Transformation–Flow–Value as a Strategic Tool in Project Production

Sven Bertelsen1 & Sten Bonke2

1MSc. Director, Sven Bertelsen, Strategic Counselors aps. External lecturer, Technical University of Denmark. Ronnebaervej 10, DK 2840 Holte, Denmark. sven@bertelsen.org
2Assoc. Prof. Sten Bonke, Head of Section. Section for Planning and Management of the Built Environment. DTU Management, Technical University of Denmark, Produktionstorvet, DK 2800 Kgs.Lyngby, Denmark

Abstract

The paper investigates the use of the Transformation-Flow-Value theory as a strategic tool in the development of the project production firm. When producing products such as ships, focus on value more than on cost may be the best approach, but in service industries such as construction, focus on flow may often be a far better approach than just looking at the costs. The paper presents a simple, general financial model to support this argument and not least to assist the reader in conducting similar analyses in his own company.

Keywords

Transformation-Flow-Value, Strategy, Business approach, Financial model

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Reference

Bertelsen, S. & Bonke, S. 2011, 'Transformation–Flow–Value as a Strategic Tool in Project Production' In:, Rooke, J. & Dave, B., 19th Annual Conference of the International Group for Lean Construction. Lima, Peru, 13-15 Jul 2011.

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