Quality Matters
November 2006
Welcome to the Quality Matters E-Newsletter, a
regularly-distributed publication that will keep readers up to date on
quality-related news and resources for the home building industry. You can
access prior issues or subscribe to this electronic news service on the NAHB
Research Center's website - http://www.nahbrc.org/quality
- by clicking the "Read All About It" link on the right-hand side of the page.
We want to hear about your quality-related news for future
issues-email information to qualitymattersmoderator@nahbrc.org.
(The NAHB Research Center's editorial staff reserves the right to refuse or
condense any news submission.) Enjoy this issue of Quality Matters.
In this issue:
Thank You NHQ Sponsors
The National Housing Quality Program thanks its founding sponsor,
SimpsonStrong-Tie Co., Inc., for their continued support of quality
assurance in home building.
The NHQ Program is continuously seeking additional partners to support its
efforts to improve quality in the home building industry. If your company is
interested in pursuing NHQ sponsorship, a variety of opportunities are now
available.
For more information, visit
the NHQ sponsorship information page or contact Lisa Gibson, NHQ Program sponsorship
coordinator, at (301) 785-3100 or lwgllc@yahoo.com.
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KB Home is Florida's Newest NHQ Certified Builder
The Gold Coast and Treasure Coast divisions of national builder KB Home (NYSE:
KBH) were recently awarded the NHQ Certified Builder designation following a
rigorous NAHB Research Center audit of the implementation of their quality
assurance systems. KB Home is the first publicly-owned production builder to
pursue NHQ certification nationwide throughout all of its divisions since the
program's launch in early 2005.
Leading the way for Florida home builders, KB Home has a record five NHQ
Certified divisions operating in the state. Despite the company's impressive
production numbers, KB Home has remained focused on improving customer service
and demonstrates a corporate-wide commitment to continuous quality improvement.
For more information on these quality builders,
visit the KB Home website.
The NHQ Certified Builder Program was initiated to foster consistency and
quality in building practices. Participating companies have noted measurable
improvements in their productivity, homebuyer satisfaction, and their bottom
lines. If your company has a strong commitment to customer satisfaction, a
focus on quality assurance and continuous improvement, and strives for
operational excellence, start on the path to NHQ certification today. Visit
www.nahbrc.org/quality or contact Don
Carr, NHQ Certified Builder program manager.
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Tips & Techniques: Continuous Improvement for Small Volume Builders
How do you walk the talk of continuous improvement? How do you initiate a stream
of improvements that increase quality, save time or reduce cost? Improved
quality doesn't come about by chance. It takes dedication and a well-organized
plan to implement changes for the better.
Good management sets the stage by creating an organized way to capture effective
ideas and make the right improvements in the right way, the first time. Here
are some elements common to the continuous improvement systems of most National
Housing Quality award winning builders:
-
Capture Ideas on Paper
Every improvement starts with an idea that must be captured before it can be put
into action. For example, Howard Saslow of Encore Homes in Sykesville,
Maryland, created a pocket-sized card for capturing problems and/or ideas. The
cards can be carried by the superintendent at the jobsite, and can be filled
out on the basis of the superintendent's own observations or discussions with
tradesmen. The cards can also be used as a convenient way to capture problems
or ideas that surface in production meetings.
-
Select Target Improvements
All improvements can't be made right away so it's necessary to define a
procedure for selecting which improvements to focus on first. One method is to
hold a monthly team meeting to look at submitted ideas, discuss new
opportunities, review the status on ongoing improvement efforts, and select the
monthly targets for improvement. As the most necessary improvements are made,
additional ideas remain in backlog until they rise to the top of the list.
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Define the Problem
Assign each projected improvement to a team that includes the person who
submitted the idea, and a designated a team leader. The team can begin by
preparing a written statement of the problem, using an Opportunity for
Improvement (OFI) form.
-
Determine Causes and Plan Preventive Actions
With the problem clearly stated in writing, the quality improvement team works
collaboratively to identify root causes and brainstorms possible preventions.
After listing all ideas, the team agrees on a sequence of preventive steps. The
plan is entered on the OFI form and management approval is secured.
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Make Improvements and Measure Success
Make changes as planned. After each change has been in place for a predetermined
period of time, the team reviews and evaluates the results, and records them on
the OFI form. If the results are not fully satisfactory, the team should
conduct another iteration of the improvement process.
For more information on quality improvement and the NHQ Program, visit
www.nahbrc.org/quality.
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Going with the (Even) Flow
Regularized housing production, also known as "even flow," is a burgeoning
management concept among production builders. Instead of desperately pushing to
boost closings at the end of each month, quarter, or fiscal year, growing
evidence suggests that builders may find regularizing their flow of work just
as beneficial to the bottom line, and perhaps even easier to do.
