1. How To Identify & Resolve
Recurring Issues in High
Performing Homes
Amber Wood
Manager, Energy Programs
NAHB Research Center
June 21, 2011
Driving Innovation in Housing Technology

2. The National Association of Home Builders is a Registered
Provider with The American Institute of Architects Continuing
Education Systems. Credit earned on completion of this
program will be reported to CES Records for AIA members.
Certificates of Completion for non-AIA members are available
on request.
This program is registered with the AIA/CES for continuing
professional education. As such, it does not include content
that may be deemed or construed to be an approval or
endorsement by the AIA of any material of construction or any
method or manner of handling, using, distributing, or dealing
in any material or product. Questions related to specific
materials, methods, and services will be addressed at the
conclusion of this presentation.

3. Copyright Materials
This presentation is protected by US and
International Copyright laws. Reproduction,
distribution, display and use of the presentation
without written permission of the speaker is
prohibited.
© NAHB Research Center

4. Learning Objectives
 What recurring issues are and how to identify
them
 How these issues can impact performance and
energy efficiency
 How to prioritize multiple issues and what to
address first
 How this translates in quality management
 How to solve the issue and know when you are
successful

5. Background
Department of Energy Programs
 Building America
 DOE’s residential research &
development (R&D) program
 Builders Challenge
 DOE’s energy efficiency
certification for homes

6. Building America
 Private/public R&D
partnership sponsored
by DOE
 Energy-efficient
solutions for new and
existing housing

7. High Performing Home Goals
 Build/Remodel “high performing
homes” that are
 Energy efficient
 Durable
 Comfortable
 Healthy to live in
 Safe
 Affordable
In other words . . . Green.

8. Quality Management
Goal:
Processes, tools and methods
to build high performance
homes on a repeatable scale
(1) Build the home to specifications
(quality control)
(2) Repeat the process
(quality assurance)

9. High Performance Home
Hotspot Process
 Hotspot process
 Prioritize and greatly reduce recurring
problem
 Self-contained quality management
process

10. A Hotspot IS
 A Hotspot is a Problem that is:
 Current
 Widespread or recurring
 A significantly important challenge

11. A Hotspot Is NOT
 A problem that the company no longer has
 An external problem
 A relatively unimportant issue
 An issue that is linked to just one individual
or crew

12. Typical Hotspot Categories
Jobsite Office Operations Personnel Or
Installation Company Culture
Material failure Inventory control Low morale
Product failure Documentation Culture of finger-
pointing
Inefficient Accounts payable/receivable Lack of
installation accountability
Safety issues Maintenance of records Lack of pride
Improper Poor Communication (i.e. Poor
installation between office and the field) communication
Poor Coordination/accountability of
communication field personnel

13. Examples of Typical Hotspots
 When occurring frequently . . .
 Gaps and voids regularly found in the
installation of batt insulation
 Inspections not being done, or not
being documented
 Workers on the jobsite failing to follow
safety procedures such as not wearing
hardhats

14. Why Do Hotspots Work?
Hotspots work because they are:
 Focused on a prioritized topic
 Well-trained to all workers
 Inspected and tracked for all jobs
Which educates workers and
creates accountability

15. Hotspot Process Overview

16. 1. IDENTIFY HOTSPOTS

17. Questions for Hotspot
Identification
 What is the leading cause for return
trips to the jobsite?
 What are the most expensive
reasons for callbacks?
 What is the worst problem or
bottleneck in the office?
 What are the areas of improvement
that customers would most like to
see improvement?

18. 2. PRIORITIZE HOTSPOTS

19. Choose Hotspot Using Data
HOTSPOT/INSPECTION LOG
Builder/Lot Inspection Items from Job Complete Forms
Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8
Smith Building 2
Elders 23 1 1
Elders 24 1
Elders 25 1 1
Elders 26
The Meadows 12
The Meadows 13
The Meadows 14 1
The Meadows 15
The Meadows 16 1
The Meadows 17
1
R&R Custom Homes
1002 Peaceful Way 1 1
1004 Peaceful Way 1
1006 Peaceful Way 1 1
1008 Peaceful Way 1
Total 3 1 5 1 0 1 0 1 1

20. Prioritize
 Cost
 Number of call backs
 Etc . . .

21. 3. ROOT CAUSE?

