Quality Matters
February 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 NHQ Program thanks its sponsors,
HBW Insurance Services, LLC and Simpson Strong-Tie Co.,
Inc., for their continued support of quality assurance in home
building.
If your company is interested in pursuing NHQ sponsorship, a variety of
opportunities are now available. For more information or to get started,
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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NAHB Research Center Announces NHQ Certified Builders
The NAHB Research Center is pleased to announce the addition of four new
builders to the NHQ family. Regional divisions of national production builder
KB Home - KB Home New Mexico, KB Home Inland Valley, KB Home Houston, and KB
Home Phoenix - recently became NHQ Certified, demonstrating the companies'
steadfast commitment to quality assurance and customer satisfaction.
KB Home's New Mexico division is leading the charge to improve housing quality
as the first NHQ Certified Builder in the state. Since entering the market, KB
Home has delivered more than 500 homes in 13 communities throughout the metro
area.
Leading the way for Texas builders, KB Home's Houston division is the third NHQ
Certified Builder in the state, delivering more than 2,700 homes throughout the
metro area in 2005. Even with its impressive production numbers, KB Home has
remained focused on customer service excellence and demonstrates a corporate
commitment to continuous quality improvement. For more information on these
quality builders, visit the KB
Home website.
The NHQ Certified Builder seal represents the high standards of quality today's
homebuyers expect. Participation in the
NHQ Certified Builder program has grown consistently since its launch
in early 2005. 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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California Contractors: Want to Be on HGTV?
Quality-focused trade contractors, it's your time to shine. Home and Garden
Television (HGTV) is seeking busy residential contractors with interesting
projects in the Southern California area for an opportunity to be profiled on
national television.
Ideal candidates should have good communication skills, an outgoing personality,
and a sense of humor. If you think you have what it takes, send a brief email
about yourself and your projects, and one digital picture of yourself, along
with a daytime phone number to CASTING at:
tweiss@worldofwonder.net or call 323-603-6300, ext. 253.
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Defining & Tracking Useful Performance Statistics
Establishing performance measures can be a powerful catalyst for achieving
business goals. However, well under 50 percent of trade contracting companies
in business today have formal evaluation measures in place to help track
performance statistics. Since you can't fix what you don't know is broken,
installing a formal system can play a vital role in pinpointing areas of
inefficiency.
Tracking performance means more than checking off a task list at the end of each
day. Performance statistics should be valid measures of success in terms of
quality. Each company should identify a manageable number of performance
measures (usually between two and five) and set annual goals for each one. When
setting goals it is important to think through and identify trade-specific
performance measures that will be effective for your company.
Each month a variety of sources such as inspection reports, satisfaction
surveys, and builder letters provide raw data that can illustrate the progress
of the chosen performance measures. Monthly or quarterly tracking of the
progress towards the annual goals can be used to devise a strategy to improve
that progress. Typical examples of useful jobsite performance statistics
include:
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Percentage of code inspections passed the first time
-
Average number of trips required to complete each home
-
Average number of builder punch items per home
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Average number of inspection items per home found by the trade supervisor
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Average number of warranty items per home
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Percentage of homes with zero hotspot items found
It's equally important to have the proper means in place to effectively track
these statistics. Companies with sophisticated databases can input data from
inspection forms and track all data, while smaller companies without such
databases may need to sample data by reviewing 10 to 20 percent of data
manually. Sample data should be representative of all of the work that a
company does to ensure statistics that are 90 percent accurate or better.
Overall, performance measurement helps to ensure that a company's efforts are
focused on improving in the most important areas and keeps the company on
target to meet or exceed the expectations of builder customers and consumers.
By establishing a standard that can be measured, it also leads to greater
accountability at all levels as well as increased awareness of company
successes and setbacks. When used effectively, performance statistics as part
of a quality assurance management system differentiate quality-focused
companies from competitors. This factual demonstration of success is more
appealing to current and prospective clients.
For more information on tracking performance statistics and improving quality
management systems, visit www.nahbrc.org/quality or
contact Jeff Taggart, NHQ Certified
Trade Contractor program manager.
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Local Stakeholders Speak Out on Katrina Rebuilding Effort
With the recovery and rebuilding efforts in the hurricane damaged areas of
Louisiana and Mississippi now under way, the building industry continues to
deliberate on best practices for new construction. The NAHB Research Center is
calling upon building professionals operating in the affected areas to stand up
and be counted by voicing their opinions during an important focus group
teleconference on February 11, 2006. Builders, trade contractors, and
distributors in both states are encouraged to participate and share their
perspective on building materials for hurricane resistant new construction.
Participating builders will receive monetary incentives of $150 in appreciation
for their time. Teleconference times will run for 90 minutes. A number of time
slots are available so be sure to reserve your space on the panel by contacting
Jane Nolan at (800) 357-3239, ext. 39 as soon as possible. Advance
registration is required.
