Quality Matters
April 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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Estes Builders Named Washington State's First NHQ Certified Builder
Estes Builders of
Sequim, Wash. was recently awarded the state's first NHQ Builder certification
after successfully completing the rigorous National Housing Quality Certified
Builder program in March. Quality home building and customer service excellence
is a top priority for Estes Builders, a 2005 National Housing Quality Silver
Award winner. Continuing on to earn the NHQ certification was a logical next
step for the company, whose ongoing Construction Quality Management program has
been an essential part of its success.
Estes Builders has been building homes for more than 16 years and has a
disciplined approach to quality. "It's really quite simple, satisfied customers
is Estes Builders' goal," said quality manager Patricia Troxler. "The NHQ
certification is another example of our focus on providing lasting value to our
customers."
The NHQ Certified Builder seal represents the high standards of quality that
today's 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
Don Carr, NHQ Certified Builder program manager.
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Pay Incentives: An Effective Model for Improving Quality Performance
You get what you pay for. This age-old business truth applies to builders' pay
systems, which define the focus of employee and team performances. Pay systems
can be an effective method to reward performance excellence and reinforce an
alignment towards company goals. It is a key link between a company's strategic
direction and the people that make it happen. Performance incentives not only
ensure that high-performance workplace practices become part of your company's
coordinated organizational development, but can also produce quality results
that are complimentary to the overall goals of the company.
More than written declarations and mission statements, employees look at what
affects their pay to see what management feels is most important for business
success. Because customer satisfaction and performance excellence is critical
to the success of the organization, bonuses and incentives that reward these
values will facilitate their achievement. Paying for anything else sends mixed
signals that can undermine the company's overall success strategy.
Pay incentives awarded strictly for short-term profits can send the wrong
message to employees. A more successful approach may include putting profit
incentives into a bonus pool, then awarding performance bonuses contingent on
fulfillment of the company mission and other key factors for business success,
such as customer satisfaction. With this approach, the importance of the
company's mission, value, and vision statements takes on new meaning. Tune up
these statements to remove elements not important enough to reward with
compensation so that your pay system 'walks the talk' of your leadership
system.
Properly designed pay incentives can reinforce a clear and consistent message
that can align everyone in your organization to work together toward a common
vision and goal. Examine your company's incentive system to see where it is
leading you.
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Redefining the Role of the Quality Manager
Do you ever wonder what your quality manager does from day-to-day? Many would
say a quality manager's primary role is problem solving and fire fighting
instead of leading and managing. Focusing on quality improvement methods can
help to redefine the role of the quality manager and ensure progress is being
made towards achieving company goals instead of putting out fires.
Managers often resort to using their final approval as a checkpoint to catch
problems and tightly control employee activities instead of managing business
processes, such as employee hiring, design, or accounts payable processing.
This approach demonstrates that the existing processes don't produce reliable
results without additional scrutiny. These managers are defined by their role
as an inspector, and when problems arise, high-priced solutions typically
follow. A better, more cost-effective management style starts with improving
the foundation of business processes to consistently deliver quality results.
The National Housing Quality program advocates that the role of the quality
manager be redefined to include the following characteristics and duties:
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The quality manager functions as a personal quality advocate who reinforces a
company-wide focus on meeting and exceeding established quality performance
goals.
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Quality managers are the "public face" of a company's quality effort and should
be empowered by management to make customer satisfaction and quality
improvements within company.
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The quality manager is the leader of the quality team with the authority to
implement company quality goals.
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The quality manager is now, or must become, a teacher and regular advocate of
the continuous improvement effort your company must make to succeed.
While the average company has too many business processes to improve them all at
once, committing to improve only one new business process each month is
beneficial. Set priorities for small, focused problems to solve, and when
effective solutions are found, aggressively institute the changes. The classic
Plan, Do, Check, and Act model is a simple and effective improvement process to
follow.
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PLAN
by flow-charting the current business process, analyzing the root cause of
problems, and determining a course of action.
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DO
carry out the planned changes.
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CHECK
to see if the changes solve the problem.
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ACT to make refinements, if necessary, and close improvement.
Most people think quality improvement is only necessary for preventing
construction defects, but it's also an effective way to solve business
management problems and improve operational efficiency. If improvements are
made every month, within a year a noticeable impact can be felt throughout the
company as persistent problems start disappearing one by one; bringing the
quality manager closer to being a full-time leader.
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Application Season Opens for 2007 EnergyValue Housing Awards
Applications are now being accepted for the 2007 EnergyValue
Housing Awards (EVHA), which honor builders who voluntarily integrate
energy efficiency into the design, construction and marketing of new homes.
As rising energy costs continue to make headlines across the country, the
building industry has increased its efforts to improve the energy performance
of new homes. The 2007 EVHA presents an opportunity for builders
quality-focused, environmentally responsible builders to share their best
practices and be recognized for their efforts.
