Transformation Theory: The Five Value Generation Concept Of Production

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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.

Secondly, the transformation model is based on concepts and techniques from the scientific management theory. Betelsen and Koskela (2004) found that managing transformation is the kind of project management most project managers are familiar with in which it takes place by managing contracts, establishing quality and safety requirements and procedures, etc. As established by Gao and Low (2014), the scientific management approach also focused on improving an organization’s efficiency by systematically improving the efficiency of task completion. Taylor's scientific theory broke the work …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,

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