Implementing Lean Project Management to Build a Dream Home in Heidelberg Melbourne

Running head: IMPLEMENTING LEAN PROJECT MANAGEMENT
Implementing Lean project management to build a dream home in Heidelberg Melbourne
Name of the Student:
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1IMPLEMENTING LEAN PROJECT MANAGEMENT
Introduction
Construction industry is one of the most widely driven and commercially successful
industries allover Australia. The responsibility of stakeholders and construction head is to follow
proper building processes to make sure that the project will be completed on time and estimated
budget (Sunder 2016). This essay depicts the project management prcatices that a project
supervisor and project team should follow to drive and complete the dream house building
project on time. Prince2 and PMBOK are the two different project development methods used in
construction industry.
Among these two methods for this particular project Prince2 development method is
selected and explained. In this essay the client’s requirements are all finalized based on the
project scope. AlphaQ Property and Constructions Company is assigned to construct the dream
home in Heidelberg Melbourne. Not only this but also the process of communication that the
associate stakeholders will follow throughout the dream home construction period are illustrated
in this essay. Not only this but also, how the subcontractors, contractors and vendors will be
managed to execute the project on time within budget are also elaborated. It is determined that,
lean management is the best project management practice uses by project managers to achieve
objectives and aims of dream home construction project. The different phases to be maintained
throughout to complete the dream home construction project are also elaborated in this essay.
Selection and explanation of Prince2 Project Management Process
Finalizing clinet’s requirements in terms of project scope
Project scope is defined as a tool used by all project developers at the project beginning
phase. The scope statement for any project is designed before planning and execution. For this
project Prince2 project development method is adopted. Once the sponsor and team approve the
project scope, team starts working on the objectives or activities. Project scope statement is one
of the major deliverables which includes milestones, high level deliverable, assumptions and
constraints as well (Mesa, Molenaar and Alarcón 2019). Not only this but also, for future
decision making scope statement plays essential role. In order to approve new project changes
also scope statement plays import role. Statement of Work in construction for the project will

2IMPLEMENTING LEAN PROJECT MANAGEMENT
define involvement of the contractors, sub contractor, civil engineer, architect and others. The
scope of the project is to identify the roles of stakeholders and how they can be engaged to the
expected responsibilities. SOW is a clear document that defines the activities to be performed by
individual associates (Ansah, Sorooshian & Mustafa, 2016). It will guide the supervisor and
team. It would also let the team know about how the project needs to be operated successfully. It
indicates the timeline and work breakdown activities.
Scope management plan for this dream home construction project includes checklists in
terms of project overview, project deliverables, schedule, roles and responsibilities distribution
or resource management plan, reporting requirement identification and additional information
identification. The constituents of additional requirement include change requests. Once the
requested changes will be identified as valid theses would become additional part for the early
project scope (Elias, 2016). For the dream home construction project in Heidelberg Melbourne a
scope management plan or a scope statement is developed. The initial scope of the project is to
develop a SOW considering timeframe and budget. The total budget and time assigned for the
project are respectively AUD$500,000 and 12 months. Generally dream home construction
projects took 5 to 6 months. However, budget estimated for this dream home construction project
is higher than others. Thus, this project takes approximately 12 months to get complete. Many
well known construction companies operate in Melbourne.
Before beginning this project, the best affordable builder AlphaQ Property and
Constructions is selected. The very next scope of the project is to sign contract with contractor
and subcontractor. The budget distributed approximately for each construction activities are also
identified in the scope statement (Cano, Garnett & Kourouklis, 2018). The milestones,
assumptions, deliverables and project constrains for the project are developed in the SOW or
scope plan. Apart from that, probable risks that may negatively impact the construction activities
and expected outcomes are also elaborated in the SOW. Apart from that, different lean best
prcatices that the contractor and subcontractor needs to consider for the successful execution of
the project are also elaborated in this scope statement or scope plan.
Communication process with the assigned stakeholders

