University Project: PPMP20009 Leading Lean Projects - Build Your Home

This report details the application of lean project management principles to the construction of a new home in Perth, Australia, focusing on a project financed by Keystart. The report emphasizes the use of the PMBOK guide across various stages, including suburb selection (Menora), land size determination, and builder selection (Blueprint Homes). It examines factors influencing design and layout, such as site scope, consultant input, and cost management, while also identifying key stakeholders like Keystart, designers, and subcontractors. Financial aspects, including cost-benefit analysis and mortgage rates, are considered. The report also includes a floor plan and highlights the importance of lean project management in eliminating waste and efficiently allocating resources throughout the construction process.

Running head: BUILD YOUR OWN HOME
Build your own home
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Author Note

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Table of Contents
1. Background research..............................................................................................................2
2. Correct project management processes..................................................................................2
2.1 Choosing the suburb.........................................................................................................2
2.2 Deciding the land size to buy...........................................................................................3
3.1 Factor influencing the design and layout of your dream house...........................................5
3.2 Project management procedure used for the above..............................................................6
4. Ways to provide lean project management............................................................................8
5. Reference..............................................................................................................................10

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1. Background research
The notable objective of this project is to emphasis on the enactment of the lean
project management principles which can be very much useful to build a new home in Perth,
Australia. This entire project shall be financed by Keystart, which is very much closely
associated with the Australian government. There are 5 different categories of lean project
management (LPM) principles which shall be considered in the first place in order to build
the new home. These principles are value, value streams, flow, perfection and pull.
Elimination of waste and efficient allocation of resources are the primary objectives behind
the enactment of the lean principles in this construction project.
2. Correct project management processes
This segment of this report shall be highlighting and justifying the selection of the PM
procedure which can be very much useful in this construction project.
The project management process which can play a leading role in this project is the
PMBOK guide which is one of the most effective PM procedures which are usually deployed
at an increasing rate in the construction industry (Bayona, Saboya & Bustamante, 2018). The
value and skill set of the stakeholders of the project is very much significant in this project
management category.
2.1 Choosing the suburb
Selection of the suburb is one of the most substantial norms regarding the creation of
a new home in Perth. There are different factors which are needed to be considered before
finalizing the location of the home. The selection criteria depends upon the concepts taken
from PMBOK guide (Sohi et al., 2016). Numerous project management procedures apart
from PMBOK was considered, however, the clarity and relevancy of this guide can be very
much useful in building a new home.
Considering the quality of living in Perth, there were options like Chidlow, Menora
and Daglish which could have been considered as the location of the suburb. Among each of
these locations, Menora was considered as the location for building a new home (Orzen &
Bell, 2016). The selection of this location is based on the knowledge areas of PMBOK in
terms of Project Quality Management and Project Scope Management. Key start initiative
shall play a key role regarding the approval of the loans required to build the home.

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2.2 Deciding the land size to buy
Selection of the size of the land is strictly based on the construction extension of the
PMBOK guide. This extension can be very much useful to identify the exact stakeholders
which can play a leading role in this construction project. The entire planning for the new
building, defining the scope of the project, change control procedure, sequence of activities
and progress monitoring can be done in an organized manner using the construction
extension of PMBOK (Bazán et al., 2019). Each of the risks, as well as the procurement
activities, can be managed and monitored in an organized manner using PMBOK (Project
Management Institute, 2018). Thus, the knowledge areas of construction extension of
PMBOK can play a big role in selecting the size of the land which is required to build the
new home.
The selection of the size of the land directly depened on the budget of the entire project, as
well as the budget of this phase of this project. Based on PMBOK guide, it can be said that
knowledge areas of PMBOK in terms of the project cost management can be very much
useful to select the cost which is required to select the size of the land for the new home.
Forrest place is one of the most popular place in Perth and the price of the land of this
region is much less as compared with the other regions of Perth. The selection of Forrest
place is very much justified due to reasons like availability
The cost of buying new land in this location is $225,578 AUD, and this price is
subject to changes in terms of the market conditions of Perth. The price of land prices in
Wanneroo is $257,861 and City of Swan is $234,518, thus, it can be said that the decision to
make a new home in Forrest place is very much justified. There are numerous facilities which
are there in Forrest place in terms of the advanced health care centres and educations
organizations. 1200 square feet of land can be very much useful to build a 2 stored building
having 3 rooms in each floor with a separate garage.
2.3 Choosing the best builder
Knowledge areas of PMBOK like project human resource management are very much
useful to select the best builder in this construction project as there are lots of inconsistencies
in these projects in terms of the availability of workers in the festive seasons and the dynamic
prices of the raw materials which are deployed in construction project (Sunder, 2016).
Resource planning, estimation of cost, cost budgeting and cost control are the prime selection

