Lean Project Management: Implementation, Benefits, and Critical Success Factors
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Lean Project Management is an application that helps optimize project outcomes and minimize waste. This article explores the implementation, benefits, and critical success factors of Lean Project Management.
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Running head: LEAN PROJECT MANAGEMENT LEAN PROJECT MANAGEMENT Name of the Student Name of the University Author Note
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1LEAN PROJECT MANAGEMENT TO: < PLEASE INSERT> FROM: < PLEASE INSERT> DATE: < PLEASE INSERT> SUBJECT: IMPLEMENTATION of LEAN PROJECT MANAGEMENT Lean Project Management is an application which is structured for delivering project outcomes with more values and minimal waste. Lean Project Management helps to optimize the values and wastes occurred or created during the lifecycle of the project. The initial reason for implementing lean project management may help to achieve number of goals in business process mapping (Orzen and Bell 2016). The advantages of early implementation of LPM are as follows: Eliminating wastes:The concept 3MU’s are the central idea for eliminating waste; Muri, Muda and Mura. Muri refers to the unreasonableness and it is a process, system or facility designed beyond the physical capabilities of employee’s or equipments (Borikar, Purohit and Hulle 2018). Muda refers to the usefulness. It is an activity within a process that does not add value, from the perspective of the customer. Mura refers to the unevenness; it shifts in demand or delivery that leads to a service or support process being speed up slowed down. Improves the quality of final product:The quality of the final project is improved as the implementation of LMP reduces or eliminates the wastes from the project work. During the work flow as a result more reliable product is obtained without any defective outcomes which lead to customer satisfaction as well as integrate the reputation of the company. Reduces the time of project completion:The project is observed at every phase which helps the project team to perform the work on time as the waste and other negative factor are eliminated which smooth the work flow without any interruption. The project is completed on the basis of budget:The final products are based on the budget efficient factors of the project. The organization has implemented the lean project management at an initial stage; observes the project at every phase and the expenditure made on the requirements only. Meeting the requirements for project performance:The project performance meets the requirements because of the early initialization of the implementation. This is because of the
2LEAN PROJECT MANAGEMENT organization gets enough time to research on the project before proceeding with it. The research outcome helps to identify the basic requirements and early measures can be taken at an early stage. Reduces the effective cost:The effective cost of the product is inversely proportional to the waste elimination (Cooper 2017). The final price of the project becomes much more efficient and value for the money. Adds values on the project:The product is based on the early market research. The research is done on the customer requirement and fields of requirement with effective competition from the similar product from other brands (Taurianienet al.2016). The final product meets the customer satisfaction which reflects on the values of the project. The people who have vested interest and stake over a project are the stake holders of that particular project. Stakeholders have the ability to affect the project by directing the outcomes of the project (Gualandriset al. 2015). The management team of an organization not only improves the reputation of the organization for social responsibilities by engaging the stakeholders but also benefits the stakeholders in decision making by including them. A project may have several stakeholders. In several organizations the stakeholders are provided with the authority in decision making over the entire project or some part of the project. The initial involvement of stakeholders in lean project management can be beneficial for them in many ways. The different types of stakeholders associated with Lean Project management are internal, connected and external stakeholders. The internal stakeholders are the directors and managers who are involved in the decision making of the project. The directors and manager look for the share option, job satisfaction and bonus perks, bonuses and maximizing the process. As the initial implementation of lean project management eliminates waste, it reflects on the estimated budget. Minimizing the wastes means more budgets can be saved with less investment by the internal stakeholders. However, the reduction in the time of completion also helps to proceed with fresh and new project before time. The connected stakeholders are employees of the organization who look for the high pay, job security, good working condition and fringe benefits. They can avail the benefits like performing less work with efficient time management as the waste has been eliminated. The external stakeholders are the customers and the suppliers. The customer looks for low price and value for the products and the suppliers look for the large size and valued contract, frequent and regular orders. They can avail the benefits like early access of the deals. The
