Implementing Lean Project Management: Dream Home Construction Report

This report details the application of lean project management principles to the construction of a dream home in Perth, Australia. It begins by selecting Leederville as the ideal suburb, considering factors like location, land size, and cost. The report then justifies the selection of the PRINCE2 project management process, outlining its benefits for clear project planning, resource utilization, and quality control. It includes the selection of a builder, 'Dream to Reality Construction', and the identification of key stakeholders. The report then analyzes factors influencing design and layout, such as communication, cost and time management, stakeholder engagement, resource allocation, and project quality. Finally, it elaborates on the PRINCE2 methodology, detailing the pre-project considerations, project initiation, directing, managing, and delivering stages, ensuring the successful completion of the dream home project within the allocated budget and timeline.

Running head: LEADING LEAN PROJECTS
Assessment 1
Leading Lean Projects: Implementing lean project management to build your dream home
Name of the student:
Nam of the university:

1LEADING LEAN PROJECTS
1. Selection and explanation of project management process
From past 4 to 5 years the project management practices have shown huge level of
transformation. The landscape of project management is also changing daily therefore, while
implementing any construction project the supervisor needs to focus on detail development
process to be followed thoroughly throughout the development of the nominated project “build
your dream home”. Project management prcatices can be defined as an art that helps to direct
and coordinate team associates to make sure that the project team has reached the preliminarily
determined goals and objectives.
Among PMBOK and PRNCE2, for this dream home construction PRINCE project
processes are much effective and beneficial. If PRINCE2 process is successfully followed then,
the project supervisor and team members would be develop a clear and realistic project plan. It
will help to make the project objectives clearer and focused. The quality of project will be
effectively controlled and also all resources will be properly utilized if PRINCE2 process is
appropriately applied. Between PMBOK and PRINCE2 if, this process is used then, selection of
suburb, decision making on land size where the dream house will be constructed, best builder
selection would become specific and accurate.
a. Choose the suburb and land size
In order to construct the dream home the location selected is Leederville. This nominated
location is located three kilometer away from Perth’s CBD. Leederville is a trendy suburb area
where median house prices are ranged between $890,000 and $891,500. Besides this, the median
unit prices estimated as $525,000. Leederville gives education facilities for cent percent residents
and also close immediacy to parklands. Based on different factors such as school, park, transit,
nearest CDB these data are calculated (Conforto et al., 2016). For this calculation, the
“Australian statistical Geography standard 2016” is considered. The education and lifestyle of
residents are influenced with PRINCE2 process management processes and prcatices.
In order to design and construct the project “your dream house” the land size that has
been measured and purchased is 1.0 acre. The feasibility analysis report or cost estimated that the
price that the owner has to pay for purchasing the land is $350,000. Besides land purchasing the

2LEADING LEAN PROJECTS
other factors for which cost have been measured include sign a land contract with the land
developer in the price of AUD$2000 and sign a pre work construction contract with the land
developer in AUD$2000. The net budget estimated for construction of the dream house in
Leederville, Perth, Australia is $890,000. For construction of the dream house in Leederville
Perth, contractor and project manager need to contribute cent percent attention (Maru, 2015). It
is role of the contractor to consider labour safety, cost, time, drafting, decision making,
engineering and human resource management aspects. As soon as the project owner is become
ready to start the project, the owner needs to share detail project information to the project team
associates. The process of dream house construction starts with design blueprint layout, material
take off, bidding, negotiation and best construction business model selection and delivery.
b. Best builder selection
Before selection of the best suited builder different aspects are needed to be considered
and analyzed individually. Two dissimilar kinds of bidding procedures are accessible such as
open bidding and closed bidding. For this dream house construction project, the close bidding
process is chosen. In case of dream house construction project, the owners will invite and select
contractor group for sending their bids. This bidding process is applicable for private projects.
This is the reason why, for this dream house construction project closed bidding approach is
selected. Selection of project contractor is decided based on different other factors like low bid
selection; qualification based selection and best value selection. For this project the best value
selection is most suited approach because it gives a best combination of cost and skills as well
(Rexeisen, Owens & Garrison, 2018). After that, in order to negotiate payment agreement the
best contractor needs to be chosen. Different payment models are there such as- lump sum, unit
price, cost plus fees and guaranteed maximum price among these the most suitable contract type
has to be selected by the project owner. For this project, Lump sum is the best suited and
effective choice. The project contractor and owner need to come together to complete the project
in the assigned budget and time. Based on these factors and aspects the most suitable builder is
needed to be selected for the “your dream house construction project”.
The builder who is contracted for the “your dream house construction” project is “Dream
to Reality Construction”. After analyzing the previous projects of the builder it is determined that

