TY  - CONF
TI  - Designing to Targets in a Target Costing Process
C1  - Haifa, Israel
C3  - 18th Annual Conference of the International Group for Lean Construction
SP  - 161
EP  - 170
PY  - 2010
AU  - Pennanen, Ari
AU  - Ballard, Glenn
AU  - Haahtela, Yrjänä
AD  - Adjunct Professor, Tampere University of Technology, Finland and Research Director, Haahtela  Research and Project Management Group, Helsinki, ari.pennanen@haahtela.fi 
AD  -  Associate Adjunct Professor and Director of the Project Production Systems Laboratory,  University of California, Berkeley, Director, Lean Construction Institute. ballard@ce.berkeley.edu 
AD  - Professor and Managing Director of Haahtela Group, Helsinki, yrjana.haahtela@haahtela.fi 
ED  - Walsh, Kenneth
ED  - Alves, Thais
AB  - Traditional cost management determines the cost of the product based on its design and the estimated cost of realizing the design. Target costing acts upside down compared to traditional cost management: (1) The cost of the product is determined before design, (2) The cost of the product is based on the customer‘s requirements on the product‘s performance and the customer‘s willingness and ability to pay for such performance. Willingness is based on the customer‘s business plan; i.e., on what the prospective product is worth to them. The target costing process is focused in project definition (when target cost is determined) and design (when the functional targets and cost target will be achieved). This paper describes design steering, a methodology for managing design process to achieve target cost and purposed value for the customer. Design steering understands the nature of design in various stages and manages by knowledge and rapid feedback loops. Cost feedback is essential especially in the very early stages of design. Feedback can be generated by engaging multifunctional teams to support design. Rapid estimating and value monitoring can also be supported in the early stages by component level target costing produced by information modelling before design.
KW  - Target costing
KW  - Design
KW  - Cost modelling
KW  - BIM
KW  - Project management
PB  - 
T2  - 18th Annual Conference of the International Group for Lean Construction
DA  - 2010/07/14
CY  - Haifa, Israel
L1  - http://iglc.net/Papers/Details/675/pdf
L2  - http://iglc.net/Papers/Details/675
N1  - Export Date: 25 April 2024
DB  - IGLC.net
DP  - IGLC
LA  - English
ER  -