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Effective consultation with stakeholders is advantageous in decision making. The process
of consultation includes notification, consultation and participation of the project team
associates. Effective communication influences engagement and participation of stakeholders. In
order to conduct such communication all project related information needs to be shared
transparently among the project associates (Li & Wen, 2019). The more information or date
would be shared factually, honestly and easily the more likely stakeholders will take it easily. It
would help the stakeholders comprehend the stakeholder’s intentions. Communication is the best
way for making interaction and et al the associates informed about activities. Clear information
sharing will help the stakeholders realize about how it affects the project activities.
It is recognized that, proper communication with stakeholders is essential for project
success and project improvement as well. Each of the person and community assigned to dream
home construction project are different from each other. Therefore, selection of best
communication channel is important for the project success. For this particular project instead of
upward, downward and horizontal communication open communication needs to be used. It will
provide a common communication channel to the stakeholders and other team associates. This
independent platform allows the team making interaction with each other informally. The
channels that can be used to conduct the communication with stakeholders include email,
presentation, group discussion and face to face meeting. It is responsibility of the stakeholders
and associates to make effective communication to make sure that they are all informed about
the project requirements and its objectives. Neither the reason nor the values of the stakeholders
should be analyzed or understand by the project team and stakeholders. The ongoing
conversation of the stakeholders should be recorded and updated timely. Throughout project
development life cycle period proper conversation has to be conducted among the stakeholders
to keep them all motivated and engaged to assigned responsibilities and roles.
The stakeholders appointed for the dream home construction project are project
supervisor, civil engineer, architect, finance manager, operation manager, resource manager, and
contractor and sub contractor. A detail communication plan is presented in the below section:
Purpose When Who Medium Frequency
To make discussion
on detail scope and
At the project Project
supervisor,
Face to face
meeting, email
Weekly

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objectives of dream
home construction
project
initiation stage team members,
finance
manager and
sponsor
and
presentation
To let the assigned
project team know
about detail work
distribution
Before beginning
or initiating the
construction work
the responsibility
distribution should
be done.
Project
supervisor,
team members
and project
manager
Face to face
meeting, email
and
presentation
Monthly
To finalizing what
best lean project
management practice
can be adopted
During the project
planning stage
Project
manager, team
members,
supervisor and
operation
Face to face
meeting, email
and conference
Monthly
To conduct discussion
regarding advanced
strategies through
which business
objectives can be
reached
At the project
beginning or
initiation stage
Project
manager, team
members and
operation
manager
Face to face
meeting, email
and conference
Once at the
project
initiation
stage
Regarding the project
status report
After completion
of 25%, 50% and
75% completion of
the project
Project
manager, team
members and
operation
manager
Face to face
meeting and
conference
After
completion
of the project
it is essential
Meeting to decide
which specific project
management method
from Prince2 and
PMBOK will be
At the project
initiation phase
Project
manager, team
members,
contractors and
sub contractors
Face to face
meeting
Monthly

5IMPLEMENTING LEAN PROJECT MANAGEMENT
chosen for designing
and developing the
dream home
Discussion regarding
tender, contract and
negotiation
At the project
initiation phase
Project
manager,
project team
and operation
manager
Face to face
meeting
between the
project team
and supervisor
Monthly
About continuous
change management
program
During project
planning and
execution stage
Project
manager,
project team
and operation
manager
Face to face
meeting
between the
project team
and supervisor
Monthly
Discussion on board
meeting and
stakeholders update
During project
planning and
execution phase
Project
manager,
associate
stakeholders
and team
members
Face to face
meeting, email
and conference
Weekly
Managing sub contractors and vendors
Construction business is relies upon supply chain management which include vendors,
contractors and sub contractors. The process of supply can be structured in terms of sole
proprietorship, corporate or partnership (Eroshkin et al., 2017). The suppliers can have their own
supply and distribution networks. A successful network channel allows the contractor or builders
create extended as well as cost effective way of construction. From the beginning until the
construction work gets completed it is responsibility of the project supervisors to manage their
sub contractors and all the vendors.
For the dream home construction project in Heidelberg, Melbourne within an estimated
budget of AUD$500,000 and time of 12 months vendors and the sub contractors will play

6IMPLEMENTING LEAN PROJECT MANAGEMENT
essential role. Therefore managing each one of them is very important to avoid probable
construction related risks (Ahmed, 2018). For this construction project raw material suppliers are
the vendors, who will supply sand, stone chips, cement, iron, wooden frames or structures of
doors and windows etc. Vendors do operate in competitive construction environment (Ogunde et
al., 2017). Therefore, selecting the best vendor among them is essential for commercial success.
Best vendor will supply quality materials and ensure that the client’s requirement is fulfilled in
the estimated budget and time (Fosburgh & Buick, 2019). The clients or builders need to
compare different similar service providers before making final selection. Apart from that, the
specific characters that a vendor must possess include suitability, price, guarantee and
performance. The dream home construction project will enter into contract along with multiple
numbers of vendors.
For successfully managing the vendors, strategies those are to be followed by the
supervisor and team include:
Information and priority sharing: In order to manage the vendor information must be
shared among the associates considering information priorities (Saunders et al., 2017). It will
provide useful information on correct time and allow the vendors to serve better. However, this
approach is applicable for design, construction and incorporating useful changes as well.
Balancing communication and competition: One of the main goals of vendor
management is to earn commitment from the vendors so that they can assist as well as support
the construction operations (Igwe, Nasiri & Hammad, 2017). It will help the contractor and
subcontractors earn competitive bid after more than one negotiation.
Building long term partnership: In order to manage the vendors long term partnership
with the other vendors and contractor is essential. The clients must negotiate and create a win-
win agreement for the vendors.
In order to manage the sub contractors the different strategies those are essential include:
Implementation of contracts considering safety compliances: Each contract need to
comprise of subcontractor roles and responbilities. The detail project specifications and the
expectations need to outline the contract (du Plessis, 2019). The document should include

