Value-Based Management in the Supply Chain of Construction Projects

Soren Wandahl1 & Erik Bejder2

1Ph.D.-student, Department of Production, Aalborg University, Fibigerstr├Žde 16, DK 9220 Aalborg East, Denmark, +45 9635 8989, soren@wandahl.net
2Associate Professor Ph.D., Department of Production, Aalborg University, Fibigerstr├Žde 16, DK 92220 Aalborg East, Denmark, +45 9635 8950, i9eb@iprod.auc.dk

Abstract

The scope of this paper is to examine the idea of using the management philosophy Value- Based Management (VBM) as a supplementary management tool to control the total building process in a more efficient manner compared with conventional procedures. VBM has been used as a successful management tool inside independent companies for several years, but we want to test this tool in a building organization, i.e. an organization where different companies work together to define and build a unique building. In this paper the approach will mainly be theoretical and aimed at preparing a methodology for practical use in a building organisation. The idea has subsequently been used in a concrete building process, and the results from this project are explained in another paper. The result of the theoretical approach in this paper lead to a well-founded hypothesis stating that the supplementary use of VMB in a project organization with different legal parties can be a more proactive control tool, i.e. the management get an earlier warning if the process go off the rails compared with traditional control mechanisms.

Keywords

Value, Value Management, Value-Based Management, Human behavior, Community, Congruity.

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Reference

Wandahl, S. & Bejder, E. 2003, 'Value-Based Management in the Supply Chain of Construction Projects' In:, 11th Annual Conference of the International Group for Lean Construction. Virginia, USA, 1-.

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