IGLC 12 · Helsingør, Denmark · 2004

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

  1. Master 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

Cite this paper

APA 7th edition

Saukkoriipi, L. (2004). Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry. In S. Bertelsen, & C. T. Formoso (Eds.), 12th Annual Conference of the International Group for Lean Construction.

Shortened reference for IGLC papers

Saukkoriipi, L. (2004). Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry. IGLC12.