Case: Implementing lean project management to build your client’s dream home.

Answer

Question 1a

            To finalize the client's requirements in (terms of scope), several project management processes were used. A significant project management process that was used is the value-based approach. This approach is mainly concerned with meeting the requirements set out by the client while minimizing waste (Salvatierra-Garrido, Pasquire and Thorpe, 2009). Particular focus was placed on the specific requirements that were outlined by the client in terms of the budgetary allocation and the time-frame within which the project was to be completed. In line with this, the value-based approach was used to prevent unnecessary cost so as to delineate the meaning of the term 'value' in terms of the expectations that had been outlined by the client. This was in consistency with the lean management principle of delineating the meaning of ‘value’ based on the interests that have been outlined by the client. 

            Another project management process that was used to finalize the client's requirements is PRINCE2. PRINCE2 emphasizes on the need to divide the project into controllable and manageable stages. The project is organized into sequential steps with the aim of ensuring that success is achieved within the stipulated time-frame. In line with this project process, the construction project was divided into various systematic stages. The technical stages of the project included; the designing stage, the building stage and the testing stage (Wideman, 2002). The stages were punctuated with 'control points' wherein the holistic progress of the project would be evaluated; and based on the results of the evaluation, necessary adjustments to the pre-outlined stages would be made so as to ensure that the project is completed in a timely manner; (in accordance with the requirements laid out by the client) (Wideman, 2002). This ensured that whereas a well-articulated overall plan was available, each stage had its own individual detailed plan. This consecutively ensured that the project could be completed with due regard to the stipulated time limits. The PRINCE2 project management process was, therefore, effective in the realization of the client’s requirements.

Question1b

            Another significant element of the project management process relates to the aspect of communication. To effectively and efficiently manage communications with all the relevant stakeholders, various approaches were implemented. The first approach entailed the effective identification of all the respective stakeholders. Two main techniques were applied in this regard and they include; collective brainstorming and independent analysis (Assudani & Kloppenborg, 2010). The list of stakeholders contained all the persons who were likely to be affected by the project in one way or another.

            Once the general list of stakeholders had been arrived at, prioritization of stakeholders was then made (Assudani & Kloppenborg, 2010). This was done by creating and analyzing the various stakeholder profiles and taking into account the relative influence and interest that each of the stakeholders wielded with respect to the project. Segmentation or clustering was, therefore, done in this regard. This entailed the division of the stakeholders into tiers for the purpose of prioritization. Face-to-face communication was then scheduled in different stages of the project so as to cater for the interests of the stakeholders who were categorized as 'high power.' The interests of the stakeholders who were categorized as ‘middle power’ or ‘low power’ were also taken into consideration.

            As noted above, once segmentation had been conducted, communication with the distinctive stakeholders was scheduled. It was imperative that the purpose of each session of communication was laid out well in advance. This practice ensures that any developments or prospective conclusions that are drawn from the meeting are duly registered against the holistic goals of the project (Assudani & Kloppenborg, 2010). Similarly, mechanisms need to be put in place to effectively respond to feedback. Regardless of the segment that each stakeholder occupies, the feedback presented ought to be considered and an appropriate response should be presented in good time. This will provide the project manager with a perspective on how the project is perceived.

Question 1c

            The role of the subcontractors and vendors in the construction process cannot be underestimated. In the present case, these two groups play a substantial role in the realization of the requirements laid out by the client (with regard to time and budgetary allocations). To effectively and efficiently manage subcontractors and vendors, it is imperative that various project management processes are applied. Firstly, it is important to note that since the project was meant to be completed within 12 months, the time allocated for the tendering stage was highly limited. It was therefore, imperative that material and subcontractor inquiries were made at the earliest opportunity so as to make it easier for the project manager to arrive at a quick determination with respect to the subcontractors and vendors that will be involved in the realization of the intended outcomes. The various prospective subcontractors and vendors were required to present their quotations for every major material that would need to be supplied while taking into account the "effect of inflation, variance in delivery cost, and the discount on quantity ordered" (Tang et al., 2003, p. 53). The prospective vendors and subcontractors were also required to provide their key delivery dates (Tang et al., 2003). This information would be tallied against the laid out stages of the project as per the PRINCE2 project management process. This ensures that the services offered by the vendors and subcontractors are customized in accordance with the unique requirements of the project. At this stage, negotiations are also conducted so as to leverage the competition between the subcontractors and vendors so as to achieve the best possible price.

