Implementation of Lean Project Management for Government Tenders

This memo introduces the concept of Lean Project Management and explains its benefits for the organization and stakeholders. It discusses the reasons for its implementation, critical success factors, and steps to ensure their implementation. It also outlines the training requirements for staff members and methods to assess readiness for Government Tenders.

Title Page

MEMORANDUM
To: All staff members
From: Director – in – charge, ‘Lean Project Management’ Implementation
Subject: Implementation of a system of Lean Project Management for the purpose of getting
Government tenders.
Lean Project Management can be defined as the application of lean concepts such as lean
construction, lean thinking, lean manufacturing, etc. to the different aspects of project
management. It is different from traditional concepts of project management in terms of the
structure of phases, of the goals it is supposed to achieve and the relationship between the phases
of the projects (Ballard, 2003). Our company proposes to implement this system of Lean Project
Management so as to apply for the government projects and tenders. The purpose of this memo
is to introduce and explain this concept of Lean Project Management – its benefits, our reasons
for implementing it and the implementation process that we will follow - for the benefit of all
staff members and improvement of all activities to be undertaken by us together as a project
consultancy and management team.
I. Reasons for Implementation of Lean Project Management
The primary reason for implementation of the Lean Project Management System in
the organization is the wish of the company and its Board of Directors to
undertake various Government Projects. Various Government agencies have
suggested to the company that for the purpose of undertaking Government Projects
and applying for Government and associated tenders, it should undertake a system of
Lean manufacturing, Lean Consultancy and Lean Construction. So, to be eligible for
the application of Government projects in the organization, the board has decided to
implement this system.
Also, the Board on research has found that there are various secondary benefits which
can be availed from the implementation of this system in the organization:
1. Streamlining the Company Processes: Lean Project Management has a number
of benefits – one being the company processes being streamlined. Efficiency can

be witnessed in the organization at the implementation of this system of project
management (Kewen, 2012). Work is carried out at its full capacity of production.
2. Reducing Wastage: One of the most important reason that the Government has
suggested to follow a system of Lean Project Management is to reduce wastage
and avoid all forms of activities which will lead to double time being spent than
what is actually required.
3. Higher Productivity: The Government wants high productivity in its projects and
therefore, suggests to the company to implement this system of project
management in the organization. High Productivity will automatically be
achieved when wastage is reduced and there is full capacity of production
(Goulden, 2017).
4. Removing Uncertainties: In order to undertake Government Projects by the
company, it is essential that there be no uncertainties with regard to the
completion of the projects within the given resources and within the given time.
Lean Project Management helps to remove these uncertainties (Howell and
Koskela, 2010).
II. Benefits for the Stakeholders
The stakeholders in the project are the various parties involved in the company and its
related projects. These are those parties which are directly impacted by the project
being completed in the desired manner (“Who are Project Management
Stakeholders”, 2017). Our stakeholders are divided into two categories:
Internal Stakeholders:
1. Our organization
2. Our project managers
3. Our project teams
4. Our sponsors (financial sponsors, and other such executives)
External Stakeholders:
1. Our suppliers

2. Our customers
3. Our subcontractors
4. The Government
5. Our local community
From our research, we find out that all our stakeholders benefit from the implementation of the
Lean Project Management System in the organization. These benefits are discussed below:
1. Greater Control: Lean Project Management leads to greater control in the organization.
Our team will be better equipped to handle any and all challenges that come our way.
This control will lead to empowerment of all our stakeholders and will not endanger their
creative freedom (Pallai, 2018).
2. Happier People: With the implementation of the Lean Project Management System, the
Board ensures that all of our stakeholders will be in a better position to work in the
organization and will have a boost to their morale (Pallai, 2018). Lean Project
Management leads to happier stakeholders and thereby, happier organizations. The main
reason behind this is that the project managers and developers always like to know in
advance where their project is headed and the techniques of implementing that project.
Lean Project Management makes them aware of these and this increases their ability to
work.
3. Higher Profits: With the implementation of Lean Project Management System in the
organization, there are greater profits to be earned. These increased profits are beneficial
for all our stakeholders especially our management, employees, and our investors.
(Melton, 2010).
4. Higher Productivity: The productivity is the output per unit of input. Generally, project
management and consultancy firms start running into losses due to the low productivity
being generated in the organizations. This happens when the resources are either being
over – utilized or under – utilized and therefore, the output received is not in proportion
to the inputs which were put in. Lean Project Management Systems ensure that our
resources will be utilized fully and will lead to an optimum productivity level for our
organization (Alves,2012)

