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This thesis endeavors to answer to two specific questions. Is it possible to formulate a theory of production? Does such a theory add to our understanding and lead to improved performance when applied to construction? The answer to the first question is sought by reviewing the history of production thinking both from the scientific and the industrial points of view. Historical analysis reveals that three different conceptualizations of production have been used in practice and conceptually advanced in the 20th century. In the first conceptualization, production is viewed as a transformation of inputs to outputs. Production management equates to decomposing the total transformation into elementary transformations, tasks, and carrying out the tasks as efficiently as possible. The second conceptualization views production as a flow, where, in addition to transformation, there are waiting, inspection and moving stages. Production management equates to minimizing the share of non-transformation stages of the production flow, especially by reducing variability. The third conceptualization views production as a means for the fulfillment of the customer needs. Production management equates to translating these needs accurately into a design solution and then producing products that conform to the specified design. It is argued that all these conceptualizations are necessary, and they should be utilized simultaneously. The resulting transformation-flow-value generation model of production is called the TFV theory of production. It is noteworthy that this same new conceptualization also applies to product design and development, as revealed by a historical …