22. 80/20 Rule
20% of the issues . . .
. . . Cause 80% of the problem

23. Fishbone Chart

24. Fishbone Chart
 List what is known about problem
 Eliminate what is NOT causing the
problem
 Isolate what IS causing the problem

25. 4. DOCUMENTATION &
TRAINING

26. Documentation
 Document solution
 Revised scopes of work
 Details & specifications
 Detail new process

27. Training
 Hotspot Training
 Explain the problem
 Outline the costs and problems from
the hotspot issue
 Detail the solution

28. Develop Hotspot Training Sheet
Install mechanical dampers on supply-air duct lines off the plenum
Instale válvulas mecánicas en las líneas de conducción de aire del pleno

29. 5. IMPLEMENT TRAINING &
SOLUTION

30. Sign Hotspot Training Log
All crew members and all crew leaders must attend session.
•Lead man explains the problem and the proposed solution.
•Everyone examines both pictures and all notes.
•Lead man answers any questions.
•All crew members and crew leaders sign below.
•Lead man signs and dates bottom of page.
TIME MEETING STARTED: __________________a.m./p.m.______
ATTENDEES:
_____(PRINT NAME)________ _________(SIGNATURE)______________
___________________________ ____________________________________
___________________________ ____________________________________
___________________________ ____________________________________
___________________________ ____________________________________

31. 6. MONITOR

32. Inspect Hotspot On All Jobs
Subdivision:
Lot:
Date of initial inspection:
Builder:
Builder Supervisor Name: Crew Leader Name:
Instructions: Check box if OK, circle box if correction is needed. Note specific correction action required.
When corrected, then check box.
Trade Trade Explain Needed Corrections
Builder
Foreman Super List Date Corrected
OK OK OK/NA
Lap and
Describe Current Hotspot:
tape all horizontal house wrap   
seams
The house wrap is installed continuously with no
1. tears or rips, or all rips or tears are properly   
repaired. [BCQC-23]
2. The house wrap is lapped as specified. [BCQC-23]   
The house wrap is fastened with manufacturer’s
3.
specified fasteners.
  
The house wrap joints are taped with
4.
manufacturer’s specified product. [BCQC-16]
  
The house wrap covers the sill plate, rim joist, and
5.
top plates.
  

33. Evaluate Inspection Data
HOTSPOT/INSPECTION LOG
Builder/Lot Inspection Items from Job Complete Forms
Hotspot Item Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8
Smith Building 2
Elders 23 1 1
Elders 24 1
Elders 25 1 1
Elders 26
The Meadows 12
The Meadows 13
The Meadows 14 1
The Meadows 15
The Meadows 16 1
The Meadows 17
1
R&R Custom Homes
1002 Peaceful Way 1 1
1004 Peaceful Way 1
1006 Peaceful Way 1 1
1008 Peaceful Way 1
Total 3 1 5 1 0 1 0 1 1

34. Hotspot Process Overview

35. Repeat the Process, If Needed
 If hotspot is not
successful
 Return to the root cause
analysis stage
 Reevaluate other
possible causes
 Repeat the process with
the next most probably
cause
Courtesy of www.khov.com

36. Complete And Celebrate A Hotspot
 If hotspot is successful, close-out the
hotspot and recognize the contributors
 Remove / demote successful hotspot
items on inspection forms
 Repeat process with new hotspot

37. The Example

38. 1. IDENTIFY HOTSPOTS

39. Questions for Hotspot
Identification
 What are the most expensive
reasons for callbacks?
 What are the areas of improvement
that customers would most like to
see improvement?
1. Mechanical dampers on supply-air duct lines off
the plenum
2. Uncomfortable rooms near cantilevered floors

40. 2. PRIORITIZE HOTSPOTS

41. Choose Hotspot Using Data
Builder/Lot Inspection Items from Job Complete Forms
Cantilever Floor Mechanical Dampers
Smith Building
Elders 23
Elders 24 1
Elders 25
Elders 26
The Meadows 12 1
The Meadows 13 1
The Meadows 14 1 1
The Meadows 15 1
The Meadows 16 1
The Meadows 17 1
R&R Custom Homes
1002 Peaceful Way
1004 Peaceful Way
1006 Peaceful Way
1008 Peaceful Way
Total 6 2

42. Cantilever Floor

43. 3. ROOT CAUSE?

