LEAN PROJECTS MANAGEMENT LEADING LEADING LEAN PROJECT Name of the University Author

Running head: LEAN PROJECT MANAGEMENT
LEADING LEAN PROJECT
Name of the Student
Name of the University
Author Note:

2
LEAN PROJECTS MANAGEMENT
Table of Contents
1 Introduction...................................................................................................................................3
2 Problem Identification..................................................................................................................4
2.1 Histogram..............................................................................................................................4
2.2 Pareto chart............................................................................................................................5
2.3 Check sheet............................................................................................................................5
2.4 Control Activity.....................................................................................................................5
2.5 Fishbone Diagram..................................................................................................................6
2.6 Scatter Plot Diagram..............................................................................................................6
2.7 Chart Title..............................................................................................................................6
2.8 Stratification..........................................................................................................................7
3 Plan of Risk Management.............................................................................................................8
3.1 Risk Register..........................................................................................................................8
3.2 Qualitative / Quantitative Risk Analysis...............................................................................9
3.3 Risk Response......................................................................................................................10
3.4 Risk responses implementation...........................................................................................11
3.5 Monitoring of risk responses...............................................................................................12
4 Leadership style appropriate to bring about the change.............................................................12
4.1 Laissez –Faire......................................................................................................................12
4.2 Transactional........................................................................................................................12
4.3 Servant Leader.....................................................................................................................13
4.4 Transformational Leaders....................................................................................................13
4.5 Interactional Leaders...........................................................................................................13
4.6 Charismatic Leaders............................................................................................................14
6. Reference...................................................................................................................................15
7 Appendix.....................................................................................................................................18
7.1 Histogram............................................................................................................................18
7.2 Pareto chart..........................................................................................................................19
7.3 Check sheet..........................................................................................................................19
7.4 Control Activity...................................................................................................................20
7.5 Fishbone Diagram................................................................................................................21
7.6 Scatter Plat diagram.............................................................................................................22
7.7 Chart Title............................................................................................................................23
7.8 Stratification........................................................................................................................24

3
LEAN PROJECTS MANAGEMENT
1 Introduction:
The paper will be assisting the senior management team of Australian Engineering Works
Private Limited (AEW) as they are facing serious challenges from the emergence of new
suppliers and emergence of new business organizations as a result the consumers of this industry
now have more options, some of the consumers are opting for better products from the new
organization. The other challenge faced by the senior management team of AEW is the risks
coming from the senior employees as they were joining the new players of the same industry
(Furterer, 2016). AEW has been facing a decrease in net profit due to the discussed challenges.
This paper will be finding the root cause of this issue with the help of specific tools such as the
histogram, pareto chart, fish bone diagram, scatter plot diagram, why technique, Chart title
diagram, check sheet, control activity diagram and stratification table. Each of the above
discussed tools have their own signification in understanding the impact of the different types of
risks faced by this business organization (Brioso, 2015). The problem identification unit is
followed by the risk management plan consisting of the risk registers stating the impact of each
of the discussed risk associated with the organization. It is followed by the qualitative risk
analysis and risk response plan where the contingency plan will be discussed briefly (Orzen &
Bell, 2016). The monitoring of the risk is also mentioned in the paper.
The various leadership qualities which can have their impact in the working environment
of AEW will be stated in the paper in a descriptive manner such as the charismatic leaders,
transformational; leaders, interactional leaders, servant leaders, transactional leaders and Laissez
Faire style leaders (Ansah, Sorooshian & Mustafa, 2016). The appropriate leadership style
required to mitigate the risks found in AEW will be also mentioned in the paper. Thus, from this
unit of the paper we understand the importance of the risks which are being faced by AEW
(Kliem, 2015). The paper will also highlight the root causes of the risks with the help of tools
such as Pareto chart, Scatter Plat diagram, Chart Title, 5 Why technique, Fish one diagram,
stratification and check sheet.