5. Reducing Wastages: Lean Project Management systems ensure that none of our
resources are wasted and all results are achieved within the given time. Lean
Management helps to streamline all processes and activities in the organization.
III. Critical Success Factors for the Implementation of Lean Project Management
System
These are those factors which are critical to be followed for the successful
implementation of the Lean Project Management System in our organization. The
lack of implementation of these Critical Success Factors is what leads to failure of
systems and their implementation. In our organization, the following are the Critical
Success Factors:
1. Commitment: The commitment from our managers is the most important factor
for the implementation of the Lean Project Management System. Commitment is
required in all areas including but not limited to – managerial performance, staff
performance, coordination and communication (Netland, 2015).
2. Training: It is critical that the right kind of training and education be given to all
levels of staff in the organization for the successful implementation of this system
of project management. Firstly, training will be given to the managers and then
followed by the remaining staff members. Also, external consultancy firms will
be appointed so as to ensure that proper training and education, especially of all
practical aspects, will be given. (Netland, 2015).
3. Standards of Evaluation: The organization will be developing and
communicating to all members the standards for evaluation of performance with
regard to the implementation of the Lean Project Management System (Minh,
2018). These standards will be developed keeping in mind the worker efficiency
levels. No employees will be burdened with expectations of a higher level of
performance than they can actually implement.
4. Key Performance Indicators: These are the measures of performance which are
used to analyze the performance of the staff members with regard to the

implementation of the project management system. KPI’s will be used to assess
the performance of the systems’ implementation in the organization.
5. Effective Communication: One of the most important success factor in Lean
Project Management is the communication amongst all levels of the organization.
Our company already employs one of the most successful communication
channels in the industry and efforts are being made to improve all these channels
in the organization so as to implement new systems with ease.
6. Understanding Tools and Techniques: It is essential for the success of the Lean
Project Management Systems that the new tools and techniques be understood by
all members of the organization. Training workshops, seminars and all relevant
coaching will be given to the members of the staff so as to ensure that the Lean
Project Management Systems are clearly understood and effectively implemented
and managed.
7. Flexibility: All staff members are requested to ensure that they maintain
flexibility in all actions and thought processes while carrying out their designated
tasks so as to ensure that the new systems are easily implemented.
IV. Steps to Ensure that the Critical Success Factors are Implemented
To ensure that the Critical Success Factors (CSF) are implemented in the
organization, we intend to follow the below given steps (Berman, 2009):
1. Defining CSF: First and foremost, it is essential to clearly define the Critical
Success Factors for the implementation of the Lean Project Management Systems.
Our CSF’s have been defined above in detail.
2. Define Objectives: The objectives for the implementation of the Lean systems
have been explained above as the reasons for this new development.
3. Defining Policies: Our policies which are to be followed will be defined for the
purpose of better implementation of new systems of project management.
4. Setting Goals: The goals which we aim to achieve are based on the principle of
SMART – specific, measurable, achievable, realistic, and time bound.

5. Training: Next, it is essential that we give training to all our staff members for
the implementation of this system in the organization.
6. Implementation: Next the Critical Success Factors will be implemented in the
organization.
7. Measuring Performance: The performance of the Critical Success Factors will
be measured and compared with the goals.
8. Taking Corrective Action: It is essential that timely action be taken in order to
continue the successful implementation of the Lean Project Management System.
Ways to achieve the Lean Project Management System Mindset in the
Organization
In order to ensure that the people of our organization have a Lean Project
Management mindset, it is important to solve problems through redesigning of the
organization and not reorganization (Flinchbaugh, 2015). The following should be
and will be considered when developing a suitable approach for this System:
1. Focus towards solving a problem is of utmost importance in order to develop a
mindset which is essential for the implementation of this project. There is an
urgent need for organizational redesign so that there is a clear understanding of
the problem at hand and the new system to be implemented.
2. It is essential for all to understand whether the system comes first or the
personal needs of the members of the system. It is suggested that there should
be a balance between both the aspects and so, the Lean Project Management
System will be successfully implemented.
3. It is important for all to develop connections with the activities that are to be
performed in the organization for the system implementation.
4. An important aspect of developing a mindset for the implementation of this
system is to learn to experiment with ourselves and our work.
V. Training Requirement for Individual Staff Members

