Development and Testing of a Lean Simulation to Illustrate Key Principles of Target Value Design: A First Run Study

Zofia K. Rybkowski1, Manish B. Munankami2, Mardelle M. Shepley3 & Jose L. Fernández-Solis4

1Assistant Professor, Department of Construction Science, College of Architecture, Texas A&M University, College Station TX 77843-3137, tel: 979-845-4354, e-mail: zrybkowski@tamu.edu,
2Graduate Student, Department of Construction Science, College of Architecture, Texas A&M University, College Station TX 77843-3137, e-mail: mmunankami@gmail.com
3Professor, Design + Environmental Analysis, Associate Director, Cornell Institute for Healthy Futures, Cornell University, Ithaca, NY 14850-4401, mshepley@cornell.edu
4Associate Professor, Department of Construction Science, College of Architecture, Texas A&M University, College Station TX 77843-3137, e-mail: jsolis@tamu.edu

Abstract

Target Value Design (TVD) is increasingly being used for Lean-Integrated Project Delivery processes—especially in the healthcare facility sector. However, the basic principles of TVD take time to comprehend and can seem daunting when implemented for the first time on actual projects. The QUESTION this research sought to address is: Can basic principles of TVD be effectively taught via a relatively simple and brief simulation? The PURPOSE of this research was to develop and test a new simulation that would clearly illustrate basic principles of TVD. The RESEARCH METHOD used for this paper was the iterative development and testing a simplified simulation that modified and extended the “marshmallow challenge” game developed by Peter Skillman. The TVD simulation was tested by construction science students and design professionals in the US and Nepal. FINDINGS suggested the simulation offers an effective way to convey basic TVD principles such as Estimated Cost, Market Cost, Allowable Cost, and Target Cost, and designing to these parameters. The research had some LIMITATIONS, namely that it primarily addressed functional issues as criteria for design success and did not engage all aspects of TVD processes commonly used, such as A3 development, set-based design, or decision-making using Choosing by Advantages. However, the IMPLICATIONS and VALUE of this work are that the simulation appears to offer a simple, enjoyable, and effective way to introduce basic TVD principles and their impact to stakeholders who are engaging in the practice for the first time.

Keywords

Lean Simulation; Target Value Design; target cost; Integrated Project Delivery; Marshmallow TVD Simulation

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Reference

Rybkowski, Z.K. , Munankami, M.B. , Shepley, M.M. & Fernández-Solis, J.L. 2016, 'Development and Testing of a Lean Simulation to Illustrate Key Principles of Target Value Design: A First Run Study' In:, 24th Annual Conference of the International Group for Lean Construction. Boston, USA, 20-22 Jul 2016.

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