Lean Project Management

This document discusses the concept of lean project management and its application in a construction project. It covers topics such as choosing the appropriate suburb and land size, selecting the right builder, and designing the layout. The document provides expert advice and tips for achieving lean project management.

0Running head: LEAN PROJECT MANAGEMENT
Lean Project Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction..........................................................................................................................1
Discussion............................................................................................................................2
1.Project Management Processes.....................................................................................2
1A. Choosing the appropriate suburb and land size....................................................2
1B. Choosing the appropriate builder..........................................................................4
1C. Identification of the stakeholders..........................................................................6
2. Design and Layout.......................................................................................................7
2A. Potential factors....................................................................................................7
2B. Project management processes..............................................................................8
3.Achieving Lean Project Management..........................................................................9
Conclusion.........................................................................................................................11
References..........................................................................................................................12

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Background:
The concept of lean project management can be defined as a process of applying the lean
principles of manufacturing for the purpose of minimizing the waste, thus potentially
maximizing the value (Dabestani et al., 2017). There are three kinds of wastes that are identified
using the principles of lean manufacturing, namely muda, muri and mura. Muda refers to those
resources or activities that do not add any additional value; Muri can be defined as the overuse of
employees or equipment and Mura refers to operational unevenness that decreases the
productivity and efficiency. These principles of lean project management can be applied in this
particular project in order to achieve the desired outcome.
Discussion
1. Project Management Processes
1A. Choosing the appropriate suburb and land size
In comparison to the rest of the world, Perth provides the most standardised form of
living. The inner beauty of the city along with the mesmerising beaches are some of the key
reasons for its popularity. There are a range of suburbs in Perth that provide unique benefits in
their own possible ways (Bazlamit, 2018). For the purpose of making a new home in the suburb,
it is essential to carefully assess these beneficial aspects and compare them with the personal
requirements before choosing the best possible suburb. The suburb that has been chosen for this
particular project is Clarkson. The PRINCE2 project management process has been used for
analysing the suitable suburb in Perth, which is located in Western Australia. The Clarkson
Suburb is located in north of the central business district which is located in the city of the
Wanneroo.

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One of the key aspects of choosing this suburb is, it is located near to the beach, thus
making it one of the most popular suburbs. Moreover, it is quite affordable to build a house in
this suburb. The freeway extension as well as the train lines are reaching this suburb, thus
providing the local residents the potential growth benefits of the north coastal corridor. Since it is
quite close to Joondalup along with its amenities, there is an immense potential for job growth in
this area (Kerzner, 2018). It is also estimated to be the CBD of northern corridor in the near
future. In addition to the professional growth there are various tourist attractions such as the
Ocean Reef Marina and Mindarie Marina. The community of Catalina is the largest estate of
Clarkson. Furthermore, Clarkson provides a range of choices including beach or non-beach side
that can be chosen based upon personal requirements. However, the price of the land may vary
depending upon the exact location. Proper medical facilities, picnic areas, parks, shops etc. adds
up to the advantages of choosing this suburb.
Choosing the right size of the land is as important as choosing a suitable layout and
structure of the home. The land size is decided after the selection of the suburb. The suburb
selected is the Clarkson estate in the western Perth where a plot size of 1100 Sq. Ft. have been
selected for the purpose of purchasing the plot from the land owner or the land developer with a
pre deposit of some amount of the money allocated for this purpose. The money allocated for
this purpose or for depositing to the land developer is AUD$2000. There are several aspects that
has been considered before choosing an appropriate size of the land. These have been discussed
below which has followed the process of PRINCE2 project management process:
1. Getting proper advices: Even an expert DIY rarely has any construction expertise for the
purpose of analysing a particular building size. As a result, a knowledgeable and experienced
sales consultant is to be appointed for evaluating the particulars. An appropriate consultant

