 MINUTES 45

Team-Developed CoS: Quantitative Energy efficient design Low monthly utility cost High % of daylighting Innovative water management system Meet the Allowable Cost 25% workforce inclusion (Underemployed / Community Residents min. 10% each) Community engagement: Regularly (weekly) updated progress signage at visible location Social Media Updates (min. 3 per week) Regularly (weekly) updated progress signage at visible location Social Media Updates (min. 3 per week) Town Hall community feedback events (min. 1 per quarter) Robust, proactive protection of the safety of our workers and community: Weekly team safety walk-throughs Short-falls remediated immediately (no more than 24 hours) System for immediate reporting of safety problems identified by workers and community members All team members earn a fair profit 05 MINUTES 46

Team-Developed CoS: Qualitative: TVD team actively builds and sustains a culture of respect for all team members TVD team creates design that supports a culture self-respect for customer TVD team actively seeks innovation to reduce waste and wasteful activities, streamline processes, and improve the flow of work Method of Measuring Success: Monthly measurement of progress against CoS: Quantitative Current results calculated and reported by CM Qualitative Survey completed by all TVD team members Continuous Improvement session held to review results, and determine steps to correct short-falls against targets 47

Project Team Organization Core Team Senior or Executive Management Work Clusters cross discipline representation 48

Work Cluster Exercise Develop an initial Work Cluster organization based on the next slide. Assign cross discipline roles. 10 MINUTES 49

Work Cluster Organization SMT - Facilitators Core Group - All Finishes Fixtures & Furniture WC6 L SMT L WC1 Landscape & Hardscape A A Interiors WC5 L A Core Group L A WC2 Skin Roofing & Insulation Plumbing Heating/Cooling & Energy WC4 L A L A WC3 Windows 05 MINUTES 50

Big Room Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CONCEPTUAL DESIGN Chapter 12 CORE COMPONENTS OF TVD PROCESS PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 51

Big Room is: Mindset of intense focus on advancing work. Enables cross-functional team collaboration. Refers to the collaborative behavior of a team and the work they are producing. Big Room is a commitment to a project, the team, and to working together! 52

Big Room For the remainder of the day, we will operate as a Big Room: Represent Core Team as a whole Break into Work Clusters to problem Solve Hold Core Team Integrating Events 02 MINUTES 53

Project Planning Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 54

Last Planner System in Construction Milestone Planning Set milestones SHOULD Phase Pull Planning Specify handoffs 5 Connected Conversations CAN Make Ready Planning Make work ready WILL Weekly Work Planning Make promises DID Learning/Improving PPC/Variance 55

LPS For Design LPS CONSTRUCTION: Is linear and the flow is tangible materials Milestones must be clearly defined by expected outcome which will be observable Pull Plans identify work structure and duration LPS DESIGN: Is continuously emerging based on new information and the flow is information Milestones must be clearly defined by expected outcome which will describe what we expect to know Milestones should include work product and work deliverables and may be decision points as mini-milestones. Pull Plans identify work needed and date needed 56

Last Planner System in Design Milestone Planning Set milestones SHOULD Phase Pull Planning Specify handoffs 5 Connected Conversations CAN Make Ready Planning Make work ready WILL Weekly Work Planning Make promises DID Learning/Improving PPC/Variance 57

Milestone Planning 58

Project Milestone Plan What might some of the milestones be for the project starting with end of project and working backwards? 10 MINUTE GROUP DISCUSSION 59

Cost Modeling Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 60

Cost Modeling Model of the cost components & systems of a project. Structured to allow the costs to be continually updated. Provides the team with a constantly up to date cost model. Should allow for projecting what-if scenarios based on value decisions that have yet to be made. 61

Continuous Estimating Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 62

TVD Continuous Estimating Model SD DD CD Pricing Construction TRADITIONAL PRICING / VALUE ENGINEERING MODEL TVD DESIGN MODEL 63

Types of Estimating 1 Cost Benchmarking 2 Conceptual 3 Production 64

Cost Benchmarking Level of Accuracy: Best +/- 10% Good +/- 15% Starts at Business Case Phase Refined during Validation Phase Informs the Cost Model Establishes project assumptions Normalizing project to allow comparison Identify risks Informs team of what can be done 65

Develop Cost Model What systems and components? What benchmarks to create the model? What should a cost model track? 20 MINUTES 66

Cost Model Component Benchmark Model % Base Cost (Knowns) Risk TVD Options (Range) Path Back (Opportunity) Current Landscape & Hardscape Skin & Roofing (& Insulation) Windows Plumbing, Heating/Cooling & Energy Interiors Finishes, Fixtures & Furniture GCs, Design Fees & Profit Total 67

Cost Model (Simple Approach) Risk Hot Topics CWE/ Cost Model Tracking Path Back 68

