PPMP20009 Report: Applying Project Management to Build a Dream Home

This report delves into the application of project management methodologies, specifically PRINCE2 and PMBOK, to a home construction project undertaken through the Keystart initiative in Perth, Western Australia. It outlines the key steps involved, including suburb selection (Ashfield), land size determination, and builder selection (Home Innovation Builders), all guided by project management principles. The report emphasizes the importance of stakeholder management, identifying key stakeholders such as Keystart and the builder. It further explores the factors influencing the design and layout of the dream home, including accessibility, sustainability, and budget constraints. The report also discusses the implementation of lean practices to optimize the project, covering the identification of value, mapping the value stream, ensuring value flow, establishing pull, and seeking perfection in the construction process. The report highlights the benefits of using PRINCE2, particularly its flexibility and control over project elements, in managing scope and cost effectively throughout the project lifecycle. This assignment is a great resource for students on Desklib.

Running head: PPMP20009
PPMP20009
Name of Student
Name of University
Author Note

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Table of Contents
Background..........................................................................................................................2
1. Project Management Processes........................................................................................2
1.1. Choosing the suburb.................................................................................................3
1.2. Deciding on the land Size.........................................................................................3
1.3. Choosing the best Builder.........................................................................................4
1.4. Identification of the Project Stakeholder..................................................................5
2. Factors influencing the design and layout.......................................................................6
2.1. Project Management Processes Used.......................................................................7
3. Implementation of Lean...................................................................................................8
3.1. Specify Value............................................................................................................9
3.2. Map the Value Stream............................................................................................10
3.3. Make Value Flow...................................................................................................10
3.4. Establish Pull..........................................................................................................10
3.5. Seek Perfection.......................................................................................................10
References..........................................................................................................................12

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Background
Keystart is an initiative that is committed for providing an affordable pathway for
individuals to provide a dream home. The advantage of Keystart is that it has a lower entry cost
and along with a lower deposit cost. The benefit of choosing Keystart is that lender’s mortgage
and insurance is not required for applying for a loan. The process of application submission in
Keystart requires identification of a suburb, identification of a potential home builder and
finalization of the layout design for submission of the application (Keystart, 2019). The report
aims in discussing the project management processes that can help the two partners in choosing
the suburb and deciding the land size for development of home. The report will further identify
the stakeholders who will be involved with the project along with identification of the factors
that can have a significant effect on the design and the layout of the house to be build. The report
aims in detailed explanation of the project management processes that is chosen for determining
the most effective design and layout of the dream home. The report concludes with the
discussion of the best lean practices that can help in finding a good place and best designer for
designing the dream home for the two partners.
1. Project Management Processes
The use of different project management processes is beneficial for making the correct
choice of the suburb and the builder that can take up the work for building dream home for the
two partners. In this context, two of the most effective project management practices can be
considered. These project management practices include PRINCE2 and PMBOK. It is necessary
to analyze the best practices that can help in choosing the suburb, deciding on the best payment
methods and choosing the best builder that can help in building the home for the partners. Prior

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to that, understanding the two project management processes is necessary (Binder, 2016). The
PMBOK project management processes can be described as a guide that helps in understanding
the specific series of the processes and groups linked with a particular project. PRINCE2 on the
other hand is a widely adopted project management method that combines the best practice of
PRINCE2 with that of the agile concepts for a seamless project delivery (Tomanek & Juricek,
2015). The PRINCE2 method is easy to understand in consideration to the PMBOK method. The
following section provides an idea of the process that is used for choosing a suburb, deciding the
land size and also, for choosing the best builder for implementation of the project.
1.1. Choosing the suburb
The suburb that is chosen for building the dream house is Ashfield. It is chosen to be one
of the most appropriate place for development of a dream home mainly because it is quite near to
the Midland railway line. The project management process that is used for choosing the suburb
for building the dream home in PRINCE2 (Špundak, 2014). This is particularly because the
construction projects make use of PRINCE2 approach for clear direction and fully
implementable plan of action. Furthermore, the use of PRINCE2 indicates better control of the
different project elements and therefore, the choice of making use of PRINCE2 approach is
justified.
1.2. Deciding on the land Size
The land size is dependent on the requirement along with budget that is decided for
building of the dream home. For the entire building project, the budget specified in $80,000.
Depending on the budget, a land size of 16,000 sq. ft. is chosen. The PRINCE2 process acted as
a guide for deciding the land size. The land size that is chosen is big enough for building a 3BHK