7IMPLEMENTING LEAN PROJECT MANAGEMENT
remuneration and pay scale structure as well. For the sub contractor builders should have proper
health and safety measured.
Share of information ahead time schedule: The subcontractor needs to have all related
information with increasing time frame. If any change occurs then that has to be updated
accordingly. The sub contractors need to take extra time to make communication with others
because this particular dream home building project has lots of moving parts.
Hold regular meeting: The contractor and sub contractors need to conduct timely or
regular meeting to share information. Not only the stakeholders but all the other stakeholders
will come to know about the current project status with this meeting (Banihashemi et al., 2017).
The meeting session will give an independent platform for expressing the concerns and other
matters.
Sign and acknowledge the receipt documentation: All formal documents received by the
subcontractors should be signed in to avoid further functional and operation related
miscommunication.
Use of construction management software: In order to manage the sub contractor the
dream home building associates and project supervisor must adopt particular management
software. It will help the associates keeping paper trails to meet the communication purpose. It
would also help the subcontractors stay within budget.
Implementation of Lean best practices for achieving lean project management
For an improved construction execution plan lean principles and strategies are beneficial.
The best ever prcatices that can help dream home construction builders and contractors
successful path included in the below section.
Before finalizing the clinet’s requirements waste elimination is important With the help
of lean thinking probable waste, risks and defects identification become easier. Defective
elements are required to be eliminated from the operations in this stage. It will also help the
challenges that may create issues with over production. If previous skills talent and knowledge of
the project team members were not considered then waste or project related risks may occur.
Excess processing causing non essential functionalities are needed to be avoided (Irina et al,

8IMPLEMENTING LEAN PROJECT MANAGEMENT
2016). Waste elimination will ensure that vendors and subcontractors are professionally
managed. Once the dream home building work will be completed it will hand over to the clients.
As soon as the document and papers will be handover to the client the responsibility of
contractors and sub contractors come to an end. However the building owner needs to implement
continuous improvement plan to avoid construction related issues.
Sort, set based in order, shine, and standardization and sustain are the five principles
those should be integrate all together and implement to keep the project running efficiently. The
mentioned 5S should be properly arranged to conduct effortless communication (Khanzadi et al.,
2019). It will help to track the project progress and make sure that the construction work is
running according to the clinet’s requirement. Proper assemble of all the project related
components or elements are essential to meet lean project management outcomes (Oakland &
Marosszeky, 2018). Safety measures or safety practices are essential to keep the project
development environment safe. No organization should ever compromise with security and
safety measures. The purpose of going lean will be defeated if safety is not considered. The
specific elements those can be measured should be only considered to avoid future construction
related risks.
Conclusion
The thorough discussion of this dream home construction project in Melbourne implies
that the project team and supervisor have successfully followed Prince2 project management
method to complete the construction work. Builder and location selection are two important
criteria that the assigned project team and supervisor have maintained to avoid overrunning
budget and over allocation of time related issues. The SOW for the project defines the
communication plan, procurement plan, design details, resource, cost details and time
management outline as well. It helped the relative progress of the construction work. The steps to
be followed to accomplish the construction work include selecting best project plan, foundation,
inspection, framework, mechanical installation, insulation, interior work and finishing stage.
Each development stage is followed in details throughout the dream home construction project in
terms of initiation, subsequent and final delivery stage. The supervisor directed the team
members, stakeholders and other associates to make sure that the project is completed on time of

9IMPLEMENTING LEAN PROJECT MANAGEMENT
12 months and budget of AUD$500,000. Specific managerial prcatices are adopted by the
supervisor and associates to achieve best lean practice. The scope statement, communication and
vendor management approach that is followed to build the dream home is elaborated in the
essay.

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