Performance Indicators Based on TFV Theory

Hyo-Gi Moon¹, Jung-Ho Yu² & Chang-Duk Kim³

Abstract

In order to obtain good project performance, the performance of construction work processes should be improved. Traditionally, good project performance means a project is on budget and on time with expected quality. Thus, most project managers have used project performance indicators concerning time, cost, quality, safety, profitability, etc. However, these performance indicators are result-oriented and they cannot measure the performance of construction work processes, which we call as process-oriented performance. As process-oriented performance indicators for construction works, this paper suggests the use of three concepts: reliability, efficiency and effectiveness. These are derived from the TFV theory. The following three statements are the basis for establishing indicators related to those three TFV concepts: a “Transformation should be efficient”, “flow should be reliable”, and “value of a work relies on the effective completion of the preceding work”. This paper proposes three TFV based indicators, establishes a logical relation model between the indicators and other traditional indicators, and tests the validity of those indicators. Finally, this paper suggests how to use these indicators to build a process-oriented performance measurement system for construction projects

Keywords

Performance measurement, TFV, reliability, effectiveness, efficiency

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Reference

Moon, H. , Yu, J. & Kim, C. 2007. Performance Indicators Based on TFV Theory, 15th Annual Conference of the International Group for Lean Construction , 141-146. doi.org/

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