4
LEAN PROJECTS MANAGEMENT
2 Problem Identification:
A list of project management tools will be used to find the root cause of the issues faced
by Australian Engineering Works Private Limited.
2.1 Histogram
The histogram helps in understanding how each of the risk are examined with the help of
the variables of the risks and the interval between each of the risks The distribution of the risks is
also identified in the histogram (Özdemir, 2016). The arrival time and frequency of the risks
faced by AEW are considered in this tool. Apart from finding the main risk from a series of risk
it also highlights the importance of mitigating the other significant risks.
2.2 Pareto chart
The pareto chart is also defined as a type of histogram used to understand the impact of a
specific risk among a series of risks. The pareto chart diagram helps in understanding the impact
of each of the risks and the ultimate conclusion for these adverse situation (Cleophas &
Zwinderman, 2015). The threats from the market competition is the most vital threat according to
the pareto chart and it is followed by the other threats like employee retention and threats from
the emergence of new suppliers. The frequency of the challenge is stated in the diagram.
2.3 Check sheet
The check sheet diagram helps in understanding the 4 defects which are the main cause
behind the decrease in net profitability along with the importance which has to be given to each
of them based on marks out of 5 (Douglas, 2018). The defects which are the most vital will be
presented in the table. The check sheet helps in understanding that the market competition and
the threat coming from the new suppliers are the most essential risks which has to be mitigated
as soon as possible.

5
LEAN PROJECTS MANAGEMENT
2.4 Control Activity
The impact of controlling the four different categories of risks are considered while
created the control activity diagram. The time taken by the risks are also mentioned in the
diagram. The limits of the risks are also mentioned in the diagram (Koehler, 2017). The threat
from the consumer opting for new options are considered in this diagram.
2.5 Fishbone Diagram
The fishbone diagram helps in understanding the root causes behind the failure of the
organization. Each impact associated with the cause are stated in the paper. The issue of senior
employee retention has been selected are analysed using the concepts of the fishbone diagram.
Each probable reasons behind the senior employees joining new players are examined and
diagram is created accordingly.
2.6 Scatter Plot Diagram
The scatter plot diagram helps in understanding the increasing impact of the four reasons
behind the downfall of AEW. The impact of each of the risks may be different from each time.
Two variable are plotted in the X-axis (Visveshwar et al., 2017). According to the given scatter
plot diagram it can be said that the threats coming from the clients of this organization opting for
new substitute products and the emergence of the new similar organization are the twi main risks
of AEW.
2.7 Chart Title
The chart title of this assignment helps in understanding the different impact of the four
discussed risks such as the market competition, threat from substitute products, inefficient
employee turnover and ineffective business strategy. The threat from the substitute products have

6
LEAN PROJECTS MANAGEMENT
maximum impact on the profitability (Akpolat, 2017). From the chart title we can understand
that the tough market competition and the threats coming from the consumers using alternative
products are the main risks associated with AEW.
2.8 Stratification
The stratification pyramid helps in understanding the importance of the risks which have
maximum impact on the business loss suffered by this business organization, it was found that
the lack of innovative powers is the primary reason behind the failure. Lack of business
strategies and no efficient recruitment procedure can be the other two reasons (Tupa, Simota, &
Steiner, 2017). The lack of innovative products and the inefficient business strategies are the two
main cause behind the downfall of AEW. The stratification pyramid also helps us understanding
that business organizations must have professional recruitment system and appraisal process so
that the resources of the company can be utilised for longer period of time.
5 Why’s technique
The 5 Why technique is defined as the type of technique which are used for investigation
purposes. According to this investigation technique it can be said that the problems for which the
net profitability of AEW has decreased can be identified with the help of the 5 questions. This
tools can be very much useful to analyse the problems faced by business organizations
(Matthews, Yousefi & Kuncheva (2018). The probable questions which can be useful to
understand the root cause of the problem are as follows:
 What is the existing market position of AEW among the similar organization?
 Which stakeholders are responsible for the business loss?
 What is the root causes of the risks faced by AEW?

