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Towards Partnerships in Industrialized Housing
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The purpose of this thesis is to describe and analyse purchasing strategies and their interdependence with the production process and supplier relationships in industrialized housing. The thesis is a multiple case study of four Swedish industrialized timber-housing manufacturers. The case studies included interviews with top managers concerning purchasing, production and supplier relationships. Production is considered the heart of the company. Therefore, to gain an in-depth knowledge of how production affects purchasing and thus supplier relationships and vice versa, observations were made to study the production process. Many different parts and competences need to be coordinated in the creation of a house. In the West, the construction industry has been heavily criticized for low efficiency and effectiveness. Conclusions from the case studies showed that codevelopment, customization and secure deliveries are regarded highly by industrial house builders and to obtain them, long-term relationships with suppliers are preferred. Industrialized house builders are argued to have more long-term relationships with their suppliers than traditional on-site builders. Industrial house builders choose their suppliers based on the purchased products’ value-in-production rather than price. Product and process innovations created in collaboration with suppliers seem to be a way to enhance the production process of houses. Through the site resource of the factory, industrial house builders have the potential to refine their processes in win-win partnerships with suppliers for a more efficient and effective production of houses, as onsite work is harder to standardize and control.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press , 2011. , 85 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1479
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-67114Local ID: LiU-TEK-Lic 2011:18ISBN: 978-91-7393-177-9OAI: oai:DiVA.org:liu-67114DiVA: diva2:407355
Presentation
2011-04-05, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-05-23Bibliographically approved
List of papers
1. Coordination and waste in industrialised housing
Open this publication in new window or tab >>Coordination and waste in industrialised housing
2011 (English)In: Construction Innovation, ISSN 1471-4175, E-ISSN 1477-0857, Vol. 11, no 1, 77-91 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – This study maintains that there is a need for proper execution of coordination mechanisms as a means to reduce waste. The purpose of this paper is to explore the relationship between the coordination of activities and resources on the one hand, and the occurrence of different types of waste on the other.

Design/methodology/approach – The empirical context of this paper is a case study at a Swedish construction company that has applied the industrialised housing concept; a concept which has increased in popularity in recent years. The core concept of industrialised housing means that houses are (more or less) pre-manufactured in specific production units, i.e. factories, and thereafter assembled on-site.

Findings – The analysis highlights the importance of having the right type as well as the right amount of coordination. In addition, obstacles and challenges for proper coordination are discussed.

Originality/value – Even if not all waste can be explained and eliminated by appropriate coordination, this research shows that coordination theory provides lean researchers with a new tool for analysis of the supply chain and how waste can be eliminated.

Place, publisher, year, edition, pages
Emerald, 2011
Keyword
Waste, Housing, Sweden
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-64453 (URN)10.1108/14714171111104646 (DOI)
Available from: 2011-01-25 Created: 2011-01-25 Last updated: 2012-01-20
2. Value-driven Purchasing of Kitchen Cabinets in Industrialized Housing
Open this publication in new window or tab >>Value-driven Purchasing of Kitchen Cabinets in Industrialized Housing
2011 (English)In: Journal of Financial Management of Property and Construction, ISSN 1366-4387, Vol. 16, no 1, 73-83 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - This article hypothesises that value-driven purchasing of customized kitchen cabinets is more profitable than market-driven purchasing in industrialized housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of Sweden’s largest producers of industrialized prefabricated multi-storey housing. By comparing characteristics of market-driven vs. value-driven purchasing, this article aims to further clarify the benefits and drawbacks of these two strategies.

Design/methodology/approach - A theoretical framework is proposed by comparing characteristics of market-driven vs. value-driven purchasing that clarifies the benefits and drawbacks of these two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialized housing industry in relation to the proposed framework.

Findings – According to the case study, from a value perspective, a long-term relationship with a dedicated local, smaller supplier is a preferable choice over a short-term bulk supplier, even if the short-term supplier has (much) lower prices.

Research limitations/implications – This is a single-case study that should be verified by further empirical work of a test-delivery from the local sub-system manufacturer. Such a study would provide more insights into this area of work and make it possible to thoroughly evaluate potential risks. The indicative results in this paper can be made conclusive through quantification of the proposed Lean purchasing characteristics.