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will understand the requirements and access the land type accordingly (Walker, 2015).
Moreover, since the consultant will have a local knowledge of the particular area in Perth, it
will immensely help in choosing the proper size of land.
2. Considering the future worth of the land: One of the most important things to be
considered before buying a piece of land is its future worth. Surrounding, amenities,
businesses and location are some of the prime aspects for determining the value at which it
can be sold in the future (Fewings & Henjewele, 2019). As Clarkson is one of the most
popular suburbs in Perth, the future value of the land will essentially depend on the distance
of the land from the beaches.
3. Counting the requirements for planning: Sometimes even after finding the best suitable
land both in terms of future value and its surrounding, there is no surety that it will perfectly
feed the local planning requirements. Every local government has its own set of rules in
terms of home size, setbacks etc. that are needed to be considered.
4. Choosing an appropriate area: Surrounding plays an important role while building a new
home. Most of the areas in Perth have proper transport systems and quality roads. However
since the area is surrounded by 2 beaches, there are chances of flood (Lock, 2016).
Therefore, it is recommended to choose the extreme part of Clarkson.
5. Considering the type of soil: Another most critical part of the planning phase is site
classification. It helps in properly determining the likelihood of soil shifting. The type of soil
has a huge impact on the cost per foot of the land. The cost subsequently increases in
accordance with the soil shifting nature of the land.

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1B. Choosing the appropriate builder
Building a new home is one of the biggest investments for an individual. As a result of
this, it is extremely important to choose the appropriate builder who is going to be the key
element in the process of construction. Several aspects are needed to be considered and carefully
analysed before choosing the best builder (Dykstra, 2018). In general there are 5 key areas that
are needed to be focused. These have been discussed below:
1. Quality of the construction: Quality is one of the key aspects and hence should not be
compromised. This is the first in the consideration check list. A properly built home will
bring pleasure and pride for decades, compromising on which can cause severe after-impacts.
To start off, the display homes of each of the builders should be properly analysed and
thoroughly checked for poor construction issues and shabbiness (Howrarth & Greenwood,
2017). In addition to that, the location that the builders have chosen should be checked for
tidiness. It is also essential to look at the projects they have completed and evaluate the
number of projects they are still working on. There are certain builder teams that comprise of
a very small number of building supervisors. Such builders are needed to be avoided as
choosing them may cause potential delays in the project.
2. The reputation of the company and its overall ranking within the market: Second most
important aspect that is needed to be considered is the ranking and reputation of the builders
in Perth. Factors including total number of projects the builders have worked in, comparing
them with the industry leaders and the age of the company are very essential for choosing an
appropriate builder. Various product reviewing websites and social media can be used for
checking the reputation and overall authenticity of the company.

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3. Value for money: The concept of value for money does not imply selecting the cheapest
possible builder. Rather, as mentioned above quality is one aspect that should never be
compromised, no matter what the cost (Ashworth & Perera, 2018). Finding a cheaper builder
than the other is an easy process. However if that builder has an inferior knowledge in terms
of internal specifications and is using poor materials for building, it can have severe
implications. Even though the amount that is to be given to the builder is low, the payback
will be far greater in the near future.
4. Designing aspects: As evident from the display homes, most of the houses have the same
blueprints in Perth. One of the most important traits of a good builder is having various
unique and award winning designs. The HIA (Housing Industry Association) is responsible
for recognizing this potential aspect. Therefore, it is essential to ask the builder about any
kind of award that he has received for his unique designs (Allen & Iano, 2019). There are
many builders in Perth, who do not even have their personal designers and are completely
dependent on their drafting team for designing. Although such builders cost much less but
the quality of the work in terms of design and layouts remain poor.
5. Customer service aspects: With a rise in the competitiveness of the global economy, there
had been a significant rise in the customers’ expectations as well. These expectations mainly
comprise of the way they are being treated. Therefore, it is extremely important to choose a
company who values their customers. During the initial phase if a home consultant is not
properly treating the customers, it is vital to take this point into consideration. Other aspects
that are needed to be taken into consideration include professionally and accurately
presenting the estimations and designs.