7
LEAN PROJECTS MANAGEMENT
 What are the impact of each of the risks?
 Why is the not providing the career prospects to the employees?
Table 1: Application of 5 Why technique on the case study
(Source: Created by the author)
3 Plan of Risk Management
3.1 Risk Register
Serial
Number
Reason
behind risk
occurrence
Description
of risk
Risk impact Contingency
1 Senior
management
employee
New
suppliers
coming to the
market
High New business
strategies
must be
incorporated.
2 In efficient
production
team
New option
for
consumers
Moderate The current
trends have
to understood
by the
production
team.
03 Senior
management
team
Market
competition
High SWOT
analysis can
be useful to
understand
the current
market
condition.
04 Better career
prospects in
the other
organizations
Senior
employees
are joining
new players
Moderate Maintain
good
employee
turnover.
Table 2: Risk Register of AEW
(Source: Created by the author)

Running head: LEAN PROJECT MANAGEMENT
3.2 Qualitative / Quantitative Risk Analysis
Identification of risk Qualitative Risk Analysis Risk Plan Response Risk Monitor
Categ
ory
Risk
Id Risk Risk Event Probability (P) Impact (I)
Ris
k
Sco
re
(PI
)
Risk
Ran
k
Potential
Response
Cost
Implication
Ris
k
Ow
ner
Date
Raised
Date
Closed
Stat
us
Hi
gh
Medi
um
Lo
w
Hi
gh
Medi
um
Lo
w
0.
25 0.5 0.
75
2.
5 5 7.
5
Financ
ial
Risk
1
Competitio
n in the
market
Business direction ¤ ¤ 1.2
5 3
Improve
corporate
strategy $400
Ne
w
org
aniz
atio
ns
10.01.20
19
20.01.2
019
Organi
zation
al
Risk
2
Employees
are joining
new
players
Change in
management
structure
¤ ¤ 2.5 2
Professional
appraisal
process $300
Ma
nag
eme
nt
tea
m
20.1.201
9
10.03.2
019
Financ
ial
Risk
3
New
option for
consumers
Material Pricing ¤ ¤ 3.7
5 1
Improve the
range of
products
and product
quality
$800
Sen
ior
man
age
men
t
1.1.2019 25.2.20
19
Techni
cal
Risk
4
New
suppliers
coming to
the market
Management of
resources/ project
budget
¤ ¤ 0.6
25 4
SRM
Technique $3,000
Ma
nag
eme
nt
10.10.20
18
28.11.2
018

9
LEAN PROJECTS MANAGEMENT
Work in
progress
Work under
plan

Running head: LEAN PROJECT MANAGEMENT
3.3 Risk Response
Risk Risk Ownership Strategy Connection
New suppliers
coming to the
market
The new suppliers The business
management
techniques can be
successfully used to
minimised the risk
coming from the
new suppliers
(Shokri, Waring &
Nabhani, 2016).
The business
practices with the
external
stakeholders must
be revised
according to market
conditions.
Competition due to
the new players
New players Business reach
should be increased
and fresh marketing
strategies should be
implemented
(Holmemo, Rolfsen
& Ingvaldsen,
2018).
Business trends
should be
understood by the
engineers of the
organization.
New option for
clients
Consumers Customer
engagement
procedure should be
adopted by this
business
organization
Security of products
and services should
be maintained.
Employees joining
new players
Senior staffs Professional
appraisal procedure
Bonus and
incentive schemes
for employees at all

11LEAN PROJECTS MANAGEMENT
level.
Table 3: Risk responses
(Source: Created by the author)
3.4 Risk responses implementation
Risks Explanation of implementation plan
Risk from employee joining new players Efficient recruitment procedure and the
formal appraisal policy would have saved
the senior most staffs of AEW to join the
new players in the market.
New option for clients Advanced customer engagement
procedure would have minimised the issue
coming from the clients as they were
considering products from the new
organizations.
Tough competition in the market The requirements and needs of the
consumers should be understood in order
to deal with the problem. External
environmental analysis tools such as
PESTEL and SWOT analysis would have
made this organization understand their
market position.
New supplier coming to the market CRM technique can be hugely beneficial
to deal with the threats coming from the
emergence of the new suppliers with
enhanced bargain powers.

12LEAN PROJECTS MANAGEMENT
Table 4: Implementation of risk response
(Source: Created by the author)
3.5 Monitoring of risk responses
Each of the discussed risks associated with AEW should be carefully monitored
so that the contingency plans which are described above can be successfully implemented
(Mayer, et al., 2016). Along with the effort from the management team the role of the
project managers with different categories of leadership style may be significant to deal
with the risks.
4 Leadership style appropriate to bring about the change
The diffident categories of leadership qualities which can play their role in
dealing with the different types of risks which are being faced in AEW are interactional
leader, charismatic leader, transformational leaders, servant leader, transactional leaders
and Laissez Faire Style leaders.
4.1 Laissez –Faire
Allowing the distributors of AEW to take business decisions to deal with the
suppliers of this organization could have avoided the threat coming the emergence of new
suppliers (Hillson, & Murray-Webster, 2017).
4.2 Transactional
The incorporation of a feedback platform could have been useful in the working
organization of AEW to understand why the consumers are opting for new products and
why is a threat if new players comes in the same market (Frankel & PGCMS, 2018).

