Quadrant Homes, a subsidiary company of Fortune 500 the Real Estate Department of Weyerhaeuser Company, had acquired reputation for its lean-oriented business model.
The operating system, constructed on a solid worker culture of operational excellence, made partly customized, build to order homes using an "even-flow" process that delivered on Quadrant's value proposition, "More House, Less Cash." Between 2007 and 1996, customer referrals market share expanded tenfold, net margin per house had tripled, and the business's revenues and profits had soared. Quadrant's fortunes changed drastically when the Seattle area was hit by the property recession in 2007. Furthermore, the first choice of the marketplace had transferred away from Quadrant's quite bland-looking, boxy houses toward more customization and differentiation. In reading and discussing the case, pupils are challenged to consider how it can reinvent its value area and supporting operating system in light of new insights about customer preferences and economical factors, and what directed Quadrant temporarily down the wrong path.
Quadrant Homes Adapting a Lean Operating Model to New Market Realities Case Study Solution
PUBLICATION DATE: December 31, 2012 PRODUCT #: TB0315-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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