Even flow production is a strategy intended to reduce the variability in
workflow to gain production efficiencies and even out building cycles. Small-
and large-volume companies alike are beginning to embrace this concept to help
keep production moving steadily, even when the market has slowed. It may be one
house per day or per week as long as homes are slotted into a schedule that
sets a steady pace for production. With a growing number of companies
successfully implementing the model, it's hard to ignore the correlation
between even flow and productivity, and its monumental impact on customer
satisfaction, cash flow, and profitability.
Residential is often described as the portion of the construction industry that
is most similar to the manufacturing sector - both share repetitious tasks on
the jobsite, specialized processes for each phase of work, and handoffs between
trade contractors. Even flow construction offers the benefits of factory
efficiencies on a construction jobsite. Because of common workflow factors home
building shares with manufacturing; quality and process management are critical
components for success. In fact, builders currently participating in the
National Housing Quality (NHQ) Certification Program have certified quality
management systems based on ISO 9000, a benchmark of the manufacturing
industry.
To maintain even flow production, companies must accurately assess their
projected sales velocity - future starts will be based on these assumptions.
Slotting house starts sets the schedule for every phase of production. Many
builders will understate the projected number as they attempt to calculate the
even flow rate for their company. When sales do not meet expectations, the
builder must be willing to start a speculative unit in its place in order to
maintain the 'flow.'
Commitment to the discipline required for even flow is reinforced by tangible
benefits. Closings can happen on a regular basis, and office procedures become
much simpler. Reduced operational costs allow builders to offer compelling
value and create construction backlogs that feed the system. Further, steady
work and a highly productive working environment attract the best trade crews.
"As a result of NHQ program implementation, [we've achieved] an even flow
production schedule … resulting in a more organized field operation, improved
trade relations, improved quality of product being delivered, and ultimately, a
more satisfied customer," reports Charlie Hockensmith, group president of
Virginia-based Van Metre Homes.
While even flow construction is not a requirement of NHQ Certification, the
efficiencies of the program's continual improvement process do make it a viable
management option. However, even flow is not always an easy transition for all
home builders, particularly custom home builders. Each company must assess its
ability to accurately forecast sales and slot its starts accordingly.
Additional factors to consider include the ability to convert to the process
based on key issues like staffing and relationships with trade crews.
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National Housing Quality Program Welcomes New Trade Contractors
The NHQ Program is proud to announce the following newly-certified trade
contracting companies:
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SelectBuild Construction of Sunrise, Fla. (Southeast Region, Corporate Service
Center) - shell contractor
-
SelectBuild Construction of Orlando, Fla. (Southeast Region, Central Florida
Division - shell contractor
-
SelectBuild Construction of Port St. Lucie, Fla. (Southeast Region, North
Florida Division - shell contractor
-
SelectBuild Construction of Jupiter, Fla. (Southeast Region, South Florida
Division - shell contractor
-
SelectBuild Construction of Ft. Myers, Fla. (Southeast Region West Florida
Division) - shell contractor
-
Coastal Sod Co., Inc. of Adkins, Texas - landscaping contractor
-
T&J Sod Service of Ft. Pierce, Fla. - first sod installation company in
nation
-
Pacific Coast Drywall of San Dimas, Calif. - drywall contractor
-
PPC Enterprises dba Premier Plumbing Company of Norco, Calif. - plumbing
contractor
-
Quality Aluminum & Vinyl Installers of Lakewood, N.J. - roofing and siding
contractor
-
Elite Electric of Riverside, Calif. - electrical contractor
-
Baca Gardening and Landscaping of Fontana, Calif. - first landscaping
company in California
-
Diligent Environmental Services of Boca Raton, Fla. - 10/24/06 - first
termite pretreat company in Florida
-
Arlun, Inc. of Colorado Springs, Colo. - first flooring company in Colorado
-
Arlun, Inc. of Aurora, Colo.
-
Mel Leimer Masonry of Sacramento, Calif. - first masonry company in
California
-
JMR Painting of Poinciana, Fla. - first painting company in Florida
-
Rocky Mountain Drywall of Aurora, Colorado - first drywall company in
Colorado
-
Florida Custom Marble, Jacksonville, Fla. - first countertop company in
Florida
-
J.E.W. Inc. dba Weber Concrete of Lebanon, Ind. - first concrete company in
Indiana
-
Certified Plumbing Air & Heat of Palm Bay, Fla. - first HVAC company in
Florida
-
Don's Bobcat Service of Lake Wales, Fla.- first grading company in Florida
-
American Pools and Spas of Kissimmee, Fla. - first swimming pool company in
nation
-
Excel Cabinets of Corona, Calif. - cabinet installation contractor
-
K.F. Structures of Longwood, Fla. - concrete, masonry, and framing contractor
-
Henshue Construction of Madison, Wis. - underground construction
-
ZAM Electric of New Windsor, N.Y. - first electrical company in New York
Business efficiency is vital to a company's success, so the importance of
achieving high levels of customer satisfaction should never be underestimated.
