PPMP20009: Leading Lean Project Report - House Building Project

This report details the application of lean project management principles to construct a client's dream home within a budget of AUD$500,000 and a 12-month timeframe. It focuses on selecting appropriate project management processes, specifically PRINCE2, to effectively manage the project. The report outlines the finalization of client requirements, ensuring effective communication with stakeholders, and efficient management of vendors and subcontractors. It explores the implementation of lean best practices, including identifying value, mapping value streams, and establishing flow, to minimize waste and optimize project outcomes. The report provides a communication plan for stakeholders and discusses the vendor and subcontractor management processes within the PRINCE2 framework. The report aims to demonstrate how lean methodologies can be successfully applied in a construction project to achieve the client's goals within the set constraints.

Running head: PM
Leading Lean: Building a New House
Name of Student
Name of University
Author Note

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Table of Contents
Introduction..........................................................................................................................2
1. Selection of the Project Management Processes.............................................................2
1.1. Finalization of Clients’ Requirements......................................................................3
1.2. Ensuring communication with the stakeholders.......................................................4
1.3. Managing the Vendors and the Sub contractors.......................................................6
2. Implementation of Lean Best Practices...........................................................................6
2.1. Implementation of Lean for Finalization of Clients’ Requirements.........................7
2.2. Implementation of Lean for Communication with the Stakeholders........................7
2.3. Implementation of Lean for managing the Vendors and Sub contractors................8
Conclusion...........................................................................................................................9
References..........................................................................................................................10

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Introduction
The report discusses the case of implementation of lean project management practices for
building the dream home of a client. The budget proposed for construction of the dream home of
the client is AUD$500,000. The time allocated for completion of the project of house building
for the client is 12 months. The aim of the report is to select the appropriate project management
(PM) processes that can help in easier implementation of the dream house of the client. In the
section following in the report, evidences are provided for selection of appropriate project
management processes that can significantly help in finalization of the requirements of the
clients, ensuring the communication of the key stakeholders and management of the
subcontractors and the vendors associated with the project. The report will further provide
evidences of employment of the lean best practices for accomplishing the LMP for finalization of
the clients’ requirements, ensuring effective communication with the relevant stakeholders and
for effectively managing the vendors and the subcontractors of the project.
1. Selection of the Project Management Processes
Selecting an effective PM process prior to the start of the project is necessary to plan and
implement the undertaken dream house project in an accurate manner. The project management
processes that is chosen for this particular project is PRINCE2. This approach mainly helps to
seek control on the project environment by reflecting upon the cost, scope, time, risk, quality and
the benefits that can be gathered from a project (Hinde, 2018). PRINCE2 approach is chosen as it
mainly seeks to access the key benefits that are delivered by the project and therefore, this
method would be appropriate for finalization of the requirements of the clients, for ensuring that
effective communication among the stakeholders are maintained and for ensuring that
communication with the stakeholders are managed effectively (Siegelaub, 2017). The PRINCE2
approach is chosen as it continually seeks to assess the key benefits that the project could deliver.
The benefits include that positive outcome from the project is mainly delivered to the advantage
of the stakeholders (Skogmar, 2015). Furthermore, the choice of PRINCE2 approach in a project
provides continued business reasoning for learning from the experience, defining the role and
responsibility of the team members in an effective manner, managing the implementation of the
project by different stages, management of the exceptions and by giving a complete focus on the
products to be developed.

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The PMBOK approach on the other hand is mainly associated with five process groups
which include, initiation, planning, execution, monitoring and controlling and closure. The
PMBOK is mainly based on 10 knowledge areas, 5 process groups and 49 process activities in a
project. The ten knowledge areas in project management is include project integration
management, scope management, schedule, cost and quality management, management of
resources, communication, risks, procurement and stakeholder (Jamali & Oveisi, 2016).
Application of PMBOK in any project requires detailed understanding of all the processes
groups and knowledge areas linked with the project and their and experienced team is necessary.
The development of the undertaken dream house project will make use of PRINCE2
approach as it is a widely accepted standard of project management. The PRINCE2 approach
chosen mainly helps in finalization of the client’s requirements, ensuring communication and
management of the sub-contractors (Meredith, Mantel Jr & Shafer, 2017). In the following
paragraphs, the details of finalization of clients’ requirements, management of the
communication of the significant stakeholders and administration of the subcontractors and the
vendors are discussed.
1.1. Finalization of Clients’ Requirements
To finalize the clients’ requirement, PRINCE2 process is used. The finalization of the
clients’ requirement requires accurate identification of the project scope and the works that are to
be executed as a part of the project (Cooke, 2016). The clients’ requirements are to be finalized
before the development of project plan and for that accurate identification of the scope of the
home building project becomes a necessity. The in scope needs of the house building project is
indicated as follows-
o To develop a feasible design plan for the new house to be build
o To set up an working project team
o To execute the entire project within next 12 months
o To execute the project within a fixed budget of AUD$500,000
o To implement the entire project by enforcing lean project management processes

