Driving Innovation in Housing Technology

How To Identify & Resolve Recurring Issues in High

Performing Homes

Amber Wood

Manager, Energy ProgramsNAHB Research Center

June 21, 2011

The National Association of Home Builders is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request.

This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

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Learning Objectives

What recurring issues are and how to identify them

How these issues can impact performance and energy efficiency

How to prioritize multiple issues and what to address first

How this translates in quality management How to solve the issue and know when you are

successful

Background

Department of Energy Programs Building America

DOE’s residential research & development (R&D) program

Builders Challenge DOE’s energy efficiency

certification for homes

Building America

Private/public R&D partnership sponsored by DOE

Energy-efficient solutions for new and existing housing

High Performing Home Goals

Build/Remodel “high performing homes” that are Energy efficient Durable Comfortable Healthy to live in Safe

Affordable

In other words . . . Green.

Quality Management

Goal: Processes, tools and methods

to build high performance homes on a repeatable scale

(1) Build the home to specifications (quality control)

(2) Repeat the process (quality assurance)

Hotspot process Prioritize and greatly reduce recurring

problem Self-contained quality management

process

High Performance Home Hotspot Process

A Hotspot IS

A Hotspot is a Problem that is: Current Widespread or recurring A significantly important challenge

A Hotspot Is NOT

A problem that the company no longer has An external problem A relatively unimportant issue An issue that is linked to just one individual

or crew

Typical Hotspot Categories

Jobsite Installation

Office Operations Personnel Or Company Culture

Material failure Inventory control Low moraleProduct failure Documentation Culture of finger-

pointingInefficient installation

Accounts payable/receivable Lack of accountability

Safety issues Maintenance of records Lack of prideImproper installation

Poor Communication (i.e. between office and the field)

Poor communication

Poor communication

Coordination/accountability of field personnel

Examples of Typical Hotspots

When occurring frequently . . . Gaps and voids regularly found in the installation of

batt insulation Inspections not being done, or not being

documented Workers on the jobsite failing to follow safety

procedures such as not wearing hardhats

Why Do Hotspots Work?

Hotspots work because they are: Focused on a prioritized topic Well-trained to all workers Inspected and tracked for all jobs

Which educates workers and creates accountability

Hotspot Process Overview

1. IDENTIFY HOTSPOTS

Questions for Hotspot Identification

What is the leading cause for return trips to the jobsite?

What are the most expensive reasons for callbacks?

What is the worst problem or bottleneck in the office?

What are the areas of improvement that customers would most like to see improvement?

2. PRIORITIZE HOTSPOTS

HOTSPOT/INSPECTION LOG

Builder/Lot Inspection Items from Job Complete Forms

Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8Smith Building 2

Elders 23 1 1Elders 24 1Elders 25 1 1Elders 26

The Meadows 12The Meadows 13The Meadows 14 1The Meadows 15The Meadows 16 1The Meadows 17

1R&R Custom Homes1002 Peaceful Way 1 11004 Peaceful Way 11006 Peaceful Way 1 11008 Peaceful Way 1

Total 3 1 5 1 0 1 0 1 1

Choose Hotspot Using Data

Prioritize

Cost Number of call backs Etc . . .

3. ROOT CAUSE?

80/20 Rule

20% of the issues . . . . . . Cause 80% of the problem

Fishbone Chart

Fishbone Chart

List what is known about problem Eliminate what is NOT causing the

problem Isolate what IS causing the problem

4. DOCUMENTATION & TRAINING

Documentation

Document solution Revised scopes of work Details & specifications Detail new process

Training

Hotspot Training Explain the problem Outline the costs and problems from

the hotspot issue Detail the solution

Install mechanical dampers on supply-air duct lines off the plenum

Instale válvulas mecánicas en las líneas de conducción de aire del pleno

Develop Hotspot Training Sheet

5. IMPLEMENT TRAINING & SOLUTION

All crew members and all crew leaders must attend session.1.Lead man explains the problem and the proposed solution.2.Everyone examines both pictures and all notes.3.Lead man answers any questions.4.All crew members and crew leaders sign below.5.Lead man signs and dates bottom of page.TIME MEETING STARTED: __________________a.m./p.m.______ATTENDEES:_____(PRINT NAME)________ _________(SIGNATURE)_________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ____________________________________

Sign Hotspot Training Log

6. MONITOR

Builder:

Lot:Subdivision: Date of initial inspection:

Builder Supervisor Name: Crew Leader Name:

Instructions: Check box if OK, circle box if correction is needed. Note specific correction action required. When corrected, then check box.

Trade Foreman

Trade Super

BuilderExplain Needed CorrectionsList Date Corrected

OK OK OK/NA

Describe Current Hotspot: Lap and tape all horizontal house wrap seams

1.The house wrap is installed continuously with no tears or rips, or all rips or tears are properly repaired. [BCQC-23]

2. The house wrap is lapped as specified. [BCQC-23]

3.The house wrap is fastened with manufacturer’s specified fasteners.

4. The house wrap joints are taped with manufacturer’s specified product. [BCQC-16]

5.The house wrap covers the sill plate, rim joist, and top plates.

