Implementing Lean Project Management for Dream Home Construction

This case study discusses the implementation of lean project management for dream home construction in North Fremantle, Perth. It covers project management processes, influencing factors for design and layout, and stakeholder identification.

Running head: PPMP20009 LEADING LEAN PROJECTS
PPMP20009 Leading Lean Projects
Case: Implementing lean project management to build your dream home
Name of the student:
Name of the University:

1PPMP20009 LEADING LEAN PROJECTS
Table of Contents
1. Project management processes....................................................................................................2
a. Chosen suburb and land size....................................................................................................3
b. Chosen best builder..................................................................................................................4
c. Identification of project stakeholders.......................................................................................4
2. Influencing factors for design and layout of dream home project...............................................5
a. Factors that will influence the design and layout.....................................................................5
b. Explain the project management processes.............................................................................8
3. Implementing lean best prcatices to achieve lean project management......................................9
References......................................................................................................................................11

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1. Project management processes
Successful achievement of a construction project objectives are relies on performance of
project supervisor and other allocated team members. Different influencing factors are there
which affect either negatively or positively the performance of a construction project. This
project aims to “implement lean project management to build a dream home”. A suburb location
in North Fremantle, Perth is selected where the dream home will be constructed over a plot size
of 1.2 Acre. In order to govern any construction project towards preliminarily objectives and
goals the supervisor and contractor need to select the best suited project delivery and
management process. For this project two specific project management processes in terms of
PRINCE2 and PMBOK are nominated among those, PRINCE2 is best suited in construction
projects.
It is determined that the nature, feature, size and complexity of any construction project
can become simpler and easier after the use or PRINCE2 development process. In other words,
PRINCE2 development process gives a controlled environment to their team associates. Some
important variables that are individually operated with PRINCE2 project development process
include cost, timescale, quality, risk, scope and benefits. During construction of “dream home
project” if PRINCE2 project development process is followed then project efficiency will be
maximized and cost will be reduced. It improves communication at all level with a better under
controlled project environment. PRINCE2 gives clear project direction to ensure that the project
will be completed in the assigned budget and time (Bijańska, Wodarski & Wojcik, 2016). Not
only this but also, supervisor can monitor the project progress much easily. PRINCE2 process
ensures that the construction project will be implemented without any delay or other operational
errors (Marchewka, 2016). This process enables the supervisor to develop and follow the process
strategically. Instead of combination between PRINCE2 and PMBOK, application of only
PRINCE2 stands much effective and easier.
For glorious construction of “the dream home in Perth”, considerations of some other
components are also essentials such as- proper selection of land size in Perth Suburb, selection of
best builder and selection of project stakeholders. Details of the above mentioned factors are
illustrated below section:

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Project stakeholders Interest Power
Project owner High High
Construction team members Low Low
shareholders High Low
contractors High High
Sub contractors Low Low
Raw material suppliers Low Low
Insurance companies High Low
Civil engineer High Low
Architect High Low
a. Chosen suburb and land size
North Fremantle is the suburb location chosen for building the dream home in Perth. The
chosen location is only 13 kilometer far from CBD and is bounded by Indian Ocean to the west
and swan river in the east. Due to sufficient availability of public transport, residents can easily
travel from this location. The location is a bit costlier than some other suburb areas. The median
house price in North Fremantle is starting from $1225, 000 and also the median unit price of the
house are $945,000. The North Fremantle gives 100% of residents, easy access towards parkland
and also gives education facilities to approximately 65% of residents.
The land size considered for “the dream home construction” project is 1.2 Acre. In order
to give the design layout a realistic representation PRINCE2 project management process is
much useful because it helps to encourage the project team and supervisor who are working as a
team. It will help to eliminate waste processes, diminish context switches. In addition to this, it
can also optimize the detail value delivery (Pace, 2019). Based on some context such as local
amenities, school zones, planning and development process the suburb area and land size should
be selected. In order to analyze theses above mentioned factors PRINCE2 is the best suited
management procedure.

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b. Chosen best builder
“MAUGHAN BUILDING COMPANY Builders & Building Contractors” is the selected
builder assigned for the construction of dream home in North Fremantle, Perth. The builder gives
effective competitive advantages to other similar services providers. However, before selection
of the “MAUGHAN BUILDING COMPANY” builder some aspects and factors are individually
required to be analyzed. These factors can be analyzed with PRINCE2 process. For analyzing
previous performance of the builder, performance measurement matrix and “Key Performance
Indicators (KPI)” should be considered.
For selection of best builder in the suburb of Perth the builder market is internally and
externally analyzed. Before entering to the dream home construction project deal, some specific
standards those are to be considered include:
Signing a land agreement along with the land developer: In this phase the project owner
need to pay a deposit amount of AUD$2000
Singing of a pre work construction agreement with the selected builder: In this case
also the owner has to pay a deposit amount of AUD$2000.
Though, at the project initiation phase, the owner needs to pay theses amount but these
are refundable. As soon as the contractor and project manager will get financial approval the
project will be executed (Oinarov & Eshimova, 2017). The total budget and time expected for
this project are $1250, 000 and 18 months.
c. Identification of project stakeholders
In order to execute the dream home construction project, stakeholders involvement play
important role. The stakeholders associated to this construction project are elaborated in the
below:
Stakeholder Role Communication needs Interest Power Impact
Project super visor Decision maker Legitimacy High High Positive
Finance manager consultant Urgency High Low Positive
Contractor Decision maker Legitimacy High High Positive
Sub contractor collaborators Urgency Low Low Positive