Originality/value – A comparison of value-driven and market-driven purchasing is carried out in theory and applied to a real case study that brings new perspectives to purchasing. In this way, the article proposes alternative purchasing strategies to the construction industry.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2011
Keyword
Lean purchasing, prefabrication, purchasing strategies, supply chain management
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-67110 (URN)10.1108/13664381111116106 (DOI)
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2012-04-03Bibliographically approved
3. Purchasing Strategies in Industrialized Housing: a Multiple Case Study
Open this publication in new window or tab >>Purchasing Strategies in Industrialized Housing: a Multiple Case Study
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Many writers in construction management have been considered purchasing strategies in the construction industry as short-term and arms-length. However, a different picture is portrayed in the manufacturing industry, where purchasing strategies are often long-term to secure supply for production. Industrialized building is at crossroads between construction and manufacturing, which raises the question of what purchasing strategies are applied. The purpose of this study is to investigate how the Kraljic model (1983) can be applied in industrialized housing. The purchasing strategies were studied through interviews with three top managers at three different timber-housing manufacturers in northern Sweden. Industrialized housing manufacturers can take advantage of standardized construction systems and secure production flows that eliminate waste and improve quality. Evidence proves that long-term relationships similar to those in the manufacturing industry also exist in the construction industry regarding factory production. An analysis of these strategies suggests that the total product offer in terms of customization, including logistic services, plays an important role in choosing a supplier to satisfy the needs of efficient production. A new model is developed regarding the effectiveness of the purchasing strategies on the production process, where products are classified according to value-in-production instead of their monetary value.

Keyword
Construction materials, industrialized housing, purchasing strategies
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-67111 (URN)
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-08-24
4. The Study of a Kitchen Assembly Process in Industrial Housing
Open this publication in new window or tab >>The Study of a Kitchen Assembly Process in Industrial Housing
2011 (English)Conference paper (Other academic)
Abstract [en]

The kitchen is the heart of the house where people spend much of their time. It is, therefore, an important room that requires high quality. Because construction is argued to be unproductive and wasteful with low quality, studying a kitchen assemblage in detail is of particular interest due to its complexity with many details. In lean, the visualization and transparency of processes is the core for waste reduction and improvement. Low productivity levels are often argued to depend on a lack of information about the root causes of process problems. Thus, more information about the installation process of kitchens by studying the process is needed to target the sources of problems in terms of waste. The purpose of this paper is to gain a further understanding of how value stream mapping can be used to identify different types of waste that occur when acquiring and installing kitchens. Value stream mapping is carried out through observations and interviews at an industrialized timber house manufacturer. Data analysis resulted in information about inconsistencies in the kitchen installation process, i.e. the root causes of costs and delays for the entire housing project.

Keyword
Industrialized housing, waste, kitchen assembly, value stream mapping
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-67112 (URN)
Conference
6th Nordic Conference of Construction Economics and Organization, April 13-15, Copenhagen, Denmark
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-03-30Bibliographically approved
5. Innovative House Components to Decrease Complexity
Open this publication in new window or tab >>Innovative House Components to Decrease Complexity
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The specific topic of innovation in construction has only recently been given as much attention as in many other sectors. In the realms of lean production, much literature points out that the peculiarities of production in the construction industry lead to variability and thus waste and low performance levels with respect to productivity and value to clients. Innovative component solutions could possibly decrease the variability and complexity and therefore solve these issues. The purpose of this paper is to illustrate some potential areas where innovative house components could possibility decrease construction complexity and create a leaner construction process. A case study was conducted to collect data from bathrooms and kitchen installations at a house construction company. The impact of this research may have commercial value for suppliers, since they often are the drivers of innovation. The social impact of the research is to highlight problem areas that can enhance the final product for endcustomers. Enhanced system design may also contribute to greater production efficiency and reduced waste, leading to a lower impact on the environment.

Keyword
Innovation, construction, process improvement, customer value
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-67113 (URN)
Available from: 2011-03-30 Created: 2011-03-30 Last updated: 2011-03-30Bibliographically approved

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