3LEADING LEAN PROJECTS
this, if this project is handover to them they will make the project a successful reality with the
estimated time of 14 months and budget of $890,000 in Leederville.
c. Stakeholders
The stakeholder of the project are:
 Project supervisor
 Finance manager
 Architect
 Civil engineer
 Contractor
 Sub contractor
 Labours
2. Factors that will influence the design and layout of the dream house
a. Factors
It has been determined that there are different factors which impact either negatively or
positively the success and failure of any project. In other words, performance of any project is
dependent on different influencing factors. These factors are again classified into categories like
external factors, project related factors, project procedures, project management actions and
human related factors. It is duty of the builder, owner and contractor to make sure that all factors
are precisely analyzed. The different factors that will influence the design and layout of the
“Your dream house project”, are elaborated in the below section:
Communication system: Communication system is one of the most effective knowledge
areas that require major focus of the contractor, builders and project manager. In order to
accomplish successful interaction among project associates the best suited communication
standard that has to be followed by all is open informal communication (Hackler, Byse, Reed &
Alves, 2017). This communication approach will give an independent platform to the project
associates and make sure that they are all allowed in construction decision making.

4LEADING LEAN PROJECTS
Project cost and time: Cost estimated for any project is other factor that influences
success of a project. Cost, time and resources are the factors directly related to each other which
mean that if the project cost exceeds then the time will also exceed and similarly the project
resources will be increased. In other words, it can also be said that, if the project cost increases
then the resources will increase but the time will get reduced (Mesa, Molenaar & Alarcón, 2016).
However, it is duty of the builder, contractors, sub contractors and project team members to
complete the project in the assigned budget and time.
Stakeholder’s engagement: Engagement of project stakeholders is much essential for
project success. In order to keep the stakeholder engaged to the assigned roles and responsibility
it is essential to implement different stakeholder engagement strategies in terms of partnership,
participation, push communication, and pull communication and consultation.
Skills and experience of the project associates: The achievement and breakdown of
project is reliant partially on skill, performance and preliminary experience of project team
associates. If they are found to have less experience and skills then the entire project may fail to
meet the expectation of the builders, contractors and project manager. Hence, it is to be made
sure that the team members included in the project is competent enough to complete the project
as per the requirements set by the owners and supervisor.
Resource allocation: The other perspective that influences success of a project is proper
resource allocation and utilization. Before commence of any project, the supervisor and team
associates are required to identify the human and physical resources. Based on requirements and
experiences of the resources these should be assigned to individual task (Mourtzis,
Papathanasiou & Fotia, 2016). As soon as the resources are allocated to individual activity it
becomes their reasonability to complete specific task in assigned time and budget.
Quality of the project: Project quality is the other important factor that influences the
project success. The supervisor needs to ensure that project quality is thoroughly maintained.
The supervisor needs to forecast that the project objectives are completed considering factors
direct, indirect and markup cost. The quality of the project has to be maintained followed by
quality assessment, quality assurance and quality control activity.

5LEADING LEAN PROJECTS
Selection of contract type: Different types of contract are there such as fixed price
contract, cost refurbishment, labour house contract, time and material factor, indefinite delivery
contract etc. Among these contracts the most suitable agreement has to be signed in by the
project head to ensure commercial success of the project.
Technical consideration: In order to accomplish construction project, technical
experience and skills of project team members are much essential in case of layout and blueprint
design and development (Fosse & Ballard, 2016). In order to design the construction layout
blueprint, AutoCAD is one of the most widely used platforms.
b. Project management process use to explain the project details
The project management procedures are relies on project nature, type and size the most
suitable process is needed to be selected and practically applied by project supervisor while
implementing the “your dream house” project in Perth. The processes those should be followed
throughout for implementation of the construction project are elaborated in details.
Project in Controlled Environment (PRINCE2) is the one of the most suitable process
driven project development methodology applicable for construction project. Similarly for this
project also, PRINCE2 is the most suitable development approach. It helps to breakdown a large
project into smaller stages. Each of the development stages are needed to be managed all
separately. It is determined that, each of the project development stages are discriminated with
key inputs and key outputs (Sunder 2016). If all of the factors are properly followed and
managed accurately then the project would successfully met the objectives and primary goals.
The impression of PRINCE2 methodology is comprises of 7 different processes in terms of pre
project considerations, project initiation, and subsequent project delivery stages, final project
delivery stage and on the other hand the three different factors based on which the process is
executed are direction, management and delivery.
Pre project development stage: Before initiating the project, project aim, objectives and
goal are needed to be understood by the project supervisor and all other team associates. Using
key performance indicators and performance analysis matrices the previous experiences, skills
and knowledge of the team associates should be analyzed. The skill set and performance will
help to form the project team among who the work activities will be distributes throughout

