Here’s how ‘you can only manage what you can measure” applies in the highly complex, disruption-riddled world of 400 SKUs, 30 different processes, and 18,000 or so separate pieces in a 2,200 square-foot new home.
Question: Do you control costs? Or do they control you?
Not quite 20 years ago, a homebuilder I worked for raised new home prices by 32% over an 18-month time span. During that same period – 2003 and 2004 — net profits at the company increased by 4%.
Where did all the money go?
The housing market that year accelerated at record pace. Installers and suppliers struggled to keep up. Demand on labor and materials drove prices up faster than we could get a handle on what was happening.
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