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Post-Completion Evaluation Improves Product, Bottom Line
By Gretchen Palmer, Palmer Homes
We all understand that teamwork is the essence of creating a successful home building company. But what, exactly, is the team’s work in the day-to-day operations of our companies?
For Palmer Homes, a crucial part of that work is a post-completion evaluation of the processes, noting problems, successes, unusual conditions and specific reasons for variances from budgets and purchase orders.
By constantly evaluating processes, we can not only improve our home building process, but also our product and bottom line.
The post-completion evaluation takes place 30 days after each home is completed and includes:
- Leaders and staff from a number of our departments
- A face-to-face meeting
- Examination of data generated from our processes and practices that affect product quality and the bottom line
The evaluation timing allows ample time for field staff to complete punch-list items, if any.
More importantly, the timing gives purchasing and accounting 21 days to do a “cost-to-complete” review and establish the correct accrual for open costs.
We ask that a member of nearly every department participate in the completed home evaluation, including:
- Construction manager
- Purchasing and estimating director
- Purchasing and estimating staff for the specific neighborhoods being evaluated
- Accounting manager
- Design manager
- Draftsman
- Sales manager or community representative
Read more about the agenda and accomplishments for these meetings and other tips for improving the home building business management process on the business management pages of the NAHB Web site at www.nahb.org/biztools. (Note: this information is available to NAHB members only.)
Gretchen Palmer, of Palmer Homes based in Central Oregon, has earned numerous awards for design and value, including Energy Star®’s Large Oregon Home Builder of the Year 2007 award for the company’s commitment to building Energy Star-certified homes. Palmer Homes neighborhoods are certified Energy Star, Earth Advantage and Water Wise, creating sustainable homes in livable neighborhoods. Palmer is currently the vice president and treasurer of the Oregon Home Builders Association and a member of the NAHB Single Family Production Builders Committee. For more information, visit the Palmer Homes Web site at www.palmerhomes.com.
 NAHB Has More Than 300 Resources to Help You Run Your Business More Profitably
Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.
Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.
Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
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