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house with open spaces for lawn and garage. The land size was decided as per the requirement
and the use of PRINCE2 methodology in selection of the land size has been appropriate. This has
been possible as PRINCE2 has proven to be a practical and flexible method of planning and
execution of a project. The use of PRINCE2 project management process is justified as this
particular method is accessible and recognized throughout the globe.
1.3. Choosing the best Builder
Majority of the builders associated with construction projects prefers to make use of the
PRINCE2 approach in choosing the best builder for building of a dream house. While choosing
the best builders, the previous record of the chosen builder is checked to get an idea of the
projects that the builder has delivered in the past. This process is guided by the PRINCE2
approach (Hinde, 2018). One of the process models of PRINCE2 approach deals with monitoring
the viability of a chosen project along with its ability of modification. Therefore, while choosing
the best builder for building the dream home the previous records of a number of builders have
been evaluated to get a better control of all the elements of the undertaken project. The
PRINCE2 model is chosen in this particular project particularly because it is a flexible approach.
The builder that is chosen for development of the dream home is Home Innovation
Builders. This builder is a private builder that serves the purpose of development of the dream
home. This private builder is an innovator in design, materials and technique used for building a
truly custom home. This builder is found to be appropriate for this project since the builder is
known for designing the houses as per the needs of the clients. The builder is known for design
excellence which in turn helps in delivering valued products to the client. Thus, the hiring of the
Home Innovation Builders for this project is justified.

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A background study of the Home Innovation Builder indicates that the builder is known
for developing beautiful design and for styling. Apart from the design layout, the builder is
known for designing functional layouts as well. Furthermore, the builder make use of innovative
build methods and use innovative materials to provide a smooth finish to the house that is being
built. The builder has promised an absolute customer satisfaction and therefore, this particular
builder is chosen.
The choice of the builder is completely dependent on the PRINCE2 approach. PRINCE2
approach has provided a step by step guide for successful management of a project (Siegelaub,
2017). Since PRINCE2 provides a clear direction and the fully implementable plan of action
from start to finish, the choice of the builder for this particular project was made easier.
1.4. Identification of the Project Stakeholder
Stakeholders’ identification and management is considered to be one of the most essential
needs of project management. In PRINCE2 approach, special focus is given to management of
the stakeholders as success of a project, to a large extent is determined by the engagement of the
stakeholders in a project (Jamali & Oveisi, 2016). Effective engagement of the stakeholders
helps in understanding the detailed requirement of the project and further helps in addressing the
main issues in the project. The main stakeholders for development of the dream home by seeking
loan from Keystart are indicated in the stakeholders’ interest influence matrix.
Stakeholder Influence Interest
Keystart High Low
Home Innovation Builder High High
Contractor Medium Medium

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Workers Low Low
Project Manager High Medium
Table 1: Representing the Stakeholders
The choice of the PRINCE2 approach has helped in identification of the stakeholders for
the development of the dream house (Skogmar, 2015). These stakeholders that are identified in
the above table form the most important stakeholders of the project. Keystart is considered to be
one of the most important stakeholders of the project as the funding for the project will be
approved by Keystart.
2. Factors influencing the design and layout
The first step towards the development of the dream home is to correctly develop the
design and layout of the dream home to be developed. There are a number of factors that
influences the design and layout of a particular project. There are a number of factors that
influences the design of a house (Saad et al., 2014). One of the most prominent factors that
determines the design and layout of the house is its accessibility of house by its members. The
house should be easily assessed and the design should be sustainable. Thus, sustainability is
considered to be another important factor that determines the design layout of a house. The
design layout is further affected by the purpose for which the house is being built. In this case,
along with all the discussed factors, the budget chosen for the house also determines the
preferred design and layout of the house.

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On following the PRINCE approach for project management, prior to the start of the
construction, it is quite necessary to develop a detailed design for implementation of the project
as per plan (Fewings & Henjewele, 2019). Thus for identification of the factors concerning the
design and layout of the dream home, the PRINCE2 project management approach is chosen.
2.1. Project Management Processes Used
The PRINCE2 project management process is used for identification of the design and
layout requirements of the project. The PRINCE2 method is a structured project management
process that is adopted worldwide for management of the construction project. Thus, the choice
of the project management processes is justified (Dziadosz & Rejment, 2015). PRINCE2 is a
process based approach that is one of the most widely adopted project management method. The
PRINCE2 enables seamless delivery of the undertaken projects and the programs and therefore,
the entire implementation process of delivery of the dream home project is being managed by the
help of the PRINCE2 project (Antunes & Gonzalez, 2015). The choice of PRINCE2 project
management process is justified mainly because it helps in minimization of the cost requirement
for execution of the project. The PRINCE2 method is chosen over PMBOK as PMBOK is a
complex project management process and the current project team may not have an experience
about the same. It is quite difficult for an inexperienced project manager to handle any project by
making use of the PMBOK approach, one require several years of experience in this field.
PRINCE2 on the other hand provides a better control of all the major project elements. The
PRINCE2 approach further helps in ensuring better communication at all levels of the project
team. The minimization of the project’s cost is another major benefit of PRINCE2 approach.