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Architect consultant Legitimacy Low Low Positive
Civil engineer consultant Legitimacy High High Positive
Labours Executors Urgency Low Low Positive
Raw material
suppliers
collaborators Legitimacy Low Low Positive
In order to keep stakeholder engaged to the primarily assigned responsibilities different
stakeholder engagement strategies are required to be implemented throughout the construction
period. Additionally, stakeholder management strategies are also needed to be implemented by
the supervisor. Some of these strategies are elaborated below:
 Key impact of the stakeholders in the construction project
 Impact assessment
 Strategies to gather support
 Source of information collection
2. Influencing factors for design and layout of dream home project
a. Factors that will influence the design and layout
It is analyzed that these days some construction projects are facing major chronic
challenges due to poor and inferior working conditions, insufficient quality management plan
and communication plan as well. In order to keep balance among the factors the supervisor needs
to focus on different components. Some of the factors positively influence the project and some
influences negatively (Coppola, D'Ambrogio & Gianni, 2016). The detail impacts of the factors
on dream home design and layout are illustrated below:
Inaccurate project planning: In order to implement the dream home construction
project the phases that are mandatorily considered include project initiation, planning, design and
layout, execution and closure. While developing the design and layout of dream home if all
factors and measures are not properly followed then, the design may not meet the expectation of
the customer or owner.

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Site management: For any construction project site management is referred to as one of
the most important perspectives. From the beginning until the construction get completed, proper
site management is essential (Tomanek & Juricek, 2015). It is duty of the contractors and civil
engineer to make sure that the site is being managed accurately.
Project quality: The quality of construction project is maintained followed by quality
assurance, quality assessment and quality control. Therefore, in order to maintain the quality of
the dream home each of the stages are needed o be followed sequentially and the contractor and
super visor need to make sure that none of the factors are overlooked during the construction
period.
Budget and time: For construction project, time and cost are the two directly
proportional factors. It implies that, if time exceeds then cost will increase similarly if the cost
will increase then time estimated will also be increase. In order to provide quality outcomes both
time and budget are needed to be properly utilized. The estimated time and budget for the
“Dream home” project is represented in a tabular form.
WBS Task Name Duratio
n Start Finish Resource Names Cost
0
Building
dream home in
Perth
530 days Mon
9/16/19
Fri
9/24/21 $1,082,240.00
1
creating
stakeholder
engagement
strategy
10 days Mon
9/16/19
Fri
9/27/19 Project manager $7,200.00
2 developing
project charter 20 days Mon
9/30/19
Fri
10/25/19 Project manager $14,400.00
3 land survey 20 days Mon
10/28/19
Fri
11/22/19 civil engineer $12,800.00
4 Signing
contract 10 days Mon
11/25/19
Fri
12/6/19 contract cost[1],contractor $9,040.00
5
Pre
construction
deposit
20 days Mon
12/9/19
Fri
1/3/20 pre construction deposit[1] $2,000.00
6 blueprint
layout design 20 days Mon
12/9/19
Fri
1/3/20 architect $13,600.00
7 landscaping 50 days Mon
1/6/20
Fri
3/13/20 architect, civil engineer $66,000.00

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8 concrete 60 days Mon
3/16/20
Fri
6/5/20 concrete[1] $200,000.00
9 House
framing 50 days Mon
6/8/20
Fri
8/14/20 labours, Sub contractor $62,000.00
10
External and
internal
construction
50 days Mon
8/17/20
Fri
10/23/20 Interior and exterior design[1] $100,000.00
11 flashing and
tiles 50 days Mon
10/26/20
Fri
1/1/21 Sub contractor $34,000.00
12 Plumbing
completion 50 days Mon
1/4/21
Fri
3/12/21 Plumbing [1] $80,000.00
13
Electrical
framework
completion
50 days Mon
3/15/21
Fri
5/21/21 electricity[1] $90,000.00
14
Wall and
floor
construction
completion
60 days Mon
3/15/21
Fri
6/4/21 concrete[1],framing[1],labours $333,600.00
15 completion 80 days Mon
6/7/21
Fri
9/24/21 Project manager $57,600.00
Resource allocation: Appropriate resource allocation is referred to as the other
important factor that includes the performance and success of project. Based on performance and
skill set of the project associates, resources are needed to be allocated to each project activity
(Mousaei & Javdani, 2018). In other words all the resources are needed to be utilized properly
for successful project execution.
Selection of construction method: For developing design and layout of the dream home,
proper construction method is needed to be selected and applied by the contractor and associates.
Relative importance of these factors should be considered throughout the construction period.
However, expertise of the associates is also essential for successful delivery of design and layout
of the construction project.
Quality or material supplied: Quality of dream home is partly relied on quality of raw
materials supplied from the contracted raw material suppliers. The project complexity is needed
to be converted as simpler one to ensure that all project team associates have understood the
project requirements and detail objectives as well (Vanickova, 2017). It is duty of quality control
supervisor to make sure that the expectation from the project is maintained.

