In a recent study rework costs (including labor, materials, equipment and subcontractors) can run from 2% to 20% of a project's total contract amount according to the Construction Industry Institute. These costs are of course eventually passed on to the customer as profitability shrinks.
Some things to consider when evaluating your trade partners and creating a scorecard include the following:
Their scores on customer surveys
The % of completed service requests on time
Ease of doing business
% of time on site ready to go on time
Some of this data will already
In a recent study the following quality tools were found to be the most commonly and successfully used:
Identification and leverage of core competencies
Customer relationship management
Of course using and linking all
This study provides further evidence that that integrating quality tools and methods into green building creates greater leverage! In this study they found specifically that using the Baldrige Criteria helped to manage the LEED projects better. The National Housing Quality Award (NHQA)
In a new study on Six Sigma the savings to cost ratio ranged from 2.6 : 1 through to 2 : 1. As for cost savings as a percentage of revenues, the average was 1.7%. This study showed clearly the impact of Six Sigma and its ROI.
As a rule of thumb a company with $100
Where to start with trying to address improvement. Here is a high level approach.
Identify the area for improvement
Establish your current metrics on that area and map the current process
Locate the industry or world best practice in that area
Adapt those best practices for your organization
It is amazing how quickly we can create a negative impression in the most of simple ways. The danger can be not having perspective, doing what has always been done or falling into the act of ‘processing a customer’ especially if we are busy or running out of time.
Here are some things to
An ambassador for your company! Just because you don’t close that sale doesn’t mean that you should disengage with that potential customer. All the effort you have put into selling them on your homes, educating them on the process, your company and what it offers is still all valid. Just
How are you listening to the Voice Of your Customer? A survey finds that 52% of organizations use 3 to 4 methods to gather VOC data and 22% as many as 7 methods! Only 5% rely on one source of VOC.
The most common VOC data sources (in order of use) were:
Customer satisfaction surveys
Despite the current market and the recession these builders show how they have continued to improve, change and increase their bottom-line and create satisfied customers with high quality homes. There are the four winners of the National Housing Quality Award this year, with awards in the