Lean Project Management: Identifying Problems and Implementing Solutions

This report focuses on Australian Engineering Works Private Limited (AEW) and the challenges it faces from external stakeholders. It identifies problems and proposes solutions using various project management methodologies such as PMBOK, Waterfall, PRINCE 2, Agile Practice, Lean Six Sigma, Kanban, and OPM. The report also includes risk management plans, qualitative risk analysis, risk responses, implementation plans, and monitoring of risk responses.

LEAN PROJECT MANAGEMENT
Leading Lean Project
Name of the Student
Name of the University
Author Note:

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Table of Contents
1 Introduction...................................................................................................................................4
2. Identification of the problem.......................................................................................................4
2.1 Project Management Body of Knowledge (PMBOK)...........................................................4
2.2 Waterfall project management methodology.........................................................................5
2.3 PRoject IN Controlled Environments 2 (PRINCE 2)............................................................6
2.4 Agile Practice.........................................................................................................................6
2.5 Lean Six Sigma (DMAIC Methodology)..............................................................................7
2.5 Kanban...................................................................................................................................7
2.7 Organizational Project Management (OPM).........................................................................8
3 Risk Management Plan.................................................................................................................8
3.1 Risk Register..........................................................................................................................8
3.2 Qualitative Risk Analysis....................................................................................................10
3.3 Risk responses.....................................................................................................................11
3.4 Risk responses implementation...........................................................................................12
3.5 Monitoring of risk responses...............................................................................................13
4 Leadership style appropriate to bring about the change.............................................................13
4.1 Paternalistic leadership........................................................................................................13
4.2 Strategic Leadership............................................................................................................14
4.3 Situational Leadership.........................................................................................................15
5 Conclusion..................................................................................................................................15
6. Reference...................................................................................................................................17

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1 Introduction
The foremost determination of the paper is to focus on an Australian business
organization known as the Australian Engineering Works Private Limited (AEW). This business
organization has an improved market position for the last 30 years. However, like every other
business organizations, this organizations are also facing serious challenges from the external
stakeholders of this organization such as their suppliers and the customers. The emergence of the
new business organizations is a serious concern for this organization considering the growth and
productivity of the organization (Alharbi, 2017). The experienced senior employees of this
organization are opting out from the organization and joining the new players in the market as
they are providing them better career opportunities considering AEW. The customers of this
organization are also evaluating options from the other similar organizations. This report will be
helping the senior management team of this business to deal with the challenges in a better way.
2. Identification of the problem
The numerous problems associated with AEW such as the sudden rise of the new
suppliers, consumers opting for alternate services, retention of senior experienced employees,
emergence and rise of new organizations with improved business strategy and market
competition.
2.1 Project Management Body of Knowledge (PMBOK)
Forecasting of the financial needs of the project, organizational behaviour of the
employees and the other kinds of planning methods used in the projects are considered in this
project management category (Amanchukwu, Stanley & Ololube, 2015). The most essential
components of PMBOK is the ITTO which is the input, techniques, tools and outputs.
Considering the given scenario, it can be said that the issues faced by AEW can be
purposefully managed with the help of PMBOK. All the essential inputs of this from which can
come from the management team, project managers will be considered as the input criteria of the
PMBOK (Arnold et al., 2015). The industrial tools and techniques which are used to deal with
the inputs falls under the category of the tools and techniques. The end results of the techniques
are considered as the outputs of the project. The process groups of this project are initiating the
change from the management team, planning by the project managers, executing by the

