Leading Lean Project Assignment: Building A House Under The Keystart Initiative

Question

Task: You have taken up a new job in Perth, Western Australia. Both your partner and you are very keen on wanting to build your own home. You come across the Keystart initiative (https://www.keystart.com.au/) by the government of Western Australia and have found out that you and your partner are eligible to apply. You have decided to submit an application, but will have to do the following:

• Identify the suburb you want to build and decide the land size you want to buy (this will depend on the budget you are willing to spend on the land
• Research the market and identify potential home builders who will construct your dream home.
• Finalise the layout /design and agree on the cost to build the house with the chosen builder
• Enter into a deal

• Sign a land contract with the land developer – you will need to pay a deposit of AUD$2000
• Sign a Pre-Work Construction (PWC) contract with the builder - you need to pay a deposit of AUD$2000

(in both contracts you have inserted the following clause: Deposit to be returned to client (in full) in the event of failure to obtain finance approval).

• Finally, you are now ready to submit an application to Keystart (can be done through the builder) to obtain finance to build your dream home.

The above activities can be efficiently managed through key project management processes. Where possible, you can also aim to implement lean project management principles to successfully manage the above activities.

1. 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:
a. Choose the suburb and decide the land size
b. Chose the best builder
c. Identify the stakeholders for the project
2. What are the factors that will influence the design and layout of your dream home? Explain the project management processes you used to determine the design/layout.
3. Explain how you would implement lean best practices to achieve lean project management for (1) and (2) above.

Answer

1.0 Introduction
The project examined in this leading lean project assignment includes the development of the dream house by availing the benefits specified under the Keystart initiative. It is the initiative that is provided by the Australian government so that every individual gets the opportunity to have their own house. There are several norms and mechanisms that are involved in the project. These are in terms of the project activities, project risks, project stakeholders, and many more. The use of project management principles will be crucial to carry out the project activities effectively.

2.0 Conflict Management Strategy
a. Partner
The study of leading lean project assignment explores the concept of conflict management which will be extremely crucial in the project as the resolution of the conflicts will be necessary to take the correct and combined project decisions. There are several points of conflicts that are identified with the partner. These include the conflicts in terms of the home design and the layout. These conflicts are due to the varying interests and likings along with the difference in priorities.

There will be a well-defined conflict management strategy that will be followed so that all the conflicts are successfully handled and resolved with the partner. Collaboration as the strategy will be followed in this leading lean project assignment to resolve and handle the conflicts with the partner. The strategy will be further classified in to different stages in order to manage the conflicts properly. The first stage mentioned in this leading lean project assignment will include the listing down of the primary issues and areas of conflicts. These will be identified by discussing the matters of conflicts with the partner and a list of all the conflicts will be developed. The next will include the identification of the scope of agreements on these areas. The house will belong to both the individuals and therefore, the design and the final outcome shall be in accordance with the liking and expectations of both. The areas of agreements in terms of the design aspects, aesthetics, layout, and accessibility will be identified by putting forward the ideas along with the preferred choices. The mapping of the best choices with the preferred choices will be made. The decisions will then be taken on the basis of the best choices and areas. The use of PRINCE2 and PMBoK guidelines will also be made in the process (Vanickova, 2017). The preferred choices will also be discussed and analysed in terms of applicability and management areas. The assistance from the experts, such as friends and family that have built their houses, industry experts, etc. will also be taken. This will provide further clarity and the collaborative decisions will be easier to be taken with better understanding.

This strategy explored in the leading lean project assignment will assist in the resolution of all the conflicts with the partner and the process will speed up. 

b. Builder
The use of PRINCE2 methods were done to identify the best builder for the project. However, there are several conflicts that have emerged with the selection of the builder. The primary area of conflict is the cost and quality attributes. There can be no compromises that may be done in terms of the quality of the materials utilized and the end-product delivered in the form of a constructed house by the builder. However, these quality norms lead to the increase in the overall costs estimated by the builder which is not in line with the available budget (Huo, Zhang & Guo, 2016).

The resolution of these conflicts illustrated in this leading lean project assignment will be required and the use of lean project management principles along with the collaboration strategy will be used to handle and resolve the conflicts. The lean project management principles will be used to eliminate all of the additional activities and processes that are listed down by the builder. This will automatically result in the reduction of the total cost of the house. The lean principles will also allow collaborating with the external market entities which will provide a better analysis of the industry and the associated trends. The negotiations with the builder will be done properly in terms of the demanded price and the industry standards.

It is noted in this leading lean project assignment that the use of collaboration as the strategy will be done to discuss the different conflict areas and come to a particular decision for each of these areas. For example, in terms of the cost of the house, the cost break-up will be obtained from the builder. The cost details will also be obtained from the market and the mapping of the two will also be done. This will result in the determination of the additional charges or the reduced charges stated by the builder for each of the activity and the negotiations will be made accordingly. The final decisions regarding the house, in terms of the design layout, and the final process will be made as an outcome.