Inspect Hotspot On All Jobs

HOTSPOT/INSPECTION LOG

Builder/Lot Inspection Items from Job Complete Forms

Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8Smith Building 2

Elders 23 1 1Elders 24 1Elders 25 1 1Elders 26

The Meadows 12The Meadows 13The Meadows 14 1The Meadows 15The Meadows 16 1The Meadows 17

1R&R Custom Homes1002 Peaceful Way 1 11004 Peaceful Way 11006 Peaceful Way 1 11008 Peaceful Way 1

Total 3 1 5 1 0 1 0 1 1

Evaluate Inspection Data

Hotspot Process Overview

Repeat the Process, If Needed

If hotspot is not successful Return to the root cause

analysis stage Reevaluate other

possible causes Repeat the process with

the next most probably cause

Courtesy of www.khov.com

Complete And Celebrate A Hotspot

If hotspot is successful, close-out the hotspot and recognize the contributors

Remove / demote successful hotspot items on inspection forms

Repeat process with new hotspot

The Example

1. IDENTIFY HOTSPOTS

Questions for Hotspot Identification

What are the most expensive reasons for callbacks?

What are the areas of improvement that customers would most like to see improvement?

1. Mechanical dampers on supply-air duct lines off the plenum

2. Uncomfortable rooms near cantilevered floors

2. PRIORITIZE HOTSPOTS

Builder/Lot

Cantilever Floor Mechanical DampersSmith Building

Elders 23Elders 24 1Elders 25Elders 26

The Meadows 12 1The Meadows 13 1The Meadows 14 1 1The Meadows 15 1The Meadows 16 1The Meadows 17 1

R&R Custom Homes1002 Peaceful Way1004 Peaceful Way1006 Peaceful Way1008 Peaceful Way

Total 6 2

Inspection Items from Job Complete Forms

Choose Hotspot Using Data

Cantilever Floor

3. ROOT CAUSE?

Fishbone Chart

List what is known about problem Eliminate what is NOT causing the

problem Isolate what IS causing the problem

Sealing

Blocking

Insulation

4. DOCUMENTATION & TRAINING

Documentation

5. IMPLEMENT TRAINING & SOLUTION

Conduct Hotspot Training

All crew members and all crew leaders must attend session.1.Lead man explains the problem and the proposed solution.2.Everyone examines both pictures and all notes.3.Lead man answers any questions.4.All crew members and crew leaders sign below.5.Lead man signs and dates bottom of page.TIME MEETING STARTED: __________________a.m./p.m.______ATTENDEES:_____(PRINT NAME)________ _________(SIGNATURE)_________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ____________________________________

Sign Hotspot Training Log

6. MONITOR

Builder:

Lot:Subdivision: Date of initial inspection:

Builder Supervisor Name: Crew Leader Name:

Instructions: Check box if OK, circle box if correction is needed. Note specific correction action required. When corrected, then check box.

Trade Foreman

Trade Super

BuilderExplain Needed CorrectionsList Date Corrected

OK OK OK/NA

Describe Current Hotspot: install insulation in all cantilever cavities prior to blocking and air sealing

Inspect Hotspot On All Jobs

Builder/LotHOTSPOT ITEM

Cantilever Floor Mechanical DampersSmith Building

Elders 23Elders 24 1Elders 25Elders 26

The Meadows 12The Meadows 13The Meadows 14 1The Meadows 15 1The Meadows 16The Meadows 17

R&R Custom Homes1002 Peaceful Way1004 Peaceful Way1006 Peaceful Way1008 Peaceful Way

Total 1 2

Inspection Items from Job Complete Forms

Evaluate Inspection Data

Next Steps . . . (and WHY?)

Goals: Quantify benefits of

implementing quality practices

Validate performance improvements achieved through quality practices

Hypothetical Cost of Quality(Cokins, 2006)

PC=prevention cost AC=appraisal cost

IFC=internal failure cost EFC=external failure cost

Opportunities for Builders (Professional Builder Magazine, May 2009)

Do Builders See a Need for Improvement?

Operational Efficiencies 60%

Better Product Marketing & Services 29%

National Housing Quality Award (NHQA) Results 1993-2009

Category NHQA Winning BuilderBenefit from Quality

Profits (Gross Margins) 12-20%

Revenue 15-100% increase/yr

Construction Costs vs. Budget +/- 1%

Customer Satisfaction 93-97%

Referral Rates (Sales made through referral) 29%

Cycle Time Reductions 15-50%

Zero Defects at Closing 98%

Defect Reductions 11-75%

Employee Satisfaction 94%

Trade Satisfaction 95%

Customer Endorsements/ Thank You Letters 73%

Warranty Requests 1 per every 15.5 homes

Performance Metrics beyond Recurring Issues

Construction schedules On-time delivery Energy performance Cost Training Satisfaction Referral Productivity Warranty/Defects

Challenges of Performance Metrics

Comparing “apples to apples”

Defining them so all builders can use them as benchmarks

Quality Impacts atVeridian Homes

Construction Costs -/+1% Budget vs. Actual

Customer Satisfaction 95% +

Veridian Homebuyers 76% only looked at Veridian

Zero Defects 90% of homes at home

orientation HERS Index

58-61

Veridian Results Reduced Defects

50% in 1 yr Cut inspections in half

Reduced Warranty Costs & Defects 30% - 75%

Reduced Construction Cycle Time 18 days

Reduced Material Variance 20% lumber, 24% siding, & 38% trim

Their Secret? Commitment to quality management Use of tools, principles and resources, including

a HPH quality management system

High Performance Quality Management

Economics of Quality Hotspot Methodology High Performance Homes Scopes

of Work (SOW)

Quality management section update of ToolBase

Primer Prioritized Gap Analysis Existing Home SOW

Resources

Building America www.eere.energy.gov/buildings/building_america

Builders Challenge www.eere.energy.gov/buildings/challenge

NAHB Research Center www.nahbrc.com www.toolbase.org

National Green Building Certification www.nahbgreen.org

This concludes The American Institute of Architects Continuing Education Systems Program

Amber Wood

Manager, Energy Programs301-430-6309awood@nahbrc.com

Thank You!