PPMP20009 Leading Lean Projects

This paper discusses the analysis of problems faced by Australian Engineering Works (AEW) and provides a plan for managing risks. It also explores the appropriate leadership style for bringing changes in the organization.

Running head: PPMP20009 LEADING LEAN PROJECTS
PPMP20009 LEADING LEAN PROJECTS
(Australian Engineering Works)
Name of the Student
Name of the University
Author Note:

1PPMP20009 LEADING LEAN PROJECTS
Table of Contents
1.Introduction...................................................................................................................................2
2.Analysis of Problem.....................................................................................................................2
2.1. Tools and Techniques...........................................................................................................2
2.2. Assumption...........................................................................................................................8
3. Plan for managing risk.................................................................................................................9
3.1. Risk Register.........................................................................................................................9
3.2. Qualitative and Quantitative analysis of risk........................................................................0
3.3. Response to Risk...................................................................................................................0
3.4. Implementing risk response..................................................................................................0
3.5. Monitoring of risk response..................................................................................................1
4. Leadership Style appropriate for bringing changes.....................................................................1
5. Conclusion...................................................................................................................................3
6. References....................................................................................................................................4

2PPMP20009 LEADING LEAN PROJECTS
1.Introduction
The following papers tend to reflect on Australian Engineering Works (AEW) which is
an equipment manufacturer. The organization is expert in molding of different parts which is
required for telecommunication industry. They are providing services in this industry for more
than a span of 30 years. Most of the customers of this organization are telecommunication
service providers (Elmhedwi, Elmabrouk & Sherif, 2015). Due to bad organization image, AEW
has lost its market position. Senior management of AEW is very much concerned about the
recent developments. AEW is focusing on some new ways by which can easily become one of
the most preferred brands of their various customers. For overcoming this issue, AEW is very
focused to provide some strategy this action. Management team is required to provide all
necessary kind of support which is required for being changes in the current scenario of the
organization (Leoni et al., 2015). With the passage of time, it can become difficult for AEW to
win new kind of contracts for their worldwide customers. The competitors of AEW are very
much focused to provide raw materials at cheaper cost. All these factors have eroded the overall
profitability by 45%.
The upcoming pages of the report helps in identified issue in AEW. After that, an
identification has been done with respect to root cause issue in AEW. Along with issues four
assumptions has been discussed in details. A risk management plan has been discussed in details
which comprise of risk register, qualitative and quantitative risk analysis. The most appropriate
leadership style has been discussed in brief.
2.Analysis of Problem
2.1. Tools and Techniques
The present issues in AEW have been analyzed by understanding the main reason by
making some proper tools and techniques like
Control Chart: It can be stated as a well-defined tool required for understanding various
kind of issue for this organization (AEW). By the help of control chart, all the issue in this
organization can be easily tackled and overcome (Sorunke, Omojola & Adeleke, 2016). Using

3PPMP20009 LEADING LEAN PROJECTS
control chart, AEW can easily monitor different ongoing issues. Control chart diagram is needed
for display of data in sequential order. Control charts can be beneficial for AEW as it can provide
 Helps in keeping a track of variation in the given time period of time.
 Proper communication by understanding the overall issues in AEW.
Fig 1: Control Chart For AEW
(Source: Created by Author)
Flowchart: It can provide enormous amount of benefits to this organization by
understanding the main cause of the issue. By this flowchart diagram, various kind of issues in
AEW like major issues due to high pricing from competition has been discussed in details
(Hirmas et al., 2018). Flowchart methodology is very simple to use as it can easily reflect on the
present scenario. It focuses on the use of proper methodology so that proper action can be easily
made.

4PPMP20009 LEADING LEAN PROJECTS
Fig 3: Flow chart for Defective Product
(Source: Created by Author)
Scattered Diagram: This particular diagram is used for establishing a proper
relationship between the two given variables and after that they are plotted on the graph. In dot
forms, the required value of each variable is plotted on the graph. Number of points are taken
into account for understanding the overall observation (Holten & Brenner, 2015). The overall
degree for the given variable can be well understood can be easily scattered in the given chart.
This particular chart is drawn which is very much closure to the axes.

