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Quality Systems Research for New and Existing Homes
NAHB Research Center
Residential Building Energy Efficiency Meeting July 2010
p. 2p. 2
Building America Quality Process
Goal: Make widely available to builders/remodelers processes, tools, and methods to build and retrofit high performance homes on a repeatable scale
Economics of Quality HPH Scopes of Work Hotspot Inspection Process HPH Quality Management System
p. 3p. 3
Economics of Quality
Goals: Quantify benefits of
implementing quality practices
Validate performance improvements achieved through quality practices
p. 4p. 4
Hypothetical Cost of Quality(Cokins, 2006)
PC=prevention cost AC=appraisal cost
IFC=internal failure cost EFC=external failure cost
p. 5p. 5
Malcolm Baldrige National Quality (MBNQ) Award Winners Over 8 Year Study
(Wrolstad & Krueger, 2001)
MBNQA Winners 1988-1996
Matched, Non-Winning Companies, 1988-1996
Return on equity +18.73% -5.91%
Return on assets +10.28% -5.5%
Operating profit margin +46.77% +2.69%
Operating margin +1.12 -1.71
Return on investment +18.1% +16.2% (S&P500 Index, +13%)
p. 6p. 6
Opportunities for Builders (Professional Builder Magazine, May 2009)
Do Builders See a Need for Improvement?
Operational Efficiencies 60%
Better Product Marketing & Services 29%
p. 7p. 7
National Housing Quality Award (NHQA) Results 1993-2009
Category NHQA Winning BuilderBenefit from Quality
Profits (Gross Margins) 12-20%
Revenue 15-100% increase/yr
Construction Costs vs. Budget +/- 1%
Customer Satisfaction 93-97%
Referral Rates (Sales made through referral) 29%
Cycle Time Reductions 15-50%
Zero Defects at Closing 98%
Defect Reductions 11-75%
Employee Satisfaction 94%
Trade Satisfaction 95%
Customer Endorsements/ Thank You Letters 73%
Warranty Requests 1 per every 15.5 homes
p. 8p. 8
How to Measure Quality?Performance Metrics
Construction schedules On-time delivery Energy performance Cost Training Satisfaction Referral Productivity Warranty/Defects
p. 9p. 9
Challenges of Performance Metrics
Comparing “apples to apples”
Defining them so all builders can use them as benchmarks
p. 10p. 10
Quality Impacts atVeridian Homes
Construction Costs -/+1% Budget vs. Actual
Customer Satisfaction 95% +
Veridian Homebuyers 76% only looked at Veridian
Zero Defects 90% of homes at home
orientation HERS Index
58-61
p. 11p. 11
Veridian Results Reduced Defects
50% in 1 yr Cut inspections in half
Reduced Warranty Costs & Defects 30% - 75%
Reduced Construction Cycle Time 18 days
Reduced Material Variance 20% lumber, 24% siding, & 38% trim
Their Secret? Commitment to quality management Use of tools, principles and resources, including
a HPH quality management system
p. 12p. 12
Economics of Quality Existing Homes
Define remodeling industry quality management needs
Create industry-specific quality tools & techniques
Identify industry role model remodelers with QMS to create case studies
p. 13p. 13
Economics of Quality forExisting Homes Next Steps
Determine type of remodeling contractor(s)
Research quality management impact data for remodeling
Prioritize performance issues in the remodeling industry
Define remodeling performance metrics
p. 14p. 14
High Performance Homes (HPH) Scopes of Work (SOW)
Completed New Home Construction
HVAC Framing Foundations Vented & Unvented
Crawlspaces Excavation Grading Vinyl Siding WRB Rigid Insulating Sheathing
p. 15p. 15
Planned New HPH SOW
Envelope sealing Ventilation Insulation
(wall, ceiling, and floor) PV roof installation Window Installation Door installation
p. 16p. 16
New Home Elements1) Design and Specification
Prerequisites 2) Details3) Jobsite conditions4) Order of work5) SOW Contract language6) SOW QA Inspection
checklists (Job ready, phase, and final)
Proposed Remodel1) Re-design, Specifications,
& Statement of job limits2) Details3) Jobsite conditions4) Order of work5) SOW Contract language6) SOW QA Inspection/
Assessment checklists
HPH Remodeling SOW Considerations
p. 17p. 17
HPH Remodeling SOW Considerations
Customizing SOW for Remodeling (every time?) Other considerations for remodeling
Health and safety Demolition, crew type, materials, etc Quality performance criteria for remodeling
Remodeling SOW Quality Assurance (QA) Process Need to define types of QA QA timing QA criteria QA documentation
p. 18p. 18
High Performance Home Hotspot Process
A Hotspot is a Problem that is: Current Widespread or recurring A significantly important challenge
p. 19p. 19
Why Do Hotspots Work?
