A la carte homes, cookie cutter prices – only at the BIM store

30 03 2010

For several decades now, the automobile industry has been following a rigorous design process before they approve mass production of a new model.  It would look something like this:

  1. Sketch a concept
  2. Engineer/Design
  3. Review for deficiencies. If none found, go to step 5, otherwise go to step 4.
  4. Adjust engineering/design, go back to step 3
  5. Approve for mass production

In contrast, here is how the home building design process looks like:

home design process

Click to view interactive design process

  1. Sketch a concept
  2. Design architecture/Engineer structure
  3. Build model in field
  4. Find some problems
  5. Modify plans (Cosmetic modifications mainly)
  6. Approve for mass production
  7. Start building in field
  8. Find more problems
  9. Keep fixing as you keep building

The result is all too well known – design flaws such as – missing doorway to a room, improper size allowance for refrigerator, not enough space for plumbing pipes to go through, roof design pre-disposed to water leaks… (the list is endless.)  The consequences – thousands of dollars wasted, months of delay, quality sacrificed and hundreds of customers dissatisfied.

Agreed, in light of the Toyota issue, the automobile industry may not be the best one to think of emulating today.  However, the automobile industry’s planning processes are still light years ahead of the building industry’s.   We should never pass up an opportunity to learn regardless of where the lesson comes from.

Today, there are new and emerging technologies available for just a few thousand dollars that will help a builder adopt a more efficient design process.  They enable us to test out the entire design in all aspects before engaging in mass production.  Yes, I am talking about “Building Information Modeling” or BIM for short.  BIM is so powerful that, if utilized to the full extent can even eliminate the need to build a model home! You can create a virtual walk through of no need to build modelthe entire home not only for your customers but for each specific trade.  For example, plumber, HVAC contractor and electrician can inspect a pre-drywall virtual model during the design phase. Any changes they do on the model is immediately reflected for all trades without any loss of information.  The days of having different sets of plans are over. The future is one model – a Building Information Model which drives all aspects of construction such as design, estimating and quality control.

As is the case with any technology, just applying it without changing the underlying fundamental processes won’t give the benefits one hopes to achieve.  When scheduling systems were new in the industry, many builders embraced it.  However, only those who decided to measure and react to their progress on a daily basis instead of weekly or monthly as it had always been; actually reaped the results.  When applying BIM technology, the fundamental change needed is in the design phase.  You have to give up traditional “silo” design process.  Currently architects, structural engineers, estimators each work on the design one after the other.  Subcontractors are rarely brought into the picture.  The BIM process requires all of them to work together, not one after the other.  As a starting point, when you apply BIM  technology, I would recommend you bring together a minimum of the following groups of people during your design process:

  1. Architect
  2. Structural Engineer
  3. Sales team
  4. Estimator
  5. MEP trades
  6. Framer

Bringing them together during BIM review will bring out any defects in your model and also make it an efficient home for everyone involved, including the customer.

In the past, a golden rule for builders has been to offer a limited product line.  This would help increase efficiencies and more choicebuild economies of scale.  It worked very well until now.  Today the tables are reversed.  We have fewer customers demanding more choice.  It may seem like a stalemate situation for many builders.  But BIM is the way out of it.  With BIM, you will be able to create completely integrated design choices (integrated across sales, engineering, estimating and so on) without ever having to build a model home.

Today’s customers are demanding cookie cutter prices and expect no less than “a la carte” offerings.  With BIM technology, you can easily address these needs.  There is no question that BIM technology is going to be an integral part of a home building operation.  The only question is – Are you ready for it?





Value of Visual Control Systems – some tools

10 03 2010

It is not common to see things slipping through the cracks even among companies that have tight production systems where everything is tracked and logged every step of the way.  You might be very clear in your mind that a color coded visual system as described in this newsletter may help you put things in perspective.  However, your colleagues are not on the same page with you and you are having a hard time explaining it to them.  If so, here are some resources online that may help you get your colleagues on the same page:

A newsletter that describes the effectiveness of visual control systems -

Visual Control Systems and Systematic Solutions

Air Traffic control visual system
This video shows that visual systems are indispensable even in one of the most advanced industries (Aviation). Without visual systems, it would be impossible to manage air traffic by just using text based reports.

http://www.youtube.com/watch?v=6rqKVSdiw8M

Articles describing the application of visual management boards (or production boards or white boards etc.)

How to manage your job starts using Magnetic Boards

Increase your team’s effectiveness using magnetic boards

Other related process improvement newsletters that may be helpful:
http://www.totallyproductivegroup.com/index.php?option=com_content&view=article&id=14&Itemid=16

Of course, TPG will always be willing to assist you in this endeavor in case you need it.  Just give us a call.





Finally! A process improvement blog for businesses

18 12 2009

We have been writing newsletters for our clients and associates for more than a year now.  We have explored basic concepts of process improvement along with some simple examples of how to implement process improvement techniques in your business yourself.  We have toyed with the idea of creating a blog for a while now and although a little bit late, we have started it.  From now on, please expect more frequent postings about process improvement than the newsletters you used to receive.  This will also help you post your comments and perhaps start a discussion with other readers about our posts.  We look forward to a good dialogue between you and us.  Here goes…








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