Value delivery through product offers: A lean leap in multi-storey timber housing construction

Abstract

Among large Swedish contractors there is currently a specialization trend towards an increased use of prefabrication and complete systems in housing construction. The Lean Construction development up to date has focused on the management of value delivery for complex construction projects. Typical Swedish housing projects do not experience this broad complexity; instead the main challenge seems to be to better specify and deliver customer value. Currently, the Lean Construction methods available are not by themselves enough for the generation of value in Swedish multi-storey housing construction. The aim of this paper is to examine the potential of the product offer (a well-defined and highly standardized building system developed from the value views of specific customers) as an aid in the generation and delivery of value for multi-storey timber housing construction. From the point of view of manufacturing and customer value, the product offer is considered a Lean strategy for integrated consideration of internal and external value. Case study experiences indicate that the product offer strategy provides stability and continuity for producers that in turn provides with Lean practices in marketing, design and manufacturing. Approaching Lean, small- to medium-sized Swedish producers should focus on improvements through Lean Manufacturing. However, since an emerging demand from the Swedish construction industry forces these producers to take a larger role in the construction process, more construction related Lean improvements must also be considered. In this regard, the product offer is demonstrated to be a promising Lean strategy for the Swedish housing industry.