Target Value Design: The Challenge of Value Generation

Target Value Design (TVD) is a management approach that aims to maximize value in the framework of a pre-established cost target. TVD views AEC (Architecture, Engineering and Construction) as a complex system and transforms the current design practice upside down. In spite of the existing studies, applying TVD in the context of AEC still represents a major challenge. Creating a structure that enables and measures value generation to the client is part of this challenge. However, despite the contributions already made by TVD, the results and implications related to value generation remain poorly documented. To throw light on value generation in the TVD context, it is useful to understand how the TVD and lean construction literature considers the concept of value. Thus, this study uses a literature review to understand the TVD background, as well as the main contributions made by studies carried out using this approach. The TFV (Transformation, Flow, Value) theory is considered as a baseline to understand the value generation. This paper reports a study that seeks to contribute to the challenge of adjusting the method of TVD to make value generation more explicit.