5PPMP20009 LEADING LEAN PROJECTS
Fig 4: Scatter Diagram for AEW
(Source: Created by Author)
Fishbone Diagram: By the help of fishbone diagram, different issues in this organization
can be tackled. The point should be taken into account that AEW has failed as a result of bad
strategy of marketing (Alonderiene & Majauskaite, 2016). AEW need to make use of proper
method for tackling the problems. In the below, a diagram has been provided which helps in
understanding the main cause of issues in this organization.

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Fig 5: Fishbone diagram for poor quality product of AEW
(Source: Created by Author)
Pareto Diagram: It can be stated as a method for analyzing the present issues in this
organization. By this diagram, AEW can take decision with respect to the present offender. The
diagram follows the principle of 80% issues are faced while 20% of it is caused (Mulki,
Caemmerer & Heggde, 2015). It can result in various kinds of issues for this particular
organization (AEW). In Excel, the Pareto diagram is created by following steps like
 Collecting the required data in table format.
 Formulating it with help of table.
 Building a basic Pareto diagram in excel.
 Addition of second axes.

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Fig 6: Pareto Diagram for AEW
(Source: Created by Author)
Histogram: It is needed for display of required data from the provided information. By
the help of provided data all the frequency of the data is provided in intervals (Graham, Ziegert
& Capitano, 2015). In most of the histogram, independent parameters are drawn on horizontal
axes while the dependent parameters are drawn on vertical axes.

8PPMP20009 LEADING LEAN PROJECTS
Fig 7: Histogram diagram for poor quality product
(Source: Created by Author)
2.2. Assumption
There are large number of assumptions are being made for analyzing the root cause for
the problem for AEW:
Providing poor quality of materials: At present, AEW is providing poor quality of
products to its clients (Verbeke, Bagozzi & Belschak, 2016). It has ultimately reduced the overall
brand value of AEW in the whole market. With the passage of time, various competitors have
grown in the market.
Defective raw materials: AEW aims to manufacture certain number of products which
are defective in nature. This particular step has led to loss of various clients in the current
scenario.
Improper technique of marketing: AEW makes use of some poor strategy of marketing
which has led to various kind of problem (Iqbal, Anwar & Haider, 2015). It has come into

9PPMP20009 LEADING LEAN PROJECTS
picture due to weak marketing strategy. The whole scenario has resulted in tough competition for
other organization in the industry.
Improper facilities: In the last few years, there has been huge employee loss from this
organization due to bad quality of facilities. AEW need to focus on the notion of providing
proper facilities to its employees.
3. Plan for managing risk
3.1. Risk Register
Risk register is mainly created in the starting phase of the project. It plays a key role in
keeping a track of different types of problem along with solving it (Elmhedwi, Elmabrouk &
Sherif, 2015). Risk register is considered to be an important tool which is needed for sharing of
information between various stakeholders of the project.
Risk Description Impact Probability
Resigning of the
employees of AEW
AEW has failed to provide proper
care and attention to its employees
Medium High
Bad quality of raw
materials
In the last few years, AEW has
given defective kind of raw
materials to its various clients
(Holten & Brenner, 2015).
Medium Medium
Improper supply of raw
materials
AEW tends to lack necessary
amount of raw material which is
required by their global clients
(Leoni et al., 2015). This has
mainly taken place a result of
improper supply of raw materials.
High High

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Damage in overall
productivity
Due to lack of improper
marketing (Alonderiene &
Majauskaite, 2016). The overall
production of the organization
been reduced to very extent.
Medium High

Running head: PPMP20009 LEADING LEAN PROJECTS
3.2. Qualitative and Quantitative analysis of risk
Identification of risk Qualitative Risk Analysis
Risk Plan
Response Risk Monitor
Categ
ory Risk Id Risk Risk Event Probability (P) Impact (I)
Risk
Scor
e
(PI)
Ri
sk
R
a
n
k
Potential
Response
Co
st
Date
Raise
d
Date
Clos
ed
Stat
us
Hig
h
Med
ium
L
o
w
H
ig
h
Me
diu
m
L
o
w
0.1
5 0.35
0.
85
1.
5 4
5.
5
Financ
ial R1
Resign
of
employ
ee
A proper
direction to
AEW   3.75 3
Proper
recruitment
of polices
$50
0
15.01.
2019
22.01
.2019
Organi
zation
al R2
Poor
quality
of
product
s
Certain
number of
changes in
AEW   2.25 2
Certain
numbers
changes in
the
marketing
strategy
$40
0
10.12.
2018
30.01
.2018
Financ
ial R3
Damage
to
overall
producti
vity
Present
marketing
technique in
AEW   1.5 1
Over
Supply of
materials
$90
00
20.12.
2018
25.12
.2018
Techni
cal
R4 Imprope
r supply
Improper
managing of
  0.5 4 SRM $30
00
20.08.
2018
30.08
.2018

1PPMP20009 LEADING LEAN PROJECTS
of raw
material
s
both
resource and
cost in the
project.

