Lean Project Management For Building A Dream Home
Task: Your tasks: Answer the following questions:
- Select and explain the project management processes (either from PMBOK or PRINCE2 or a combination of any best practices you have learned in this unit) that can help you:
- Finalize the client’s requirements (in terms of scope)
- Ensure communications with all relevant stakeholders are effective and efficient
- Manage your subcontractors and vendors successfully
- Explain how you would implement lean best practices to achieve lean project management for (1a), (1b) and (1c) above.
Important Information Formatting. The write up should be presented in 1.5 line spacing, 12 point Times New Roman font. Answer each question with proper heading (see below):
1a) To finalize the client requirements, several project management processes were used ……
1b) To effectively and efficiently manage communication with stakeholders ……
2a) Lean project management can be achieve for task 1(a) by considering the following aspects ….
This assessment item involves researching your assigned topic to enhance your understanding of lean project management concepts and utilisation of academic literature. Whilst you use the recommended textbooks and lecture materials, you may also refer to relevant peer reviewed, academic journal articles. A reference list formatted in the prescribed APA style is compulsory.
Produce your answers for the case in question. DO NOT write about the theory or explain what PMBOK, PRINCE2, DMAIC methodology, etc covers. That will not attract any marks. You should demonstrate the application of the best practices not the theory.
The present study of lean project management illustrates that the project is mainly about constructing a building within 12 months and the budget for the client is AUD$500,000. The project ensures that the demand of this client is fulfilled and new home is completed within 12 months. Most importantly, it must be kept in mind of project manager that client is satisfied and the home is constructed as per requirements that includes budget, time and quality. The study sheds light on efficient lean project management, proper recruitment of manpower and incorporation of the lean project. Stakeholders’ decision, management of vendors and determination of scope of the project has been discussed.
1. PMBOK or PRINCE2 – explanation of the project management processes that includes any one of best lean practices. Select the methodology so that it can help in project management assessment.
a. Finalization of client’s requirements (with inclusion of scope)
In lean project management, the two most important axes are clients’ requirements and scope. Requirements of the project management is actually the demand of the clients, which, in this project, lies in completion of the building within 12 months and within AUD$500,000. However, the scope defines the possible steps taken in order to fulfill the requirements. The scope of a project is mainly based on framework that helps clients to get ensured that their project is being completed with authenticity and within timeline.
In this project, quality, timeline and budget are listed items that have been agreed upon and any issues regarding these criteria would make client dissatisfied. In the initial stage of a project management it is very important to make proper planning for the fulfillment of clients’ requirements. The planning process attempts to capture the work that needs to be completed. In this lean project management, completion of the building within 12 months is the primary criteria for the project. It is to be planned how the budget can be utilized in a proper manner so that expenditure does not exceed budget of the client. The project manager has to make sure that no extra cost is being handed to client. In case, project manager can understand that cost might exceed budget of client, they need to check whether extra material is there and not being used. There must be no wastage of material or cost. In making plans for meeting requirements of clients project manager must focus on customer, eliminate wastes and satisfy criteria of clients.
Costs (in AUD$)
Employees’ salary for building purpose
Salary of project Manager
Payment to lawyer for housing document
Table 1: Budget
(Source: Created by Author)
Out of AUD$500,000 amount that have been set aside for construction purpose, AUD$490,000 would be used for the purpose of manufacturing. The remaining amount can be kept in excess in case the project manager feels there is need of further raw materials. Moreover, if there is need of further manpower, the amount can be used for providing salary and recruit them.
It is very important to control wastes and this is a core principle of lean project management. In order to reduce waste project manager needs to intensify efforts so that workers can find out ways that would add value to product line of company (Meng, 2019). Recyclable wastes can be further used and this would help clients as in few phases they might not bear the buying cost of products. The recycled products might be used. Moreover, production cycle needs to be shortened so that it would bring down the construction time and the building construction can be completed within given timeline.