44. Fishbone Chart
 List what is known about problem
 Eliminate what is NOT causing the
problem
 Isolate what IS causing the problem

45.  Sealing
 Blocking

46.  Insulation

47. 4. DOCUMENTATION &
TRAINING

48. Documentation

49. 5. IMPLEMENT TRAINING &
SOLUTION

50. Conduct Hotspot Training

51. Sign Hotspot Training Log
All crew members and all crew leaders must attend session.
•Lead man explains the problem and the proposed solution.
•Everyone examines both pictures and all notes.
•Lead man answers any questions.
•All crew members and crew leaders sign below.
•Lead man signs and dates bottom of page.
TIME MEETING STARTED: __________________a.m./p.m.______
ATTENDEES:
_____(PRINT NAME)________ _________(SIGNATURE)______________
___________________________ ____________________________________
___________________________ ____________________________________
___________________________ ____________________________________
___________________________ ____________________________________

52. 6. MONITOR

53. Inspect Hotspot On All Jobs
Subdivision:
Lot:
Date of initial inspection:
Builder:
Builder Supervisor Name: Crew Leader Name:
Instructions: Check box if OK, circle box if correction is needed. Note specific correction action required.
When corrected, then check box.
Trade Trade Explain Needed Corrections
Builder
Foreman Super List Date Corrected
OK OK OK/NA
install
Describe Current Hotspot:
insulation in all cantilever   
cavities prior to blocking and air
sealing

54. Evaluate Inspection Data
Builder/Lot Inspection Items from Job Complete Forms
HOTSPOT ITEM
Cantilever Floor Mechanical Dampers
Smith Building
Elders 23
Elders 24 1
Elders 25
Elders 26
The Meadows 12
The Meadows 13
The Meadows 14 1
The Meadows 15 1
The Meadows 16
The Meadows 17
R&R Custom Homes
1002 Peaceful Way
1004 Peaceful Way
1006 Peaceful Way
1008 Peaceful Way
Total 1 2

55. Next Steps . . .
(and WHY?)
 Goals:
 Quantify benefits of
implementing quality
practices
 Validate performance
improvements achieved
through quality practices

56. Hypothetical Cost of Quality
(Cokins, 2006)
 PC=prevention cost  IFC=internal failure cost
 AC=appraisal cost  EFC=external failure cost

57. Opportunities for Builders
(Professional Builder Magazine, May 2009)
Do Builders See a Need for
Improvement?
 Operational Efficiencies
 60%
 Better Product
Marketing & Services
 29%

58. National Housing Quality Award
(NHQA) Results 1993-2009
NHQA Winning Builder
Category
Benefit from Quality
Profits (Gross Margins) 12-20%
Revenue 15-100% increase/yr
Construction Costs vs. Budget +/- 1%
Customer Satisfaction 93-97%
Referral Rates
29%
(Sales made through referral)
Cycle Time Reductions 15-50%
Zero Defects at Closing 98%
Defect Reductions 11-75%
Employee Satisfaction 94%
Trade Satisfaction 95%
Customer Endorsements/ Thank You Letters 73%
Warranty Requests 1 per every 15.5 homes

59. Performance Metrics
beyond Recurring Issues
 Construction schedules
 On-time delivery
 Energy performance
 Cost
 Training
 Satisfaction
 Referral
 Productivity
 Warranty/Defects

60. Challenges of Performance
Metrics
 Comparing
“apples to apples”
 Defining them so
all builders can
use them as
benchmarks

61. Quality Impacts at
Veridian Homes
 Construction Costs
 -/+1% Budget vs. Actual
 Customer Satisfaction
 95% +
 Veridian Homebuyers
 76% only looked at Veridian
 Zero Defects
 90% of homes at home
orientation
 HERS Index
 58-61

62. Veridian Results
 Reduced Defects
 50% in 1 yr
 Cut inspections in half
 Reduced Warranty Costs & Defects
 30% - 75%
 Reduced Construction Cycle Time
 18 days
 Reduced Material Variance
 20% lumber, 24% siding, & 38% trim
 Their Secret?
 Commitment to quality management
 Use of tools, principles and resources, including
a HPH quality management system

63. High Performance Quality
Management
 Economics of Quality
 Hotspot Methodology
 High Performance Homes Scopes
of Work (SOW)
 Quality management section
update of ToolBase
 Primer
 Prioritized Gap Analysis
 Existing Home SOW

64. Resources
 Building America
 www.eere.energy.gov/buildings/building_america
 Builders Challenge
 www.eere.energy.gov/buildings/challenge
 NAHB Research Center
 www.nahbrc.com
 www.toolbase.org
 National Green Building Certification
 www.nahbgreen.org

65. Thank You!
This concludes The American Institute of Architects
Continuing Education Systems Program
Amber Wood
Manager, Energy Programs
301-430-6309
awood@nahbrc.com