What is Target Value Delivery and how do you implement it?

TVD is a management practice that drives design and construction to deliver customer values within project constraints. It aims to increase value while decreasing production costs for all team members.

TVD represents a significant shift from traditional project delivery methods, aiming to provide better value, more reliable outcomes, and improved collaboration among project teams.

Core concept:

TVD sets project value targets and corresponding cost targets prior to design, then steers design and construction to meet those targets. This helps deliver value for money consistently.

Key differences from traditional methods:

• Uses continuous cost estimation throughout the project instead of at discrete points
• Implements proactive value engineering during design
• Treats cost as a constraint rather than an output of the design process

Main objectives:

• Achieve reliable cost, schedule, and scope
• Reduce waste and increase value to stakeholders
• Promote innovation and continuous improvement

Key components:

• Collaborative approach involving all key stakeholders early
• Use of "Big Room" concept for collaborative work
• Implementation of Lean principles and tools
• Continuous cost estimation and tracking
• Regular team meetings (every 2-3 weeks) to review progress

Lean Tools and methods used:

• Last Planner System for design planning
• Set-based design
• Choosing by Advantages for decision-making
• A3 problem-solving

Measure of success:

The key metric is expected cost over time. A successful TVD implementation shows decreasing costs as the design progresses and maintains or further reduces costs until the end of construction.

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