13LEAN PROJECTS MANAGEMENT
Motivating each employee regardless of their experience would also have contributed the
retention of senior employees.
4.3 Servant Leader
The impact of the servant leaders would have helped to deal with the issue of
senior employee retention as these servant leaders asks for loyalty from the other
employees so that continuous learning process is endured (Yahaya & Ebrahim, 2016).
These leaders can be used to maintain god relationship with the new suppliers also so that
threat can also be significantly minimized if there were servant leaders in AEW.
4.4 Transformational Leaders
The transformational leaders could have solved the threats coming from the
customers who are opting for new products and also the issue of senior employee
retention (Arnold et al., 2015). Decentralization is practiced by the transformational
leaders which could have also useful to deal with the threats coming from the new
organizations.
4.5 Interactional Leaders
The interactional leaders could have played their role to deal with each of the
risks associated with AEW which are causing business losses. The entire project
environment of AEW can be changed and turned into a better business corporation which
will be free from all these kinds of risks with the help of the transformational leaders.

14LEAN PROJECTS MANAGEMENT
4.6 Charismatic Leaders
The issue of threat coming from the market competition can be purposefully
solved with the help of the leadership capability of the charismatic leaders as they are
generally full of confidence and have a charismatic self-confidence to deal with every
adverse business condition (Kesting et al., 2016). According to this category of
leadership style the senior employee would have felt secured about their career prospects
in AEW. Persuasiveness is the most important criteria of the charismatic leaders.
Based upon all these different categories of leadership style it can be said that the
interactional leaders can be mostly effective to deal with all the existing and also the
probable future risks associated with Australian Engineering Works Private Limited. The
interactional leaders could have played a significant role in understanding the business
condition when new supplier and new business organizations stated to shave their share
from the net profitability of AEW. Shared responsibility of the senior management team
of AEW and the senior staffs of this organization could have been possible with the help
of project managers having the qualities of an interactional leaders. Interactional
personality is the most significant capability of the interactional leaders by which they
can influence the behaviors of any one they talk to. The situational influences on the
employees can be better understood with the help of this category of leaders. The
different categories of influences which have a lasting effect on the leaders can be found
in the interactional leaders. The problems of AEW which are identified in this paper in
this report can be mitigated with the help of the interactional leaders.

15LEAN PROJECTS MANAGEMENT
6. Reference
Akpolat, H. (2017). Six sigma in transactional and service environments. Routledge.
Ansah, R. H., Sorooshian, S., & Mustafa, S. B. (2016). Lean construction: an effective
approach for project management. ARPN Journal of Engineering and Applied
Sciences, 11(3), 1607-1612.
Arnold, K. A., Connelly, C. E., Walsh, M. M., & Martin Ginis, K. A. (2015). Leadership
styles, emotion regulation, and burnout. Journal of Occupational Health
Psychology, 20(4), 481.
Brioso, X. (2015). Integrating ISO 21500 guidance on project management, lean
construction and PMBOK. Procedia Engineering, 123, 76-84.
Cleophas, T. J., & Zwinderman, A. H. (2015). Pareto Charts for Identifying the Main
Factors of Multifactorial Outcomes (2,000 Admissions to Hospital). In Machine
Learning in Medicine-a Complete Overview (pp. 391-396). Springer, Cham.
Douglas, M. (2018). The depoliticization of risk. In Culture matters (pp. 121-132).
Routledge.
Frankel, A., & PGCMS, R. (2018). What leadership styles should senior nurses develop?.
Practice, 10, 18.
Furterer, S. L. (2016). Lean Six Sigma in service: applications and case studies. CRC
press.