Speaking of quality of the project, it is very important to ensure that all products that have been supplied by the supplier must be quality tested. Development of testing procedures would help to control faulty construction and client would not get chance to complain. Project managers need to ensure that teams work together and deliver their best with proper work progress and improvement in techniques.
Thus it is being derived that in initial stages of lean project management, steps of PRINCE2 methodology is followed that helps to carry forward the project in a proper manner (Shaw, Hughes & Greenhalgh, 2019). These steps would help to meet clients’ requirements and proper management philosophy can be followed in completing the building construction. Determining all these factors, requirements of clients can be finalized by project manager and quality can be achieved within timeframe.
b. What is the efficiency and effectiveness of communications of related stakeholders in the context of lean project management?
It is very important for the Project Manager to send request to Board of Directors for the purpose of meeting in order to discuss agendas and minutes of meetings. The most important stage of communication between stakeholders and making the conversation effective leads the project succession. The Board of Directors would provide a notice to all members and stakeholders and a minimum of fifteen day time period is kept in hand before the meeting is held. On the day of meeting, all stakeholders including Chief Financial Manager and task leader and Technical operation manager are present. In the meeting, the Project Manager introduces all stakeholders and initiates the meeting. The maximum working hour of employees are decided and it is being strictly mentioned in agenda that entire responsibility of developers to complete the project within stipulated time. The percentage of work to be designed by Project manager is almost 17 % and the Chief Financial Manager would immediately dissect the funds that would include another 10% of the job completion. Inspired by ideas of Pollard (2019), it is said the communication among Chief Financial Manager and Project Manager must be so strong that there must not be any loophole and the conservation must be effective. The main reason is, even after allocation of funds there might be requirement of changes in allocated funds. There must be transparency among Human Resource Manager and Project Manager that incase there is any incompetency arising among hired employees there would be no issues and peacefully another lot of workers would be appointed and the remaining job would be completed. These issues must be clarified among all stakeholders in the meeting and communication must be clear so that no future discrepancy arises among the management itself. As stated by Büll, Palkovits-Rauter & Szabo (2019), proper communication helps in understanding proper need of the project and group discussions helps to understand requirements of the project. Most importantly, communication gets effective when there is valid discussion and gaps of projects are discussed. The individual tasks, deliverables everything is clearly discussed in the meeting and that helps to validate the scope of project and makes the communication efficient. The discussion helps to admit all stakeholders that in need of change everyone would be present to resolve issues and no one must blame others.
c. Management of subcontractors and determination of responsibilities of vendors successfully
It is very important for the project manager to manage subcontractors and vendors as the work must go on smoothly and regular supervision is very important. The project supervisor works under project manager and they make the contractors understand the job properly. As said by Ganebnykh, Fokina, & Lukinov (2019) the defined responsibilities of vendors and subcontractors are explained to them so that they can gain knowledge about the project they are engaged into. The methodology of PRINCE2 helps to make a process based approach that would focus on entire project. This mainly helps the project manager to make a proper plan for subcontractors and vendors before starting the building construction. This would help them to make best use of time and budget. The PRINCE2 methodology makes the clear structural setup of projects and this helps vendors and subcontractors understand the importance of elimination of wastage.
The project managers look after the fact that the project is clear and defined to vendors so that they can make a cost assessment on themselves. The methodology used in the lean project management helps the vendors to know justification of the building construction project. It is duty of project supervisor as well project manager that they help the team to learn from every stage of the project. In this methodology, project manager can help the team to understand future responsibilities and they are clearly mentioned that teammates must get all necessary help from others so that the construction is completed within time. Most importantly, the type of project, necessary implication of raw materials is made understood to individual contractors and periodic reviews of the work is assessed. Proper focus on quality is maintained and approach for project is tailored by project manager and this would help the construction to get completed in proper manner.
2. Implement of lean best practices and their explanation in order to achieve lean project management for (1a), (1b) and (1c) above.
