Implementing Lean Project Management

This document discusses the implementation of lean project management for the construction of a dream home. It covers the selection process, factors influencing design, and the benefits of lean practices. The document also includes information on project management processes and stakeholder identification.

Running head: IMPLEMENTING LEAN PROJECT MANAGEMENT
PPMP20009 Leading Lean Projects: Implementing Lean Project Management to Build Your
Dream Home
Name of the student:
Name of the University:

1IMPLEMENTING LEAN PROJECT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
1. Selection and explanation on project management process........................................................2
a. Selection of Suburb and decision for the land size..................................................................3
b. Selection of best builder..........................................................................................................3
c. Identification of stakeholders for the project...........................................................................4
2. Factors and processes that influence the design and layout of the dream home.........................5
2.1 Factors....................................................................................................................................5
2.2 Project management processes used to determine the design or layout................................6
3. Explanation on the way how lean best prcatices can be implemented........................................7
Conclusion...................................................................................................................................9
References......................................................................................................................................10

2IMPLEMENTING LEAN PROJECT MANAGEMENT
Introduction
Different approaches and ways are there can be used to organize a specific project
following which the project can be governed towards defined goal and objectives. It is duty of
supervisor and other team people to make sure that all project management specifications are
followed thoroughly in project life cycle (Binder, 2015). The efficiency, effectiveness and
success of any project are dependent on the ways how different development processes are
followed.
The function of the assignment is to identify the application of lean project administration
while building a dream home in a nominated location. The location and land size those have
been selected for building the dream home is Leederville, Perth and 0.25 Acre or 10890 sq feet.
However, the final size of this land is dependent on budget that can be spent. In order to
construct the dream home potential builders are selected. The project stakeholders are identified
and the factors that influence the design layout project are elaborated in this paper.
1. Selection and explanation on project management process
In order to select and explain the project details such as-site selection, land size
estimation, best builder selection, and stakeholder identification, PRINCE2 is the best suited
project management process. Project management process is referred to as an administrative
sequence that project supervisor needs to follow to implement any project successfully in
assigned budget and time. After approval from the supervisor and customer the project initiates
(Heldman, 2015). The process of project management includes documentation, project plan
details, project meeting, management methods, resource management information exchanges etc.
The government of Western Australia has approved the project and it is suggested that among
PRINCE2 and PMBOK, PRINCE2 is the most suitable for execution of this project.
For the dream home building project PRINCE2 project development methodology is
much essential. The certification scheme is comprises of two levels- foundation and practitioner.
Though PRINCE2 is used as a standard for IT projects earlier but these days this methodology is
applicable or construction projects as well. This method is suitable because it is widely
recognized from the project management and business operational perspectives (Banihashemi et

3IMPLEMENTING LEAN PROJECT MANAGEMENT
al., 2017). It gives a perfect starter qualification to supervisor and project clients as well. In
addition to this, it also gives accountability and flexibility to the team associates (Kerzner &
Kerzner, 2017). PRINCE2 highlights continuous business justification as well as risk
management opportunities to the team associates. PRINCE2 method is comprises of various
themes, principles and processes that help to keep any project viable from the operational
perspectives. PRINCE2 can break any project into smaller segments to keep all the steps
updated. Project spiraling issues will be decreased and supervisor can also track the intended
goals in a much easier way. This method is cost and time effective. The method will take lesser
time to predict and identify uncertainty and risks. It supports minimum number of meetings.
PRINCE2 methodology does not require any additional license fees (Ferrada et al, 2016).
Moreover, it can be said that, PRINCE2 is compatible with other project management
certifications because it allows the supervisor and associates to avail technical framework or
project structure. PRINCE2 methodology complements softer expertise learnt in all other
documentation (Todorovic et al., 2015). The methodology gives strategic direction, analysis and
execution abilities to the team associates. The dream home building project will get organized
development structure with the help of PRINCE2 development methodology. Moreover,
PRINCE2 explains business benefits to the team associates.
a. Selection of Suburb and decision for the land size
The suburb was chosen after analyzing different project management processes that can
be used to execute an error free project. The new job destination is Perth, Australia and for
building dream home the nominated location is Richmond and Oxford Street, Leederville, 6007.
The land size purchased to execute the dream home construction is of 0.25 Acre or 10,890 sq
feet.
b. Selection of best builder
After analyzing the market status and competitors throughout Richmond and Oxford
Street, Leederville, the builder who has been selected for execution of the dream home project is
Azure Luxury home. The size and location are selected based on estimated budget measured at
the early stage. Before finalizing the land layout or design, cost estimation is essential.
The deposit for AUD$2000 will be paid for construction of the dream home in Perth and
a pre work construction contract was also signed with the builder.