16LEAN PROJECTS MANAGEMENT
Hillson, D., & Murray-Webster, R. (2017). Understanding and managing risk attitude.
Routledge.
Holmemo, M. D. Q., Rolfsen, M., & Ingvaldsen, J. A. (2018). Lean thinking: Outside-in,
bottom-up? The paradox of contemporary soft lean and consultant-driven lean
implementation. Total Quality Management & Business Excellence, 29(1-2), 148-
160.
Kesting, P., Ulhøi, J. P., Song, L. J., & Niu, H. (2016). The impact of leadership styles on
innovation-a review. Journal of Innovation Management, 3(4), 22-41.
Kliem, R. L. (2015). Managing lean projects. Auerbach Publications.
Koehler, J. W. (2017). Continual Improvement in Government Tools and Methods.
Routledge.
Matthews, C. E., Yousefi, P., & Kuncheva, L. I. (2018, July). Using control charts for on-
line video summarisation. In International Joint Conference on Computer Vision
and Pattern Recognition (CCVPR 2018)(2018, Submitted).
Mayer, E. K., Sevdalis, N., Rout, S., Caris, J., Russ, S., Mansell, J., ... & Moorthy, K.
(2016). Surgical checklist implementation project: the impact of variable WHO
checklist compliance on risk-adjusted clinical outcomes after national
implementation. Annals of surgery, 263(1), 58-63.
Orzen, M. A., & Bell, S. C. (2016). Lean IT: Enabling and sustaining your lean
transformation. Productivity Press.

17LEAN PROJECTS MANAGEMENT
Özdemir, D. (2016). Data Presentation: Graphs, Frequency Tables and Histograms. In
Applied Statistics for Economics and Business (pp. 15-33). Springer, Cham.
Shokri, A., Waring, T. S., & Nabhani, F. (2016). Investigating the readiness of people in
manufacturing SMEs to embark on Lean Six Sigma projects: An empirical study
in the German manufacturing sector. International Journal of Operations &
Production Management, 36(8), 850-878.
Tupa, J., Simota, J., & Steiner, F. (2017). Aspects of risk management implementation
for Industry 4.0. Procedia Manufacturing, 11, 1223-1230.
Visveshwar, N., Vishal, V., Venkatesh, V., Samsingh, R. V., & Karthik, P. (2017).
Application of Quality Tools in a Plastic Based Production Industry to achieve the
Continuous Improvement Cycle. Calitatea, 18(157), 61.
Yahaya, R., & Ebrahim, F. (2016). Leadership styles and organizational commitment:
literature review. Journal of Management Development, 35(2), 190-216.

18LEAN PROJECTS MANAGEMENT
7 Appendix
7.1 Histogram
Figure 1: Histogram of AEW
(Source: Created by the author)

19LEAN PROJECTS MANAGEMENT
7.2 Pareto chart
Figure 2: Pareto of AEW
(Source: Created by the author)
7.3 Check sheet
Organization: AEW
Product: Plastic equipment services in telecommunication sector
Date: 08.02.2019 Time: 20:20 PM
All items inspected
Serial Number Defect Marks (Out of 5) Count
1 Senior employee
retention
4

20LEAN PROJECTS MANAGEMENT
02 Market competition 5
03 Threat from new
suppliers
5
04 New option for
consumers
4
Defectives Defect 02 and defect 03 are the most vital defects of AEW
Figure 3: Check sheet of AEW
(Source: Created by the author)
7.4 Control Activity
Fig 4: Control Activity for AEW
(Source: Created by author)

21LEAN PROJECTS MANAGEMENT
7.5 Fishbone Diagram
Figure 5: Fishbone diagram for AEW
(Source: Created by author)

22LEAN PROJECTS MANAGEMENT
7.6 Scatter Plat diagram
0.5 1 1.5 2 2.5 3 3.5 4 4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Impact
Fig 6: Scatter Plat diagram for AEW
(Source: Created by author)

23LEAN PROJECTS MANAGEMENT
7.7 Chart Title
Impact
Substitute products Market competition
Inefficient employee turnover In effctive business strategy
Fig 7: Chart TITLE diagram for Australian Engineering Works
(Source: Created by Author)

24LEAN PROJECTS MANAGEMENT
7.8 Stratification
Fig 8: Stratification for Australian Engineering Works
(Source: Created by Author)
No
inno
vativ
e
servi
ce
Ineffective business
strategies
Ineffective recruitment