Implementing Lean Project Management to Build Your Dream Home

4247 words (17 pages) Business Assignment

24th Sep 2020 Business Assignment Reference this

Tags: Business AssignmentsProject Management

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Introduction

Lean project is one of the important concepts of project management that facilitates in utilizing available resources to increase productivity or value. The purpose of this report is to explore the application of lean management ion respect to construction project so that each task or activity can be completed within restricted timetable. A construction of dream house has been selected to explore the application different theories or models of lean project management so that maximum benefits can be gathered in an effective way. The report enlightens the ranges of challenges and issues that may occurred within research so that a firm framework or strategy can be gathered in an effective way. Risk management strategy has been implemented to make sure maximum positive result can be gathered in an effective way. Through this research, production and values in project management by compliance with government policies and procedure. .

1(A) Choosing the suburb

Building a dream house is one of the major and critical tasks that demand for adequate knowledge as well as resources for successful completion of project. In this process, selection of suburb is the first stage of their project in which accessibility feasibility of house have been determined. Chatswood has been selected to construct dream house due to friendly environment and culture that demand for huge investment so that broad requirements and perspectives can be met positively.

In addition, budget for construction is also an important factor that facilitates in completing each task in terms of resources and reduces the risk of failure positively. Therefore, it can be stated that a constructive approach needs to be implemented that drives project manager to commence the project in a systematic way for sustainable development. In order to build a dream house, PRINCE2 methodology has been implemented that support associate team members in determining the requirements and deliverables of the project that eventually help in completing the entire project within estimated budget and timeline (Bankstowncentral.com.au, 2019). The major advantage of PRINCE2 methodology is controlling each task that enable individuals to monitor each task and activity so that potential risks and challenges can be minimized as far as possible.

1 (B) Deciding the land size

In Chatswood, the price of per square feet varies from $1800 to $6500 that resist individual to buy a reasonable land size in which dream house can be constructed positively. In Sydney itself the price ranges from $1500 to $6500 per square feet of land (Bricklayerssydney.com.au, 2019). Hence, the average cost to build a three bedroom house starts from $250,000, which can also be increased as per the requirement of the client. For this project, 3500 square feet of land size has been selected for which about $250,000 budget needs to invest for successfully completing the task.

The significance of this research is to focus on the various construction firms in the Australian construction industry that includes top construction firms, clients, and consultants. The study will focus on the application of modern procurement factors concerning the construction client and dealer relationship and to recognise the areas of development in the Australian construction business. The research focuses on the importance of making the best strategic decision for avoiding any dispute in the future. Analysis of various procurement strategies helps to understand the most suitable procurement factor for a particular project at a particular area in Australia. Implementing such strategies requires the involvement of stakeholders throughout the period of procurement (Brioso, 2015). A comprehensive strategy of procurement helps to demonstrate a detailed analysis of the available options for a particular business model. Transforming procurement policies is a time consuming process but with proper implementation it shows significant results in the country’s economy.

1 (c) Choosing the best builder

Building a desired house is demanding for an effective strategy and planning so potential issues and challenges can be tackled in an effective way. In this process, selection of builders is considered as one of the important aspects of project that facilitates in presenting client’s perspective or requirement into real life. There are several factors of selecting an effective and reasonable builder for this project such as experienced, skilled employees and expertise areas that eventually upsurge the success of project. For this project, Mersey Builders and Southend builders have been chosen that increase the feasibility of this project these two builders have adequate knowledge and experienced in construction field that eventually you reduce the risk of failure. They give the liberty to the investors to get involved with the project building right from the beginning and take in every detail that would help the investor to get the dream house that he desires (Cowynbuilding.com.au, 2019). Everyone has the right to owning a house that suits the budget.

Mcrae Construction Pty Ltd

Crestway Building Services Pty Ltd

Mcrae Construction is one of the Renault names in the construction since 2005 that assure that dream house can be completed within strict deadlines.

 Crestway is majorly focuses on quality over quantity and offer consumers a complete house at reasonable price to achieve sustainable development positively.

 The company is majorly expertise in plumbing and carpenters so that consumers get quality services.

 The company is majorly focuses on designing, town planning and commercial building so that each task can be completed within constraint budget.

