Draft – for Architectural Engineering and Design Management Special Issue on Integrated Design & Development Systems (IDDS) © Alan Mossman, Glenn Ballard & Christine Pasquire 2010 page 1 Lean Project Delivery — innovation in integrated design & delivery Alan Mossman, Glenn Ballard & Christine Pasquire 1 Abstract Purpose: To review the state-of-the-art of Lean Project Delivery (LPD), to show the relationship between LPD and integrated design and delivery (particularly the IDDS element ‘collaborative processes’) and to propose further stages of development, research and practice. Method: Description and analysis of action research & learning in current practice. Findings: In the context of Lean Project Delivery with Target Value Design (TVD) projects are completed below market cost—so far as much as 19% below and expected cost falls as design and construction progresses. Limitations: this work is based on a limited number of linked cases in the US over the last 10 years. We suggest the ideas are applicable far more widely. Implications: there is still more development and research required to develop effective leadership models for integrated design and delivery, create whole of life Target Value Design, to create significant bodies of evidence to guide the design of many building types and to further develop the Lean Project Delivery System. Value for practitioners: initial indications are that the methods described work together to deliver significant benefits for owners/clients/end-users and create a more satisfying experience for most designers and constructors. Keywords: Target Value Design, lean construction, lean project delivery, allowable cost, target cost, value, evidence-based design, A3, set-based design, collaboration, early constructor involvement, integrated form of agreement, integrated project delivery, value management, IDDS Introduction The idea of integrated design and delivery is not new — the UK Emmerson Report of 1962 noted that “in no other industry was the responsibility for design so far removed from the responsibility for production”. While there has been a shift since then toward more integrated procurement of construction, it has been piecemeal, partial and is still far from the norm, particularly in public sector design and construction. Many in the public sector believe, usually erroneously, that public procurement rules outlaw integrated design and construction procurement while others actively pursue 1 Corresponding author: Alan Mossman, Dept of Civil and Building Engineering, Loughborough University, LE11 3TU & The Change Business Ltd 19 Piccadilly Stroud GL5 1HB UK +44 1453 765611 a.mossman@lboro.ac.uk www.thechangebusiness.co.uk Dr Glenn Ballard, Project Production Systems Laboratory (P2SL), University of California at Berkeley, Berkeley, CA 94720-1712, United States glennballard@mac.com Dr Christine Pasquire, Dept of Civil and Building Engineering, Loughborough University, LE11 3TU UK +44 1509 222895 C.L.Pasquire@lboro.ac.uk www.construct-lean.org Portions of this paper will appear in Lean Construction: People, processes and Production a forthcoming book by Alan Mossman and Tariq Abdelhamid.