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After evaluating all the aspects and passing on the tender to several builder organizations,
on organization has been chosen and given the responsibility to handle the construction project.
The organization that has been selected is the Capital Builders situated in the western part of the
Perth. The owner then needs to sign a Pre-Work Construction (PWC) contract with the builder
where the owner pays an amount of AUD$2000 for signing the contract.
1C. Identification of the stakeholders
There are two kinds of stakeholders associated with this particular construction project
namely, internal stakeholders and external stakeholders (Xia et al., 2018). The stakeholders
involve the Key start initiative executives, Builder organization, West Australian Government,
owner or the client and the land developer or the land owner. The initiative of keystart was taken
by the west Australian government in order to provide home loans to the consumers.
Stakeholders Role
Key start initiative. This is the west Australian government
undertaking department that helps the clients
in accessing the loans for building the dream
home.
Builder organization The builder organization or the Capital
Builders are in charge of the construction of
the home where they will provide the
materials and the labour and plan and execute
the construction of the home on the plot.
West Australian Government The government is in charge of inspecting the
plot and the paper works that are forwarded

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for gaining the loan access. They are also the
main body that provides all kind of legal
permits
Land owner or land developer The land owner is the owner of the plot tha
has been bokjed and bought by the client for
the purpose of constructinbg the dream home.
client The person that is constructing the dream
home is the client. He has the access of
involving in all kind of work procedures the
other stakeholders are proceeding with.
2. Design and Layout
2A. Potential factors
1. Desirable features: A new mind-set is required before building the layout plan for a new
house. Since the house that is to be built is for 2 people (for the time being), it is important to
consider the requirements of both the people and accordingly incorporating those features.
2. The Surrounding and Neighbourhood areas: While planning for a new home, establishing
a proper understanding of the locality and the surrounding is equally important as building
the layout of the house (Huang & Wong, 2015). A thorough research of the neighbourhood
will allow proper evaluation of the desirable features and requirements.
3. Size and location of the lot: When it comes to buying or planning to build a new house,
often the lot is overlooked. However, it should be in the forefront of the checklist. Therefore,
it is immensely important to look for the size of the lot before planning for a new home.

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4. Style of the home: Aesthetic of the house completely depends upon the style of living.
Appointing experienced style consultants have severe positive impacts on achieving a desired
style for the dream house that is to be built (Ching & Binggeli, 2017). Since most of the
houses in Perth have almost the same kind of layout and internal style, a uniqueness in the
style is required and the builder is to be chosen accordingly.
5. Space: Another prime aspect that influences the layout is the space. There should be a clear
blueprint within the mind before planning for the new house.
6. Potentiality of future projects: Before signing the deed it is vital to have a plan for the
future. Even after the land satisfies all the current requirements, it is essential to think of the
modifications that will be made in the future. Any kind of minor loop hole in the plan will
result in the inability to incorporate desired modifications (in terms of layout) in the near
future.
7. Comfortable costs: The approximate amount, that has been assigned for this particular
project is $4000. The average cost of land in Clarkson is $500. Therefore it is quite
comfortable and easy to build a quality house in the desired location of Clarkson (Heralova,
2017).
2B. Project management processes
1. PMBOK: PMBOK is the abbreviation of Project Management Book of Knowledge and is
comprised of 49 unique processes. These processes can be further categorized into 5 different
groups which is also referred to as the process groups. These processes can also be
incorporated into various knowledge areas to fulfil the knowledge requirements. Moreover,
there is a total of 132 project management tools and techniques. The most suitable out of
which, can be implemented in this particular construction project for the successful execution