3LEAN PROJECT MANAGEMENT customers do not have to wait much for the product; in fact they can get the product before deadline. The suppliers can increase stocks and reduce the supply pressure because of the early access and can promote the product on the basis of its value. The Critical Success Factors (CSF) is the action and programs or the critical factors that can be can be developed for the requirements to ensure the success of the business. The Critical success factors have been used significantly by many organizations to identify the key factors to improve the organization stability and to focus on to be successful. The importance of identifying CSF is necessary as it allows the organizations to focus on the efforts to build their capabilities. To enable the implementation of lean project management successfully the critical success factors need to be in place (Netland 2016). The Critical Success Factors are: Commitment to the lean program:The administrative commitment is one of the most significant key and success factor irrespective of the location, plant size, firm and other factors (Bortolottiet al.2016). The executive and company official must participate on the shop floor and outlets as this cannot be done by just lead from the office. The management must interact with the employees to listen to their suggestion and questions, involvement in the ongoing communication and should explain them the need of lean management for the betterment of the project. Training the workforce:Training the workforce is the second most important factor for understanding the lean management and provide them with the proper knowledge regarding the lean project management (Tezelet al.2015). The management team and executive are the first one who needs to undergo the training process. The implementation of lean project management at an early stage help to build the needed knowledge by the internal corporate resources or the external consultancy firm. The knowledge can be gained in a quick way by benchmarkinganotherorganizationwhohasalreadyimplementedtheleanproject management. However, accumulation of the local knowledge is much more considered than that of gathering knowledge from a consultant. Have a proper plan to follow:The third most important critical success factor is to have an appropriate plan to follow and execute it (Martinet al.2019). The vision is to have suitable lean program to place the organization in good position. The plan should be simplified and classified into several steps. The performance based target should be set at an early stage and should be monitored at every phase with the project movement.Meetings must be held at
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4LEAN PROJECT MANAGEMENT regular interval of time to follow the implementation of LPM for a particular project. The management must integrate the lean project management at everyday business in spite of running it as a separate. Temporary projects should be kept at the side of operation. Sharing gains by allocating the resources:The necessary resources should be allocated by assisting the implementation and proceed forward to share the gains with all the employees leads to critical success of the organization. It is tough for the organization to implement and turn lean without the collaboration of the local supporting lean team or distributed task force team from the organization. A dedicated budget is also essential for the change. The gains earned through the improvement should also be shared among the work force resources. Reward and recognition can play an important role in the early stage of the lean program which motivates the employees to perform better (Özçelik 2015). However, the management should design the reward and recognition system in such a way so that does not affect the cultural traits in a sensitive manner. Use lean tools and method:At the final lean tools and method are utilized in an organized manner. The most frequently utilized lean tool as mentioned in the survey were the visualization, waste elimination, continuous improvement, team concept, problem solving, value stream mapping, daily management and 5s methodology (Jiménezet al.2015). These are the well recognized methods regarding lean production viewpoint. Tools and methods are the effective and essential requirements for the success regarding the execution of lean project management in an organization. However, these are sufficient enough; the other four success factor must set off the lean tools and methods. The keys steps for determining the Critical Success Factor are in place are as follows: Step1:The team should be pulled together that will be working with the CSFs:It is critical to pull the team together that will be working together on the critical success factor for the business. This should be initiated from the higher level of the organization as it is necessary to have senior level buy-in. Several organizations appoints consultant to initiate the process but the discussion can be performed internally as well. Step2:Submission of ideasand feedback from the employees:The employees around the organization should provide their individual feedback while determining the 10-15 level CSFs (Stieglitz and Hassannia 2016). Moreover, this step should be implanted at step three depending upon the preferences. This feedback process based on either among the feedback
5LEAN PROJECT MANAGEMENT from other departments or some smaller groups can be made in order to organize an interofficefeedback.However, the ideasfrom the actingboard should be taken into consideration regardless of the method of choosing it. Step3: Using multiple key factors to inspect the elements of long standing goals:The goals are based on three key factors to determine the success critical factor of the business. The key factors are: OAS statement:OAS is the acronym for “Objective, Advantage and Scope”. This method provides the strategies to be implemented with confidence and to execute these strategies it acts as a initial point to drill down the critical factors. SWOT analysis:SWOT is the acronym of “Strength, Weakness, Opportunities and Threats (Phadermrod, Crowder and Wills 2019). This can assist to optimize the performance, maximize potential, manage competition and minimize risk factors. Strategic plan:This step helps to provide a clear idea about the understandable strategic plans. The strategic plans helps to pursue with perfection in the project. Change Agenda:These steps involve changes needed to be made within the organization in order to achieve the goals. Step4: Determining the key factor for achieving organization plans:To avail