Lean Homebuilding

Lean unlocks cost savings
and efficiency

true-north

“Lean,” as in “Lean Thinking,” “Lean Methods,” or “Lean Operations,” is not a term for running a bare-bones operation. Lean methods have revolutionized companies and industries worldwide, yet the homebuilding industry has largely overlooked Lean practices— until now.

Lean is a flexible model not limited to any specific industry and is used to improve quality and efficiency. Industries ranging from automotive to electronics, healthcare, and insurance have undergone significant transformations by implementing Lean practices.

The construction industry has seen little change in productivity for over a century. Statistics show almost no productivity improvement for homebuilding over the past 50 years, the single worst record of all American industries. A lack of collaboration and innovation among builders, suppliers, trades, and manufacturers has resulted in inefficient building methods and tremendous waste. Labor shortages, inefficient supply chains, and rising costs compound the situation. As margins are squeezed, the need for builders to identify savings opportunities increases. The TrueNorth™ Consulting difference means cost savings are achieved for all parties involved.

learnbuilding

New opportunities

Traditional cost-cutting methods often compromise operations and fail to improve profitability. MiTek® TrueNorth™ Consulting combines extensive homebuilding knowledge and Lean practices to deliver a tailored experience, helping you stay competitive in an evolving market.

Traditional Methods

  • Slash overhead, often making it more challenging to conduct business
  • Cut headcount, making it difficult to staff builds
  • Force supplier rebids, straining those relationships
  • Reduce house features, making them harder to sell
  • Use traditional stick framing

Lean Homebuilding Methods

  • Eliminate non-value-added steps, materials, and procedures
  • Shrink work-in-process and cycle time
  • Improve processes with permanent solutions instead of temporary fixes
  • Deliver high-quality homes on time, with less inventory in the system
  • Incorporate component design whenever possible to reduce errors, rework, trips to the job sites, and shorten cycle time

Practical Examples

Transportation

Problem

One landscaper's costs were adding up. They wanted to find savings but not disappoint their customers with lower-quality materials.

Result

By swapping to a different granite supplier with the same color but much closer to the sites, they saved $155/house without changing the quality offered.

Inventory

Problem

An exterior painter sourcing 5-gallon pails for “32-gallon” homes was incurring significant expenses for storing or disposing of leftover paint.

Result

The painter remixed the leftover paint as a medium brown primer, saving $200+/house in paint and storage fees, providing a true 2-coat finish, improving quality, and reducing warranty costs.

Over Processing

Problem

A builder was using 24” threaded bolts to connect first-floor cinderblock walls to second-floor base plates. This led to wasted time spent cleaning mortar, threading 18” extra on all 130 bolts, and tightening them with an open-ended wrench.

Result

By using shorter, less expensive bolts, the builder freed up 2+ hours of wasted labor for the trade and stayed on schedule, leading to savings of more than $250/unit.

Waiting

Problem

A builder was experiencing frequent late deliveries and often saw their framing crews idling and waiting for material.

Result

The builder switched to a new lumber dealer to save cost on dimension lumber, sheathing, and engineered wood products. The builder was also able to negotiate for guaranteed on-time deliveries, saving as much as $250/hour on downtime.

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