Pipeline Workshops™: What Builders Say About It

In their own words, comments from builders who have attended a Pipeline workshop™:

“The [Pipeline game™ production] simulations were a brilliant way to demonstrate and drive home the significance of cycle time improvements and improving trade partner efficiencies on ROA and Net Income.”  (Keith Porterfield, COO, Goodall Homes, Gallatin, TN)

“Pipeline workshops™, through hands-on simulations and classroom instruction, provide excellent learning experiences to see WIP turns at different velocities, and the effects on Return on Assets.  The principles and disciplines, if applied in the field by you as a builder, will increase your ROA.”  (Scott Jagoe, President, Jagoe Homes, Owensboro, KY)

“All of our construction guys came back from the conference with a lot of new info.”  (Doug French, CEO, Stylecraft Builders, Inc., College Station, TX)

“I participated in the first-ever [BuilderVelocity™] workshop, spending two days exploring the ins-and-outs of production, inventory, and scheduling.  It was quite intense, challenging, and not for the intellectually lazy.  We played repeated rounds of a building simulation game, and the students saw clearly that scheduling requires careful thought and planning.”  (Scott Sedam, President, TrueNorth Development, South Lyon, MI, excerpted from the April, 2014 issue of Professional Builder, “Taming the Chaos”)

“[the] Pipeline workshop™ was by far the most engaging workshop I have attended to date.  The principles shared relate to home building companies of all shapes and sizes.  The two day program kept me engaged the entire time with a mix of lecture, open discussions and simulations of practical application.  I have already applied some of what I learned to my business and I’m looking forward to fantastic results.”  (Mark Refosco, President, Marcus Allen Homes, Arthur Rutenberg Homes franchisee, Jacksonville, FL)

“The Pipeline Workshop™ is an extremely effective insight to production, for homebuilders of all sizes.  Whether your company builds 5, 50, 500 or 5000 units annually, you will leave this event with a deeper understanding of your company’s production capacity, and where you need to focus your attention, to perform at an optimal level.”  (Adam Roller, Project Manager, The Fechtel Company, Tampa, FL)

“The simulations at [the] Pipeline workshop™ [were] a very innovative way to demonstrate the critical nature and relationship between cycle time, inventory turn, margin, and return on assets.  Both days were filled with learning, engagement, and inquiry that proved to be invaluable.”  (Vishaal Gupta, President, Park Square Homes, Orlando, FL)

“Think the same way, and you stay in the same place as everyone else;  challenge yourself with the new theories and strategies, and [you] become more effective in your company[y’s] achievement with your team.  You get to take these theories and teachings and immediately apply them in a simulation of the real world to test your skills against others, and that’s what this business is all about:  finding the right mix of everything to be the best.”  (Justin Parry, President, Parry Custom Homes, Irwin, PA)

“ROA is not discussed much in the building industry;  the focus has always been on margins per house.  Through the Pipeline workshop™, you will learn that your company ROA is just as important to know as margins per house.”  (Mark Ivey, Owner, Ivey Residential, LLC, Evans, GA)

“I think the concept of ROA or inventory turn can be THE differentiator between success and failure in a production type environment.  It requires thought one level past the “P&L”, but will allow the manager that can recognize [its] impact and implement it, a major competitive advantage.”  (Wade Jurney, Wade Jurney Homes, Greensboro, NC)

“The Pipeline workshop™ provides full insight into the application of universal principles of production.  It provides clear and convincing proof that improving velocity will yield not only faster profits but greater profits.  I look forward to attend it again with some of my key staff.”  (Carlos Alvarez, President, Alvarez Construction, Baton Rouge, LA)

“It proved to be a great opportunity to enlighten our entire management team with a ‘higher level understanding’ of how our business works.”  (Craig Morrison, CEO, Cimarron Homes, Durham, NC)

“As an owner of a home building company, intimately understanding the importance of home building production principles, as taught in the Pipeline workshop™ and book, and effectively implementing them in our building processes, will be critically important to becoming a best-of-breed builder in our competitive market.  Running our company using these home building production principles will not only allow us to weather the next downturn intact, but grow in a healthy way.”  (Josh Lysen, Principal, Merit Homes, Kirkland, WA)

“The Pipeline workshop™ conducted by SAI Consulting and Continuum Advisory Group was a straight-forward introduction to what matters most in the homebuilding industry…. Velocity!  Although many of the concepts reviewed are not new to most managers, the manner in which they were highlighted was eye-opening.  The case study, simulations, and discussion with the instructors made it crystal clear as to how to go back to my operation and implement immediate improvements.  The interaction amongst the diverse group of attendees was also invaluable.  How often do we get the opportunity to discuss best practices with others in our field?  The workshop was time and money well spent, and I’m already getting a return on my investment!”  (Mike Cancilla, General Manager, Essex Homes, SE, Lexington, SC)

“Great opportunity for any individual to uncover the potential of the pipeline and maximize their business returns.”  (Brian Small, Land Acquisition Manager, Drees Homes, Jacksonville, FL)

“The Pipeline Workshop™ reminded me that there is no substitute for moving quickly and efficiently in every aspect of our business.  The workshop agenda and material was focused and challenging.”  (Greg Stallard, Division President, Essex Homes, Charlotte, NC)

“I walked away with a new perspective on making returns in residential homebuilding that challenged the models and assumptions I have worked under.”  (Mark Carter, Operations Manager, Drees Homes, Jacksonville, FL)

 

Come.  Participate.  Learn.

The next Pipeline workshop™ will be held at the Ponte Vedra Inn and Club, Ponte Vedra Beach, Florida, on April 5-6, 2017.  Cost is $875.00.

Sponsored by BUILDER and BuilderMT.

For more details:  www.buildervelocity.com

 

2 Comments

  1. Comment by Mark Hodges:

    Taking 6 months to build a production home is entirely unnecessary, and frankly irresponsible, considering that every “empty house day” (we used to measure this assiduously) costs hundreds of dollars in cost of capital. Consistently building in 90 days or less is very doable, and improves not only profit, but increases customer satisfaction through more reliable closing date projections, a happier experience as they see real progress on their home each week (for those who spent time in a sales office, there is nothing worse than unhappy customer interrupting a sale to complain about the lack of progress on their home), plus less exposure to weather, and fewer “dry runs” for trade partners. Nothing short of Win-Win-Win.

    • Comment by Fletcher Groves:

      Mark — thanks for the comment. Although there was no mention of specific cycle times in any of the builder comments about their experiences at Pipeline workshops, we do make the point leading into the workshop that a builder that generates a 24% Gross Margin and turns its inventory twice a year (roughly the 180 day cycle time to which you refer) will be out-performed — 2:1 — in terms of Net Income and Return on Assets, by a builder that generates an 18% Gross Margin and turns its inventory four times per year (90 day cycle time).