If you had to choose a single word to associate with a Pipeline Workshop™, it would be velocity – speed in a purposeful direction. In every workshop, we select specific areas of production management for a deeper dive – more discussion, pointed exercises from the RB Builders: Lessons for the Pipeline© business case study, etc.
We call these areas Velocity Accelerators®.
They tend to be important areas which do not receive sufficient industry attention; Velocity Accelerators® are often the first meaningful exposure to those areas that builders attending a Pipeline workshop™ have ever experienced, which makes those sessions something of a boot-camp.
There are three Velocity Accelerators® we are using at the next Pipeline Workshop™ (October 26-27, 2016, in Ponte Vedra Beach, Florida):
Epic Partnering™. Builders attending Pipeline workshops™ consistently emphasize the need for stronger trade-partnering, better coordination, more cohesiveness, a more unified approach to managing the trade side of production.
They acknowledge the obvious: they do not have the internal resources necessary to perform “the set of all specific actions” required to bring houses through the start-to-completion process, and they are completely dependent and reliant on skilled construction resources that are in short supply; they understand that they can no longer dictate the terms.
Developing the business relationships that unify a builder’s value stream is a program of milestones and features, and it is a transformative process; a program and a process. Epic Partnering™ has profound implications on the margin side and the velocity side of economic return.
Business Process Improvement. The most basic, most fundamental proposition in the business of building homes is this: the reason a builder exists is to make money; the way a builder makes money is by delivering value to its homebuyers and other stakeholders; that value can only be delivered through the work that the building enterprise performs; that work has to be performed in some manner of workflow, most commonly performed in processes.
Make money . . . by delivering value . . . through the work a builder performs . . . in processes.
BPI is the front-end of a process of continuous improvement, one that fundamentally changes the perspective of workflow, and becomes the driving component of the operating model that forms a builder’s strategic value discipline.
Critical Chain Project Management. Now more than sixty years old, the scheduling algorithm known as the Critical Path Method (CPM) was never intended to function in the environment of homebuilding production, which is project portfolio management with embedded and supporting processes; CPM was never designed to function in environments in which velocity is important, where faster cycle time and higher inventory turns are critical drivers of business outcomes; and, CPM is oblivious to the effect variation has on the scheduling of a production system.
Critical Chain Project Management (CCPM) is the leading edge – the future – of project scheduling for homebuilding; it promises significant improvements in managing homebuilding production – faster cycle times, faster inventory turns; enabling homebuilders to generate more Revenue, more Gross Income, with a planned, finite, and controlled amount of work-in-process and production capacity.
Come. Participate. Learn.
The next Pipeline workshop™ is at the Ponte Vedra Inn and Club, Ponte Vedra Beach, Florida, on October 26-27, 2016. Cost is $850.00.
Sponsored by BUILDER and Constellation HomeBuilder Systems.