The identified two builders have been selected to make sure the construction of dream house can be completed within a restricted budget and timeline. There are a range of challenges and issues in building desired house positively. PRINCE2 methodology stated that each task and activity in supply chain needs to monitor vividly so that possible challenges can be tackled in an effective way. These builders help to build homes at the best quotes with best quality material and utmost guarantee of ROI (Demirkesen & Ozorhon, 2017). Builders can help to get the dream project at the best price or turn the experience into a nightmare.

1(D) Stakeholder of the project

Stakeholders play a significant role in successful completion of project that facilitates in narrow down the needs and demands of the consumers positively. The Australian construction sector is changing and contributes a great deal to the country’s economy. For any assignment selecting the right person for a job role and a supplier who can do justice to the assignment is extremely important. Evaluating the previous job roles or past assignments can help to foresee the outcome of the project. Procurement is the framework of the development projects that helps in designing, budgeting, constructing, and settling any legal disputes. In simple terms, procurement is the process of acquiring goods and services that are required for running a business (Erol et al. 2017). Procurement management in the construction business can be stated as securing goods for the business while keeping in consideration a few factors such as timeline, quality, and pricing, reducing the risk factors, improving communication, and gaining the company’s utmost goal of gaining customer satisfaction. This whole process initiates only after securing a good procurement team.

In regards to construction of dream house, there are several stakeholders and members who are associated with this project for successful completion of project. Some associate stakeholders have been listed below:

Stakeholders

Role and responsibilities

Australian government

 The major role of Australian Federal government is to approve all necessary documents so that can be commenced in a systematic way.

Builders

 It helps in constructing consumer’s ideas and perspective into real life so that maximum possible result could be extracted positively.

Designer and layout engineer

 Designer and layout engineer is one of the important elements of this project that facilitates in assessing the needs and demands of the consumers in an effective and sustainable way. There are ranges of challenges and issues in developing an effective designer so that a dream house can be presented wisely (Sohi et al. 016).

Procurement manager

The primary role of procurement manager is to monitor the needs and demands of the project based on project deliverables that reduces the risk of failure.

2 (a) Identification of factors that influence project design and layout

This project focuses on the Designing of the dream house. By studying this assignment will know the factor on which the building of the house depends.

Topography: Firstly the most important part which influences the design and layout of the construction is the topography or the place where the building work will be done. It is also important to know more about the water level under the ground which will help in the formation of the building. The plot should not be in the Floodplain area. If the topography is in the flood plain area then the building work is canceled or postponed. Not only this but the size and shape of the plot decide the design and layout. We need to select the area which is away from the wildlife and forest to avoid the killing and destroying nature.

Budget: Budget is an important part of the layout design of the building. Without a sufficient amount and proper budget structure, construction work cannot be performed (Mader, 2018). It is important to prepare the budget. The budget affects the material utilized in the construction. For starting any construction the builder needs to prepare a quotation for the client. So according to the cost the client can make the arrangements.

Design Change: changes: The budget is get affected by the design changed in a building as it may require more investment of money to making the changes as per the choice of the client. This also includes the hiring of people to architect the required change.

Sustainability: The construction of the building need to be sustainable and environmentally friendly. If the building is not environmentally-friendly then till would need to make it eco-friendly for expanding the life extent of the home.

Comfort: The essential part of building your dream home is a comfort. The building layout, design, and color give mental satisfaction that demands proper tools and techniques for effective design, which also depend upon the

2 (b) Examination of project management processes

There are several factors that influence the efficiency of dream home construction. Further project will discuss the process which determines the design/layout. PMBOK methodology has encouraged the project to experience several phases of project management.

Risk management

Risk is an important part of any commencing project work. Numerous risks can arise while building a dream home. Risk related to social factors, environmental issues, and the most important economic factor. Risk management is designed before, to maintain construction work, to make a plan and to execute them to avoid any exposure to risk. Risk management is the process to reach the successful closure of the project.

