PHRC Report #13: An Analysis of Quality in the Modular Housing Industry
Date: August 1991
Author(s): D. J. Mason, F. Grobler, J. H. Willenbrock
BACKGROUND:
Systems built housing in a manufacturing plant setting has not been widely accepted by American consumers as an affordable housing alternative. One reason for this lack of acceptance is the American consumers' perception of systems built housing as a low-quality and, thus, undesirable product. This stigma, which the American housing market has attached to systems built housing, must be eradicated before systems built housing can be widely accepted as a viable affordable housing alternative.
The modular housing industry (one of the primary components of the systems built housing industry) facts the formidable task of eradicating this stigma. This can only be accomplished through wide-scale marketing efforts designed to educate American consumers about the quality advantages of systems built housing.
This research project was undertaken to provide independent documentation which would either support or point our weaknesses related to the following claims about the quality of modular housing:
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The controlled environment of a modular housing manufacturing plant provides the optimum setting for rigidly controlling product quality. |
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Modular housing manufacturers are actually using this environment to their advantage by rigidly controlling the quality of their product. |
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Consumers are highly satisfied with the quality of their modular houses. |
The primary steps in the research effort included:
Step 2. Ideal Quality Management System - Using the concepts resulting from an extensive review of quality management literature, and the model analysis of Step 1, an ideal Quality Management System for the Modular Housing Industry was developed.
Step 3. Field Assessment of Manufacturing Plans - A total of three modular housing manufacturing plants were analyzed in order to determine whether the manufacturers were effectively using the controlled environment of their plants to rigidly control the quality of their product. A rating system which compares the quality management efforts of each manufacturer with the ideal system developed in Step 2 was developed and used in order to make the appropriate evaluation.
Step 4. Builder-Dealer/Consumer Survey - A builder-dealer/consumer survey was also developed and distributed to the intermediate and end-users of the modular housing units produced by the three plants in order to determine the level of satisfaction with the quality of the final product. This survey was also used to establish a builder-dealer/ consumer definition of quality.
SUMMARY OF RESULTS:
The following major results were obtained:
- A number of factors exist in a modular housing manufacturing plant which have the potential of providing an ideal setting for producing high quality houses. Those manufacturers that properly take advantage of those factors do produce such houses.
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It appeared that all three manufacturers in the study employed a majority of the important points of the Ideal Quality Management System that was developed. |
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For the majority of the categories listed in the Builder's Survey the three manufacturers met or exceeded the expectations of the builders that purchased their products. This general statement could also be made about the Consumer's Survey that was used. |
WHAT IT MEANS TO YOU:
A modular housing manufacturer who considers the results of this study would be foolish, and ultimately non-competitive, to ignore the advantages of emphasizing a strong Total Quality Management System. A stick builder, faced with an increasingly competitive environment, would be strongly advised to consider modular housing as a satisfactory way of expanding his/her product line of quality built homes.
WHAT'S NEXT?
The results of this report were summarized in several issues of Building System Builder magazine during the Summer and Fall of 1992. In addition a series of seminars based upon this research study were provided at the Modular Home Show which is presented by the Mid-Atlantic Building Systems Council in Hershey, PA, from October 26 to November 1, 1992. The net result of these technology transfer efforts will hopefully raise the issue of Total Quality Management to its proper level in the Modular Housing Industry.