Residential Construction Case Study

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For HCI to successfully continue its residential construction business, management needs to reduce the amount of rework being done on the jobs. The amount of rework is affecting forecasting and all components of the supply chain. Implementing quality assurance checkpoints throughout the processes will add efficiencies, thus requiring less inventory costs for materials and human capital.
Because the typical HCI employee is accustomed to the less stringent commercial side of construction, they tend to overlook minor imperfections on residential jobs that are considered immaterial problems for commercial jobs. A short training program with a checklist for completing tasks in a standardized method will help resolve the issues HCI is facing. Well documented standard procedures or best practices for each
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Completion bonuses for employees that finish the work on time and up to high quality standards provide a teamwork atmosphere of everyone striving for the same goals. The intent is to eliminate the need for employees to unnecessarily travel back and forth to job locations to repair work, especially when they have already moved on to the next job. So, not only does the rework impact the job in question, it also affects the forecasting for the next job because all other work gets pushed back. Continuous improvement in all the work processes is the end goal. Having all employees on board with this vision of constantly looking for ways to improve their tasks and eliminate waste or non-value activities is how management can attain the competitive edge that will help them get better customer satisfaction and financial results.

Benefits
There are many benefits that we are expecting from implementing the above solutions. Among those benefits, we expect to see some savings on the total cost of projects, an increase in customer satisfaction, and an increase in capacity and ability to complete more work.

Cost

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