Home building is an extremely complicated business and as such requires very intelligent people and systems. Think about it for a second. To build a home, over 400,000 pieces/parts and 2,000 people must be precisely coordinated to bring these pieces, parts, and labor all together at the right time in the right sequence – and often at a remote address that may not have even existed 2 months earlier, WOW! It takes very dedicated, intelligent people and solid, well planned, processes to pull that off!While the home building industry is blessed with people of abov
With Costco, Sam's Club and all the other "buy in bulk" stores out there today pantries are becoming larger and larger. Builders are finding it tough to compete if they are offering standard cabinet pantries (even in smaller homes). The answer to this is to provide a corner pantry. It takes up relatively little real estate and eliminates a blind corner.
The 100 Best Kitchens & Dining Rooms This new book from Beta-Plus is a nice collection of design ideas, but definitely more of the coffee table variety than for the pro. That said, it could definitely be a source of inspiration for you or your clients. There's a nice mix of contemporary and traditional designs, but to be clear this is a book of European homes. Not surprising, as it is from a European publisher, although the book is being marketed here in the U.S.
Being creative and innovative is something that is widely touted, but how do we actually do it? This may be needed for a particular issue during land development, most certainly necessary during design and of course during construction. In todays economy cutting costs is a constant factor and to do this whether you are using lean, value engineering etc etc at the core is being creative and innovative. While there are a range of issues that go into making a company or team creative including culture, here is one structured approach to creativity, PISA.
Excuse me if you've heard this before ... In what we can't exactly call a surprise, another government program aimed at helping underwater homeowners is falling well short of it's goal. This time it's the Obama administration's "Hardest Hit" program, which was announced in 2010 that targeted states and communities most affected by the housing crisis. In a report issued today by the Special Inspector General for TARP, the program was found to have spent only $217 million of its $7.6 billion budget and helped only 30,600 homeowners.
Today, a sharp young guy named Ryan wrote to me after seeing a Keynote Presentation I did at the recent BuilderExchange meeting in Las Vegas. Two-hundred fifty people attended from 60 suppliers and a like number of builders.
My Aunt Janice (rest her soul) gave amazing Christmas gifts when I was a kid. One of my favorites was “Hugo the man with a thousand faces.” It was basically a bald plastic head with a case full of disguise equipment. Hugo had mustaches, glasses, eyebrows and wigs galore. Cool gift, wish they still made ‘em. This week we will look at a Lean-designed, 2,400-square-foot home designed for a growing family. This home picks up on many current trends in housing and, like Hugo, it has the ability to morph into countless facades. Let’s take a closer look:
A Risk Management Benchmarking Survey in 2010 showed that 65% of businesses conduct no form of risk analysis prior to making major corporate decisions. While on 42% have any form of risk management audits or procedures. However, a study in the Accenture Global Risk Management Study in 2011 showed that for 98% risk was now seen as a higher priority than just two years ago.
A builder would never build, merchandise, and maintain a model without staffing it, would they? Of course not - this would be abuse of an asset! The return on this asset (ROA) would be zero, zilch, nada. No competent manager would ever allow an asset to exist without some expected return on that asset, right?Most builders expect their model, community, and marketing to return at least one sale per month and cover the bulk of the costs. Two sales per month break even, and three sales per month make it a profitable community. The numbers may va
When you look at your trade contractors, your suppliers, product distributors, what do you see? Are they a line item, an expense, a necessary evil or are they true partners? It’s easy to look at your drywall guy, your lumber yard or your window supplier as someone with which you simply do business with, but finding new ways to partner can be an important way to succeed.
Last fall the president of one of America’s “Top 10” builders who I have known for years corralled me at a conference. Because I travel this industry about as much as anyone, he likes to pump me for intelligence – as I do him. He wondered, what did I see out there? Who was making it? Who wasn’t? Which cities were ready to emerge and which were not? I gave him my take on things and then he asked a series of bombshell questions, “Who really impresses you? Who truly has the best practices?
Construction projects are complex in nature and prone to cost and schedule overruns. A significant factor that often contributes to such overruns is rework.
I catch myself from time to time spending money on things that I just don’t need to. Whether it’s the cool action video I think I will watch after the (wife selected) romcom, the twenty piece Mcnugget vs. ten, or the third hot dog at Home Depot, it’s all waste – well, usually anyway.
The NAHB in conjunction with Professional Builder Magazine launched the National Housing Quality Award (NHQA) in 1993 to encourage and recognize best practices and best builders in the continual improvement of product and process. Modeled after the Malcolm Baldrige National Quality Award, over time the NHQA has become the gold standard of awards in homebuilding.
Flat, team based and empowered organizations have the potential to out-perform tall hierarchical organizations in most every competitive industry and that includes home building! I have always enjoyed conversations on business improvement with Tom Gillespie, a NHQ Award winning builder, NHQA Judge and consultant. In this blog Tom engages us in a conversation regarding the importance and impact of flat, empowered organizations.
Why bother naming your houses? It would be a whole lot easier and more efficient to identify your homes by their square footage. It could be argued that the Saddlebrook should be called the 2429 plan. It makes perfect sense, the plan is 2429 square feet, so let's call it what it is. The purchasing manager, field supervisor, estimator and trades would love it. A simple designation for the plan that is clearly communicated and understood by all.
Process improvement can often be received with impatience and inflated expectations of its impact. One of the regular problems is that a particular piece of the organizations process is asked to be improved in isolation. This is a little like trying to change a wheel while the car speeds along the interstate! The one minor fix is still influenced by the wider system. It can take several improvements to elements of a process to see an impact overall. It needs to be realized that an entire process needs to be improved not just one element in isolation.
Let me be straight - I am anti-Net Promoting Index (NPI) in the home building industry and this is why...When I was a manager/leader/owner of a homebuilding company there was a recurring problem that I often saw (and personally committed). Too often, we would manage our company by average numbers. For example, let's say our Willingness to Refer (WTR) declined 5 points from 95% to 90%. We would become upset and meet with the Sales Team and Builders to tell them "we are better than this!" We were managing the company and staff by the average number.
Everybody loves a little extra Garage space. Custom home clients are requesting anywhere from three to six car Garages on a fairly regular basis. Having this many spaces can create challenges however; the extra spaces must look great, function properly and fit on the site. We took a unique approach to solving those issues on this “tight lot” custom home. Let’s take a closer look:
Often managers set goals for employees such as a minimum number of units to be produced each week and once this is achieved on a regular basis, then the minimum number is raised and so it continues. This is because of learning curve and assured by a time study. Sure, however, you are also establishing a never ending game with your staff. Management will always set a goal thinking that it’s one that will stretch us, they will always assume employees will try to play the game and work slower during work studies and so the cycle of gamesmanship continues. This really is about trust.