Running head: PPMP20009 LEADING LEAN PROJECTS
3.3. Response to Risk
It is one of method by which overall procedure for analyzing the threat in current
scenario can be used for tackling the involved opportunities along with reducing overall threats
(Sorunke, Omojola & Adeleke, 2016). By the help of this procedure, all the required task can be
easily monitored and treated inefficient way. A series of steps have been provided for tackling
the overall risk in AEW.
Avoidance: In this step, the risk needs to treated in proper way so that all the associated
risk and challenges can be easily tackled in this organization that is AEW.
Mitigation: In this stage, monitoring of risk is done which helps in tackling overall
involved risk in this organization.
Transfer: In this step, all the involved risk can be easily transferred to the third party
(Hirmas et al., 2018). In the given scenario, all involved risk in AEW can be transferred to the
competitors in the industry.
Acceptance: In this stage, the involved risk is all about making use of proper kind of
strategy. It is all about establishing relationship with organization for minimizing the overall risk.
Enhancement: In this step, a proper kind of risk response can be helpful in bringing
positive value of involved risk. It will ultimately bring positive effect on AEW.
Exploiting: In this kind of risk response, positive impact of risk can be easily seen in this
organization that is AEW.
3.4. Implementing risk response
Risk Response to individual risk
Employee resignation from AEW It is the overall roles and responsibility of the
manager of AEW to allow some allowance and
benefits to employees (Holten & Brenner, 2015).
Management of AEW should take necessary

1PPMP20009 LEADING LEAN PROJECTS
steps which will help them in retaining clients.
Defective raw material in AEW AEW needs to focus on providing its clients with
best quality of products. This will help in
retaining their clients along with maintaining a
proper customer base.
Poor quality of products As a result of lack of poor quality of products,
the overall brand value of the organization has
decreased a lot.
Improper supply of raw materials AEW management needs to focus on certain
number of things like providing proper quality of
products to their clients (Alonderiene &
Majauskaite, 2016).
3.5. Monitoring of risk response
A good response needs to take into account for tackling the various risk and issues in this
organization. It needs to be followed so that mistakes of AEW are not seen further in the
upcoming days (Mulki, Caemmerer & Heggde, 2015). After the implementation of risk response,
proper monitoring needs to be carried out which will help AEW in overcoming the current
issues. Risk monitoring is all about keeping proper control so that individual risk can be tackled
more efficient way. Monitoring of risk is all about its identification along with proper evaluation.
A list of policies needs to be followed so that all policies related to risk can be analyzed in much
better way.
4. Leadership Style appropriate for bringing changes
Leaders generally tend to come up with different kind of qualities which needs to be
examined in a proper way (Graham, Ziegert & Capitano, 2015). AEW should make a choice for
proper leadership which they should adopt in their organization.
Autocratic: In this kind of leadership, the leaders are given the absolute power which
makes use of dictatorial type of leadership. It is mainly needed for directing the team members
for completing the task (Verbeke, Bagozzi & Belschak, 2016). Both employees and team