6LEADING LEAN PROJECTS
development of the construction of the “dream house”. After that project contractors and sub
contractor will be assigned to the project (Demirkesen & Ozorhon, 2017). Then a project
executive and a project manager should be appointed with the project. After development of the
project team, a project charter or business case is prepared. In this phase, an initiation stage plan
is prepared by the project team members.
Initiation project plan: In this stage, the detail project plan should be prepared which
involves detail planning process. Four key management strategies analyzed in this stage include
project risk management plan, quality management, and configuration plan and communication
management strategy development. A project feasibility study is conducted and presented to the
project team associates to make sure that whether the project is successful or not. In this stage
project files must be setup and project control as well based in that (Rivera & Kashiwagi, 2016).
After that, the project initiation document is prepared by the project team associates and
presented to the supervisor.
Directing project: The PRINCE2 project development methodology needs to be
followed starting from the project initiation till the project closure phase. The path through which
the project objectives and aims can be reached is set by the project board of members or steering
committee members. Project authorization, project plan authorization, stage development and
project monitoring and project closure are the stages required for the successful implementation
of the project.
Controlling project stages: The project control helps to monitor and control the project
activities served by the project supervisor. In this stage the work package is prepared and
approved by the supervisor. In order to avoid possible risks such as over allocation of budget,
over allocation of cost, over running resources etc proper risk management plan should be
developed along with stakeholder engagement plan and communication management plan (Erol,
Dikmen & Birgonul, 2017). Whether the project is progressing towards expected direction or not
is checked by stage review and project status reporting. In this stage corrective actions should be
taken and change management actions are needed to be taken as well.

7LEADING LEAN PROJECTS
Project boundary management: Project constraints are referred to as boundary that will
help to keep the construction project on track and make sure that it will be completed in the time
of 14 months and budget of $890,000.
The project budget is as follows:
Factors Budget
Cost for land $ 350,000
Deposit $2,000
Pre work construction $2,000
Layout design $50,000
Construction $300,000
Builder cost $100,000
Others $86,000
Total $890,000
Project design and development: This specific phase or stage initiates with dream house
design layout or blueprint presentation. Once the blueprint is prepared it needs to be approved by
the contractor and supervisor.
Project closure: The project closure ends with stakeholder signoff, final project draft
presentation and dream house handover.
3. Explanation to achieve lean project management
In order to achieve the primary project objectives, goals and aims if lean project
management process is followed then, all possible issues will become easier to solve. Lean is a
management philosophy, created by Toyota Production System (TPS) to enhance the logistics,
manufacturing and streamline interaction along with the customers and raw material suppliers. It
has been determined that with successful execution of lean management thinking and application
the customer service can be improved, productivity, quality and inventory management system
will be improved (Mourtzis, Papathanasiou & Fotia, 2016). Not only this but also, it helps to
eliminate wastes with improved lead time. In order to achieve lean project objectives the

8LEADING LEAN PROJECTS
components those are to be applied include some specific principles in terms of understanding
project values, value stream mapping, ensuring value stream flow, employment of pull approach,
pursuing project continuous improvement.
Improve final quality of the project: Lean project management approach will help to
improve the final quality of the dream house construction project.
Completion on time and budget: It will help to complete the dream house construction
project in estimated time and budget of 14 months and $890,000.
Eliminate waste: It helps to eliminate the unwanted activities and waste components.
Reducing cost: This method helps to reduce the overall cost of the project
Adding value: It helps to add on values to the project development activities
With the application of lean thinking the supervisor of dream house building project in
Perth would be able to improve the quality of the final construction project. In order to achieve
lean the below principles should be followed:
Understanding values: The project value should be understood at the initiation stage to
understand value of the project according to the dream house owner. The project value is directly
related to the amount or capital that a project owner is interested to pay for successful execution
of the construction project (Tezel & Aziz, 2017). For this project if the project owners are found
willing to pay top down amount then the lean achievement will become easier.
Value stream mapping: Value stream is a series of activity that is involved to end
product delivery. A project value stream can be successfully completed is visualization technique
is used. It is found that, different strategies are there must be used to identify the wastes those
require to be eliminated. A visual document has to be presented to identify the wastes those
should be eliminated.
Ensuring value stream flow: The supervisor need to ensure that the project is directing
towards proper flow.

9LEADING LEAN PROJECTS
Employing pull approach: Traditional manufacturing can employ push project
development approach. It helps to convert project possibly towards efficiency.

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