The Quadrant Case

Case: Quadrant Homes Applies Lean Concepts in a Project Environment

1. Consider the three value disciplines described by Treacy and Wiersema. Create a two-by-three table in which you name and describe the three value disciplines in the left column. In the right column, describe what Quadrant does to support each one. Below the table, write a few sentences in which you take a position regarding which value discipline best describes Quadrant’s highest priority. Defend your reasoning.

Value Disciplines Quadrant
Operational Excellence  Redesign of internal processes and home designs to move from build-to-stock to build-to-order based on customer preferences from buyer survey and real estate sales data.
 Focus was to reduce cost, reduce waste, improve product quality and increase delivery speed.
 Load balancing of staffing and resources to avoid feast-or-famine dynamics; improving the flow of value-creating stages.
 Backward integration with sales forecasting to prevent expensive land inventory build up; block-style purchase of 90-100 lots in areas of similar price competition for used homes.
 Move away from single, unique community center managers to community teams with standardized 40-point standard procedures list; balanced load for community teams to allow completion of one community before starting another.
 Standardized buyer process of layout and feature selection followed by a vertically-integrated loan provider.
 Minimal core staffing with high outsourcing with closely-coupled contractors; systems are shared to expedite information and financial flows.
Customer Intimacy  Buyer surveys and real estate sales analysis led to the unfilled customer niche for homes with 1) large space, 2) more feature choices, and 3) good value.
 Offering more home customization choices to the consumer than before with previous business model.
Product Leadership  Seeking advice from subcontractors and suppliers regarding ways to improve quality of homes