President

Scott Sedam, president of TrueNorth Development (www.truen.com), spends most of his time working in the trenches with builders, suppliers and trade contractors. His Lean Builder blog appears weekly at HousingZone.com. He welcomes your feedback at scott@truen.com.

In the past year, during our LeanPlan Workout process, we had the dubious honor of “working on” plans from 3 of the biggest name, most expensive architectural firms in the country (among others.)

Michael J. Fox and I have something in common (besides the obvious – talent, good looks, irreverence, witty repartee, etc.)  We both have an incurable “condition.” Fox has Parkinson’s disease, a well-known affliction that continues to ravage his body despite an astounding amount of medical research dedicated to discovering a cure.  My condition is a rare one called Alport’s Syndrome, a genetic fluke that resulted in total kidney failure nearly 12 years ago.

Last weekend was the annual Christmas sojourn to my wife’s relatives in Chicago. On the obligatory trip downtown to Marshall Field’s to see the Christmas decorations, visions of credit card slips danced in my head as my wife and daughter pursued something precious that surely could not be found elsewhere. As they searched, my mind naturally turned to thoughts of Lean, rather how much waste I could find in the store’s products and processes. Yes, it is an obsession. Then my eyes fell upon this plaque, something that Marshall Field himself wrote in the 1800’s.  I took this snapshot.

One of the requirements in Lean Operations is harnessing the “Voice of the Process.” Your processes can teach you so much and hence save you a lot of cash … IF you know how to get them to talk to you. How do you do that? Metrics, of course, but usually not the old tired ones that don’t provide much illumination. You have to dig a little deeper. Here is a great example. How many of you have ever looked at the ratio of how much business you do under VPO (Variance Purchase Order) vs.

Yesterday after presenting an orientation for our LeanPlan Workout process to a group of suppliers & trades in Texas, a contractor named Mike walked up to me and two of the senior managers from the builder. Strong-looking guy, with very alert eyes, about 50 years old with that kind of rugged Texas good looks from a life spent working outdoors that you see a lot down there. He had been very attentive during the presentation, and took a lot of notes.

I am frequently asked, what is the right way to buy labor and materials? Should you use turnkey suppliers and trades or should you purchase and negotiate labor and material separately. Let me be 100% clear about this. I have the answer. I am now into my third decade of looking hard at this issue and have watched more than 200 builders up close and personal and unequivocally conclude based on the evidence that the clear answer is to buy labor and materials separately – except when the best way to purchase is turnkey. Got it?

The Lean Perspective is by no means limited to sticks and bricks issues on the construction site. When we talk Lean building we are really talking Lean operations: providing value & eliminating waste in product and process wherever it is found. Many seemingly mundane issues can have significant implications in both cost and value. A great example came up last week while having dinner with builders from several companies at the Bob Schultz “Serious Management Workshop,” a twice-annual event that attracts senior managers from across North America.

Last year PB received an official complaint letter from a high level staffer at the AIA, basically saying that I was being unfair to Architects. I confessed to being guilty of describing the reality of continuing problems in the field that result from Architects taking a rather limited view of their job responsibilities.

If asked, I would be hard-pressed to pick a favorite author, but if forced to choose just one I would go with Antoine St. Exupery.

One of the greatest misconceptions about Lean process and methods is that they cheapen the product. Lean is first and always about value, and the customer perception of value at each price point is a critical component. It may surprise you that on a fairly regular basis I have to advise a client to put something back in a house rather than take it out.

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