University Project: Building New Home with Lean Project Management

This report explores the application of Lean Project Management (LPM) principles in building a new home for a client within a budget of AUD$500,000 and a 12-month timeframe. The report begins by discussing project management processes, specifically PMBOK and PRINCE2, with a focus on the latter for its systematic approach to managing complex projects and enhancing stakeholder communication. It details how PRINCE2 can be used to finalize client requirements, emphasizing the importance of understanding client needs and expectations through effective communication and the identification of both in-scope and out-of-scope project elements. The report then examines stakeholder communication strategies, highlighting the role of external stakeholders like material suppliers and the need for clear communication channels. It also covers the roles of subcontractors and vendors, emphasizing the significance of ethical considerations and market reputation in their selection. Furthermore, the report delves into achieving lean project management, focusing on waste reduction and enhancing project visibility. It explores implementing lean practices to finalize client requirements using tools like "The Five Whys" and improving stakeholder communication through various platforms and protocols. The report also discusses how to group stakeholders based on their objectives and identify the required communication frequency. Overall, the report provides a comprehensive analysis of how LPM can be effectively implemented in a construction project to ensure timely completion and client satisfaction.

Running head: BUILDING NEW HOME
Building new home
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction............................................................................................................................2
2. Project management processes...............................................................................................2
2.1 Finalise the client’s requirements.....................................................................................3
2.2 Stakeholder communication.............................................................................................3
2.3 Role of Subcontractors and vendors................................................................................5
3. Achieve lean project management for building the home.....................................................6
3.1 Implementing lean to finalize client requirement............................................................6
3.2 Implementing lean to improve Stakeholder communication...........................................7
3.3 Implementing lean to manage role of Subcontractors and vendors.................................8
4. Conclusion..............................................................................................................................9
5. Recommendation....................................................................................................................9
6. References............................................................................................................................10

2BUILDING NEW HOME
1. Introduction
Lean Project Management (LPM) can be demarcated as the procedure which is very
much useful to enact the five principles of lean such as perfection, pull, flow, value as well as
value streams. There are numerous advantages related to the enactment of the lean principals
such as enhanced project visibility, improved communication procedure, higher profit margin
and reduced multi-tasking (Oakland & Marosszeky, 2018). The value of the consumers must
be focused in the first place according to the concept of lean methodology. There are diverse
categories of tools lean tools which are used in construction projects such as Stream Mapping
and Focus PDCA.
The prime determination of this report is to build a new home for a client within AUD
$50000 from the perspective of a house builder. This project has to be completed within 12
months and LPM practices must be used to deliver this project on time.
The report shall have numerous sub-sections like the selection of the project
management procedures and identification of the significance of effective stakeholder
communication (Rivera & Kashiwagi, 2016). Each of the section will be very much useful to
how LPM can be useful in the construction projects.
2. Project management processes
There are numerous project management procedures which are increasingly used in the
complex construction projects such as PMBOK and PRINCE 2. Each step of a project can be
managed in a systemized modus using PMBOK whereas the quality of the final output is
better if a project is conducted using PRINCE 2. Based on the specifications of these two
processes it can be said that PRINCE 2 methodology is the most used methodology in the
complex construction projects.

3BUILDING NEW HOME
The prime reason behind the selection of this methodology is that the entire complex
project can be divided into smaller fragments so that each fragment can be managed in an
organized manner and the project is completed within the allocated budget and time
(Siegelaub, 2017). The other reason behind the selection of this methodology is that it helps in
enhancing the communication between each of the stakeholders who will be involved in this
project. Based on this methodology, any stakeholders can participate in decision-making
activities.
2.1 Finalise the client’s requirements
The selection of the scope of this construction project will be entirely depended on the
needs and expectations of the consumer of this project who is trying to build a new home
within a limited budget and time (Murillo Gomez & Jiménez, 2018). This construction project
shall require the involvement of different categories of service providers and supplier of the raw
materials.
Some of the requirement of the client in this construction project is to create a latest
design on the entire construction site, successfully completing the entire project within 12 months
the and the budget which is allocated to the housing building company, managing each phase of
the project in a systemized approach and defining the objectives of the project each stakeholders
of this project so that there are no real quality issues in this project (Mugeni, 2019). The needs
and expectations of the consumers can be understood in a better way if the principles of PRINCE
2 are considered prior to the planning phase of this construction project. Both the in-scope as well
as the out scope of this project can be finalized in the first place with the help of this methodology
as well.
2.2 Stakeholder communication
There are diverse categories of challenges related to construction projects such as dealing
with the uncertainties of the project and communication issues among the stakeholders of the