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The project plan will be developed on basis of the above identified project scope. The
scope of the home building project is linked with the preliminary requirements as quantified by
the client and therefore the process of scope identification validates the necessities quantified by
the clients. The final project plan that will be develop will not include any out scope
requirements. The out scope needs that are excluded from the project plan are indicated as
follows-
o Change in the design of the building
o Change (reduction) in the budget allocated
o Change in the timeline of the project
The above discussed out scope project needs will not be incorporated in the project plan.
If these requirements are to be included in the project, there might be significant change in the
implementation plan of the project.
For finalization of the clients’ requirements a business case and the project plan is to be
prepared and to be shared with the clients (Kerzner, 2017). On validation of the client, the actual
project works linked with the dream house building project will kick start.
1.2. Ensuring communication with the stakeholders
Stakeholders in any project is of significant importance mainly because the stakeholders
are largely affected by the outcome of a project (Karaman & Kurt, 2015). The engagement of a
stakeholder with a project is of highest priority mainly because the project is planned and
designed as per the expectations a stakeholder have on the project.
Appropriate communication among the stakeholders of the project and with the team is
necessary to confirm that key issues linked with the project are communicated in a timely
manner. For ensuring that the communication with the stakeholder are effective and efficient it
is of foremost importance to ensure that a feasible communication plan is prepared which will be
followed by all the team members and the stakeholders (Jamali & Oveisi,2016). The initial
communication plan that is prepared to ensure that the stakeholders are rightly and efficiently
communicated with the progress and the status of the house project is indicated in the
communication plan below-

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Stakeholders Objective/Purpose Frequency of
communication
Communication
Vehicle
Audience
Project
Manager
To discuss the
Project Status
Twice in a Week Face to Face
communication
Project
Team
Resource
Manager
To discuss the
Resource Needs
Once in a Week Email Project
Manager
Consultant To discusses the
Issues
Monthly Email and
Teleconference
Project
Team
Vendors To communicate
the materials need
Monthly Phone Call Project
Team
Contractor To discuss the
current Progress of
the undertaken
project
Twice in a Month Email Project
Manager
Sub-Contractor To discuss the
current progress
Twice in a Month Email Project
Team
Client To communicate
the status and
Progress
Once in two
months
Face to Face
communication
and Email
Project
Manager
Table 1: Illustrating the Communication Plan for Dream House Project
The communication plan in the above table indicates the communication to be carried out
among the stakeholders and the frequency at which the communication to be carried out. A
regular frequency of communication is planned so that the major issues faced by the stakeholders
are easily communicated to the team or the project manager (Brioso, 2015). The communication
plan can be improved during the execution of the home building project as per the need of the
project.
The PRINCE2 approach that is chosen for the project ascertains that a clear explanation
of the communication frequency is provided to both external and the internal project members.

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The PRINCE2 strategy that is chosen mainly facilitate the engagement of the stakeholders by
establishing an effective, well-ordered and bi-directional information flow (Müller et al, 2014).
The development of an effective communication plan will ensure that the communication with
the relevant stakeholder of the house building project is effective and efficient. The
communication strategy that is followed in PRINCE2 facilitates the engagement with the
stakeholders by efficient communication.
1.3. Managing the Vendors and the Sub contractors
The project undertaken is a construction project linked with development of a new house
within a constricted time of 12 months. Therefore, effective management of the vendors and
subcontractors becomes a necessary need of the project. The Vendors and sub-contractor
management involves researching about the vendors to be selected, obtaining the quotes and
capabilities of the vendor (Sohi et al., 2016). The use of PRINCE2 method mainly ascertain that
the relationship among the vendors and the sub-contractors are managed in an efficient manner
by clearly defining the roles and the expectations from each of vendors and the sub-contractors.
The process of Vendor and sub-contractor management that is generally followed in
PRINCE2 approach are indicated as follows-
1. Researching about the suitable Vendors and taking quotes of the Materials
2. Finalizing the Vendors based on the quotes given
3. Negotiation with the contractors
4. Finalizing the Contractors
The vendors and the sub-contractor management is mainly completed prior to the start of
actual project implementation to ascertain that no delays in the project is faced due to
unavailability of the resources or due to lack of clear indulgent of the project requirements by the
stakeholders. Thus, it can be said that the choice of PRINCE2 approach for implementation of
the house building project is justified.
2. Implementation of Lean Best Practices