2(a) Project management can be achieved for task 1(a) by considering the following aspects
Based on 1(a) it has been observed that the main requirements of the lean project management fulfil the demand of clients and a deadline of 12 months is provided along with AUD$500,000. The authenticity and timeline are the main scopes of a project which will help the team members and contractors to accomplish the target. Lean project management can be achieved for task 1(a) by considering lean best practices such as eliminating waste and it is termed as the best principles for the lean manufacturing process. By using value stream analysis one can easily identify the wasteful activities going on and at the same time, the alternative to resolve the issue can be found. It has been observed above that recyclable waste can be used in the future which will help to save the budget (Wu et al. 2019).
The steps of PRINCE2 methodology are being followed in the study which helps to control every phase of the project and monitor all the activities properly. There are mainly seven processes of starting from the initial stage to the closing stage of the project. As per the views of Hughes, Dwivedi, & Rana, (2019), PRINCE2 methodology is predictable, time-effective and cost-effective. The budget plan has been done based on the budget allocated to the project team; where the cost of raw materials, salaries of the employees and project manager, and documentation cost have been mentioned. The scope of the project can be achieved using lean project management practices such as the elimination of waste materials and minimization of the unwanted inventory costs.
By reducing the unnecessary inventory cost can enhance the quality of the project because sometimes the overstock of the manufacturing material might become problematic. This practice will help to tie up all the resources used for the construction and other issues linked with time and quality issues. It is crucial to test the qualities of manufacturing products that have been supplied by the supplier for construction. By innovating and developing the testing procedures would help to control faulty construction and the task can be accomplished in time. It is crucial to shortening the production cycle in order to reach the target of the lean project; so by utilizing effective technology, these complexities can be solved. Therefore by considering the following aspect and practices of lean project management the objective of 1(a) can achieve.
2b) project management can be achieved for task 1(b) by considering the following aspects
It is of utmost importance to establish effective communication with all the stakeholders in order to raise effectiveness and efficiency in the lean project. While constructing the dream home for the client it is mandatory to monitor all the processes and activities and it will be possible by interacting with the project manager and other stakeholders. As commented by Anderson (2019), open communication plays a main role in lean project management and two-way communication practice should be maintained in this situation for minimizing further issues. Stakeholder communication help to build a better understanding of the goals and this practice helps the stakeholder to attract the funds which, might be needed in the future. In order to discuss the fixed working hours of the construction team and other task allocation can be accomplished successfully if the communication process is strong. In addition, communication help to bring a positive relationship with the members linked to or associated with the project. Speeding up the response time is one of the core lean project management practices which might be used here to accomplish the objective.
The project manager should aware of the market requirement of the upcoming project phase to all the members. It is equally important to give power and authority to the employees to make decisions and this type of engagement and involvement will help to enhance the performance of the project members. It is important to establish a strong bond with the stakeholders in order to achieve the target of dream house construction. In 1(b) it has been observed that a meeting is compulsory for the project succession with all the members and Board of directors. As stated by Kerzner (2019), it is important for the project manager and financial manager to communicate effectively to eliminate future consequences. In some situations it might happen that there is a need for additional funds due to some changes in the planning; therefore it is the responsibility of the project manager to communicate effectively with the human resource manager. Lean project management can be accomplished effectively if proper communication is maintained within the whole management and teams.
2c) project management can be achieved for task 1(c) by considering the following aspects
Based on the above discussion it can be stated that vendor management strategy can be helpful for managing the vendors and subcontractors can be managed by allocating effective roles and responsibilities to the desired person. As stated by Shaw, Hughes & Greenhalgh (2019), with the help of PRINCE2 the manager and director can gain knowledge about the proper use of resources and can acquire skills to manage the issues and risks associated with the project. This framework can be used in the contraction of the dream house because it helps to guide the whole project processes and it is the best practice in project management.
