LCiGlossaryofTermsandConcepts

Lean Construction Ireland (LCi) Page 10 of 11 Target Cost – The cost goal established by the delivery team as the target for its design and delivery efforts. The Target Cost should be set at less than best-in-class past performance. The goal is to create a sense of necessity to drive innovation and waste reduction into the design and construction process. Target Value Delivery (TVD) – This is a disciplined management practice to be used throughout the project to ensure that the facility meets the operational needs and values of the users, is delivered within the allowable budget, and promotes innovation throughout the process to increase value and eliminate waste (time, money, human effort). Target Value Design – Encompasses the Target Value Delivery approaches implemented during the design delivery phases of the project. Target Value Production – Encompasses the Target Value Delivery approaches implemented during the construction delivery phases of the project. Task – An identifiable chunk of work. Throughput – This is the output rate of a production process, and refers to the amount of material or items passing through a system or process. Total Productive Maintenance (TPM) – This is a technique designed to optimise the performance, reliability, and productivity of plant and equipment. Responsibility for maintenance is given to the actual operators. Under-Loading – Making assignments to a production unit, or a resource within a production unit, that absorbs less than 100% of its capacity. Under-loading is necessary to accommodate variation in processing time or production rate, in order to ensure plan reliability. Under-loading is also done to release time for workers to take part in training or learning, conducting first-run studies, implementing process improvements, or for equipment to be maintained. Utilisation – The percentage of a resource’s capacity that is used in actual production. Value – This is the start, middle, and end point of Lean. Value refers to what the customer wants from the process – the customer defines value – and is captured through the “Voice Of Customer”. Value-Adding (VA) – Those activities/processes that directly add to or contribute value to customers – those activities the customer is happy to pay for. One should constantly strive to expand these. Value Stream – The sequence of activities required to design, produce, and deliver a good or service to a customer, and it includes the dual flows of information and material. Value Stream Mapping (VSM) – The process of mapping out and visually displaying a value stream so that improvement activity can be effectively planned. VSM is the meta tool that guides all other Lean tools. When we utilise VSM we visualise the current state plus desired future state of a process that take a product or service from its beginning through to the customer. Variance – In statistics, Variance ( σ 2 ) is a measurement of the spread between numbers in a data set. That is, it measures how far each number in the set is from the mean (expected value/average) and therefore from every other number in the set. When an assignment is not completed as stated, it is considered a variance from the daily/weekly/monthly work plan. Variance Trend Analysis – This refers to the quantitative investigation of the difference between actual and planned behaviour. This technique is used for determining the cause and degree of difference between the baseline and actual performance and to maintain control over a project. Visual Management – Placing tools, parts, production activities, plans, schedules, measures and performance indicators in plain view. This ensures that the status of the system can be understood at a glance by everyone involved and actions taken locally in support of system objectives.