3.0 Which leadership Style is impactful for the project examined in the study of leading lean project assignment?
The building of the house is a project that involves varied stages and phases. There are also a number of stakeholders that are involved in the process. For example, the builder determined to carry out the activities is a significant stakeholder. Similarly, the Keystart initiative is the initiative by the Australian government and it will be a relevant stakeholder as well. There are also a number of resources that will be engaged in the process of the project execution and completion. The project management will be necessary to handle all of these areas. However, it will be necessary that the application of a suitable leadership style is done to manage all of these project areas.

There are different leadership styles that have been defined for the projects. The leadership style that is determined for this project explored in the present study of leading lean project assignment is the transformational style of leadership. The leadership style has been chosen as it will make sure that the project management mechanisms are effectively carried out and the entire project elements are also handled correctly (Ballard & Howell, 2013).

The transformational style of leadership is the style in which the leaders encourage the fellow team members and the resources to seek innovative practices and changes in order to achieve successful outcomes. In this case of leading lean project assignment, the primary aim is to build a house under the Keystart initiative and the house shall meet the stated requirements and specifications. There are a number of entities that will contribute towards achieving this goal. For example, the couple will be require to be actively involved throughout the project and provide their clear expectations and requirements so that the builders may implement the same as per the desired requirements. Similarly, the builders will be required to guide all of the construction team members along with the other resources to adhere with the best practices so that the intended goals are achieved. The presence of the transformational leader will combine and closely integrate all of these elements so that the expected results are achieved.

There are a number of management theories and models that are being used and will be further utilized in this project of leading lean project assignment. These include PRINCE2 mechanisms, PMBoK methods, and lean project management mechanisms. The application of transformational leadership style will ensure that the application of all of these three project methodologies is effectively done. It will also make sure that the concepts and best ideas out of all three are extracted and applied. This will be because of the innovative and creative thinking capabilities of the leader that will be best utilized in this leadership style. In the project of building the house, there will also be several risks that may be witnessed. These may be in terms of the market or builder risks, construction risks, political risks, and likewise. The project discussed in this leading lean project assignment has a strict timeline and it needs to be completed within the timeline in order to take benefit of the Keystart initiative of the Australian government. The transformational style of leadership will make sure that the resources involved in the project processes are guided in such a manner that they succeed in managing the project issues and the risk areas are also handled properly (Shapira, 2019).

The trends in the construction business are also changing rapidly. There are new trends in terms of the aesthetics and visual appeal, design & layout, accessibility provisions, etc. that are being introduced. The transformational leadership style mentioned in this leading lean project assignment will allow the team members to put in their ideas and theories and the best decisions to achieve the project goal will be taken. The collaboration and close integration of the team members will assist in taking the business decisions that will be beneficial for the project. The project will also require adherence to the defined government policies and norms. It will also be necessary that the compliance with the legal policies along with the market trends and practices, construction best practices, and regulatory standards is always maintained. The transformational style of leadership mentioned in this leading lean project assignment will provide the ability to collaborate with the different resources and experts so that the constructive project decisions are taken. This will also ensure that the compliance levels do not drop at any instance.

Therefore, the transformational leadership style shall be applied to the project illustrated in this leading lean project assignment and it shall be ensured that the collaboration levels among the resources and all of the stakeholders is maintained at all times.

4.0 Seven Quality Control Tools & Techniques
Quality management and control will be necessary throughout the project. This is because the drop in the quality norms and parameters will result in the inability to meet the project specifications. This may also lead to the failure of meeting and achieving the project goals.

There are seven quality control tools and techniques discussed in this leading lean project assignment that will be used to manage and control the project quality.

a. Stratification (Divide & Conquer)
It is the quality control tool that carries out the division of the data sets so that the complete meaning out of the same may be obtained for better understanding of the problem. The tool will be used in the case of the project of building the house. There are varied data sets that are involved in this project which are obtained from the sources, such as government policies, market data, builder information, and likewise.

The classification of these data sets will be done as per each of the project aspects. The categories may include design data, layout data, builder information, cost constraints, external policies, and likewise. The analysis of each of these data sets will be done to determine the risks, best practices, and strengths. The improvement areas will also be identified through the process which will result in effective management of overall quality.

b. Histogram
It is the quality control tool mentioned in this leading lean project assignment that will be applied during the construction phase to track the project progress and the overall quality. The data in terms of the activities completed, day-wise progress, and the issues will be plotted using the histogram which is a bar graph that displays the information. The comparison with the estimated values and the actual values will be done to carry out the quality control and improvement activities.

c. Check-Sheet
This is the quality control tool in which the important attributes and points are listed down and continually mark these points to determine the defects or progress.