The awards will be presented at the
2007 International Builders' Show in Orlando, Fla. in the affordable,
custom, factory-built, production and multifamily categories for hot-,
moderate- and cold-climate regions.
A judging panel of energy efficiency experts will evaluate applicants based on
their homes' energy value, design, construction methods and processes,
marketing and customer relations efforts, and participation in voluntary energy
programs. All applicants receive a detailed evaluation of their entries,
complimentary passes to the awards dinner ceremony and a free, one-year
single-user subscription to
BuildingGreen Suite.
Winning builders will be featured on the Research Center website and in trade
and mainstream publications; and will also have the opportunity to share their
success stories at workshops, educational programs, and conferences. All
professional U.S. home builders whose primary occupation is constructing homes,
developing real estate, or both are eligible to participate.
Homes offered for consideration must have been completed after January 2004 and
before the awards application is submitted. Entries must be postmarked by July
17, 2006. The EVHA is coordinated by the NAHB Research Center in partnership
with NAHB Energy Subcommittee and the
U.S. Department of Energy's National
Renewable Energy Laboratory. For an application or additional
information, click here.
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Congratulations to Recently NHQ Certified Trade Contractors
The NHQ Program is proud to announce the following newly-certified trade
contracting companies:
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Allstate Contract Floors, Inc. of Pittsburg, Calif. - flooring contractor
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Beutler Corporation of Sacramento, Calif. - HVAC contractor
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Champion Masonry of Las Vegas, Nev. - masonry and fencing contractor
-
Chas Roberts Air Conditioning of Phoenix, Ariz. - first HVAC company
certified in Arizona
-
Daigle Construction of Spring, Texas - first siding company certified
in Texas
-
DM Construction of San Antonio, Texas - concrete contractor
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Fenco, Inc. of Staunton, Va. - solid surface contractor
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Georgia Floors, Inc. of Kennesaw, Ga. - flooring, cabinets, and interior
selection contractor
-
Grams Electric, Inc. of Tomball, Texas - electrical contractor
-
J & L Enterprises of Lodi, Wis. - first window treatment company in
Wisconsin
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JANCO Industries, Inc. of Fremont, Calif. - concrete contractor
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KB Industries SoCal of Corona, Calif. - framing contractor
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Mayer Roofing, Inc. of Escondido, Calif. - roofing contractor
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Netco, Inc. of Las Vegas, Nev. - landscaping contractor
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Rouseau Construction of San Antonio, Texas - first grading company
certified in Texas
Business efficiency is vital to a company's success, 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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NHQ Sponsorship Connects You with the Right Builders in the Right Places
The National Housing Quality Program is looking for new partners to help further
its ongoing efforts to change and improve the business of home building. The
new NHQ sponsorship program presents an ideal opportunity to market to
quality-minded building professionals in some of the nation's hottest home
building markets.
This spring, the NAHB Research Center is offering a special discount of 20
percent off the cost of a one-year sponsorship for new contracts signed before
NAHB Spring Boards. With exclusive access to home builders and trade
contractors across the country who have displayed a discernable dedication to
quality, 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.
There are a variety of opportunities available for interested companies at
competitive prices. 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.
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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Quality Matters to Me...
The following testimonials describe how customer-focused quality has improved
the business of home building for program participants:
"One important difference of the NHQ certification is that it requires home
builders to apply consistent quality systems to every home, every time. There
were several areas we could have chosen to concentrate our resources, but we
were attracted to the NHQ program by virtue of its emphasis on a disciplined
approach to the quality process and third party verification."
--Kevin Estes, President, Estes Builders
"The [NHQ] QA program has helped MRI to improve the quality of our installations
and is giving our builders greater confidence in MRI."
--Mayer Roofing, Inc.
"We're excited as a company to be part a part of the NHQ program. We've always
been quality and service oriented, but to have proof - the certification is an
awesome tool."
--Fenco, Inc
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NHQ in the News
The following details recent NHQ Program media coverage. Read all about it...
Builder, "Help Wanted," feature article discusses finger-pointing
and increased accountability when construction goes off track.
Building Online, "Simpson Strong-Tie Introduces Installation Pocket Guide for
Contractors," touts Simpson Strong-Tie's new pocket guide as part of
its NHQ Certified builder training series.
Nation's Building News, "Seventh KB Home Division NHQ
Certified in California," highlights NHQ certification of KB Home's
Orange County division. April 3, 2006.
Professional Builder, "On-Track Mind," feature article focuses on
quality and customer perceptions of the home building industry; including
purchasing chief Ellen Knorring's single-minded pursuit to contain costs,
variances and schedules as Stanley Martin Companies turns 352 homes into 1,000
a year. April 2006.
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