The subcontractors can be regulated by paying their salary on time and asking for feedback from the client about the performance of the subcontractors. In addition, it is crucial to balance the vendor relationship with the help of key performance indicators (KPI’s). Meetings are compulsory for the vendors and subcontractors in order to discuss the issues. As per the views of Farr & Bailey (2019), it is important for the project manager to check the insurance and another license because taking precautions will help to eliminate future complexities. On the other hand, vendors can be managed easily by presenting a clear planning structure in front of them and negotiating the contract. With the help of a quality relationship model, the vendors can easily accomplish the tasks allocated to them after receiving the whole solution based on the issues.
It can be concluded that lean project management is beneficial for building the dream home for the client. It has been observed that lean construction helps to maximize the value of the project along with that it minimize the waste. The lean project management approach helps to regulate and manages the project by concentrating on the common goals. The study depicted that there are various benefits of adopting the lean project as it makes high profit by completing the project on a given deadline. PRINCE2 process has been used to finalize the requirement of the clients and communicating with the effective stakeholders. This method is crucial and effective for managing the subcontractors and vendors of the ten dream home construction.
Anderson, R. (2019). SCHOLARLY COMMUNICATION: Open access in the real world: Confronting economic and legal reality. Lean project management College & Research Libraries News, 65(4), 206-209. Retrieved on: 4 January 2020, from: https://crln.acrl.org/index.php/crlnews/article/view/17499/19299
Büll, C., Palkovits-Rauter, S., & Szabo, M. B. (2019). Project Management in a cultural context. Retrieved on: 5 January 2020, from: https://people.fh-burgenland.at/handle/20.500.11790/1178
Farr, M., & Bailey, D. (2019). Uniting business continuity management and operational risk management. Journal of business continuity & emergency planning, 12(4), 294-300. Retrieved on: 9 January 2020, from: https://www.ingentaconnect.com/content/hsp/jbcep/2019/00000012/00000004/art00002
Ganebnykh, E., Fokina, O., & Lukinov, V. (2019). Agile project management in lean environment. Lean project management Retrieved on: 5 January 2020, from: https://www.e3s-conferences.org/articles/e3sconf/abs/2019/61/e3sconf_itese18_04049/e3sconf_itese18_04049
Hughes, L., Dwivedi, Y. K., & Rana, N. P. (2019). A Methodological Critique of the Interpretive Ranking Process for Examining IS Project Failure. Information Systems Management, 1-12. Retrieved on: 6 January 2020, from: https://www.tandfonline.com/doi/abs/10.1080/10580530.2019.1696588
Kerzner, H. (2019). Using the project management maturity model: strategic planning for project management. Retrieved on: 10 January 2020, lean project management from: https://books.google.co.in/books?hl=en&lr=&id=4vyGDwAAQBAJ&oi=fnd&pg=PR11&dq=communication+is+essential+in+project+management&ots=UaDozXc0jQ&sig=dXcAvRvaW4_PqiwWWNtSEjq3zic
Meng, X. (2019). Lean management in the context of construction supply chains. Lean project management International Journal of Production Research, 1-15. Retrieved on: 5 January 2020, from: https://www.tandfonline.com/doi/abs/10.1080/00207543.2019.1566659
Pollard, C. E. (2019). Lessons learned from client projects in an undergraduate project management course. Journal of Information Systems Education, 23(3), 3. Retrieved on: 5 January 2020, from: https://aisel.aisnet.org/jise/vol23/iss3/3/
Shaw, S., Hughes, G., & Greenhalgh, T. (2019). Standardization and Its Consequences in Health Care: A Case Study of PRINCE2 Project Management Training. In The Projectification of the Public Sector (pp. 229-249). Retrieved on: 3 January 2020, from: https://www.taylorfrancis.com/books/e/9781315098586/chapters/10.4324/9781315098586-13
Wu, X., Zhao, W., Ma, T., & Yang, Z. (2019). Improving the Efficiency of Highway Construction Project Management Using Lean Management. Lean project management Sustainability, 11(13), 3646. Retrieved on: 5 January 2020, from: https://www.mdpi.com/2071-1050/11/13/3646