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stakeholders of the organization, monitoring and control by the senior management team, closing
by the project manager when the desired results are obtained.
2.2 Waterfall project management methodology
It is defined as the project management methodology which can be successfully applied
in business organizations to deal with each phases of a project starting from the documentation
phase to the maintenance phase. Each phase of the project cannot be rolled back under the
principles of waterfall management (Asrar-ul-Haq & Kuchinke, 2016).
Considering the given scenario, new and innovative business strategies should be created
and implemented carefully, waterfall management can be used for this project. The plan of
making the new change should be well documented. Implementation of the change considering
the opinion of the external stakeholders of the organization is the most significant aspect of this
project management methodology in this project (Bascoul, Tuholski & Tommelein, 2016).
Maintenance of the new changes should be also done as the market position of this organization
will not be the same even after new changes are implemented. Each phase of this project should
be approved by the concerned stakeholders so that the future complexities can be avoided.
2.3 PRoject IN Controlled Environments 2 (PRINCE 2)
It is defined as the type of project management methodology which can be successfully
used in business projects which are process driven in nature.
The discussed elements of the PRINCE 2 can be successfully used in Australian
Engineering Works Private Limited so that the desired changes can be brought in the
organization. The complication of the PMBOK can be successfully resolved with the help of the
PRINCE 2. The issues such as the emergence of the new suppliers and changing needs of the
consumers of this organization can be purposefully solved with the help of the principles of
PRINCE 2. This structured methodology can be used to retain the senior experienced employees
of the selected organization as this project management technique can be used on those
employees to make them understand their roles and career growths in the industry.
2.4 Agile Practice
It is defined as the category of project management technique which is used in
complicated projects where the conditions of the projects keep on changing along with the needs

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and requirements of the end users (Bhatti, Abareshi & Pittayachawan, 2016). According to this
technique frequent inspection and adaptation can only lead to the success of the project.
Considering the given scenario, it can be said that the agile practice can be very much
useful in Australian Engineering Works Private Limited, as it will clearly satisfy the needs and
requirements of the consumers which are changing the every now and then (Yahaya and
Ebrahim, 2016). Management of the stakeholders of the project can be done with the help of this
project management methodology. Co-operation of the stakeholders is done with the help of this
project management methodology. The workflow process of AEW can be successfully managed
with the help of the agile practise.
2.5 Lean Six Sigma (DMAIC Methodology)
It is defined as the category of the project management methodology which can be
successfully implemented in critical project where there are issues with their stakeholders such
as the suppliers and the buyers. The statistical analysis tools such as the Pareto chart, Value of
stream mapping, Regression Analysis and 5S system can be hugely purposeful with the help of
the lean six sigma (Bird & Mendenhall, 2016).
Quality tools such as the Pareto chart, histogram, scatter diagram can be categorically
used by the project managers to make the necessary changes regarding the emergence of the new
organizations. The stakeholders associated with AEW can be successfully managed with the help
of the DMAIC methodology. The root cause analysis can be done with the help of the project
managers so that the desired results are obtained.
2.5 Kanban
The continuous change in the requirement and the different phases of the project are
sometime very difficult to manage sometime as a result the project gets delayed sometimes
(Brioso, 2015). The evolutionary changes are needed to be added based on the priority of the
project, these adjustments are possible with the help of the Kanban project management
methodology.
The ever-changing needs of the consumers of AEW can be purposefully managed with
the help of the Kanban project management methodology. The business requirements of the
organization considering the tough market competition coming from the new organizations can

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be also controlled with the help of this project management methodology (de Carvalho, Patah &
de Souza Bido, 2015). The business processes of AEW can be managed in a better way
considering the rate of the prices of their products which can be compared by the prices of the
new organizations with the help of this project management methodology.
2.7 Organizational Project Management (OPM)
Program management, portfolio management and management of the project are done
with the help of this organizational project management (Donate & de Pablo, 2015). Strategic
goals of the organization can be achieved with the help of the OPM. The implementation of the
business strategy can be done with the help of system thinking for the lean projects.
Considering the given scenario, it can be said that the AEW can be successful in bringing
business changes in their system with the help of the OPM strategy. Co-ordination between the
internal as well as the external stakeholders of business organization is a must and this is source
of concern for AEW which can be solved purposefully with the help of OPM (Efferin &
Hartono, 2015). The issue of senior employee retention can be also minimised if good employee
turnover can be maintained in the office environment which is possible id the employees are
aware of their roles and responsibilities which can be measure with the help of OPM.
3 Risk Management Plan
3.1 Risk Register
Risk ID Risk Reason
behind the
risk
Impact of
the risk
Solution
1 Threat
from new
suppliers
Management
failure
Low Business
strategy
2 Market
competition
Inefficient
business
strategy
High Examining
future market
trends
3 Alternative
option for
Inefficient
business
High Maintain wide
range of

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consumers strategy products and
services.
4 Senior
employee
Retention
No appraisal
procedure
Moderate Maintaining
good employee
turnover.
Table 1: Risk Register of AEW
(Source: Created by the author)

