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.

I am finishing up my September column for Professional Builder based on a list of the 10 biggest myths of Lean Building, and I just wrote about one of the most aggravating — the idea that Lean process savings don’t count like saving in sticks and bricks.

As I write this week’s blog on a plane from Detroit to Vegas, I happened upon an article in the Delta in-flight magazine about healthy eating and guess what? All the things we know about eating eggs and egg yolks, common knowledge learned during the 80’s and 90’s that persists to this day – are flat out wrong. Eggs do NOT raise your cholesterol. They are, in fact, a virtually perfect food, full of protein and raising HDL (good cholesterol) reducing LDL (bad cholesterol) and helping keep a steady blood glucose level.

If you knew that were losing at least $5K per unit due to one single item of waste in your houses, would you do anything about it? How about $10K? The money is there, inarguable and undeniable, and we have the proof, yet a tiny percentage of builders understand it, let alone try to correct it. Even worse than that, most are afraid to confront it.

A discussion erupted this month on the LeanBuilding Group on Linked In about how do you define value to the customer? One of our members was assailing builders who go cheap, installing ubiquitous “builder grade” products. I replied that there are fine lines sometimes. One person's better value can be another's substandard. Not so long ago, vinyl siding was considered almost universally a cheap product. That is rarely the case now though.

Twenty years ago, there was a project in Denver where the foundations began moving, to the point that several new homes had to be taken completely down. In the milder cases, the builder had to sink caissons next to the foundation as deep as 40 feet to stabilize them. The problem was expansive soils.

It’s hard to say who has taken the “a la carte” mentality to the most absurd level, the airlines or the rental car companies. Pay for food, pay for sodas, pay for bags, and one of the discount airlines is now charging for both checked bags and overhead storage.  This is beyond the pale. If you show up at the gate with your briefcase or backpack and a roll-a-board, you are paying $45 to take it on with you, but “only” $40 if you check it. Add that $80 - $90 round trip to the cheaper fare and the deal becomes no deal.

I just finished a day in Australia, working with suppliers and trades in one-hour Lean meetings. Guess what? If not for the accent, local terminology, and slang, you’d never know the Aussies from the 60 U.S. and Canadian homebuilders and their more than 1,500 suppliers and trades my team has worked with over the past four years. Their issues are the same: schedules, coordinating deliveries, sequencing trades, communication, PO processing, plans, specifications, etc. And virtually everything, just like back home, is eminently fixable given some good process and the will to change.

For more than 20 years, I have traveled the U.S. and Canada almost weekly. One-hundred nights or more in hotel rooms is not so much fun, but meeting the people and learning about the myriad of methods used to both build homes and manage companies is a continual challenge that more than compensates. Helping these same people become more profitable has paid the bills and put four kids through college, and I’ve made more friends in more places than anyone I know. (This became more important than I ever could have imagined when I need a new kidney awhile back.

Hoping for something provocative to read on a long trip, I picked up a book of short essays by Kurt Vonnegut. I have always felt an unwarranted kinship to him simply because I recall going to Vonnegut Hardware in Indianapolis as a kid with my dad, where Kurt worked summers growing up.

In his controversial novels of the ’70s and ’80s, Vonnegut had a talent for penetrating to the heart of an issue in irreverent ways — so poignant that you feel like laughing and crying at the same time. He is the closest thing to Mark Twain since, well, Mark Twain.

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