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criteria to choose the best builder for this construction project. Thus, based on the knowledge
areas of PMBOK it can be said that Blueprint homes which is located in Balcatta can be the
perfect builder for building the new home in Forrest place. The market reputation of this
builder is much better as compared with the other builders in Perth.
Among the different Perth based home builders, it can be said that Keystart initiative
can play a huge role as this construction agency is very much committed to providing good
quality service to each of their clients. More than 100,000 people have built their home with
their support (Christianson, 2017). The loan facility provided by this organization is very
much beneficial for the clients to select the location and size of the land even before the
planning phase of this project. There are more than 130 local staffs which work in this
organization as they help them to make any decision making for this construction project
(Cardona-Meza & Olivar-Tost, 2017). The mortgage insurance policies are managed in the
first place by the staffs of this organization. Thus, the selection of the best builder of this
project using the knowledge area of PMBOK is very much justified as they can help to deal
with each of the issues of this project.
A deposit of $225,578 AUD is required for the land contract in this project and
signing of the pre-work construction shall require a deposit of another $75000AUD. These
financial approval are required to be managed and calculated so that it is very much
significant for Keystart to fund the entire project. The following cost benefit analysis can be
very much significant to identify the breakeven occurrence of this project and the expected
rate of return.

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Figure 1: Calculation of the NPV of all cost before the start of this project
(Source: Created by author)
Figure 2: Calculation of breakeven occurrence before the start of this project
(Source: Created by author)
2.4 Identification of the stakeholders of this project
There are different categories of stakeholders which can play a huge role in this
construction project shall be discussed in this section of this report. The selection of the
stakeholders shall also be depended on the knowledge areas of PMBOK guide in terms of the
project human resource management.

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There are two different categories of stakeholders which will be included in this
project in terms of the internal stakeholders and the external stakeholders (Varajão, Colomo-
Palacios & Silva, 2017). The internal stakeholders of the project shall include stakeholders
from Keystart such as their insurances agents, and sales and marketing teams. The other
internal stakeholders of this project include the designer, planner whereas the external
stakeholders of this project include the workers who will be building the homes, service
providers such as the providers of the furniture and other electric components. Selection of
the resources which will be required in this project must be from reliable sources which can
ensure that building is of heist quality.
The other essential stakeholders of this project includes the facility manager who will
be looking forward to the infrastructure facilities required in this project in terms of the use of
different emerging technologies (Siegelaub, 2017). The role of the sub-contractors are also
very much significant in this construction project as they are directly associated with each of
the shareholders of this project. Professional Relationship between each of the stakeholders is
required so that the inconsistencies of the construction project is maintained.
Identification of the stakeholders can be hugely depended on the knowledge area of
the PNBOK such as Project Quality Management. The Quality of Service (QoS) from each of
these stakeholders are very much significant in this construction project, it can also be very
much useful to deal with the inconsistencies of this project in terms of the dynamic wages
associated with each of the identified stakeholders.

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Floor plan
The floor plan of the new building in Perth can be understood from the following
diagram which will be identifying the garage, guest rooms, dining spaces for the two storey
building which is going to be built in Perth, Australia.
Figure 1: Floor plan of the new building
(Source: Reynolds, 2018)
3.1 Factor influencing the design and layout of your dream house
The concept of the project financial management and project safety measurement of
the PMBOK guide can be very much useful to consider the factors which might play a huge
role to select the design and the entire layout of the dream house (Ansah, Sorooshian &
Mustafa, 2016). Financial planning and control in each phase of this project is very much
useful to allocate the funds which are required for the design phase of this project. Safety of
the workers working in this construction project is the other factor which might play a huge
role to select the design and layout of the dream house.