The NHQ Certified seal represents the high standards of quality today's
builders and homebuyers expect.
If your company has a strong commitment to customer satisfaction, a focus on
quality assurance and continuous improvement, and strives for operational
excellence, start on the path to NHQ certification today. Visit www.nahbrc.org/quality.
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Builders Can Help Shape Product Development at 2007 IBS
The NAHB Research Center is calling on builders to help improve the
affordability, performance, and quality of U.S. homes. During the 2007
International Builders' Show in Orlando, Fla., the Research Center will
be hosting focus group sessions to draw on the experience of builders and other
residential professionals to provide key information to shape manufacturers'
products. Builders, remodelers, trade contractors, and other residential
building professionals are encouraged to participate and voice opinions on new
and existing building materials.
IBS focus groups also provide participants an opportunity to preview new
products before they are made available to the public, modify prototypes to
meet specific needs, influence those who can affect change, and benefit from a
unique networking and educational forum. Feedback from participants is then
applied to help manufacturers influence the design, development, and marketing
of new and existing products and materials that building professionals rely on
every day in the field.
Focus groups will be held Feb. 7 - 9, 2007 at the
Rosen Plaza Hotel adjacent to the Orange County Convention Center.
Participants will receive a cash incentive in appreciation of their time.
Sessions are filling up quickly so advance registration is required
to participate. Interested builders and trades should contact
Ronda Oglesby at (800) 638-8556, ext. 6262 as soon as possible.
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NHQ at IBS: Your Key to Business Success
The NHQ Program provides builders, trade contractors, suppliers, and
manufacturers nationwide with opportunities to learn about and improve quality
assurance in home building. Visit the NHQ Team at the 2007 International
Builders' Show in Orlando in our booth on the exhibit floor (#W2886),
in our educational sessions, or drop by our NHQ hospitality suite located on
Level III of the West Hall in Room 340-C.
Learn, share, and network with the experts about how to improve consistency and
increase the quality of the homes you build.
Why? Because...Consistent Quality = Increased Profitability
Stay tuned to Quality Matters for updated information on NHQ activities
at the IBS.
See you there!
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Simpson Strong-Tie Builder Program Offers Unequaled Support
The NHQ Program is actively working with product manufacturers to help reduce
the improper installation of products in the field and potential exposure to
increased liability. The NHQ Certified Training Materials program is the key to
reducing risk and improving installed-product quality and performance.
Through its Built No Equal
Program, Simpson Strong-Tie offers building professionals specialized
training to help improve product installation and inspection, increase building
efficiencies and decrease cycle times. Simpson provides a professional training
program for both builders and trade contractors. The program is available in
English and Spanish and includes workbooks, a video, and CD-ROM to explain,
step-by-step, the correct installation of connectors and fasteners. Training is
administered at the jobsite by a Simpson representative, and typically occurs
during the lunch hour to minimize downtime.
These resources are intended to offer assistance to NHQ Certified builders and
trades as well as to companies currently working toward certification. Contact
Simpson and other manufacturers participating in the NHQ Program to learn more
about Certified Materials and valuable training opportunities that will help
you in the field. These manufacturers will also be contacting you to discuss
their commitment to supporting your company. By working together we can improve
housing quality, increase construction efficiencies, and reduce related costs.
Visit www.builtnoequal.com
today to learn more about Simpson Strong-Tie's builder programs.
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Quality Matters to Me...
The following testimonials describe how customer-focused quality has improved
the business of home building for National Housing Quality program
participants:
"We've seen a reduction in customer service callbacks and near elimination of
repetitive back charges from our builder since we implemented the NHQ Program."
-WestCor Construction of California
"The QA system is a great tool. It will help to make builders accountable as
well as improve the quality of our work."
-Sam Seggman, III, North Orange Coast Painting, Inc.
"The Program made us take a hard look at our process, spot a few potential
problem spots then fix them, all while helping build a sense of pride and
teamwork."
-Diligent Environmental Services, Inc.
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NHQ in the News
The following is a list of recent NHQ Program media coverage. Read all about
it...
San Antonio Business Journal, "Homebuilder's Alamo City Subcontractors Earn Quality
Certification," November 2006. Feature article details the successful
certification of over 50 trades working with national builder KB Home.
Construction Today, "Boasting the 'Best' Quality," article
highlights home builder Mitchell & Best's quality journey and pursuit of
NHQ Certification. September 2006.
HGTVPro.com, "Quality Control Levels the Playing Field," article
touts quality assurance program benefits for small builders. September 2006.
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