Many problems plaguing production departments end up costing time and money. While it’s clear that there are issues, many remodeling companies can’t pinpoint the causes.
One way to find out what’s really going on is to establish Key Performance Indicators, or KPIs. KPIs allow you to measure how well your production process works. But what should you measure, and how can you do it?
In this episode, Rick Swanquist answers those questions as he joins Tim and Steve to discuss how he uses KPIs to really know what’s going on in his production department, and what it means to his company.
A veteran of the construction industry, with nearly 15 years of project management experience, Rick has been with Main Street Design Build in Birmingham, MI, since 2015. Rick was hired to be a project developer at Main Street, quickly working his way up to project manager, and spent the first two years of his tenure managing projects. He has been a production manager for two years at Main Street. Rick’s passion is scheduling and managing subcontractors and in-house carpenters to see a project through to its completion.
When beginning to institute KPIs in your company, you need to figure out what they’ll be. Rick defines a KPI as a goal that is practicable and repeatable through objectives defined by metrics, that have timelines and targets with methods for predicting and measuring them. The data is collected throughout each project and evaluated at the end. Rick talks about what he looks at, how to set goals, and keeping his team accountable through KPIs, including:
- What can be measured
- How to evaluate KPIs
- The 13 KPIs he uses for carpenters
- The KPIs for project managers
- Using the project autopsy to measure performance
- How long-term measurement ensures accurate assessments
- How the estimate works in the mix
- Keeping the process open and transparent
- Establishing a baseline for expectations
- How KPIs can boost morale and healthy competition
- The client satisfaction score
- And more …
All the KPIs, taken together, allow Rick to see how his team is performing and to identify and solve problems in production quickly.