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Employee Retention in a Tight Labor Market
The construction industry's labor market is notoriously transient, especially
these days when it seems like there's too much work and too few skilled
laborers to do it. Quality-focused companies strive to establish consistency in
the home building process, but in a tight labor market where cash is king,
retaining loyalty among work crews has become almost an art form.
Because paying more isn't always the final solution, keeping crews in tact
remains a challenge. Some common issues employers contend with include:
-
Crews abandoning ship because they are criticized for errors
-
Preferential treatment of a "good" employee being met with dissatisfaction from
others
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Choosing between accepting sub-par craftsmanship or no workers at all
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Competitors drawing crews away by offering higher wages
These obstacles don't mean that the quality of a company's work inevitability
has to decline. Although ensuring quality results in a tight labor market is a
challenge, there are approaches that successfully counter this negative trend.
The National Housing Quality (NHQ) Program, which was developed to provide
builders and trade contractors with business solutions and systematic
approaches to quality control, recommends that companies focus on a few basic
methods to overcome these issues.
-
Respect the work force and give them reasons to put down roots; make the
company a great place to work.
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Always pay workers on time and with transactions early enough in the day to
make bank deposits.
-
Provide ongoing training to keep workers informed of proper techniques and
management expectations.
-
Create a genuine team environment by providing shirts, hats, or other unifying
company attire.
-
Support employee development by inviting a tool supplier to the jobsite for a
repair/adjustment seminar, to demonstrate proper operation methods, or to
demonstrate new tools and applications.
-
Never discipline or embarrass an employee in front of his co-workers, rather
pull him aside to discuss the issue at hand.
-
Always praise employees in front of their co-workers if they go above and
beyond or are an example of what the team should be.
-
Be open to hiring back a crew who took a job elsewhere, but did not get the
satisfaction they were seeking.
Trade contractors of all types constantly scramble to keep qualified people on
their jobs and to keep their builder customers satisfied, but the door swings
both ways. Builders must provide the proper incentives to secure the best
efforts of their trade partners, and continue to meet customer demand.
Regardless of the state of the labor market, homebuyers will always demand
quality workmanship in their new home. It's a tough job, but well-run companies
across the country are applying these approaches and others, and continuing to
satisfy their customers.
Keeping good workers on board takes more than just money. Respect, opportunities
for growth, and a sense of community within the company are a good start. For
more information on how applied quality assurance techniques can improve your
business, visit www.nahbrc.org/quality.
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Look for the Mark: Research Center Certified OSB Products Now Available
 Since its founding over 40 years ago, the NAHB
Research Center has realized that quality building products are the first step
to high quality housing. The Research Center's new third-party Oriented Strand
Board (OSB) Certification program is another step toward improving the quality
and affordability of homes.
Weyerhaeuser, a national leader in the wood products arena, recently became the
program's first certified OSB manufacturer. All OSB product certified by the
Research Center is rigorously tested to meet nationally recognized standards.
The certified mark represents the benchmark of quality and code compliance that
builders, code officials, and consumers recognize and trust. Look for the NAHB
Research Center certified mark on Weyerhaeuser Structurwood products starting
this month.
For more information on NAHB Research Center product testing and certification,
contact Bob Hill, director of laboratory
and certification services.
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Congratulations to Recently NHQ Certified Trade Contractors
The NHQ Program is proud to announce the following newly-certified trade
contracting firms:
-
Ace Lathing, Inc. of Ceres, Ca. - first lathing contractor in California
-
A.G. Construction of San Antonio, Texas - first trim contractor in Texas
-
Avenue, Inc. of Orland Park, Ill. - first framing, siding, and interior trim
contractor in Illinois
-
AZ countertops, Inc. of Ontario, Ca. - first countertop contractor in
California
-
B&B Custom Drywall of Atco, N.J. - first drywall contractor in New Jersey
-
Builders Wholesale Carpet of West Columbia, S.C. - corporate certification as
first carpet contractor in South Carolina (five certified locations)
-
Builders Wholesale Carpet of West Columbia, S.C.
-
Builders Wholesale Carpet of Hardeeville, S.C
-
Builders Wholesale Carpet of North Charleston, S.C
-
Builders Wholesale Carpet of Surfside, S.C
-
Builders Wholesale Carpet of Greer, S.C
-
LASCO Bathware of Anaheim, Ca. - first tub installation contractor in the
nation
-
G.C. Contracting, Inc. Sanford, Fla. - first concrete, masonry and framing
contractor in Florida
-
Gordon Atkins Landscaping of Houston, Texas - first landscaping contractor in
Texas
-
Gothic Landscape, Inc. of Phoenix, Ariz. - first landscaping contractor in
Arizona
-
L.I. Metal Systems of Pico Rivera, Ca. - first rain gutter/downspout contractor
in the nation
-
Metco Landscape of Aurora, Colo. - first landscaping contractor in Colorado
Business efficiency is vital to the success of a trade contracting company, and
trades can never underestimate the importance of meeting or exceeding customer
expectations and achieving high levels of customer satisfaction. The
NHQ Certified Trade Contractor 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
or contact Jeff Taggart, NHQ Certified
Trade Contractor program manager.