4IMPLEMENTING LEAN PROJECT MANAGEMENT
c. Identification of stakeholders for the project
In order to accomplish the dream home building project the assigned project stakeholders
their roles and duties are elaborated in the below section:
Construction stakeholders Role Duties
Builder (Azure Luxury home) External The duty of the builder is to
finish the dream building
construction in assigned
timeline and budget
Project supervisor Internal The duty of the project
supervisor is to monitor the
project progress and make
sure that it running within the
time and budget (Ogunde et
al., 2017)
Investors External Duty of the investors are to
invest needful funding
Architect Internal The duty of the architect is to
design the new structure for
the construction
Finance team Internal The finance team’s
responsibility is to generate a
feasibility report and structure
the construction based on
financial success.
Contractor External The duty of the contractor is
to provide materials, labours,
equipments and other
necessary construction
components and supervise the
project throughout the

5IMPLEMENTING LEAN PROJECT MANAGEMENT
development life cycle
(Banihashemi et al., 2017).
2. Factors and processes that influence the design and layout of the dream
home
2.1 Factors
The performance of a construction process is influenced by different factors. In other
words, the complexity of any construction project can be minimized with proper introduction of
these factors. Construction industry is the one which contributes approximately 15% of the gross
national product in industrialized countries. Accomplishment and failure of any project is
dependent on performance of project team associates and supervisor (Sunder 2016). The factors
influence the dream home construction project is sorted in different categories and these factors
are as follows:
Cost factor: Cost is referred to as one of the most effectual knowledge areas that require
major focus from the business perspectives. Before executing the project, finance head should
conduct a feasibility study and develop a Cost Breakdown Structure (CBS). The developer needs
to make sure that no frequent design changes are taking place and also no fluctuations in
equipment and materials are occurring. There are some other related factors that can influence
the complete project design and outline are motivation cost, cost for project over time etc (Sohi
et al., 2016). Not only this but also, inappropriate communication among project team associates,
poor supervision and site management can influence the project cost.
Duration factor: Duration is referred to as other major factor that influences project
progress. Insufficient availability of resources, late in preparing the site, time taken for rectifying
identified defects, unforeseen accidents can increase the overall duration that was primarily
allotted for the project. Therefore, the project supervisor must ensure that no major changes will
be entertained that may negatively impact the dream home construction project.
Quality and productivity: Quality is a major factor that influences the project success in
terms of maximum productivity and services. Lack of motivation, skill, knowledge and
experienced team associates can hamper the quality of the project. Lower quality and poor

6IMPLEMENTING LEAN PROJECT MANAGEMENT
equipment availability can also impact the project (Fosse & Ballard, 2016). The way through
which project team associates manage labour relationship also influences the productivity of any
project. In order to avoid quality and productivity level issues, the associates need to work
according to schedule sequence.
Client satisfaction: Customers are most important asset for any project. Therefore,
supervisor must ensure that clients are satisfied with the services that projects are generating.
The team must be managed, directed and the team associates must have proper coordination
among each other and also with the supervisor (Eroshkin et al., 2017). Information needs to be
successfully shared between the associates. For the dream home construction project, expectation
of the clients must be considered before the final initiation of the project.
2.2 Project management processes used to determine the design or layout
In order to determine the dream home construction design and layout presentation the
best suited management process that has to be followed is elaborated in the below section:
Project initiation: Project initiation plays the most vital role in project success. Before
initiating any project the supervisor first requires to identify the project outline. Throughout the
development life cycle, the phases are independently desired to be followed by the supervisor
and other associates (Antony et al., 2015). In this phase the location, land size must be
determined based on the possible investment. After that the scope statement and objectives are
needed to be developed. This phase helps to determine different opportunities that the project can
provide. A Project Initiation Document (PID) is presented to sponsor in this phase to obtain final
approval.
Project planning: The project planning stage demonstrates project scope statement. In
this phase procurement, contingency and risk management plan are also developed. Project
budget, schedule and resources are also identified in this stage. Communication is another crucial
process that is needed to design and build the dream home in Perth in the chosen location and in
the estimated initial investment of AUD$2000. Before developing the final project plan, the
contract should be signed in this phase by biding and negotiation. The contract signed for the
project is fixed price project contract (First, 2015). In this phase, the project stakeholders are also
managed by the supervisor.