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of it. The project manager must have proper leadership abilities along with suitable business
skills and is responsible for properly using these tools and techniques.
2. PRINCE2: PRINCE2 is another important aspect of project management that is needed to be
implemented in this project. PRINCE2 stands for PRojects IN Controlled Environments that
comprises of 4 basic elements, namely themes, principles, tailoring and processes.
Approximately 40 tools and techniques are referenced under the guide of PRINCE2. These
tools and techniques can be efficiently utilised within certain areas of the project for the
purpose of gaining control of that project environment.
After the completion of the bidding process, the project plan is executed. The following
project management processes under the guidance of PMBOK and PRINCE2 are required for
building the desired home in Perth:
1. Initiation of the project: This is the first stage, where feasibilities and objectives of the
project is to be determined. Since it is going to have a clear indication of the project
opportunities, it is one of the most crucial stages in the overall process of constructing the
house (Hjelmbrekke, Klakegg & Lohne, 2017). A result based feasibility study is to be issued
in this process. After concrete decisions have been taken, a PID (Project Initiation
Document) is needed to be created comprising of the groundwork aspects of the construction
plan.
2. The planning phase: This is the phase where the builders need to properly organize and
routine their job roles. The activity of planning is an ongoing process that keeps on running
till the closure of the project. The key priority of this phase if to properly plan the cost,
resources and time for this project (Kivila, Martinsuo & Vuorinen, 2017). The developing

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team frames the strategy based upon this requirements which is also sometimes referred to as
scope management.
3. The execution phase: The CPM (Construction Project Management) plan is put into action
in this process. This process can be further categorized into 2 sub-processes, namely
monitoring and controlling (Young, 2016). Simultaneous changes are made along with
monitoring the overall project.
4. Closure of the project: This phase represents the official completion of the particular
project. The associated project manager is responsible for evaluating the project success and
referring to any kind of potential failures. At the end, a project report has to be generated
comprising of the overall budget calculation and any unfinished tasks (Meredith, Mantel Jr &
Shafer, 2017). This often helps in analysing the failures, thus resulting in future project
success.
3. Achieving Lean Project Management
Several companies have the tendency to define the concept of ‘Lean Manufacturing’ in
their own potential ways. However, the core concept remains the same that involves examining
the processes, properly identifying the value adding elements in terms of customer satisfaction
and eliminating the unnecessary elements. Although there are several process to achieve lean
project management, 5 of the best practices have been discussed below:
1. Eliminating the waste: This is the process of eliminating the unnecessary waste in the
organization and thus, minimizing or completely eliminating it (Sunder, 2016). There are
specific targets that are required to be accomplished in order to successfully achieve a lean
project management. These targets include carefully dealing with defects, overproduction,
waiting, improper use of builder’s potentiality, transportation, inventory, motion and excess

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processing. In the course of construction of the dream home the waste management practice
for eliminating the wastes have been done. This is done by proper architectural concepts and
survey process that gives the accountability for the accurate steps to be taken.
2. Continual improvement: A lean thinking can be successfully established within the project
by promoting the aspects of continual improvement. This enhances the overall productivity
and quality of work for the construction company which is the Capital Builders, thus
establishing a lean thinking that provides the owner a good result in the end after the
continuous development process followed by them.
3. Organizing: The process of organizing helps in dictating the process efficiency. The 5s
principle of lean project management involves sorting, setting in order, shining, standardizing
and sustaining. The organizing process will play the key role in maintain the sustainability in
the works structure of the dream home.
4. Safety measures: Practicing the 5s principle of lean manufacturing helps in ensuring
security and safety measures in the construction company. Safety should never be
compromised while implementing the concepts of lean practices in the construction process
of the dream home.
5. Tracking the metrics: Improvements and modifications cannot be incorporated without the
concept of measuring. Therefore, a proper metrics is required for measuring the facility
processes that helps in setting the improvement goals (Brioso, 2015). Various construction
related problems can be efficiently dealt with by thoroughly measuring and keeping a track
of the builder metrics in building the dream home.

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References
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Bazlamit, S. M. (2018). New Trends in Construction Managements. Journal of Engineering,
Project, and Production Management, 8(1), 1-1.
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Ching, F. D., & Binggeli, C. (2017). Interior design illustrated. John Wiley & Sons.
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