As has been mentioned in this memo several times, it is essential to provide the
members of the organization with proper training so as to equip them with the
knowledge to implement and follow the Lean Project Management System. The
training requirements of the staff have been discussed below (“Lean Management
Certification Training”, n.d.):
1. Training for understanding the principles of Lean Project Management
It is essential to understand that all staff members are required to undergo training
to understand the concepts and principles of Lean Project Management. The
principles of this system involve learning to define value, mapping the value
stream, creating flow of value, establishing pull systems and pursuing perfection
(Do, 2017).
2. Training to Understand The Wasteful Areas in the Organization
The staff members will be trained to identify the areas of production which will or
can be performed in such a manner that eliminates wasteful activities. Training is
essential in this area for the purpose of understanding those activities which can
be reduced or can be avoided so as to increase productivity of activities.
3. Training to use Lean Tools, Techniques and Metrics
Lean Project Management System involves implementation of a large number of
tools, techniques and metrics. For the successful implementation of this system, it
is of utmost important that we train all our staff members including lower level of
the staff as well as the managerial staff and teach them how to use all metrics,
tools and techniques.
4. Training to Understand Successful Implementation of Lean Project
Management Systems
The previous examples of Lean Project Management Systems which have been
successfully implemented, need to be discussed with the staff members in order to
understand the training which needs to be provided for it. Some of the successful
Lean Project Management Systems are Nike, Kimberly-Clark Corporation, etc.

5. Training to Understand Other Methodologies that Complement Lean Project
Management Systems
Along with the Lean Project Management tools and techniques, there are other
tools and metrics that complement the project management and consultancy
systems. The staff members will be trained to identify these simultaneous
techniques as well as to implement these in order to understand this Lean system
in a better way.
6. Training to Implement this Training Received
It is not only essential to receive this training, but it is also extremely important to
understand the ways in which this training has to be implemented successfully.
The managers in the organization will ensure that the staff members who receive
this training are not only explained the theoretical concepts, but are also given
practical training.
VI. Methods to assess whether the organization is ready to takeover Government
Tenders
The main reason behind our firm implementing this Lean Project Management
System is to be able to acquire Government tenders and projects. For this purpose, the
methods which will be used to assess whether the firm is ready to receive projects
from the Government are discussed below:
1. Value Stream Mapping: It is a tool which is required for the purpose of
documenting, analyzing and importing the flow of information or materials
required to produce or complete a project (“Value Stream Mapping”, n.d.). This
method can be used by the organization in gathering and displaying a broad range
of information than the typical maps used in the organization. This tool is used by
the organization for the purpose of firstly, mapping the progress of the projects
and secondly, mapping the information that flows through the process and helps
to understand whether the organization is ready to take over the Government
projects or not.

2. Work – Cells: It can be defined as the strategic and systematic arrangement of
resources in order to improve the flow of resources in the required direction
(Hennessey, 2017). We can create work cell organizations in our firm in order to
create cross – functional teams that include either resources or materials or a
combination of both. This method will help to identify the flow of work in the
given direction and thereby, whether the firm is ready to take on Government
projects.
3. Kaizen: It is a Japanese term that means “change for the better” or “continuous
improvement”. It is a method to assess the implementation of Lean Project
Management System where the staff members have permission to stop their work
when and if they spot any abnormalities in the production process. The purpose of
implementation of this system is to ensure that our work environment is made
more efficient and effective by creating an atmosphere of learning and
improvement (Smith, 2009). This is probably one of the most important methods
of assessing the implementation of the Lean Project Management System and
helps to make the use of the systems in an appropriate manner. The alterations in
the organization will be bought about slowly but surely. This will help to
understand and assess whether the Government is ready to undertake any major
tenders or not.
The purpose of this memorandum being sent is to explain in detail the reason and the principles
behind the adoption of the Lean Project Management System in the organization. The main
inclination of the Board of Directors of the organization to implement this system is to make our
organization capable of applying for Government tenders. The Lean Project Management system
principles have been explained in detail along with the benefits of it. The training requirements
to be followed for all staff members have been explained. The Critical Success Factors for the
system to be implemented in the organization have been discussed. It is for the benefit of all staff
members that this memo be read with extreme attention and care be taken to follow all guidelines
for implementation of the Lean Project Management System.

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