From failure to function: applying failure mode and effects analysis for continuous process improvement in industrialised housebuilding

Reducing the costs of unproductive time in conjunction with the need to reduce rework due to defects and non-conformities is important for improving the efficiency and competitiveness of industrialised housebuilding (IHB), as well as reducing waste. Continuous improvement (CI) of processes and design standards is essential to achieving these goals, and various methods and tools are employed to this end. This paper analyses the suitability of failure mode and effects analysis (FMEA) for supporting CI in IHB. To this end, a case study was conducted within an IHB company to analyse the suitability of the method employed in this specific industry. FMEA was assessed using data generated through participant observation, qualitative interviews, workshop protocols, and the output of its application: the revised processes and quality costs from two case studies. The findings of the case study showed the effects of involving experts’ knowledge and considering employees’ workplace-specific knowledge in a CI process. The assessment of potential failures was found to be more evidence-based than in the initial situation and resulted in cost effective solutions from a quality cost analysis perspective. Overall, FMEA offers the opportunity to improve the efficiency of CI programmes in IHBs but managers need to be aware of its weaknesses. This paper provides three contributions: (1) Using a real-world application, it shows how FMEA can be embedded as a structured, team-based risk analysis in the IHB order fulfilment process (OFP) and what measurable quality cost effects result from this. (2) It highlights the knowledge integration function of FMEA in the construction context. (3) It discusses organisational learning as a channel of impact (cooperation, communication, shared process view) and identifies methodological limitations of the application (e.g., participation effort). Together, this addresses the research gap in the systematic, evidence-based use of FMEA for CI programmes in IHB.