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3.2 Qualitative Risk Analysis
Identification of risk Qualitative Risk Analysis Risk Plan Response Risk Monitor
Category
Risk
Id Risk Risk Event Probability (P) Impact (I)
Risk
Score
(PI)
Risk
Rank Potential Response Cost
Date
Raised
Date
Closed
Statu
s
High Medium Low High Medium Low
0.25 0.5 0.75 2.5 5 7.5
Financial
Risk
1
Threat from
new suppliers Business direction 

3.75 1
Impactful business
strategy $700 01.01.2019 22.01.2019
Organizat
ional
Risk
2
Alternative
options for
consumers
Change in
management structure 

1.25 4
Maintain wide range
of products and
services. $400 26.12.2018 30.01.2018
Financial
Risk
3
Market
competition Material Pricing 

1.875 3
Examining future
market trends
$14,00
0 15.12.2018 25.12.2018
Technical
Risk
4
Senior
employee
Retention
Management of
resources/ project
budget   2.5 2
Maintain good
employee turnover. $2,000 15.08.2018 30.08.2018
Figure 1: Qualitative Risk Analysis
(Source: Created by the author)

LEAN PROJECT MANAGEMENT
3.3 Risk responses
Risk Risk
Ownership
Plan Connection
Threat from
new suppliers
Rise of new
Stakeholders
Maintenance
of stakeholder
relationship
The
aspirations of
the
stakeholders
of the
organization
should be
understood by
the
management
team of AEW.
Alternative
options for
consumers
Management
team of AEW
Customer
engagement
practices
Innovative
business
strategies
considering
the current
market trends.
Market
competition
Emergence of
new similar
organizations
External
environmental
analysis
Increase the
business reach
of this
organization
so that are no
business loss
associated
with the
organization.
Senior
employee
Management
team of the
Employee
retention
Provide
efficient

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Retention organization. policy appraisal
policy and
incentive
schemes.
Table 2: Risk responses
(Source: Created by the author)
3.4 Risk responses implementation
Risks Enactment
Threat from new suppliers New and innovative business
strategies must be implemented
considering both the external as
well as the internal stakeholders.
Alternative options for
consumers
Bringing new consumers by
increasing the business reach of
this organization can be hugely
beneficial to deal with this issue.
Market competition Fresh and innovative business
strategies must be implemented to
face the tough market
competition.
Senior employee
retention
Employee turnover must be very
good for this organization which
will be useful to retain the senior
experienced employees.
Table 3: Implementation Plan for the risks
(Source: Created by the author)
3.5 Monitoring of risk responses
Considering the provided scenario, it can be said that Australian Engineering
Works Private Limited (AEW), have different categories of challenges which have a

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direct impact on the growth and productivity of the organization. The previous unit of the
paper have discussed the risks along with their impact on the organization and the
stakeholders responsible for the issue (Franco & Matos, 2015). The qualitative risk
analysis helps in understanding the different types of risk along with their impact and
probability. Monitoring of each risk associated with the selected organization is very
much essential so that the risks can be minimized to a significant extent and the progress
of the organization is not impacted (Frankel & PGCMS, 2019). Each risk has to be
professionally monitored. Alternative solutions should be created and implemented if the
proposed solutions of the risks are not working. Organizational strategy must be very
much useful to monitor the changes if the risk response plan has no effect on it. The
monitoring of the risk requires the effective participation of both the internal as well as
the external stakeholders associated with the organization (Kesting et al., 2016). All the
market parameters of the organization should be knowing about the change in strategy so
that they can fill up the gap that were created which led them to opt for better options.
4 Leadership style appropriate to bring about the change
The role of the leaders of this organization is very much important considering
the proposed changes as they can be implementing their managerial capability to deal
with this situation (Masuda & Kostopoulos, 2016). The three different types of leadership
qualities which will be very much useful to bring the change in AEW are paternalistic
leadership quality, strategic leadership quality and the situational leadership quality.
4.1 Paternalistic leadership
It is defined as the type of leadership quality which can be successfully used in
business organization where the role of the leaders will be significant in determining any
kinds of organizational change. According to this leadership quality, every stakeholder
associated organization is considered equally so that the leaders gets the support of all the
employees of the organization (Nicholas & Steyn, 2017). The paternal leaders consider
every employee as their extended member and treats them likewise. The paternal leaders
expect loyalty from the employees in return of their organizational behaviour. The
paternal leaders provide huge encouragement to the employees regarding any adverse
business conditions (Orzen & Bell, 2016). Diversity is maintained in the office premises

