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Horizontal supply chain collaboration in Swedish and Norwegian SME networks
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
Gjövik University College.
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.ORCID iD: 0000-0001-7564-006X
2011 (English)In: Proceedings of IGLC-19: 19th Conference of the International Group for Lean Construction / [ed] John Rooke; Dave Bhargav, Lima: Fondo Ed. Pontificia Universidad Católica del Peru , 2011, p. 678-688Conference paper, Published paper (Other academic)
Abstract [en]

An SME is often managed in an informal way with focus on sales and production. Many SME are also financially vulnerable as they are strongly dependent on a few key customers and key products. As variation will always exist, SME should learn to deal with variation instead of try eliminating it. This paper hypothesises that structural flexibility in SME supply chains through horizontal collaboration leads to a regional environment of economical growth from which all active SME will benefit The hypothesis is examined through two case studies; a Swedish supplier network that has worked together six year and a freshly started Norwegian supplier network. The Swedish suppliers are cooperating; e.g. in case of low capacity, they are sharing production resources. Another benefit of cooperation, supported by Norwegian findings, is the sharing of knowledge amongst each other that lessens the economical strain of keeping up with the “latest”. Cooperation within supplier tier networks marks the emergence of a “collective strength” improving individual suppliers bargaining position towards their customers, e.g. when obtaining new orders, when lobbying for changes in regulations, or when developing and verifying new products. This evolution indicates the emergence of a “Lean Enterprise” within the house building sector.

Abstract [en]

To improve, it’s crucial to see! Vital characteristics of Lean are visualisation and transparency, i.e. allowing everyone to see all what occurs in production. A common tool for this purpose is Value Stream Mapping (VSM). Due to varying flows, performing a successful VSM in construction confers additional challenges. In this paper, lessons learned from successful VSM studies in construction are provided. Three VSM case studies were performed at different companies ranging from patio door manufacturing to kitchen cabinet assembly. Lessons learned can be structured into three phases; preparing the VSM (selecting “value stream leaders” and VSM team, clarifying values, etc.), performing the VSM (use of mapping tools, approximation of key indicators, waste identification, etc.), and following-up the VSM (Plan-Do-Check-Act, evaluating customer values, etc.). For the involved companies, the lessons learned imply the start of a “Lean journey” even though the involved companies found it difficult to relate VSM improvements to business strategies. Consequently, there are opportunities to further improve the application of VSM. However, it’s important to remember that VSM is about the straight-forward visualisation of flows and that these flows are made transparent for the whole organisation.

Place, publisher, year, edition, pages
Lima: Fondo Ed. Pontificia Universidad Católica del Peru , 2011. p. 678-688
Keywords [en]
Civil engineering and architecture - Building manufacturing engineering
Keywords [sv]
Horizontal Sypply Chain Management, Construction Suppliers, Collaboration, SME, Samhällsbyggnadsteknik och arkitektur - Byggproduktionsteknik
National Category
Building Technologies
Research subject
Timber Structures
Identifiers
URN: urn:nbn:se:ltu:diva-37940Local ID: c242ee20-935a-43b5-932a-b9037915aa63ISBN: 9781622768233 (print)OAI: oai:DiVA.org:ltu-37940DiVA, id: diva2:1011439
Conference
Annual Conference of the International Group for Lean Construction : 13/07/2011 - 15/07/2011
Note
Godkänd; 2011; Bibliografisk uppgift: Conference Chair Jorge Luis Izquierdo Graña y Montero Pontificia Universidad Católica del Perú Lima, Peru July 13-15 2011; 20110719 (jarkko)Available from: 2016-10-03 Created: 2016-10-03 Last updated: 2017-11-25Bibliographically approved

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Björnfot, AndersErikshammar, Jarkko

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Citation style
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