4BUILDING NEW HOME
project. In this particular project, external stakeholders like the supplier of the raw materials can
play a leading role to maintain the quality of the project (Mousaei & Javdani, 2018). It can be
said that the external as well as the internal stakeholders of this project must be having effective
communication with each other so that there are no real confusions about the deliverables of the
project.
PRINCE 2 methodology is very much useful regarding the creation of a professional
stakeholder communication plan which is one of the notable reasons behind the successful
completion of the project. It can be said that the capabilities of each of the resources who will be
working in this project can be identified with the help of this methodology ( Messner, Bhawani &
Leicht, 2018). PRINCE 2 can a play a significant role in the stakeholder communication plan as
well as some of the social networking platforms are increasingly used for reporting purposes in
these kinds of construction project. The frequency of communication required among each
stakeholder can also be identified with the help of the principles of PRINCE 2. This
methodology can help in understanding what kind of communication platform is required for the
stakeholders of this construction project.
The principles of PRINCE 2, which can play a huge role to create a stakeholder
communication plan, are LEARNING FROM EXPERIENCE AND FOCUS ON
PRODUCTS. Each of these two principles can be very much useful to create the exact
stakeholder communication plan which will be required in this construction project.
It can be said that if these two principles of PRINCE 2 is considered then the engagement
of the stakeholders of this complex construction project can also be improved to a huge extent.
The exact communication plan which can be very much useful for the stakeholders of this
projects can be categorized into delivery level who are workers who will be working under the
project manager, and the managing level for the diverse categories of managers who will be
playing a key role in this complex construction project such as the facility manager, operations

5BUILDING NEW HOME
manager, project manager and risk manager (Vaníčková, 2017). The different levels of
management can also be managed in the first place with the help of the stakeholder
communication plan. Identification of the stakeholders is also one of the most significant
contributions of PRINCE 2 while creating the exact stakeholder communication plan required in
this complex project (Mesa, Molenaar & Alarcón, 2019). Thus, it can be said that the planning
of an entire communication plan can be done with the help of PRINCE 2.
2.3 Role of Subcontractors and vendors
The role of subcontractors and vendors is very much useful for the successful completion
of this construction project. Vendors have to be selected in such a manner so that they can
provide their best quality service in this project. There are lot of ethical considerations which has
to be considered before selecting any sub-contractor, the same time it must also be said that the
selection of the vendors must not be on the basis of the years of experience ( Mann, 2017).
Market reputation of the vendor is also needed to be considered in the first place before
handing over the contractual agreement to them.
There are diverse categories of materials and equipment which will be required in this
construction project and the role of the subcontractor will be very much useful to maintain the
quality of the outcome of this construction project.
PRINCE 2 methodology can play a huge role to create a sub-contractor agreement, this
agreement can be very much useful to manage the business operations between the external
stakeholders of this construction project and the house building organization who was given the
job of building a new house within a limited time and resource (Li & Wen, 2019). It can be said
that the primary contribution of considering PRINCE 2 while creating the agreement is it can be
very much useful to supervise each operations of this project, direct the ways to deal with the
possible challenges of this project and control the diverse categories of uncertainties related with
this building construction project.

6BUILDING NEW HOME
3. Achieve lean project management for building the home
PRINCE 2 is one of the most significant methodologies which are used in the complex
construction projects as this methodology is non-proprietary in nature. On the other hand, it can
also be said that waste reduction is one of the most significant contributions of considering the
lean practices in the complex construction projects (Khanzadi et al., 2016). The lean practices
can be very much useful regarding the identification of the defects in complex projects thus, it
can be said that if lean practices are considered in this project, then the complications and the
visibility of the project shall be surely enhanced.
3.1 Implementing lean to finalize client requirement
Most of the traditional approach, which helps in identifying the exact requirement of the
clients, can be replaced using lean practices. They are very much useful to understand the
current and the future traits of the consumers. The exact scope of this complex project can
also be analysed in a systematized mode with the help of lean practices (Jamali & Oveisi, 2016).
The expectation of the consumers must be taken from different perspectives so that there are
no real confusion in the documentation of this project, the value of the expectations also has to be
understood in the first place so that the view point of the consumers can be identified. Different
level of trust must be there among both the parties so that the exact client requirement is
finalized.
In order to finalize the requirement of the clients, each stakeholders of this project must
be brought together even if it is an online session with the help of any social media platform like
Skype such as the architects, civil engineers, sub-contractors and the suppliers ( Sohi et al.,
2016). It can be said that there are numerous lean management tools which are used in
construction projects to understand and finalize the requirements of the clients such as the “The
Five Whys” tool.

