Shea Homes at Phoenix, AZ is nationally recognized leader in the homebuilding industry. Currently, Shea Homes develops land, coordinates the building, and sells approximately 2,000 units per year. A commitment to continuous improvement and embracing the latest management approaches has catapulted them to where they are today.
They looked to Vector Strategies to take them to the next level. Master scheduler, Jody Dents said, “Vector Strategies helped us take the five major parts of the company that had been operating independently from each other and turn them into a cohesive supply chain."
"The challenge facing them was how do they continue to improve within the environment of limited resource base in Arizona," according to Paul Kalkbrenner, the vice president of construction. He observed, "We must continue producing a highly quality product, reduce cycle times and lower job costs."
The first community built using Theory of Constraints approaches, developed by Vector Strategies, reduced cycle time by 40%, from 91 days to 56 days. Mike Romelfanger, community development team leader stated, "We are estimating a first year savings of $6.9 million on capital reduction alone. This will pay for the substantial increase in the amount of houses we plan on building this coming year."