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Lean Project management (LPM) is an application of the lean manufacturing principle
associated with the practice of project management (Sertyesilisik, 2014). The primary goal of
LPM is to capitalize on the value of a project by minimizing the wastes that are generated in the
project. The undertaken project is needed to be completed within a fixed budget and therefore, it
is of primary necessity that that Lean Best Practices are implemented in the project to minimize
the wastes generated from the project. The LMP is implemented in the undertaken project for
finalization of the requirements of the clients, to ensure effective communication with the
stakeholders of the project and for managing the vendors and the sub-contractors in an effective
manner (Emblemsvåg, 2014). Lean process in a project is mainly implemented by eliminating or
reducing the waste. The following sections discusses the process of implementation of lean in the
undertaken project of developing a new house.
2.1. Implementation of Lean for Finalization of Clients’ Requirements
The finalization of the clients’ requirements is subjected to proper identification of the
scope of the project. On basis of the identified project scope, the plan for execution of the project
will be developed. In this case, the five principles of lean can be discussed (Müller et al., 2014).
The finalization of the requirements of the clients are subjected to effectively following the five
lean principles which include, identification of the value, mapping the value stream, creation of
the flow, establishment of the pull and seek perfection.
Finalization and validation of the clients’ requirements is necessary to implement the best
lean practices as effective understanding of key project requirements will ensure that the wastes
generated from the project is minimized. This will ensure that the entire project is implemented
by reflecting on the principle of LPM practices.
2.2. Lean implementation for Stakeholders Communication
The key principle of LPM is reduction of the project wastes so that the value of the
project is increased. For successful execution of any project by minimizing the project risk, it is
essential for the team to have a clear understanding of expectations of the stakeholders. The lean
best practices can be executed in the new house building project by designing and planning the
project as per the needs and the expectations of the stakeholders.

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PRINCE2 project management process that is considered will confirm that the project is
implemented as per the plan (Ogunbiyi, Goulding & Oladapo, 2014). Development of a
communication plan ensures that all the key stakeholders of the project are correctly informed
with the progress. This will ensure that the key issues in the project are easily communicated to
the stakeholders and the concerns are resolved in an effective manner (Tortorella et al., 2016).
The resolving of the major issues that are faced in the project in a timely manner will definitely
help in enhancing the quality of the project associated with development of a new house. Since
the expectations of the stakeholders from the project will be managed in an efficient manner
there are very less chances of any major modifications in the project, which will confirm that the
entire project is executed in a scheduled time and budget.
2.3. Implementation of Lean for managing the Vendors and Sub contractors
Vendors and the Sub-contractors play a key role in confirming project success. The
materials needed for the project are supplied by the Vendors and the sub-contractors look after
the entire execution process of the project (Pessôa, Loureiro & Alves, 2017). Thus, effective
management of the vendors and the sub-contractors will ensure proper implementation of lean
principle. Subcontractor and Vendor management is a necessity to ensure that all the
requirements identified by the clients are fulfilled by the execution of the project.
Lean best practices can be implemented in the house building project by ascertaining that
the vendors and the sub-contractors have a clear idea of the requirements specification of the
project. The Vendors and the subcontractors will be informed about the implementation of LPM
and execution of the project using LPM principle. Timely delivery of the materials needed for
the project will ensure minimization of the wastes and completion of the project within the set
deadline. However, implementation of lean practices in this clear will require a clear, effective
and regular communication with the vendors and the sub-contractors so that no confusion, risks
or issues arise while the house building project is in its construction and implementation stage
(Franco & Picchi, 2016). The reduction in the errors will help in ensuring that the wastes are
minimized and the project is implemented as per the expectations of the clients. The main aim of
Lean practices is to seek perfection and for that, it is integral to ensure that the people who are in
charge of managing the projects are clear about the key requirements and the implementation
needs of the project (Hussain & Malik, 2016). Therefore, it is recommended to ensure clear and

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active communication amongst the stakeholders to ensure the key requirements of the project are
fulfilled.
Conclusion
The report considers a case of development of a new home within a tight schedule of 12
months and within a fixed budget. The report discusses the project management processes that
are used for finalization of the requirements of the clients. The report gives an understanding of
the process in which communication with the stakeholders can be effectively managed and the
process in which the vendors and the subcontractors of the project can be managed efficiently.
The report further discusses the process in which the LPM can be implemented in the undertaken
project. The process of employment of Lean principle in the project require clear communication
with the vendors, subcontractors and the other stakeholders so that the risks and the issues can be
correctly identified and mitigated thus implementing the project with a minimum waste.

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