7BUILDING NEW HOME
Benefits of The Five Whys: This technique was introduced by Toyota Motors in the
year 2014, however it can be said that this lean tool can be very much useful to understand
the root cause of any problem. Thus, it can be said that the problems which are currently
faced by the clients on their existing house can be understood with the help of this tool
(Demirkesen & Ozorhon, 2017). The flexibility required to finalize the requirement of a
client can make the most out of this tool. The time required to finalize the requirement of the
client can also be finalized with the help if this lean tool.
3.2 Implementing lean to improve Stakeholder communication
There are different types of communication platforms and protocols which will be
required in this project, on the other hand, it can also be said that the effectiveness of these
communications is very much essential for the successful completion of this construction project
considering the lean principles. The incorporation of the lean principles can be very much
beneficial to enhance the communication procedure of each of the stakeholders involved in this
complex construction projects (Christianson, 2017). Thus, it can said that that lean management
must be enacted in this project in such a way so that it de not have any adverse impact on the
product of the stakeholders who will be involved in this construction project.
The first of this procedure is the identification of each of the stakeholders who are
involved in this project. This step is followed by the identification of the objectives of each of
these stakeholders. After the completion of this step, the stakeholders can be grouped on the
basis of their responsibilities of this project. After the completion of this step, a bespoke plan
can be created for the stakeholders working in this project. A thorough evaluation must be done
so that the effectiveness of the above procedures is identified (Cano, Garnett & Kourouklis,
2018). The ensuing step is the creation of the stakeholder program by the project manager of
this construction project. The road map can be shared with each of the stakeholders so that there
are no real communication issues among the stakeholders of this project. It can be said that this

8BUILDING NEW HOME
procedure can be very much useful to ensure the communication with each of the
stakeholders are relevant and efficient.
3.3 Implementing lean to manage role of Subcontractors and vendors
Collaboration and communication are the two most significant factors which might
play a huge role to enhance the role of the sub-contractors and the vendors who will be hired
from out the business environment of the housing building organization. On the other hand, it
can be said that the lean practices must be enacted in such a manner so that it does not have
any sort of adverse effect in this complex construction project in terms of delay (Ansah,
Sorooshian, & Mustafa, 2016). There are diverse categories of critical success factors which
has to be taken care of while enacting lean to improve the role of sub-contractors and vendors
such as the communication among each of these external stakeholders, financial capability of
the project, skills and expertise of each of these stakeholders and the project culture which
had to be maintained once the project starts.
The procedure of enacting the lean principles to manage the performance of the
external stakeholders who will be involved in this complex construction project can be
understood from this section of this report. A new strategic team must be created by the
project manager who understands the ways to deal with the issues which are generally faced
by the sub-contractors like government regulations and shortage of workers (Sunder, 2016).
Communication and feedback strategy must be created to make the sub-contractors
understand their roles and responsibilities. After the creation of this strategy, a team meeting
is very much desired where the significance of this strategy will be explained to each of these
stakeholders (Amran, Saraswati & Harahap, 2019). The following step can be the
completion of a value stream mapping which is very much important to understand the
flow of information which can improve the role of the external sub-contractors. The final step

9BUILDING NEW HOME
regarding the enactment of lean management to manage the vendors and sub-contractors is
the 5S analysis; this process is very much useful to enhance the performance, safety and
productivity of each of the stakeholders of this business such as the vendors and sub-
contractors.
4. Conclusion
The complexity of this construction project can be addressed in a systematized modus
with the help of the PRINCE 2 methodology. The other reason behind the selection of this
methodology is that it can ensure there are no real communication issues in the project if this
methodology is selected. The principles of PRINCE 2 can be very much useful to finalize the
requirement of the clients of this project. The challenges which cause communication errors in
the construction projects can be addressed in the first place using PRINCE 2. The selection of the
role of the vendors and sub-contractors on the basis of PRINCE 2 can be very much useful to get
the best out of them. This report was very much useful to understand how the enactment of the
lean management can help in finalizing the requirement of the client, improve the communication
with the different stakeholders and manage the role of the sub-contractors and vendors who will
be hired for this construction project.
5. Recommendation
The lists of recommendations regarding the construction of a new home are as
followings:
 Scope of the project must be in accordance with the expectation of the client if this
project.
 Cost management plan along with the risk management plan must be considered to
complete the project within the allotted time period and budget.

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6. References
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Publishing.
Ansah, R. H., Sorooshian, S., & Mustafa, S. B. (2016). Lean construction: an effective
approach for project management. ARPN Journal of Engineering and Applied
Sciences, 11(3), 1607-1612.
Cano, M., Garnett, J., & Kourouklis, A. (2018). Can Portfolio, Programme and Project
Management be effective in Lean Management Implementation?. In Excellence in
Services: 21st International Conference (pp. 113-124). Le CNAM.
Christianson, G. (2017). Implementing Lean into Cloud-based Project Management Programs
for a Small Construction Company. Unpublished manuscript, Milwaukee School of
Engineering.
Demirkesen, S., & Ozorhon, B. (2017). Impact of integration management on construction
project management performance. International Journal of Project Management,
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Li, J., & Wen, W. (2019, February). A Literature Review on the Organizational Adaptability
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