Conceptual Estimating Level of Accuracy: Best +/- 5% Good +/- 10% Goal is to provide cost information before the team moves forward with decisions based on conversation, sketches, and conceptual information. Convert CoS & Business Case (Program) into a budget what we desire. Gain just enough detail to inform team decisions. Implemented with Set-based Design approaches. 69

Budget Tracker Summary Component Current Projection Allowable Target Delta +/- Landscape & Hardscape Skin & Roofing (& Insulation) Windows Plumbing, Heating/Cooling & Energy Interiors Finishes, Fixtures & Furniture Total 70

Production Estimating Level of Accuracy: Best +/- 1% Good +/- 3% Most traditional form of estimating. Driven by what has been documented in the design phase and confirms estimates developed during earlier conceptual stages. 71

Conceptual Design Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 72

Conceptual Design 1 Criteria development 2 Organize information 3 Set-based design 4 Integration Photo Credit: InsideOut Consulting, Inc. 73

Set-Based Design Product Development for the Lean Enterprise, Michael Kennedy 74

Set-Based Example From CPR Program 75

Integration Event From CPR Program 76

Work Cluster Flow Project Team Brainstorm Identify ideas/sets Create Set Log Set/Idea Work Cluster Work Cluster Set/Idea Work Cluster Set Log Identify ideas/sets Status Date of LRM Decision Create A3 Set Alternates CoS Alignment Cost Model Impact Schedule Impact Recommendation Project Team Integration Event Evaluate Recommendations Integrate into design 77

Decision Flow Model Create Analyze Converge Decide Initiate Ideas Analyze Options Recommend To Core Team Accept Reject Revise Identify Stakeholders Include $$$ Impact Analyze To Cost Model Integration Event Work Cluster Analyze To CoS 78

Validation Phase Each table represents a Work Cluster to study a component. Work Clusters study and evaluate sets per the Cost Model: Target Cost CoS Alignment with Business Case Schedule Other 50 MINUTES 79

Validation Phase Integration Event Report by Work Cluster Align on 1 concept to move into Value Delivery Phase Align on Target Cost Challenge Question Are there any changes to the original Business Case that would create a more compelling value proposition? 30 MINUTES 80

Transition to Value Delivery Phase 81

Value Delivery: Steering to the Target Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CORE COMPONENTS OF TVD PROCESS CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 82

Value Delivery Phase Work progresses in small batches toward intermediate milestones/decision points. The design is continually evaluated to the Target Cost & CoS. Teams explore innovative ways to achieve goals and add more value. 83

Value Delivery Phase Work Clusters explore extreme ideas for carrying the concept forward Challenge Questions Are there design options at the system level that can be designed to meet the CoS within the Target Cost? What implications for overall value and costs should be explored during Design? What design, procurement and construction options should be considered to generate value & eliminate waste? 50 MINUTES 84

Integration Event Work Clusters share outcomes 30 MINUTES 85

Production Design Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CONCEPTUAL DESIGN Chapter 12 CORE COMPONENTS OF TVD PROCESS PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 86

Construction Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CONCEPTUAL DESIGN Chapter 12 CORE COMPONENTS OF TVD PROCESS PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 87

Transition to Value Post Construction 88

Value Post Construction Business Case Planning Chapter 2 Validation Chapter 3 Value Delivery: Steering to Target in Design and Construction Chapter 4 Value Post Construction Chapter 4 TEAM FORMING/ORGANIZATION Chapters 6 & 7 BIG ROOM Chapter 8 PROJECT PLANNING Chapter 9 COST MODELING: PREDICTING COST AND VALUE Chapter 10 CONTINUOUS ESTIMATING Chapter 11 CONCEPTUAL DESIGN Chapter 12 PRODUCTION DESIGN Chapter 13 CONSTRUCTION Chapter 14 CORE COMPONENTS OF TVD PROCESS PHASES OF TVD Image courtesy of InsideOut Consulting & Southland Industries 89

Value Post Construction For the owner, value is realized only after the facility is constructed and serving it intended purpose. The business case and values are reviewed for actual outcomes. 90

Measuring Outcomes Business outcomes Project process outcomes Value outcomes Final cost of design & construction Final schedule Operational performance of finished building Quality & use Project quality, safety & appropriate integration of stakeholder input Revisit the value-based decisions team made throughout process 91

Discussion Question What new actions or ideas that you learned today can you take back to your project? Write down on Take Away Sheet 5 MINUTES Share with your neighbor 5 MINUTES 92

Lean Journey Road to Mastery Mastery Competency Understanding Continuous Learning Loop Awareness Unaware 93

Plus/Delta 94

This concludes The American Institute of Architects Continuing Education Systems Course Lean Construction Institute info@leanconstruction.org 95