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b. Explain the project management processes
In order to explain “dream home construction” project in Perth PRINCE2 management
process is the best suited approach. The detail processes that should be followed to reach the
primary project objectives are illustrated in the below section:
Project start up: Start up project is the initial phase, in this phase the project executives
and project managers are assigned. As soon as the supervisor is appointed to the project, the
design layout preparation also gets started. Previous lessons should be captured to prepare the
project design and process (Nallusamy et al., 2018). In this stage, project team is prepared based
on the skill set, experience and knowledge of the associates. Team assigned for the project is
responsible to design and develop a business case first to select the project approach for
assembling the project brief.
Direct the project: After initiating the project, it needs to be authorized and approved by
the sponsor and owners. In this phase the project board and steering committee will authorize the
Project Initiation Document (PID). The board associates are required to advice and direct the
project activities towards the goal and objectives (Cano et al., 2015). The project manager
produces a lesson report and shard it among the project team members in this stage.
Project initiation: In this stage the construction project get initiated. The failure or
success of the project most often directly related to the planning level that have been performed.
The key knowledge areas those are focused in this project development stage include risk
management plan, change control plan, quality management plan and communication
management plan. While developing the risk management plan a risk register needs to be
prepared and along with that stakeholder engagement strategy, communication management plan
is also needed to be prepared in this phase (Liu et al., 2015). The project initiation document for
the project is comprises of role description, quality management approach, risk management,
communication plan and project control plan.
Project controlling: As soon as a project documentation will be authorized the project
supervisor a team members will start working on the project. All the development activities are
needed to be sequentially followed by the project team associates. The activities those will be

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followed thoroughly in this stage include work package authorization, work status review,
management status review ad report highlighting.
Service delivery management: In order to ensure successful delivery of the construction
phases, the different stages to be followed include acceptance of the work packages, executing
work packages and delivering the work packages (Maru, 2015). In this phase the quality register,
risk register and issue register are developed and presented to the project team associates.
Stage boundary: A project will be highlighted as a successful when it will be executed
following all boundaries in terms of time and budget. The project needs to be completed in the
budget and timeline of $1250, 000 and 18 months. In this stage, an updated business case will be
developed and delivered. It is determined that, if a project stage deviates outside of the tolerance
then it will no longer gain support from the project board members.
Project closure stage: At the project closure stage, a closure plan is needed to be
prepared based on budget, schedule, quality and stakeholders. After successful delivery of the
change management program, the detail project draft has to be handover.
3. Implementing lean best prcatices to achieve lean project management
For this specific initiative, lean project management concept should be applied to the
dream home construction. In order to achieve lean project management, lean best prcatices are
required to be applied (Rexeisen, Owens & Garrison, 2018). The aim of lean thinking is to
maximize the project values by minimizing the amount of wastes. The principles though which
project objectives can be reached is elaborated below:
At first the values o the project should be understood and analyzed by the team associates
and supervisor. For creating effective project values firstly the project cost needs to be reduced.
As much amount a customer is willing to pay that much valuable the project will be. It will help
to improve the project quality.
Value stream is a sequence of activity or a visualized documentation that produces
flowchart and diagrammatic representation (Mourtzis, Papathanasiou & Fotia, 2016). It helps to
eliminate the amount of wastes. Both suppliers and developers should follow the value chain and

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flowchart (Sears et al., 2015). This process will direct the team members to complete the “dream
house construction” project in assigned time and budget.
The aim of value stream flow is to preserve and optimize the project and process flow
towards evenness. The flow of value stream will be improved by identifying and eliminating the
work that can add values to the project. With the help of this principle project team will meet the
performance requirements.
It is determined that, the traditional manufacturing process is a push approach whereas
the lean think is a pull approach from the project delivery perspectives. Different unnecessary
wastes can be eliminated with the application of this approach (Tezel & Aziz, 2017). It will help
to reduce the project cost y eliminating waste activities and resources as well.
The lean project management helps to pursue continuous improvement plan. In other
words, if lean management approach is successfully followed and applied by project associates
then, throughout construction continuous improvement will be incorporated that can execute the
project successfully.

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