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CIMA Gateway case study exam – May 2019 – pre-seen material
The customer meets with Jord’s architects to discuss and agree their individual building
requirements. Following these discussions, the architects produce a detailed plan,
specifying all of the major building components.
The customer then visits Jord’s headquarters to meet with Jord’s interior designers to
select finishes, fixtures and fittings for all internal components such as the electrical
installations, flooring, doors, kitchen and bathroom fittings and heating and ventilation
systems.
On the basis of the detailed planning carried out between the customer and the architects
and the interior design team, Jord then prepares a finalised construction plan and a
binding quotation. In line with absolute transparency, this takes into account every single
construction component, every aspect of the internal fittings and any special customer
specifications.
Following customer consent, the purchasing contract is then drawn up and signed. Jord
guarantees to honour the agreed purchase price for 12 months from the contract date.
A completion date is confirmed.
All details of construction and delivery scheduling are precision planned and scheduled in
advance into Jord’s production scheduling software. The software Jord uses to manage
factory production is designed to ensure that from the very start of the main build process,
raw materials, staff and the appropriate parts of other work in progress are available and
used in an efficient manner at exactly the time they are needed in the main build process. The software links and co-ordinates back office systems, factory and on-site construction
work so that staff and materials flow seamlessly through the process and wastage of
materials and staff downtime are minimised. This ensures Jord is a highly efficient
operation.
1 As building regulations and directives vary from region to region, (which demands a precise knowledge of
construction and conveyancing law), the customer is required to work with a local agent to progress all legal and financial arrangements regarding the purchasing of the land on which the house will be situated. Jord requires that customers ensure all conveyancing work is complete prior to the design phase commencing.
CIMA Gateway case study exam – May 2019 – pre-seen material
Risk Description and impact Mitigation Risk after mitigation
Customer service
Risk that Jord houses do not offer customers the highest level of customer service commensurate with our luxury brand and higher quality offering. The impact on our reputation would be a great concern.
Ongoing staff training in customer service is a priority. Continual interaction with customers, understanding their ratings of our service underpin achieving the best customer service. Robust quality control procedures feed into this approach.
Medium
Availability of quality materials
Risk that the sustainable high-quality materials used in construction of Jord houses are in short supply. This could hamper production and push up the price of raw materials.
Continual understanding of what materials are needed and the position of our key suppliers in obtaining those materials. Ongoing high-quality communication with suppliers.
Medium
Quality of staff
Jord relies upon the highest quality of staff to deliver the luxury product and service to the customer. Key members of staff leaving would impact on what Jord provides and therefore could affect reputation and ultimately profitability.
Jord is considered a good place to work so there are no staff shortage issues and work persists to ensure reputation remains high. Jord invests in continual staff training and the reward and development scheme is considered one of the best in the industry. Turnover is low, but this remains a high risk as any loss from our small and experienced teams could potentially impact our offering.
High
Planning laws
Although planning laws are relaxed in Corvola they can be more stringent in other countries and have an impact on what we can do with house design and construction.
Jord continues to employ a staff member tasked specifically with looking at the planning requirements in each country of operation.
Low
CIMA Gateway case study exam – May 2019 – pre-seen material
Description and impact Mitigation Risk after mitigation
Health and safety
There is a risk of injuries to staff whilst constructing Jord houses, particularly on the building site, away from the factory where the controls over worker safety are high. On the building site there are more uncertainties which could lead to injuries to staff or damage to the environment or communities. Such damage could harm our reputation.
Control system design and application is regularly checked within the factory and staff are trained to a high standard in use of the equipment used in the factory and on the build site. Every building site is assessed by a dedicated safety manager to identify risks specific to the site and measures put in place to deal with those risks.
Medium
The economy
Jord houses are a luxury housing product and hence a significant economic downturn could affect the ability of our customers to buy a Jord house or obtain a mortgage. This risk is increased by the long Jord waiting list as it is possible that over the course of a year customers financial circumstances could change.
Jord only produces 100 houses each year and there appears to be enough demand even in recessionary periods historically. Most of the costs incurred in building are covered by stage payments made by customers before work commences so the risk of committing resources and later being unable to recover the funds is low and restricted to the last 30% when a house is nearing completion.
Medium
The environment
Jord prides itself on high levels of care for the environment and operating in a sustainable and ethical way at all times. Therefore, any instances where Jord has not taken the upmost care of the environment and the communities in which it operates would be detrimental to reputation and affect competitive advantage.
Sustainability and care for the environment underpins every Jord activity. Our control systems and culture centres on complete care in the way in which we operate and the Jord staff training programme reinforces this message at every opportunity.
Medium
CIMA Gateway case study exam – May 2019 – pre-seen material
The Corvola Times Can ‘prefabs’ solve the housing crisis?
On-line update Earlier today, the Corvola Minister for Housing, Ruben Morten, declared that an estimated 100,000 new homes per year will need to be built for the next 4 years to solve the country’s housing shortage. And the solution? Prefabricated houses, according to Mr. Morten. “Factory built housing is the ideal solution to produce houses efficiently and sustainably. Prefabs are significantly faster to build than brick and block houses. With greater private and public investment, we could transform this part of the house construction industry into a key player in solving housing shortages throughout the world, not just here in Corvola.” Lena Fini, Chairperson of the Corvola House Building Confederation responded “We expect to see huge change in house building around the world. Traditional house building is just too slow, too expensive and not sustainable. Importantly, customers are also looking for more efficient and environmentally sustainable housing. It would seem that prefabricated houses are the future.”
NORTH AMERICAN MARKET SEES THE ‘FAB’
SIDE OF PREFABRICATED HOUSING
Corvola Prefabricated Manufacturers blog
Prefabricated housing is not a new concept in North America, but it is a concept that is gaining in popularity at an unprecedented rate. Although there is a long way to go before North America catches up with some parts of Europe and Asia in terms of adoption of prefabricated housing, interest is growing rapidly, and customer waiting lists for the best prefabricated house builders are becoming rather long!
Chuck Prendergast from luxury North American prefabricated housing builder ‘Luxblocks’ tells us: “Here at Luxblocks we are very excited about developments in the prefabricated housing market. Demand is growing, not only at the budget and mid-range levels, but also at the premium end of the market. In 2016 we would pretty much commence building work within a few weeks of receiving a firm customer order. Now we have a huge waiting list! Customers now know that, if they want a Luxblocks house,
they need to get their order in quickly! Demand has never been so high!”
CIMA Gateway case study exam – May 2019 – pre-seen material
Today at 16:04 If you are considering moving to a new house this year and want to come home to not only a lovely house, but also a lovely garden, look no further than the team at Lovely Homes. We now offer a garden design and landscaping service to complement our lovely homes. The image below shows the sort of garden landscaping we can provide with our dedicated garden designs team. This is more than just rolling out the turf. We can offer you a complete landscaping service, making the most of your chosen plot of land! Send us a message or comment below to find out more about this exciting service.
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Pal DeVires
Just moved in to my new ‘Lovely Home’. Was unsure at first whether to spend extra on
garden design as I was one of the first customers to use the service but so glad I did –
gorgeous!
Jan Pavlak
I have messaged you. Interested in this service.
CIMA Gateway case study exam – May 2019 – pre-seen material