Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry

Lasse Saukkoriipi1

1Master of Science, Building Economics and Management, Chalmers University of Technology, Sven Hultins gata 6, SE-412 96 Goteborg, Sweden, +46 (0)31-7721964, lasse.saukkoriipi@bem.chalmers.se

Abstract

One strategy to reduce the costs of building projects is to reduce non-value added activities. This paper describes the concept of non-value added activities by using three separate theoretical concepts: lean production, activity-based costing and management, and poorquality costing. The piece-rate system is one part of many building projects that includes several non-value added activities. These piece-rate related activities are used as a case to elucidate how the three concepts can affect the amount of non-value added activities.

Keywords

Non-value added activity, lean production, activity based costing and management, poorquality costing, piece-rate, building project

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Reference

Saukkoriipi, L. 2004, 'Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry' In:, Bertelsen, S. & Formoso, C.T., 12th Annual Conference of the International Group for Lean Construction. Helsingør, Denmark, 3-5 Aug 2004.

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