Close coupling value chain functions to improve subcontractor manufacturing performance

Abstract

The operational benefits of close coupling value chain functions as embodied in the principles of concurrent engineering and supply chain management are well known and have been closely examined by researchers across a range of manufacturing sectors. However, their deployment in the field of construction is less well understood. The aim of the research reported in this paper was to investigate whether ‘best practices’ such as these, could be applied in sectors of the construction industry to provide sustainable competitive advantage. To facilitate the investigation an action research based methodology was employed in which the researchers took an active role in the change process. This method was chosen because of its practical orientation, its predisposition to longitudinal case based applications and its suitability to ‘proof of concept’ initiatives. This research was carried out over a three year period and focused on the implementation of these practices with a view to improving the performance of a subcontractor in the construction industry. The outcomes of the research indicate that, despite the high levels of uncertainty and product variety that characterise the industry the principles of close coupling value chain functions can be applied to subcontractor operations that are primarily manufacturing orientated and that improvements in production and assembly productivity are possible with the result that total costs can be reduced and delivery performance improved.