Construction

Winning the Velocity Game

For SAI Consulting's Fletcher L. Groves, III, home building velocity is a relationship between construction cycle speed and business profitability. His Pipeline approach puts game theory into practice, allowing participants to simulate and re-enact construction and management decisions, from start to completion, and learn where pitfalls, biases, and instincts play havoc with profitable results. Here's a snapshot of how the game works. You'll never think of WIP in the same way again.

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Top 10 Markets for New Residential Construction

Housing starts numbers out today surprised many observers with its strength at the highest in eight months, but Metrostudy finds it to have been in line with actual counts released earlier this month. Metrostudy chief economist Brad Hunter breaks down the New Residential Construction release from the Census, including a look at the top ten markets leading in growth in quarterly starts.

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BIG BUILDER

Assured ... Predictable ... Dangerous

How come improving margins--the return on Sales--gets all the love and attention these days, when it's velocity--asset turns--are where home building companies can and should look for constant, sustainable improvement? SAI Consulting's Fletcher L. Groves highlights the benefits of focusing on "better processes, ... shorter cycle times, ... faster inventory turns," and states the risks in not doing so.

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