Risks

Probability

Intensity

Financial risk

High

High

Environmental risk

Moderate

Moderate

Management of quality and task

Low

High

Skills of associate builders

Moderate

high

Cost management

For the closure of a successful project, cost management plays an important role. It includes the complete procedure from signing the contract with the builder to include the items and materials required in the construction work. It helps in maintaining and concentrating on the project's work budget. The Quality of the material used in Construction depends upon the budget is made in the cost management process. Additionally, the contractor needs to sign a pre -Work construction (PWC) with the owner. Cost management includes several activities. Such as

●       Planning

●       Estimating

●       Financing

●       Scheduling Accounting

In an economic scenario that get heavily affected by various procurement factors a greater need of focus is required to understand the process to reduce the risk factors associated with this process instead of finding an alternative to avoid risks for the future prospect. Recent research showed the average success of the projects is based on the successful implementation of the procurement strategies (Mader, 2018). In this research work the benefits of various procurement studies have been widely discussed for the better understanding of the subject material in relation to its adaptability in the construction projects in Australia. The framework relates to the organization’s way of adopting procurement motivations with various kinds of benefits associated with it. It helps in analyzing further the benefits of the strategies in the organizations present in the city of Melbourne, Australia. The study is done to help to provide support and accepting the benefits that these strategies are bound to offer.

Cost Factors

Budget in million

Cost in million dollars

Rent of the land

1.3

1.5

Raw material

0.032

0.05

Tender and registration

0.015

0.14

Labour cost

1.5

2.1

Operation cost

2.6

0.035

Many economic scholars have claimed that the organizations can expect to gain various kinds of benefits from it when the strategies are tactfully implemented for the betterment of the business scenario. Addressing the challenges related to these strategies is of high importance. The future growth of the company can be under jeopardy if the challenges are not dealt with. Most companies fail to recognize the reasons that contribute to such challenges from attaining the return on investment. Scholars and researchers adapt various factors to make this easily understandable (Antony et al. 2016). The study provides evidence that supports the notion and shows the result on accepting the notion for the development of Australian organizations. It is done also to make the understanding of the subject that helps in the understanding of the current strategies, benefits, and adopting the advanced policies in developing the procurement system for the future.

3. Critical analysis of lean project management

Lean management is the key factor to manage the organization that demands continuous improvement for the long term to increase the revenue gradually for better quality and efficiency. The most important factor of lean project management in construction work is to utilize the resources to give the beneficial output concerning the construction project. Lean management provides the workers to perform their given task in a way that can be beneficial for the owner or the organization they are working. It helps in the organization the people in a way which perform their task efficiently and independently.

For better management skills and to provide more work to the client six sigma model will be used in advancing the quality and effectiveness of the building. Six sigma is the strategy based process in which the methods are used for the client to deliver maximum benefits and satisfaction internally and externally. The aim of this method is the constant improvement with fewer errors. In the six sigma model plan in the first place which defines the objective of this model and summarizes the whole project and understands requirements and focuses on its objectives.

In the second phase, it measures all the work objectives and related data of the work for designing the layout for the construction. After all the required data it is put into the process for a better outcome. Two commonly used measurement techniques are – Defects per Million Opportunities (DPMO) and Process Sigma. The next phase comes is Analyze, in this phase, it analyzes the process and finds out the necessary error to fix. In this phase, it analyzes all the problems and errors for example what is the reason for the bad material is used in the construction process, why the work has been delayed and not completed in the time period. This is the crucial phase in six sigma model as it helps in reaching the root of all the problems.

In the next that improves, after knowing the proper cause of any problem and errors it is required to improve it. With respect to the construction work, the owner of the land is consulted and the improvement process started. In this plan specifies – Action to be taken; by when by whom. The last phase of this process is the control and specifies the solutions. This plan is required to manage performance. The main purpose of the Control phase is to ensure – Holding the gains

Conclusion

The study can be concluded that lean project management needs to be implemented positively so that resources can be utilized in an effective way. PRINCE2 methodology has been implemented that support associate team members in determining the requirements and deliverables of the project that eventually help in completing the entire project within estimated budget and timeline. The element of this research work is to identify the best procurement strategies that assist in decision making that determines the best procurement approach for a particular situation and to discuss the strategies around the biggest procurement challenges in the infrastructure sector in Melbourne, Australia. The objective of this research is to identify the beneficial factors related to procurement in the construction sector and to examine the existing strategies that are used in the Australian construction companies. It is also to identify the strengths and weaknesses related to these strategies and to understand the acceptability of procurement models and the workability of those models in developing current construction projects.

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