It is mentioned in this leading lean project assignment that this will be used from the beginning till the end of the project. The points in the check sheet will be listed, such as builder selection, suburb selection, land size finalization, construction progress, and likewise. These will make sure that the tracking of the progress in all of these areas can be done. The marking may also be done in terms of the defects or weaknesses and the follow-up actions can then be taken. This will allow the overall improvement in the quality of the project (Hill, Thomas, Mason-Jones & El-Kateb, 2017).

d. Cause & Effect Diagram
It is the quality control tool which is also known as the fishbone diagram. In this tool, the causes are mapped with the effects (problems) which provide the ability to understand the problem and the associated reasons to determine the solution.

There are different problems that are present in this case of leading lean project assignment. These include the problems and conflicts associated with the partner, builder, and other stakeholders. There are specific causes associated with these problems. The plotting of the same using this diagram will provide the ability to understand the root cause. The resolution of the same will be done in the process. This will speed up the project execution process and the intended project goals will be achieved.

e. Pareto Chart
There are different causes and reasons of problems present in the project. The Pareto chart is based on the 80-20 rule which is developed on the theory that 80% of the problems and issues are caused by 20% of the factors. These 20% are the major factors that need to be carefully handled so that the project goals are achieved (Nasiru, 2016).

In the case of the project of building the house discussed in this leading lean project assignment, the determination of these 20% of the factors will be done. These factors are mainly in terms of the project factors, such as changing trends in the market, budget constraints, and policy risks. The handling of these issues will automatically result in the resolution of the major problems and the overall quality will improve.

f. Scatter Diagram
The diagram is used to determine the relationship between the dependent and independent variables and factors in the project.

The use of this diagram in this project will be done to understand the relationship between the project factors and the associated problems. The correlation obtained with these factors will allow the overall handling of the project issues and the quality enhancement will be obtained as a result.

g. Control Chart
There are a number of standards and best practices as discussed in this leading lean project assignment that are applicable in the project. The use of the control charts will be done in the project to improve the project quality as the average limits will be identified and the project status will be identified on the basis of the same.

For example, the plotting of the project budget can be done in the form of the control chart and the variation will provide the project status in terms of on-budget, overrun, or under the specified limits. This process will assist in overall project handling and quality improvements.

5.0 Risk Management Strategy
The risk management strategy that will be followed in the project illustrated in this leading lean project assignment will be a step by step methodology based on the PMBoK and PRINCE2 guidelines. The steps and phases for managing the project risks will be obtained as a result.

The risks associated with the project are plotted in the risk register below. The strategies for managing these risks are then explained thereafter within this leading lean project assignment.

a. Risk Register

Table 1: Risk Register

*Probability/Impact Score – Assigned on a scale of 1 to 5 with 5 being highest and 1 being the lowest possible value.

b. Risk Management Techniques

Table 2: Risk Management Strategy

6.0 Conclusion
The use of collaboration strategy illustrated in this leading lean project assignment shall be done to manage the project conflicts with the partner and the builder. The leadership style that shall be used in the project is the transformational style. The use of seven quality control tools shall be done to manage the project processes. These include stratification, histogram, check sheet, cause & effect diagram, Pareto chart, scatter diagram, and control chart. The risks associated with the project shall also be managed by using a defined strategy. It is recommended in this leading lean project assignment that the use of avoidance, transfer, sharing, and mitigation strategies shall be done to make sure that the risks and resolved and the project progress is done as per the intended requirements and project goals.

7.0 References
Ballard, G., & Howell, G. (2013). Lean project management. Leading lean project assignment Building Research & Information, 31(2), 119-133. doi: 10.1080/09613210301997

Hill, J., Thomas, A., Mason-Jones, R., & El-Kateb, S. (2017). The implementation of a Lean Six Sigma framework to enhance operational performance in an MRO facility. Production & Manufacturing Research, 6(1), 26-48. doi: 10.1080/21693277.2017.1417179

Huo, X., Zhang, L., & Guo, H. (2016). Leading lean project assignment Antecedents of Relationship Conflict in Cross-Functional Project Teams. Project Management Journal, 47(5), 52-69. doi: 10.1177/875697281604700505

Jamali, G., & Oveisi, M. (2016). A Study on Project Management Based on PMBOK and PRINCE2. Modern Applied Science, 10(6), 142. doi: 10.5539/mas.v10n6p142

Keystart. (2019). How much can I borrow?. Retrieved 13 September 2019, from https://www.keystart.com.au/loans-and-tools/tools/how-much-can-i-borrow

Nasiru, S. (2016). One-sided cumulative sum control chart for monitoring shifts in the shape parameter of Pareto distribution. International Journal Of Productivity And Quality Management, 19(2), 160. doi: 10.1504/ijpqm.2016.10000160

Shapira, R. (2019). High-Moral Trusting Transformational Leaders, Charismatic-Transformational Leadership, and Charismatic Leadership. Leading lean project assignment. SSRN Electronic Journal. doi: 10.2139/ssrn.3418773

Vanickova, R. (2017). Application of PRINCE2 Project Management Methodology. Studia Commercialia Bratislavensia, 10(38), 227-238. doi: 10.1515/stcb-2017-0021