please comply with the lean construction institute’s usage ... · • the target cost...
TRANSCRIPT
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Please comply with the Lean Construction Institute’s Usage Policies and Attribution Guidelines at http://www.leanconstruction.org/usage.pdf
when using this file. Thank you.
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Project Phases and Target Value Design
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St. Olaf’s Fieldhouse Project
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St. Olaf
College
Fieldhouse
Carleton College
Recreation Center
Completion Date August 2002 April 2000
Project Duration 14 months 24 months
Gross Square Feet 114,000 85,414
Total Cost (incl. A/E & CM fees )
$11,716,836 $13,533,179
Cost per square foot $102.79 $158.44
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Design SD’s DD’s CDs
Feasibility
Business Planning
Permit Construction
Project
Context
Scope &
Budget
75% DD’s
First Est.
CD Check
Est. GMP On
Approved
Docs.
Engage FPD
Planning
Sometimes
Incremental
Approval For Design
No
Board Approval
Board
Approval
Project
Approval
On the Large
Projects
No
Business
Case
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FPD &
Business
Planning
Feasibility
Study SD’s & DD’s CD’s Permit
Board
Approval
Project
Context
Scope, Budget &
Business
Case
Set Target Detailed
Scope & Budget
• Owner • Arch
• CM/GC
• Estimating Consultant
No
Target
Value
Design
Doc Production &
Complete Coordination
Set Based Design
Value Focus
Fewer
Back Checks
Expected
Predictable
Time & Cost
Increased
Value & Less
Stress
Construct
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©The Boldt Company 2007 ©T©©T©T©T©©TT©T©T©T©T©T©T©T©Thehheheheheeheheheheh BBBBBBBBBBolololoolooloolololooldtdtdtdtdtdtdtdttdddtt CCCCCCCCCCCComommomommommomommomomommmpapappappapapapapapappapapappapp nynynyynynynyynynnynynnnynnnyy 222222222220000000000000000000000077777777777777 777
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•The target cost (construction budget) was set 3.6% below market, the actual cost was 14.6% below target, and 17.6% below the benchmark. Most of the released funds were used to provide value-adding scope, especially for imaging capability, with the remainder returned to the client.
•Completed 3.5 months ahead of schedule –70 additional days of clinic revenue translating into nearly $1 mil. in the expanded imaging service line functions and additional revenue in the 2006 year.
Shawano Clinic
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Purposes
Constraints
Design Concepts
Process Design
Product Design
Detailed Engineering
Fabrication & Logistics
Installation
Commissioning
Operations & Maintenance
Project Definition Lean Design Lean Supply Lean Assembly Use
Production Control
Work Structuring
Learning
Loops
Lean Project Delivery System
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Allowable Cost for Construction (normalized for changes in scope)
Cathedral Hill Hospital Project: Expected, Allowable & Target Cost
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Allowable Cost for Construction (normalized for changes in
scope)All
Allowable Cost for Construction (normalized for changes in
scope)AllAllowable cost for construction
Cathedral Hill Hospital Project: Market, Allowable, Expected & Target Cost
Market cost with inflation
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Cathedral Hill Hospital Project: Changes in Expected Cost
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13h
11m 11h
28m 10h
28m 10h
15m 10h
6m 9h
17m Area of Opportunity
Inpatient Discharge Time of Day
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ED LOS
(hrs)
How many visits to the Emergency Department can our facility
handle as designed with 32 ED Beds and 370 IP Beds?
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FEEDBACK LOOP
© Glenn Ballard, 2008
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Haahtela’sTaku Cost Model
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Project Phases and Target Value Design
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Plan Validation/ Feasibility
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Purpose Finance Action Example Comments
Developer
Producer
Shopper
Art
Collector
Create something to
sell to others
Maximum available funds or minimum
acceptable ROI
Target cost
Property developer
Create means for producing
products or services
Maximum available funds or minimum
acceptable ROI
Target cost
Oil refiner, healthcare
company, university
Acquire commodities
Ability to afford Buy at lowest
price
Law firm, insurance
company
But note: If facilities are not commodities and
can impact use benefits through different
designs, then Shoppers are actually Producers, and buying at lowest
price is not likely to deliver greatest value.
Create something
without predefinable
properties
Within initially indeterminate limits,
funds can be acquired based on
the attractiveness of the design
Design, then
estimate cost, then
acquire funds
Municipal library,
performing arts theater
At some point, maximum available
funds will constrain the design. That point may
occur earlier or later in the design process.
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Dave Chambers
Chief Architect
Sutter Health
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