7IMPLEMENTING LEAN PROJECT MANAGEMENT
Project execution phase: After documentation of the plan, this project is executed
followed by blueprint and architectural design completion. In order to execute construction of the
dream home project two major processes are needed to be considered in terms of monitoring and
project controlling. The team associates must ensure that all the required tasks are professionally
being followed throughout the project development life cycle period.
Project closing phase: Project closing is the ultimate phase which defines whether the
project is a success or a failure. The project manager and the project sponsor evaluate the project
closure report. The project budget, schedule and other aspects are also checked in this phase
before final handover of the project. Based on project feedbacks the construction design and
outline can be changed. In order to ensure success of the project different project management
tools that are needed to be utilized by the supervisor and associates include Gantt chart, CPM,
WBS and Q scheduling etc.
3. Explanation on the way how lean best prcatices can be implemented
In the below section the necessary stages are elaborated that the project supervisor needs
to follow for implementing the dream house construction project.
 Elimination of waste: All possible wastes are needed to be eliminated.
 Continuous improvement plan implementation: Based on periodic updates
changes should be incorporated
 Project organization: The project needs to be organized accurately
 Safety management plan: Proper safety measurement approach is required to be
implemented
 Track metrics: Project tracking metrics are required to be identified and applied
Lean project management is referred to as an effective set of manufacturing principle or
practice that help to perform any project successfully in the allocated time and budget. With the
help of lean project management prcatices the values of waste management gets maximized
(Joslin & Muller, 2015). It reduces the issues of exceeded expense and over allocation of
resources and over running time as well. The key principles of lean project management are as
follows:

8IMPLEMENTING LEAN PROJECT MANAGEMENT
 The first stage is elimination of wastes, therefore, after selection of the plot for the
dream house construction a feasibility analysis is required to be conducted. The
feasibility report will identify success line and potential risks that may throughout
the project development period. It will help to identify possible risk factors that
may result failure. It helps determining the value which the dream house owner
kept in his mind can be measured. It generates a value stream map that would
highlight complete process required for creation of the design outline and building
architecture. It helps to eliminate unwanted processes, stages and even elements
that may interrupt success of the construction project and efficiency of the
contractors and sub contactors.
 The second stage of lean project management approach is continuous
improvement. After outlining the dream house blueprint continuous project
improvement plan needs to be implemented. With changing time whatever
changes are requested through feedback, can be successfully incorporated to
project after execution of lean project management process.It diminishes the
overall operational and functional cost assigned for the project at the project early
stage of development (Kerzner & Kerzner, 2017). It increases the rate of savings
and adds on profit rates to the project structure. It allows customer survey as a
result the overall interaction between the project team associates gets improved. It
gives an open platform to the project team associates where all of them can
successfully interact with each other. In other words, the customer’s viewpoints
are highly prioritized in this project management process.
 The third stage is project organization. In order to implement this dream house
construction project successfully, the project development stages are needed to be
arranged accordingly. This is a strategic development process that utilizes the
push and pulls factors (First, 2015). The overall expenses estimated for the project
at the early stage become inflated if the leaders fail to provide required attention
to the inventory management plan.
 The fourth stage is safety matrix plan. While constructing a dream house in the
nominated location, safety and security of project supervisor, associates and
labours are needed to be considered. The process helps to decrease the numbers of

9IMPLEMENTING LEAN PROJECT MANAGEMENT
defects in the dream home construction project. It improves the overall work
culture and also helps in remake of products and services.
 The last stage is use of tracking matrix and this tool needs to be applied by the
supervisor and team associates to check that whether the project is progressing
towards proper direction or not. If it is found that appropriate direction is not
followed then, respective changes are needed to be followed. The cost breakdown
structure develop for the project is elaborated in the below section:
Figure 1: Project budget for the Dream house construction
(Source: created by Author)
Therefore, it can be said that of this process is successfully followed by the project
supervisor and team associates throughout the construction project development life cycle period
then the chances of time, cost and resource over allocation or misuse will be reduced. Not only
this but also, the culture of the project associates will be successfully improved (Brioso, 2015). If
this process is adopted and applied respectively then the possible wastes will be easily managed
and also the employee’s morale will be increased. The chances of time consumptions and time

10IMPLEMENTING LEAN PROJECT MANAGEMENT
consumption will be also minimized. The project sustainability will be increased along with
profit and employee satisfaction and lead time.
There are some examples of lean manufacturing include:
 Value stream and accurate process mapping
 Controlled automation and flow of the project production
 Reduction in inventory
 Employee training
Conclusion
From the overall discussion it is concluded that in order to execute any project
successfully the supervisor needs to be maintain proper project management processes.
Different project development methodologies are there and based on the project type, size and
nature the best suited development methodology is needed to be chosen and applied by the
project developers while building the dream home in Leederville, Perth. After analyzing some of
the processes it is identified that for executing of the dream home project, PRINCE2 is the best
suited methodology. Cost, duration, quality, client satisfaction, health and safety of the labors
and environment are the factors which influence the dream home building project. In the
construction project changes and continuous improvement based on those changes are much
mandatory. Lean project management provides opportunities to continuous improvement. Lean
project management process is focused on defining values from end standpoint of the customers.
It also helps to eliminate waste from the business process. Lean project management approach
can be used to build the dream home in Leederville, Perth.

11IMPLEMENTING LEAN PROJECT MANAGEMENT
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