Target value design: using collaboration and a lean approach to reduce construction cost

Target Costing is an effective management technique that has been used in manufacturing for decades to achieve cost predictability during new products development. Adoption of this technique promises benefits for the construction industry as it struggles to raise the number of successful outcomes and certainty of project delivery in terms of cost, quality and time. Target Value Design is a management approach that takes the best features of Target Costing and adapts them to the peculiarities of construction. In this paper the concept of Target Value Design is introduced based on the results of action research carried out on 12 construction projects in the USA. It has been shown that systemic application of Target Value Design leads to significant improvement of project performance – the final cost of projects was on average 15% less than market cost. The construction industry already has approaches that have similarities with elements of the Target Value Design process or uses the same terminology, e.g. Partnering and Target Cost Contracts, Cost planning, etc. Following an exploration of the similarities and differences Target Value Design is positioned as a form of Target Costing for construction that offers a more reliable route to successful projects outcomes

Mapping customer needs to engineering characteristics: an aerospace perspective for conceptual design

Designing complex engineering systems, such as an aircraft or an aero-engine, is immensely challenging. Formal Systems Engineering (SE) practices are widely used in the aerospace industry throughout the overall design process to minimise the overall design effort, corrective re-work, and ultimately overall development and manufacturing costs. Incorporating the needs and requirements from customers and other stakeholders into the conceptual and early design process is vital for the success and viability of any development programme. This paper presents a formal methodology, the Value-Driven Design (VDD) methodology that has been developed for collaborative and iterative use in the Extended Enterprise (EE) within the aerospace industry, and that has been applied using the Concept Design Analysis (CODA) method to map captured Customer Needs (CNs) into Engineering Characteristics (ECs) and to model an overall ‘design merit’ metric to be used in design assessments, sensitivity analyses, and engineering design optimisation studies. Two different case studies with increasing complexity are presented to elucidate the application areas of the CODA method in the context of the VDD methodology for the EE within the aerospace secto

Critical Capabilities and Performance of the Small Subcontracting Firms in the Aerospace Industry

Although they are often considered to be more flexible and adaptable than their larger counterparts, small and medium-sized firms now evolve in a rather uncertain environment which may, more than ever, impede their capacity to compete internationally. In this context, and in order for those firms to continuously improve themselves, it is believed that they need to acquire and develop particular capabilities. The objective of this paper is therefore to identify some of the critical capabilities that characterize successful SMEs in industries where significant added value is created. The results presented are drawn from a large research project carried out among manufacturing subcontractors in the aerospace industry in Canada. Bien que les petites et moyennes entreprises soient souvent reconnues pour leur flexibilité et leur plus grande capacité d'adaptation par rapport aux plus grandes, elles n'en demeurent pas moins soumises plus que jamais à un contexte économique incertain qui risque de gêner leurs efforts d'expansion sur les marchés internationaux. Dans ce contexte, et dans le but d'améliorer leur situation, il est suggéré que ces firmes doivent acquérir et développer des compétences particulières. L'objectif de cet article est d'identifier certaines de ces compétences critiques qui caractérisent les PME à succès dans une industrie à haute valeur ajoutée. Les résultats présentés sont tirés d'une vaste recherche sur les sous-traitants de l'industrie aérospatiale/aéronautique canadienne.SME ; International markets ; Capabilities ; Aerospace industry, PME ; Marchés internationaux ; Compétences ; Industrie aérospatiale ; Industrie aéronautique