Table 3

Key themes and critical managerial issues in industrialized WMC

ThemeManagerial areaCritical issue
I. Product system and operation model1.Concept and product developmentConcept flexibility: Inflexibility in product and production concepts leads to challenging trade-offs between customer requirements, authority requirements and own concept requirements. Low alignment with the concept increases the operational and economical risks of the projects
Maturity of product development methodologies: Immature product development processes and quality assurance concepts causes technical and operational problems in piloting projects
Product and operation model innovations: Industrial operation model generates continuously new product innovations and methodological innovations
2. Competence developmentCompetence management and attitudes: Current competence type and attitudes on the industry limits the industrialization. Young talents adopt industrial practices quickly and promote industrialization
3. Process ManagementFidelity of planning: Industrialized construction requires detail level and flawless planning on product, process, and project level to achieve high performance operations. Defects and issues on delivery chain results easily on unprofitable projects
4. Industry collaborationFragmentation of industrial construction: Industrialized construction domain is fragmented in Finland. Development of industrialized construction is focused on company level, when the potential of industry or consortium level cooperation in product system development and specialization is wasted
II. Pre-fabrication5. Economy managementCash flow management: Industrialized construction and pre-fabrication ties up capital at early stage, which asks well planned cash flow management actions through the projects and emphasizes short lead times of projects, especially on on-site production stage
Factory capacity management: Due to capital-intensity of prefabrication, factory capacity management optimization raises the most critical planning dimension in industrialized construction over single projects or other value chain portions
III. Regulatory context6. Authority relationship managementVarying interpretation, processing and planning: Construction regulation is normative in its nature, but local permitting authorities can interpret it strongly case by case. Processing times and regional building plans are varying by cities. This leads frequently to negotiation setting between contractor and permitting authorities. This issue complicates the product standardization
Inappropriate inspection practices: From the permitting authority perspective the industrialized procedures and construction methods are not always acceptable, because they cannot be inspected or approved according to prevailing inspection practices

Source(s): Table created by authors

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