2PPMP20009 LEADING LEAN PROJECTS
members require little input taking account of the decision-making process. This type of leaders
makes use of deadline for both motivating and leading the team to success. This particular kind
of leadership style is taken into account when the team members are unskilled.
Democratic: This kind of leadership is often used because the leaders require activating
the group members for doing the same thing. This kind of leader mainly takes account of various
roles and responsibilities for stimulating the group decision. A team member can easily refrain
the leader from completing the work (Iqbal, Anwar & Haider, 2015). This particular kind of
leadership style is considered to be valuable approach which is required for speeding over
productivity.
Laissez-faire: Under this kind of leadership model, leaders are given freedom along with
independence to various team members. They are not present, because they can leave the team to
complete the work make proper decision (Elmhedwi, Elmabrouk & Sherif, 2015). The last step is
all about resolving various kind of issues in this organization. The leaders can easily monitor
their group activities and provide feedback for it.
Transactional: Under this leadership model, a system of rewards, punishment and
implicit relation tends to exist between leader and its members. Proper exchange can occur when
the leader rewards their members with paychecks and another kind of incentive forms (Leoni et
al., 2015). This particular leadership model tends to motivate their team members based on their
interest. By the help of this certain level of performance is achieved.
Transformational: This kind of leaders makes use of vision and inspiration approach for
motivating their team members. In most of cases, the transformational leadership is characterized
as motivation leaders (Sorunke, Omojola & Adeleke, 2016). It tends to provide a proper vision
for future members to easily encourage their own interest. This type of leaders is not motivating
the employees but also builds up creativity, open dialogue and sharing of idea.
From the above five leadership style, the most suitable one for AEW is transactional as it
can provide huge number of benefits like
 Simple and Low cost
 Easy to follow and clear to the followers.
 Powerful motivators.

3PPMP20009 LEADING LEAN PROJECTS
 Helps in getting fast results.
5. Conclusion
The above pages of the report help us in concluding the fact that this report is all about
understanding the main cause for the issue in this organization that is AEW. All the issues in this
organization have been identified by using some basic tools. The risk management plan has been
created so that the problem is not encountered in further. In the above pages of the report,
various leadership style has been provided along with a proper choice. Apart from this, seven
root cause analysis that controls chart, brainstorming, fishbone diagram, Pareto diagram, flow
chart has been provided with respect to case study. The risk management plan mainly comprises
of risk register, qualitative and quantitative risk, creating some risk response and lastly its overall
monitoring has been provided in details. AEW is focusing on certain number of methods of
improvement of current services for tackling the problem. The management team of AEW are
focusing on certain number of ways by which all the required issues can be overcome.

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6. References
Alonderiene, R., & Majauskaite, M. (2016). Leadership style and job satisfaction in higher
education institutions. International Journal of Educational Management, 30(1), 140-
164.
Graham, K. A., Ziegert, J. C., & Capitano, J. (2015). The effect of leadership style, framing, and
promotion regulatory focus on unethical pro-organizational behavior. Journal of business
ethics, 126(3), 423-436.
Hirmas, N., Al-Ibraheem, A., Herrmann, K., Alsharif, A., Muhsin, H., Khader, J., ... & Salah, S.
(2018). [68 Ga] PSMA PET/CT Improves Initial Staging and Management Plan of
Patients with High-Risk Prostate Cancer. Molecular Imaging and Biology, 1-8.
Holten, A. L., & Brenner, S. O. (2015). Leadership style and the process of organizational
change. Leadership & Organization Development Journal, 36(1), 2-16.
Iqbal, N., Anwar, S., & Haider, N. (2015). Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review, 5(5), 1-6.
Leoni, E., Dallolio, L., Stagni, F., Sanna, T., D'Alessandro, G., & Piana, G. (2015). Impact of a
risk management plan on Legionella contamination of dental unit water. International
journal of environmental research and public health, 12(3), 2344-2358.
Mulki, J. P., Caemmerer, B., & Heggde, G. S. (2015). Leadership style, salesperson's work effort
and job performance: the influence of power distance. Journal of Personal Selling &
Sales Management, 35(1), 3-22.
Sorunke, O. A., Omojola, O. S., & Adeleke, E. O. (2016). The Imperative of Risk Management
Plan in Curbing Corruption in Public Procurement System in Nigeria. International
Journal of Academic Research in Accounting, Finance and Management Sciences, 6(2),
134-139.
Verbeke, W., Bagozzi, R. P., & Belschak, F. D. (2016). The role of status and leadership style in
sales contests: A natural field experiment. Journal of Business Research, 69(10), 4112-
4120.

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Elmhedwi, T. R., Elmabrouk, S. K., & Sherif, M. A. (2015, March). Practical risk management
plan of Wi-Fi network deployment; case study. In Industrial Engineering and Operations
Management (IEOM), 2015 International Conference on (pp. 1-10). IEEE.