More employees quit their jobs and the dramatic impact of a new yogurt company! These two stories over the past few days reminded me of the value of the Quality Management and specifically the National Housing Quality Award (NHQA) criteria, specifically the need to focus on Employee Satisfaction (even during economic downturns) and the constant need to be aware of new organizations and products entering your marketplace.
Blogs related to Quality Management in Professional Home Building and Remodeling Business.
Servant leadership emphasizes an increased service to others, a holistic approach, promoting a sense of community and the sharing of power in decision making. Such leaders see power and authority as ways of helping and inspiring others to grow, not for exploiting, ruling or taking advantage. At its core, servant leadership is a long term approach to life and work, which has the potential for creating positive change throughout society with a focus on ethical behavior and a concern for subordinates. (Greenleaf, 1977, Greenleaf & Spears, 2002, Ndoria, 2004, Ehrhart, 2004)
There are some characteristics that should be embedded in any New Product Development (NPD) process. This includes customer input, the involvement of cross functional teams, strong project management, concurrent engineering and risk management tools. For example marketing and design are not the only departments that need to be involved in NPD, production/construction also need to be included.
Quality is not about tunnel vision, a focus only on the reduction of variation in production alone. Quality is no longer just about the product, but the management of all operations and should be integrated into all aspects of a business. Focusing on every aspect of a business requires a systematic look at an organization to discover how each part relates to the other.
A question that regularly arises is how to sustain quality management or to put it another way, what are the reasons for quality management failing? There have been two significant studies on this issue and their findings cited the following obstacles.
Lack of leadership for quality
Lack of planning for quality
Inadequate resources for quality
Inadequate human resources development and management
Lack of customer focus
Standards provide crucial communication, alignment and compatibility at an international, national, industry and individual organizational level. These standards, accessible to everyone from global powers to developing countries, from international corporations to the Mom and Pop small business, provide guidance and infrastructure, state of the art technical knowledge and management best practices. In a global environment they ease the crossing of borders, cultures and languages.
For over 20 years, the National Housing Quality Award has been helping some of America’s best home builders improve their operations and make more money!
Learn how applying for the NHQ Award can help your company:Increase profitability Improve customer satisfaction Sell more homes
Submissions are due April 5, 2013.
This link will take you to the 2014 NHQA Application document.
Studies show that across industries Cost of Quality (Failure, Appraisal & Prevention) is: 2.6-4% of sales revenue.
In the construction industry the Cost of Quality profile is:
70% spent on Failure Costs
25% on Appraisal Costs and only
5% spent on Prevention Costs.
The cost of correcting deviations from construction specification is 12% of project cost whereas
the cost of providing quality management is only 1-5% of project cost.
A research study found rework costs on a study of 260 construction projects:
A report last year by the NAHB Research Center found that “increasingly, today’s homebuyers want energy-efficient, low-maintenance, well-insulated and well-sealed homes. Survey data in the last few years has also shown that consumers are willing to pay a premium for these types of homes and that they are typically more satisfied with them than with their previous, less efficient homes.
The Six Sigma methodology DMAIC (Define, Measure, Analyze, Improve and Control) is used to improve an existing process.
Design for Six Sigma is used to design a new product or service.
The methodology used is DMADV (Define, Measure, Analyze, Design and Verify).
Define the goals and customer (internal & external) requirements. What is Critical to Quality.
Measure customer needs and specifications this should include benchmarking competitors.
Analyze the options.