Hotspots work because they are: Focused on a prioritized topic Well-trained to all workers Inspected and tracked for all jobs
Which educates workers and creates accountability
p. 20p. 20
Hotspot Process
p. 21p. 21
Jobsite Installation or Supply Office Operations Personnel Or Company
Culture
High air infiltration Too many backordered items Culture of finger-pointing
Poor performing ducts
Difficulty locating records or documents Lack of accountability
Squeaky floors Errors on take-offs High employee turnover
Late or incomplete deliveries
Not responding in a timely manner to customer requests Lack of pride
Hotspot Examples
p. 22p. 22
HOTSPOT/INSPECTION LOG
Builder/Lot Inspection Items from Job Complete Forms
Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8Smith Building 2
Elders 23 1 1Elders 24 1Elders 25 1 1Elders 26
The Meadows 12The Meadows 13The Meadows 14 1The Meadows 15The Meadows 16 1The Meadows 17
1R&R Custom Homes1002 Peaceful Way 1 11004 Peaceful Way 11006 Peaceful Way 1 11008 Peaceful Way 1
Total 3 1 5 1 0 1 0 1 1
Choose Hotspot Using Data
p. 23p. 23
Determine The Root Cause
p. 24p. 24
Install mechanical dampers on supply-air duct lines off the plenum
Instale válvulas mecánicas en las líneas de conducción de aire del pleno
Develop Hotspot Training Sheet
p. 25p. 25
All crew members and all crew leaders must attend session.1.Lead man explains the problem and the proposed solution.2.Everyone examines both pictures and all notes.3.Lead man answers any questions.4.All crew members and crew leaders sign below.5.Lead man signs and dates bottom of page.TIME MEETING STARTED: __________________a.m./p.m.______ATTENDEES:_____(PRINT NAME)________ _________(SIGNATURE)_________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ____________________________________
Sign Hotspot Training Log
p. 26p. 26
Conduct Hotspot Training
p. 27p. 27
Builder:
Lot:Subdivision: Date of initial inspection:
Builder Supervisor Name: Crew Leader Name:
Instructions: Check box if OK, circle box if correction is needed. Note specific correction action required. When corrected, then check box.
Trade Foreman
Trade Super
BuilderExplain Needed CorrectionsList Date Corrected
OK OK OK/NA
Describe Current Hotspot: Lap and tape all horizontal house wrap seams
1.The house wrap is installed continuously with no tears or rips, or all rips or tears are properly repaired. [BCQC-23]
2. The house wrap is lapped as specified. [BCQC-23]
3.The house wrap is fastened with manufacturer’s specified fasteners.
4. The house wrap joints are taped with manufacturer’s specified product. [BCQC-16]
5.The house wrap covers the sill plate, rim joist, and top plates.
Inspect Hotspot On All Jobs
p. 28p. 28
HOTSPOT/INSPECTION LOG
Builder/Lot Inspection Items from Job Complete Forms
Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8Smith Building 2
Elders 23 1 1Elders 24 1Elders 25 1 1Elders 26
The Meadows 12The Meadows 13The Meadows 14 1The Meadows 15The Meadows 16 1The Meadows 17
1R&R Custom Homes1002 Peaceful Way 1 11004 Peaceful Way 11006 Peaceful Way 1 11008 Peaceful Way 1
Total 3 1 5 1 0 1 0 1 1
Evaluate Inspection Data
p. 29p. 29
Repeat the Process, If Needed
If hotspot is not successful Return to the root cause
analysis stage Reevaluate other
possible causes Repeat the process with
the next most probably cause
Courtesy of www.khov.com
p. 30p. 30
Complete And Celebrate A Hotspot
If hotspot is successful, close-out the hotspot and recognize the contributors
Remove / demote successful hotspot items on inspection forms
Repeat process with new hotspot
p. 31p. 31
Quality Research & Next Steps
Develop & implement HPH Quality Management Systems and tools for Existing Homes New Homes
p. 32p. 32
Questions?
Amber WoodProgram Manager, Energy Efficiency
NAHB Research Center301-430-6309