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    13-4. Build twice. - Electronic Edition

    13-4. Build twice. - Electronic Edition
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     Forty years ago the Boston Consulting Group found that with every doubling of manufacturing experience, production costs dropped 15%. So a tire that cost $10 to manufacture for the first million tires costs only $8.50 after the second million is produced. Same with a can of soup or a hammer or any manufactured product. I think a house that you “manufacture” would fall under the same rule.

     If you were to build the same house twice, you costs would fall 15%. If you built four times, your costs (adjusted for inflation) would drop 30%.

     Kathy and Derek E. illustrate: “We went through it once on our own, using a supervisor, and sold that as a spec, and we have three or four more to go. Now we can build the same home more than once, and there is so much less brain damage the second and third time that way. I can see how much tile to order, how to adjust an arch, etc. Each time we build we change the exterior skin so it looks different. We build in the same neighborhood and save commute time, too.”

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