Managing the Three Aspects of Production in Construction

Sven Bertelsen1 & Lauri Koskela2

1M.Sc., Research Director, The Benchmark Centre for the Danish Construction Sector, Strandgade 27B, 1401 Copenhagen K, Denmark. Phone +45 3264 1441. E-mail:
2Senior Researcher, VTT Technical Research Centre of Finland, P.O.Box 1800, FIN-02044 VTT, Finland, Phone +358 9 4564556, Fax +358 9 4566251, E-mail


It has been argued that production can be conceptualized in three complementary ways: transformation, flow and value generation. In production management, each of these aspects should be tackled. The interactions of these three kinds of managerial work provide for further generic managerial tasks. Also the contingent nature of management has to be taken into account. Based on the essential characteristics of construction, an ideal type of management of each aspect is presented. The paper ends with practical examples where the different types of management as discussed have been explicitly deployed. The managerial model outlined contrasts with the conventional managerial practice where only transformations are explicitly attended.


Production management, project management, transformation, flow, value



Bertelsen, S. & Koskela, L. 2002, 'Managing the Three Aspects of Production in Construction' In:, Formoso, C.T. & Ballard, G., 10th Annual Conference of the International Group for Lean Construction. Gramado, Brazil, 6-8 Aug 2002. pp 13-22

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