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as it maintains good relationship with the external stakeholders of the organization such
as the suppliers and the distributors.
The role of the leaders is very much important for Australian Engineering Works
Private Limited (AEW), and the paternal leaders have the capability to play a huge role in
the crisis situation which is hampering the reputation of the organization. The issue of
retention of the experienced senior employees can be solved purposefully with the help
of the paternal leaders as they tend to provide all the facilities to the senior employees
which they are looking for (Pavanello et al., 2018). The issue coming from the suppliers
can be also solved as this leadership quality considers all the business parameters such as
the consumers, suppliers and service providers in a similar manner.
4.2 Strategic Leadership
It is defined as the type of leadership quality which can be purposefully used in
the business organizations to deal with their internal and external complexities. Strategic
thinking is applied by strategic leaders to implement business policies in the working
environment (Sadgrove, 2016). The role of the strategic leaders is important to deal with
the management issues of the organization. The strategy of the business organizations are
aligned with the help of the strategic leaders. The strategic leaders play a huge role in the
successful implementation of the business strategies. The contribution of the corporate
organizations on the society are also accessed by the help of the strategic leaders.
Considering the discussed qualities of the strategic leaders it can be said that the
strategic leaders can play a huge role in the working environment of Australian
Engineering Works Private Limited (AEW). Dynamic business environment can be
created with the help of the strategic leaders (Shao, Feng & Hu, 2017). The issue of the
emergence of the new organization can be solved to a limited extent with the help of the
strategic leaders. Alternative options from the consumers is also an issue which can be
solved professionally with the help of the strategic leaders also as they can implement
innovative business strategies in the selected organization (Smothers & Lawton, 2017).
The issue of the retention of the senior employee can be also solved with the help of the
strategic leaders as they can be very much useful to maintain a good employee turnover
in any selected organization.

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4.3 Situational Leadership
It is defined as the type of quality which is most used in all the global business
organizations all around the world. Every business organization have different categories
of challenges, each challenge has to be addressed separately. The role of the strategic
leaders is very much important to deal with the challenges (Sohi et al., 2016). The
situational leadership quality can be categorised into the following styles such as
coaching, directing, delegating and supporting. There is two competence stage associated
with situational leaders such as the low competence stage and high commitment. The
commitment of the workers can be categorically improved by the help of the situational
leaders. Morale of the employees and the other stakeholder of the project can be
improved with the help of the situational leaders.
Considering the provided scenario, it can be said that the issues and challenges
faced by this business organization such as the threat coming from the suppliers and the
retention of the experienced senior employees can be easily solved with the help of the
situational leaders (Sunder, 2016)). The situational leaders will be also helpful to create
and implement innovative business strategies which could help the organization to have a
competitive advantage over the new organizations which is a serious concern for AEW.
5 Conclusion
The paper was also useful to understand the role of the project management
methodologies in this case study. Seven different categories of project management are
applied in this report so that issues can be addressed effectively. From the above report, it
can be said that this business organization have different categories of risks associated
with their working environment such as the threat coming from the new supplier,
alternate options for the consumers, threats coming from the new organizations and
retention of experienced senior staffs. These risks were identified with the help of the
qualitative risk analysis unit of the paper, that also helps in understanding the impact and
the probability of the risk with the help of the risk score. The identified issues can be
successfully addressed with the help of the role of the different categories of leaders such
as the paternalistic leaders, situational leaders and the strategic leaders.

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This paper was useful as it provides an idea about the different types of project
management methodologies and its application in this case study. A detailed risk
management plan has been presented after the application of the project management
methodologies. The risk management plan has been evaluated on the basis of their impact
of the selected organization. The probability and the impact of the different category of
risk is focused on the quantitative risk analysis unit of the paper. The response to the
risks is also presented in the paper along with the implementation of the risk responses.
The role of the different category of leaders in bringing the proposed changes in
Australian Engineering Works Private Limited has been discussed in this paper as well.

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