greater success for the organization to move fluently, the above criteria like SWOT analysis, Change Agenda, OAS statement and Strategic plan should be gathered up together. Step5: Implementing Company’s wide strategic plan:Just by identifying the critical success factors and grouping those together under a perspective will not only help to succeed the company. A framework should be constructed to accomplish critical success factors in a more successful way. The scorecard system should be introduce to record the success factors which help to measure the whether the organization is really achieving it or not. Certain initiatives allow the organization to understand whether they are taking the right decision to achieve it. The techniques which built motivation to implement Lean Management are: Recognition of individual ability:This recognition is based on the individual to best show their performance while working on a team. However, the overall team performance also
6LEAN PROJECT MANAGEMENT motivates the morale of the members. This will encourage the members to contribute more to their respective group. Sense of achievement:The management must create an environment for the employees to achieve something both collectively and individually. The recognition must be based on both individual and group achievements. The management must make sure the employees must be motivated to achieve the goals and the new innovation that have been implemented to improve the project culture and management. Growth by learning:The growth and learning is a never ending process in an organization. This does not even end with the master skill gained by an individual regarding their job (Padhy 2017). The management must educate and provide training to their employees to learn more and achieve the knowledge growth. These initiatives will motivate the workers to adopt Lean Project Management skills. Responsibility and empowerment:The employees must be given certain responsibilities individually as well as a group member which will reflects on their work performance and empower them to carry out their responsibilities. Promotion:A higher designation with promotion along with the higher pay scale is one of the higher motivational factors among the workers. The employees will work more efficiently to perform well in order to avail a higher post in the organization, which lead to the development in work structure for the team as well. The training of lean project management is based on six sections. The section are as follows: Regular employee assessment: The employees should be assessed at regular interval of time on the basis of their performance (Rizvi 2017). The most successful as well as valuable employee should be selected every month and rewarded to keep other employees to focus on their work. This would increase excitement of the workers to perform well. Strategy education sessions:The frequent and sessions interaction with the employees by the higher management of the organization give them a brief idea about the organization overview (Bahm and O'Keefe 2018). The education provides motivational interviewing to the workers.
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7LEAN PROJECT MANAGEMENT Clear communication:The management of the organization should communicate with the employees at a regular interval of time (Rivera and Kashiwagi 2016). The employees should have the ideas about the future plans and other goals of the organization. Alignment of team goals with company goals:However different team pursues with different goals with an organization but they have to attain the overall terms and objective of the organization at every instant of time. To perform this every team has to structure their goals with respect to the company goals. Adding real value:The employees of the organization always kept motivated to perform better and add more value to the company. They have to be encouraged by pay rise, providing incentivesbyreachingthebenchmarks,promotiononthebasisoftheemployee’s performance and providing other opportunities to empower their knowledge. Scope to Improve:The company should provide adequate guidance and scope for the employeeswho are about to fall over the line with company goals. The company should organize regular training programs to improve the qualities and skill of the employees. To six sigma strategies can be assessed by the consultancy to work efficiently. The organization have to become efficient enough by bringing more certified employees to maintain and achieve the profitable contracts because the government organizations are using the metric system for reviewing the vendors (Price, Pepper and Stewart 2018). Six sigma aims to reduces the manufacturing errors. The organizations will become efficient enough to adopt the lean project management approach to fulfill the requirements for the government works by masterminding the six sigma strategies. Method to assess when the consultancy has sufficiently adopted the LPM approach to be able to tender for government work Practicality of the method The sucessful adoption of the LPM principes must be measured in an organized manner with the help ofthe performance matrics and the KPI. It can also be said that the application of the lean tools such as the Five S and the Total Productive Maintenance (TPM). The measurement principles can also be very much important to measure th effectiveness of
8LEAN PROJECT MANAGEMENT the implementation of the LPM principles. The loopholes of the implememtation should be monitored so that the usability of the LPM principles can be achived. Adequate linkage to adoption of LPM Thecomplexitiesofthegovernmentprojectsshuldbealignedwiththe implementation of the LPM principles. The performance management system can be very much important to understand the effectiveness of the LPM principles so that the government project can be done in an organized manner. Both the technological resources as well as the human resources are managed in an organized manner using the LPM principles.
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