Pipeline Workshops: Shattered Instincts and the Learning Curve of Production Management

Pipeline workshops™ are open events sponsored by BUILDER and Continuum Advisory Group.  They are size-limited, intense, interactive, comprehensive immersions into the principles and disciplines of homebuilding production.

In recent workshops, we have added the Lessons from the Pipeline© business case study and a robust set of problem-solving exercises built around the velocity accelerators, but most attendees and observers would still agree that the most compelling part of the Pipeline workshop™ is the Pipeline game™:  teams of geographically-diverse builders that are required to go through a progression of scenarios that is both a simulation of home building production and a business game.

It is the same Pipeline game™ we have used in recent years at the Housing Leadership Summit.

The objective of the Pipeline game™ is to reinforce the production principles taught in the Pipeline workshop™, including:  (1) the effect of variation on a production system, (2) pull scheduling according to the capacity of a constrained resource, and (3) the importance of connecting decisions made on operating matters (like flow, capacity, duration, and work-in-process) to the critical business outcomes of profitability and return on assets.

With multiple teams playing every game with exactly the same rules and understanding, the results never lie.

Look at the results from a recent workshop.  In every category – from throughput (closings), to work-in-process levels, to inventory turns, to cycle time, to net income, to return on assets – the teams made remarkable progress, often exceeding expectations.

You have to play the Pipeline game™, see the measures, and calculate the results for yourself, in order to fully understand what the metrics mean;  instead, focus on the performance trends (y-axis), as the games in this workshop progressed (x-axis).

This was Revenue . . .

Pipeline Revenue (capture)

This was inventory turn . . .

Pipeline Inventory Turn (capture)

This was cycle time, expressed in days . . .

Pipeline Cycle Time (capture)

This was Net Income Margin . . .

Pipeline Net Income (capture)

This was Return on Assets, a reflection of its co-equal components:  Net Income Margin (margin) and inventory turn (velocity) . . .

Pipeline ROA (capture)

After the initial shock of shattered instincts, every metric was in precisely the direction you would expect, if the production principles are true and if progress is being made.  Clearly, builders attending this Pipeline workshop™ learned from their participation.

They learned the principles and disciplines of homebuilding production.

Pipeline games™ are board games that teach builders to “see” production;  they simulate the fast-paced, rapidly-changing, uncertain, risk-laden, variation-filled environment in which homebuilding production decisions must be made.  It is learning based on experience and action, not words.

Pipeline games™ compress the learning curve, presenting production situations that are simple, fast, easy to see and understand, that can be modified and rerun, until the principles are understood.

In a Pipeline workshop™, the progression of the games mirrors the progression of the learning.  In the book that gave rise to the workshops (The Pipeline: A Picture of Homebuilding Production©), the games were described as follows:

“Change is a necessary condition to any improvement effort, but change is difficult, disruptive, time-consuming, and costly;  the effort can fail to produce the result.  Learning needs to occur without so much cost, disruption, and risk.  Managing production and improving operating and financial performance becomes intuitive and simple, but there is much to understand.  It is counter to what is taught, therefore, difficult to grasp;  it must be learned, and that is harsh when it occurs at the cost of real operating performance and actual business outcomes.”

 

The next Pipeline workshop™ is at the Ponte Vedra Inn and Club, Ponte Vedra Beach, Florida, on October 14-15, 2015.  Cost is $795.00.  Early registration, open through July 31, 2015, is $645.00.

Sponsored by BUILDER and Continuum Advisory Group.

Details:  www.buildervelocity.com