TOC3 Australia

Stonewood Homes

ViAGO Client. TOC3 practitioner: Andrew Kay (Project Manager) & Andrew Cranwell. Credit to Phil Spitalney TOC Contractor.

Product: Custom Built Homes

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Issues

  • Long lead time to build homes
  • Unhappy customers
  • Unhappy sub contractors
  • High Stress levels
  • Poor profitability

Action taken, changes made

  • On-site consulting project: Critical Chain Project Management
  • Installed Critical Chain based scheduling and Pipeline Management
  • Supervisors and Subcontractors trained to follow the new system

Measure

Before

3 months after CC project installed

Improvement

Lead Time to build standard 3 Br modern home

110 – 120 days Industry standard

73 Days consistent plus or minus 5 days

30% - 35% lead time reduced

Cash Flow

Not bad, sometimes going to 30-60 days.

Great

Suppliers/contractors paid on time, and before time if they are in a tight spot.

Progress Payments

Unreliable

Reliable  on time

More projects hitting payment stages more regularly = predictable cash flow

Profitability

Struggling to break even

Tangible difference.

As a volume business the ability to produce more = Better returns.

Customer Satisfaction

Lots of complaints

Lots of praise

One home on the market 2 weeks early (63 day build).

Contractor Satisfaction

Lots of complaints

Lots of praise for everyone

New levels of trust and payments on time

Stress levels

High – many sleepless nights

Much lower, ability to switch off and leave it to others.

Taken holidays for first time in years


New Zealand Press:

Tauranga Gets Gold! 

“Stonewood Homes, Matamata New Zealand enjoyed phenomenal success with two gold medals in the House of the Year Awards 2008.  They won the prestigious Category Winner and Gold Medal for their entry in the Homes $350,000 to $450,000 category.


 

“Some of the standout results (they are all standout, these are the real biggies) …

  • I can sleep at night with the knowledge that the projects are where they should be and there is a workable plan for the completion of the home.
  • Clients have a completion date that is real.
  • I have been away on holiday twice since the implementation of our project board, this has been without the need to take a phone for fear of the need for my direction. More importantly upon my return everything is still in order.
  • We have clients that are in their completed homes that consider us their friends after the process of building their home. They tell us their personal news and take delight in us sharing parts of our lives with them. This is a real breakthrough.”

Kevin Norris, Owner Stonewood Homes, Matamata, New Zealand

 

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