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IMPLEMENTING INTEGRATED BUILDER SYSTEMS PROCESS DEFINITION ANALYSIS

Introduction:

Below, you will find the basic subjects of the home building business broken down into processes. Each area offers an opportunity for continued improvement and incorporation in an integrated system's capability.

As you survey these, you can evaluate several factors that can help you guide the rate at which you can implement and be successful with an integrated system.
  1. Is my staffing and their expertise level adequate?
  2. What type of staff recruitment/development is needed to reach the desired performance standard or utilize a system's features successfully?
  3. Is my team empowered to get the job done. How much management?
  4. What is the balance between tactical micro management and "empowerment"? To monitor our performance am I willing to adopt an open book management approach?
  5. To expedite our progress is there value to instigating a profit share/bonus compensation program geared to the targets we've set for both implementation and performance improvement?
IMPLEMENTING INTEGRATED BUILDER SYSTEMS
PROCESS DEFINITION CHECKLIST

PROCESS: CORPORATE LEVEL STRATEGIC PLANNING:

  1. Mission statement developed?
  2. Business plan developed over the next several years, considering variables in market and land/lot cost as well as geographic markets and demographics?
  3. Does asset planning allow for a "rainy day" fund?
  4. Procedure to develop commitment to customer centered orientation?

PROCESS: LAND DEVELOPMENT AND PROJECT PLANNING:

  1. Is there a land development "critical path"?
  2. Market surveys, demographic analysis
  3. Land development budgets, marketing budgets, and project management budgets formed with flexible pro-formas for variable market conditions?
  4. Flexible budgeting system matched to financing arrangements and absorption projections?
  5. Financing and contingency options?
  6. Budgeting for soft costs, land allocation, and warranty expense?

PROCESS: PRODUCT DEFINITION:

  1. Do features match market direction?
  2. Consistent specifications defined?
  3. Plan integrity and as-built take off accurate and optimized?
  4. Are all plans built the same sequence? (CPM)
  5. Production and sales in sync with plans/options/specifications offered?
  6. Clear definition and procedure for classifying standard options from custom changes?
  7. Product pricing and expected contribution margins defined?
  8. Does value added exceed cost quotient?

PROCESS: VENDOR SELECTION AND BIDDING:

  1. Quality standards and checklists for trades?
  2. Current subcontractor agreement?
  3. Process for negotiating best bids and vendor selection?
  4. Do estimates minimize contingency bidding?
  5. Method of reviewing both unit level and lump sum bid vendor pricing?

PROCESS: PROSPECT MANAGEMENT:

  1. Model and marketing plan in place. Does model match specifications?
  2. Procedures for sales operation and prospect follow up?
  3. Procedure for tracking the "numbers" necessary for reaching project performance projections?
  4. Feature feedback system to production and estimating?

PROCESS: CONTRACT APPROVAL AND RATIFICATION:

  1. Do we know what we are going to make on each contract we take?
  2. Steps outlined for how customer contracts, deposits are handled, loan approval secured, and sales entry work?
  3. Do forms tie out to our price list between sales and the office?
  4. Customer expectations in place? What is the next step and when? Who is responsible?

PROCESS: CHANGE REQUEST/CHANGE ORDERS:

  1. Steps and responsibilities defined in documenting a change request, getting quoted, and approving it? What is our limit of changes?
  2. Do we have predefined cut off points so as not to compromise our construction schedule?
  3. Does our change order pricing policy consider overhead and time?
  4. Feedback from market to determine the degree of flexibility necessary?

PROCESS: PRODUCTION JOB START AND SCHEDULING:

  1. Procedure to initiate a start order, and ensure it is accurate and complete?
  2. Does committed budget tie out to planned cost of standards?
  3. Pre-start process defined and customer involvement factored? Any contingent events?
  4. Vendor loading and capacity known in advance. Do vendor changes impact planned cost and profit?
  5. Points of control for running the job, reporting delays, and confirming vendors?
  6. Feedback process to contract administration and management?

PROCESS: PURCHASE ORDERS, PAYMENT APPROVAL, AND VARIANCES:

  1. Procedure to ensure accurate and complete prices on P.O's?
  2. Procedure to provide vendors with purchase orders?
  3. Procedure to submit purchase orders for payment and getting them paid?
  4. Quality standards and/or checklists clearly defined to supers and vendors?
  5. Variance procedure in place?
  6. Review procedure for variances and schedule delays in place?
  7. Criteria for vendor reassignments?

PROCESS: CLOSING AND POST CLOSING:

  1. Steps we go through with buyer prior to delivery to ensure timely closing and predicted revenue?
  2. Warranty program defined?
  3. Service order procedures, routine and emergency?
  4. Standards for warranty fixes and deadlines?
  5. Feedback to sales, contract administration, and production to improve delivery?
  6. Method of measuring referrals and their rate of improvement?
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