Aboration Theory: The Transformation Theory In Economics

1049 Words5 Pages
Transformation Theory
The transformation model has its origins in economics. According to Gao and Low (2014), the transformation concept can be seen in the microeconomics theory of production which employs production function to discuss the relationship between input (i.e. resources that a firm uses) and output. (i.e. creation of goods or service) The conventional conceptualization of production in construction is that production is viewed as a transformation of inputs to outputs (Bertelsen & Koskela 2002). Furthermore, Ballard et al. (2002) defines that the traditional view of production as a flow of material from raw material to the end product. Likewise in economics, the term production is a process which transform inputs into an output.
…show more content…
Value management is all about giving the client the best value for his money and thus acts in a soft and service oriented way towards the clients and link with marketing and service concept by analyzing the needs and understanding both the client’s expressed and tacit value (Bertelsen & Koskela 2002). Customer satisfaction is the most important criteria in value management. Salvatierra-Garrido and Pasquire (2011) state that customers’ requirements are associated to the customer’s needs and/or wishes and those requirements control production activities and it covers many different aspects to be fulfilled by the construction industry which include price, quality, time, ethic, function, etc. Wandahl and Bejder (2003) mention that there are two sets of values: product value and process value. Product value covers both market value and utility value and the process value is about the ethical value. Utility values are the technical and aesthetic construction and the use of construction such as brick type, top lighting, color, usability and market value is the value of utility whereas the ethical value is very subjective and varies depending on the set of shared values which shape the human behavior. Salvatierra-Garrido and Pasquire…show more content…
Ensure that all customer requirements, both explicit and latent, have been captured.
2. Ensure that relevant customer requirements are available in all phases of production, and that these are not lost when progressively transformed into design solutions, production plans and products.
3. Ensure that customer requirements have a bearing on all deliverables for all roles of the customer.
4. Ensure the capability of the production system to produce products as required.
5. Ensure by measurements that value is generated for the customer’ (Koskela 2000,

More about Aboration Theory: The Transformation Theory In Economics

Open Document