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The factors which are needed to be considered while selecting the designing and
layout of the dream house shall be discussed in this section of this report. These factors must
be including the trending among the future generations who will be building their new homes
in the coming few years.
The factors which has to be considered are discussed as followings:
1. Scope out of the building site: The scope of this project must be considering the
location of the land, flora associated with the land, long term stability of the soil,
water composition of the land, local conditions in terms of the environmental
conditions, selection of the materials for the roof of the nee home.
2. Consultant input: The construction consultant have in-depth knowledge about the
risks and assumptions of the construction projects which has to be considered in this
project in order to meet the requirements which will be identified during the
documentation part of this project.
3. Cost management: The management of cost should be evenly distributed in each
phase of this project starting from the selection of the location of the project to the
amount of money building required for rooms of the home and interior decorations.
The prices of the materials which are generally used for interior decoration also has to
be considered while selecting the design and layout of the home.
4. Mortgage rates: The mortgage rates also has to be considered in the first place so
that the selection of the layout of the home is not effected.
The selection of the design and the layout must also consider the source of natural
light in the house, functioning of each of the rooms such as bedroom, dining room, kitchen,
and garage. The needs and priorities of the family and my partners are also much significant
selection category of the layout of the entire design. The traffic habits of the rooms also have
to be considered in the first place along with the safety precautions of the workers who will
be working in the design phase of this project (Wang, JSasanipoor & Wang, 2018). Plumbing
and the ventilation facilities can also be selection criteria for selecting the design of this
construction project. Décor of the room is also directly associated with the selection criteria
of the selection of the layout and design criteria of this construction project.

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3.2 Project management procedure used for the above
The designing and layout is directly associated with the selected project management
processes used in this project. There are many project management processes which are
generally considered while selecting the design as well as the layout of the entire house, these
processes include phase management, team management, procurement and integration.
 Phase management: The selection of design of each rooms in this project has to be
done phase wise according to the availability of workers. The entire design and layout
selection of the house must be done phase-wise.
 Team management: Management of the strength and weakness of each of the human
resources which are involved in the design phase of this project is hugely supported
by this project management procedure.
 Procurement: Agreeing with the terms and conditions for each of the external
stakeholders are very much significant in the design phase of this construction project
as well (Home, 2019). Tendering and bidding activities regarding the selection of the
suppliers of the materials required in the design phase is strictly depended on this
project selection procedure.
 Integration: Integration: Evaluation of the agreed designs are very much significant
in this project as it helps to minimise the overhead costs of the design phase of this
project.
 Planning and control: The selection of the designs and layout in this construction
project is also depended on the planning phase of this project where the risks and the
assumptions of this projects are evaluated. Cost control and inventory control are the
other significant factors which might play a huge role in this project as well.
 Communication: This is one of the most significant PM process which is very much
important regarding the selection of the design and the layout of the entire
construction project.
Thus, it can be said that each of this project management procedures has to be
considered in the first place, so the exact design and layout of the dream house can be
identified and selected using these project management procedures. The selection of these
project management process can be very much useful in this project as it can successful help
to control the huge amount of financial resource required in this project (Nasir et al., 2015).

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Less amount of project wastage is the other significant criteria behind the selection of each of
the project management practices.
4. Ways to provide lean project management
There are numerous best practices of lean project in terms of the elimination of the
wastage, continuous improvement procedures, organization of each of the activities of the
project, safety and security of each of the stakeholders who are involved in the projects,
tracking of the metrics which are required for the successful enactment of this project (Ma et
al., 2017). Each of these best practices of lean management has to be implemented in an
organised manner in the construction projects which will be discussed in an organized
manner in this section of this report.
There are number of factors which play a huge role in enacting lean project
management such as the waste reduction techniques, visualization of the tools which are
required in the design part, problem solving ability of the leaders of the organization where
lean is being enacted, selection of the continuous improvement procedure, daily management
of the activities, value stream mapping (Gonçalves et al., 2017). Each of these factors might
play a huge role regarding the enactment of the lean procedures in any project (Karaman &
Kurt, 2015). The success factors of the project is very much depended on the enactment of
the LPM procedures.
Enactment of the LPM process for the selection of the location and selection of the
best builder and identification of the stakeholders are significant in this construction project.
Value of each of these activities has to be understood in the first place, this procedure is
following by mapping of the value stream, a flow of operations must be there regarding each
of these activities, constant improvement in each of these activities also has to be considered
as it is very much desired during and before the enactment of the lean best practices (Ferreira
et al., 2017). The implementation of the lean regarding the selection of the location is very
much significant in this project as there are different categories of inconsistencies which
might have direct impact on the enactment of the lean best practices.
Selections of the factors which might influence of the design as well as the layout of
the dream house must consider the lean concept and it must be implemented in a structured
modus. Planning is one of the main selection criteria regarding the implementation of the lean
best practise. The planning phase can be followed by the identification of the unnecessary

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inventory associated with the selection of the design and layout of this project. The response
coming from each stakeholders of this project is very much significant during the enactment
of the lean best practices (Brioso, 2015). Quality of each of the paints, decoration materials,
pavement materials and other décor products which are general used both inside and outside
the dream house has to be maintained during the enactment of the lean best practices as well.
Selection of the suppliers is the other significant criteria which are required during the
enactment of the lean best practices during the selection of the design and layout of this
dream house.