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NAHB Research Center Announces Nation's First NHQ Certified Supplier
Through the National Housing Quality Program, the NAHB Research Center recently
established a new certification model for building industry suppliers. Focusing
on the same principals of quality assurance and continuous improvement as other
NHQ programs, the new NHQ Certified Supplier program was developed based on ISO
9000 quality principles and adapted for suppliers.
The NAHB Research Center is proud to announce
American TV and Appliance of Madison, Wis. is the first supplier in the
nation to earn the NHQ Certified Supplier designation. Founded in 1954,
American TV and Appliance has built a market-leading reputation for exceptional
customer service earning the company numerous awards as an outstanding retailer
of consumer electronics, furniture, and appliances.
As with other NHQ Certification programs, American TV and Appliance was required
to develop, document, implement, and maintain a quality management system that
enables the company to consistently meet code and regulatory requirements,
builder specifications, and homeowner expectations.
The new NHQ Certified Supplier program is expected to achieve a level of success
consistent with other NHQ Programs, and will contribute significantly to the
improved efficiency and customer service of participating companies.
For more information on the National Housing Quality Certified Supplier program,
visit the NAHB Research Center online at www.nahbrc.org/quality
or email us via our Contact
Us online form.
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Quality Matters to Me...
The following testimonials describe how customer-focused quality has improved
the business of home building for program participants:
"From the beginning, KB Home has maintained a consistent focus on providing
superior service to our homebuyers throughout all phasesof the homebuying
process. Our status as an NHQ-Certified Builder further demonstrates that
commitment to homebuyers, our partners, and the industry."
--Marcia Dillon, New Mexico Division President, KB Home
"I feel the [NHQ] program is a great tool to unify all contractors."
--Lanehart Electric
"I am very proud of the program [NHQ] helped us build. It has been a very
positive experience for management and staff alike. It has improved morale,
profit, and our recognition for quality work in our field."
--Debelling and Holmes Construction
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NHQ in the News
The following details recent NHQ Program media coverage. Read all about it...
Reno Gazette Journal, "Syncon Certifiably One of 10 Best in U.S.,"
highlights NHQ Certified Builder Syncon Homes as one of the nation's leading
home builders. January 2006.
Nation's Building News, "Builders
Say Quality Matters, Raises Productivity, Profitability," highlights
year one performance results of NHQ Certified Builder program. February 2006
Colorado Construction, "KB Home Colorado Certified by NHQ Builder
Program," article highlights KB Home Colorado division's recent NHQ
Certification. December 2005
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New NHQ Sponsorship Opportunities Available
The NHQ Program offers a variety of sponsorship opportunities program especially
for Product Manufacturers and Financial Services Firms. Join the leader of the
home building industry's quality assurance movement and connect with builders
and trade contractors who are focused on profitability, accountability, and
customer satisfaction.
NHQ sponsorship allows your company to benefit from expanded business
opportunities and access to segments of the industry that only the NAHB
Research Center can offer. To learn more about how your company can support the
continuous improvement of quality in our industry, contact Lisa Gibson, NHQ
sponsorship coordinator, at (301) 785-3100 or lwgllc@yahoo.com.
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Education: NHQ Program a Success at IBS
The National Housing Quality Program offers builders, trade contractors, and
manufacturers across the nation new opportunities to learn more about quality
assurance in home building. The following NHQ education sessions were held at
the 2006 International Builders' Show and other industry conferences and
seminars across the nation.
-
Market Success of National Housing Quality Award Winners
The National Housing Quality Award program is the highest recognition for
quality achievement in the home building industry. Attendees heard from top
builders and trades about increases in profitability and reductions in customer
service costs resulting from their award-winning, quality-based systems.
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How to Reduce Customer Service Calls through Quality Assurance
Find out how "building it right the first time" really pays off. Successful
builders' stories of how they now enjoy increased customer satisfaction and
reduced warranty costs due to the implementation of a documented quality
assurance system.
-
NHQ Builder's Program Orientation/Builder's Intro to the Trade Contractor
Program
An introduction to the NHQ Certified Builder and NHQ Certified Trade Contractor
programs with an overview of the benefits, structure, and requirements of each.
Provides insight on improving efficiency, consistency and quality in all
aspects of the building process.
-
Liability Insurance Availability & Affordability - How to Clear the
Hurdles
Home builders and trade contractors continue to face challenges regarding the
availability and affordability of general liability insurance. Insight from
insurance professionals on recommended steps to reduce the burden of costs.
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