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The use of PRINCE2 in execution of this particular project has helped in effective scope
management and cost management. These two are important considerations of this project as
success and failure of the undertaken project depends in these two processes.
Scope Management: The scope management is considered as a process that defines the
work required in a particular project. PRINCE2 approach provides effective scope management
by following a detailed process of determination of the scope, management of the scope and
controlling the scope.
Cost Management: Cost management is another important consideration in PRINCE2
approach. The PRINCE2 approach focuses on effective cost planning to provide the project team
with an idea of the actual cost of the project. Cost is one of the most significant consideration for
identification of the design and layout of the dream home and therefore, this project management
approach is chosen.
Thus, the use of PRINCE2 in identification of the design and layout requirements of the
project is justified.
3. Implementation of Lean
Lean project management can be described as an application of the principle of the lean
in a project by maximizing the value of the undertaken project while minimizing the waste. In
lean project management principle, three types of wastes are generally identified which include
the munda, muri and mura (Tenera & Luís Carneiro, 2014). These three types of wastes are
collectively known as 3M. Munda is mainly referred to the activities that consume the resources
without providing the additional value. Muri on the other hand refers to the overuse of the
equipment or the employees that are assigned for the project while Mura is described as the

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operational unevenness that mainly decreases the efficiency and productivity of the undertaken
project.
The lean project management practices is mostly implemented to reduce the presence of
the above three mentioned wastes in any project (Sunder, 2016). In short the Lean project
management aims in reduction of 3M from a chosen project process. The chosen process for this
particular project is PRINCE2. Adoption of lean in PRINCE2 project management practices will
maximize the value of the project of development of a dream home by considerably minimizing
the wastes. The benefits of making use of lean project management practices are identified as
follows-
1. The use of Lean project management practices helps in reduction of the lean times in a
project.
2. The use of lean practices in the project helps in lowering the inventory and in turn
lowering the storage costs (Brioso, 2015).
3. The implementation of lean helps in decreasing the overall costs
4. The implementation of lean helps in improving the productivity as well as the
efficiency of the undertaken project thereby increasing the customers’ satisfaction.
The above benefits indicate that implementation of lean project management process in
PRINCE2 can help in increasing the efficiency of the project. The implementation of lean is
associated with five key principles which are indicated in the following sections.
3.1. Specify Value

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The first step towards implementation of lean practices in the project includes specifying
the value of the project. The lean team reviews the product and the services from the perspective
of the clients (Rolstadås et al., 2014). Specification of the value helps the customers in
accomplishing their mission and also helps in determination of the unique value of the products.
3.2. Map the Value Stream
After successful determination of the value of the project, it is necessary to determine the
unique value of implementation of lean. Value stream mapping enables the team to understand
the flow of value through the project organization and further helps in developing a physical map
for the organization. This process is important for showing an entire process of the creation of a
product or a project (Anholon & Sano, 2016). Mapping step is necessary as once a project is
mapped, it can be analyzed for identification of the areas of wastes, which includes reduction of
the steps and actions, which can compromise the quality of the product that is being developed.
3.3. Make Value Flow
This step of implementation of lean principles is associated with the elimination of the
waste by creation of an improvement plan that can effectively eliminate the waste that are
identified in the value stream. Creation of the flow is quite essential for finding different ways
for minimization of the efficiencies in a project and also by reducing the waste.
3.4. Establish Pull
The fourth step that is followed for implementation of the lean process is establishing of
the pull. This is the fourth and one of the most critical steps in establishment of lean project

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management approaches (Rolstadås et al., 2014). One most significant benefit of lean is that it
helps in addressing the needs of the clients.
3.5. Seek Perfection
The last step that is followed in implementation of lean project management processes is
to seek perfection. The Lean team mainly identifies the areas the improvement in a project and
act upon those findings to identify the most effective approach for maximization of the profits in
the project. The lean processes ascertains that the project delivers value as per the needs of the
customers.
The above five steps can be followed for implementation of lean project management
processes in PRINCE2. PRINCE2 is found to be one of the most effective methods for
implementation of a building project (Rolstadås et al., 2014). Aggregation of lean with PRINCE2
further helps in minimization of the wastes generated in the project thereby maximization of the
profits that can be gained from the project.
Apart from that effective stakeholder management and team work are considered to be
two most important needs for adoption of lean principles.
Team work is essential for lean success. The success in lean is related to development of
new skills and habits in a project. The implementation of lean indicates that within a project
team, transition is achieved from a traditional approach to an approach of high performing team.
Stakeholder Management can be described as a practice of identifying and working with
the individuals having a high impact on the success of a project. Stakeholders’ management is
considered to be a key to successful project execution mainly because efforts from the