            Once all the quotations from the prospective vendors and subcontractors have been received, they are carefully examined "and totaled in accordance with the unit of measurement required" (Tang et al., 2003, p. 56). At this stage, the detailed extent of work that has been included in the price is determined so as to alleviate the possibility of engaging other parties in the course of the continuance of the project. If, for instance, a vendor will not be taking on the cost of transporting materials to the construction site, this fact is made apparent at this point so as to ensure that the contractor can leverage on the chance of getting both the goods and the transportation service from another vendor. This approach ensures that the chosen vendors and subcontractors take on the responsibility of covering as much work as possible so as to avoid any form of duplicity (which may result in increased pricing) (Tang et al., 2003). The time-lines of the project are also made known to the vendors and subcontractors at this opportune time and adherence with all the contractual agreements as elaborated above ought to be registered by all the vendors and subcontractors.

Question 2 (1a)

            Lean project management (LPM) can be achieved for task 1a by considering the interlink between LPM and the value-based approach to construction as illustrated above. It is important to note that a significant point of convergence between the two concepts relates to the aspect of waste reduction. Waste can in this regard be described as any human activity that "absorbs resources but creates no value" or any activity that serves to increase the cost of the project yet adds no value (Salvatierra-Garrido, Pasquire and Thorpe, 2009, p. 286). Similarly, 'value' can be described as the process of meeting the requirements set out by the client while minimizing waste (Salvatierra-Garrido, Pasquire and Thorpe, 2009). In line with this, lean project management achieves the ends intended by the value-based approach to the construction process by fostering the practice of waste reduction throughout the stages of the project. The significance of merging the two concepts in the process of construction cannot be underestimated.

            It has been noted that waste management and reduction is one of the main problems faced in the construction industry and it accounts for about "60% of the construction effort" (Vilasini, Gamage and Neitzert, 2011, p. 556). Lean techniques can be used to foster waste minimization. One such technique is the ECRS (eliminate, combine, rearrange, simplify). Through the implementation of the ECRS, any steps or activities that do not add value to the construction process can be eliminated (Vilasini, Gamage and Neitzert, 2011). If, for instance, it becomes apparent that hourly inspections are not necessary since they double up as a waste of human resource, this activity is eliminated. This practice serves to ensure that the resources that are available for the completion of the task are well utilized. If, however, the activity cannot be eliminated, it can be combined with anther activity so as to ensure the effective utilization of the available resources. Similarly, in line with the ECRS lean tool, rearrangements can be done to various aspects of the construction process such as the steps that are to be followed and the governance structure. Simplification can also be fostered with the aim of ensuring that the construction process is results oriented. This is done with the aim of fostering productivity.

            Lean management can also be utilized in the PRINCE2 approach by fostering productivity throughout the construction process. This can particularly be done through the observance of the adept principles of lean construction. One such principle appertains to the elimination of waste and the observance of the work flow process (Vilasini, Gamage and Neitzert, 2011). With respect to the latter, reference can be made to the significance of the division of the project into stages so as to foster productivity and timeliness. In line with the lean management principle of 'work flow' a continuous flow of work is cultivated, thus leading to productivity and reliability. In this regard, lean management can be used to ensure the effective implementation of the PRINCE2 approach.

Question 2 (1b)

            Lean management can be utilized for task 1b by fostering effective communication throughout the stages of the project. It is important to recognize, in this regard, the fact that lean management is concerned with the minimization of waste and increased efficiency in the course of the construction project. 'Waste' in this regard not only includes the loss of materials but also the loss of time and improper usage of labor (Vilasini, Gamage and Neitzert, 2011). Proper communication ensures that time is utilized effectively since all the stakeholders present their concerns in good time and those concerns are addressed. If the opposite is done, the result is that unnecessary delays will be experienced since the concerns raised by the stakeholders have not been addressed. Lean management, therefore, primarily encourages communication from the first instance and the implementation of this concern leads to efficiency.

Question 2 (1c)

            Lean management can be achieved for task 1c by fostering efficiency throughout the process of planning, organizing and communicating with the vendors and subcontractors. Through the application of the lean management concepts, communication between the project manager and the vendors & subcontractors is kicked off at the earliest opportunity. This ensures that the possibility of disputes is eliminated and this in turn saves time. Similarly, as a result of the systematic mode of communication from the first instance, the project is completed without much strain and within the prescribed budget. Based on the foregoing, it is clear that one of the main goals of lean management is the maximization of efficiency and the reduction of costs. This is achieved when a systematic mode of communication is established from the first instance.

            Lean management can also be achieved for task 1c by seeking to ensure that the lean technique of ECRS (eliminate, combine, rearrange, simplify) is applied with respect to the services offered by the vendors and subcontractors (Vilasini, Gamage and Neitzert, 2011). In particular, if certain multiple services can be provided by one subcontractor, the possibility of hiring several subcontractors is eliminated so as to manage the cost of the project. Simplification can be applied by ensuring that once all factors have been considered, the vendor who offers the lowest quotation is chosen so as to cap any unnecessary costs. Essentially, the applicability of the ECRS lean technique will ensure that lean management is achieved for task 1c.

effective in addressing these downsides, hence facilitating an effective engagement process.