2019Case1DPSGroup

15 L EAN C ONSTRUCTION I RELAND A NNUAL B OOK OF C ASES 2019 LEAN INITIATIVE IMPROVEMENTS & IMPACT The TVD process was consistently developed over the course of the project and has since been brought forward onto current and future projects with this client. The culture surrounding TVD is also developing, ensuring designers are becoming more aware of the impact of their decisions on the cost fund. Designers have become more vocal in declaring change and assessing its financial impact. This is of huge benefit to the Project Managers as there is less reactive work in seeking financial approvals for client changes in design packages that have already been delivered. Probably the greatest benefit of TVD was the challenge posed by the necessity to differentiate a business “need” from a “want”. Business case needs are the project team’s prime delivery objective and should be captured in the project baseline concept report. Business wants or “nice to haves” must be challenged through strong project change control and by offsetting of other items and maintaining focus on achieving the target value through relentless pursuit of al ternat ives and res i st ing scope creep i s a cr i t ical accomplishment of TVD. Care is needed around reporting everything as being an extra cost. Effort must be made towards mitigating the impact of the change by examining the request to assess if alternatives exist that will still provide the client with the outcome or value required, but without necessitating major extra investment. The client testified to the increased visibility and improved financial reporting and could also assess the broader financial impact of a change request in a much timel ier manner than with the traditional cost reporting mechanisms. The value and impact of TVD is captured by the client’s Project Manager who noted that: “The ongoing value of the TVD process exists in it being a leading indicator of change to come on the project . It creates an envi ronment of shared responsibility of costs between engineering disciplines, for example, a small change within one discipline driving a large saving or cost increase being flagged and discussed in real-time is valuable to schedule and cost control.” flows would have required modification, thus necessitating extra design hours to address compliance and quality of the completed product. This review meeting then raised new items on the tracker as the impact on the lighting, fire protection (extra sprinkler head), and ducting had to be added, resulting in a more accurate and complete impact assessment to carry forward to the client. The weekly TVD review meeting with the client examined the TVD trend and compared planned with actual to ensure visibility of any need for further attention. A critical aspect of the meeting was the importance of visiting each individual cost increase as any creep, despite being within the trend parameters, still had to be challenged and not blindly accepted. Figure 3 illustrates the cost analysis performance within the overall process discipline as discussed in the weekly governance meeting. Figure 3. Process Department TVD Cost Tracking (Source: DPS Group)