Integrated production of semi-finished components in sawmills,part II: Management of internal operations

Recently, several Swedish sawmills have taken over production of components from customers in the furniture, joinery and house-manufacturing industries. The purpose of this study was to identify key factors in management of internal operations for sawmills with this strategy. A multiple case study design, based on face-to-face interviews with Swedish sawmill practitioners and on various forms of secondary data, produced comprehensive research information. Starting integrated production of components is a demanding strategy for sawmills. It requires deep knowledge about the customer and qualified skills in advanced further-processing of sawn wood. The complexity of quality management, production planning and cost calculation increases, and investments in processing equipment and customer relations reduce strategic flexibility. The diverging material flow complicates sawmills' possibilities to economize on scale, and they must instead economize on other factors, such as scope, combined operations and internal control. New tools for production follow-up and control, for production planning, for analysis of product profitability and for strategic partnership analysis are requested by practitioners. But, even if new analysis tools would facilitate better analysis and management of operations, the willingness and ability to innovate and learn among the personnel emerges as a key factor for success.