Leading Lean Projects: A Detailed Case Study of PEW Engineering
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Case Study
AI Summary
This case study examines the challenges faced by Precision Engineering Works Private Limited (PEW) in maintaining quality and managing waste in a changing market. It identifies the root causes of PEW's declining customer base and market share, attributing them to increased competition and failure to adapt to emerging trends. The analysis employs tools such as cause and effect diagrams, control charts, flowcharts, histograms, Pareto charts, run charts, and scatter diagrams to understand the problems. A continuous improvement plan, based on the Six Sigma methodology, is proposed to address these issues by defining, measuring, analyzing, improving, and controlling key processes. The plan aims to enhance PEW's working processes, reduce errors, and improve overall performance in the competitive market. Desklib provides this solved assignment along with a wide range of study resources for students.
Assessment 2 - Leading Lead Projects
1
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Contents
Introduction......................................................................................................................................3
Leading lean projects....................................................................................................................... 4
Identification of root cause(s) of the problems............................................................................4
Continuous Improvement Plan.....................................................................................................8
Competencies............................................................................................................................. 10
Conclusion..................................................................................................................................... 11
References......................................................................................................................................12
2
Introduction......................................................................................................................................3
Leading lean projects....................................................................................................................... 4
Identification of root cause(s) of the problems............................................................................4
Continuous Improvement Plan.....................................................................................................8
Competencies............................................................................................................................. 10
Conclusion..................................................................................................................................... 11
References......................................................................................................................................12
2
Introduction
Lean production is the method used by the management which is focusing on the waste
management and to maintain the quality of the production material. This is the approach which is
been used by the management of the firm from the planning of production until its distribution. It
is very important for every organisation to manage the working and operations. The case study
here presents the quality of work done by Precision Engineering Works Private Limited; the
company served the market for 30 years. Due to the change in the market, there are several
problems which is been get faced by it. The discussion about the root cause of the problem will
be analysed. The assignment will be focusing to use different tools and techniques through which
the problems can be identified and managed. The continuous improvement plan will be done
here4 to understand the ways to overcome the issues and problems.
3
Lean production is the method used by the management which is focusing on the waste
management and to maintain the quality of the production material. This is the approach which is
been used by the management of the firm from the planning of production until its distribution. It
is very important for every organisation to manage the working and operations. The case study
here presents the quality of work done by Precision Engineering Works Private Limited; the
company served the market for 30 years. Due to the change in the market, there are several
problems which is been get faced by it. The discussion about the root cause of the problem will
be analysed. The assignment will be focusing to use different tools and techniques through which
the problems can be identified and managed. The continuous improvement plan will be done
here4 to understand the ways to overcome the issues and problems.
3
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Leading lean projects
The lean projects are the production techniques where the focus is majorly done on the quality of
the product. The wastage is also the main concern to be managed by the companies in the
market. It is very important for the company to deal with and to understand the needs and
requirements of the market (Fullan, 2014). This will be helping the companies to carry out the
work in an effective and appropriate manner.
Identification of root cause(s) of the problems
The project management is the process that is been used by the company as with the help of this
the Precision Engineering Works Private Limited (PEW) can be able to carry out the work in
smooth and errorless manner. The market needs and requirements are consistently changing
which PEW has to focus and consider. There are different problems and issues which are coming
across the company as because of the emerging trends and technologies.
PEW is currently getting influenced by the market competition and threats. This is directly
affecting the production and profitability of the firm in the competitive market. The company is
also not able to get develop and grow in the competitive world as the competitors are providing
more benefits to the customers in the market which is availing more options to the customers
which are affecting PEW’s customer base (Heller, 2017). There are different tools which could
be used by the company to understand the root cause and reason for the problems which it is
facing in the competitive market. The company has used different tools and techniques through
which it can be able to identify the root cause of the problems which it is facing. Such as-
Cause and effect diagram
The cause and effect diagram is very important and is one of the tools which are effective
enough to understand and know about the contribution that every element has to do in a project.
This approach or tool is also known as the fishbone structure/ diagram. This is a very effective
approach as with the help of this the potential problems, as well as the issue of the company, can
be able to get identified in the effective and required manner. This is the tool which will help in
knowing exactly what are the reason and the cause for the problems or issue (Heller, 2017).
This will be helping the organisation to understand the main reason by which the company can
be able to carry out the work in the appropriate and required manner. The continuous
4
The lean projects are the production techniques where the focus is majorly done on the quality of
the product. The wastage is also the main concern to be managed by the companies in the
market. It is very important for the company to deal with and to understand the needs and
requirements of the market (Fullan, 2014). This will be helping the companies to carry out the
work in an effective and appropriate manner.
Identification of root cause(s) of the problems
The project management is the process that is been used by the company as with the help of this
the Precision Engineering Works Private Limited (PEW) can be able to carry out the work in
smooth and errorless manner. The market needs and requirements are consistently changing
which PEW has to focus and consider. There are different problems and issues which are coming
across the company as because of the emerging trends and technologies.
PEW is currently getting influenced by the market competition and threats. This is directly
affecting the production and profitability of the firm in the competitive market. The company is
also not able to get develop and grow in the competitive world as the competitors are providing
more benefits to the customers in the market which is availing more options to the customers
which are affecting PEW’s customer base (Heller, 2017). There are different tools which could
be used by the company to understand the root cause and reason for the problems which it is
facing in the competitive market. The company has used different tools and techniques through
which it can be able to identify the root cause of the problems which it is facing. Such as-
Cause and effect diagram
The cause and effect diagram is very important and is one of the tools which are effective
enough to understand and know about the contribution that every element has to do in a project.
This approach or tool is also known as the fishbone structure/ diagram. This is a very effective
approach as with the help of this the potential problems, as well as the issue of the company, can
be able to get identified in the effective and required manner. This is the tool which will help in
knowing exactly what are the reason and the cause for the problems or issue (Heller, 2017).
This will be helping the organisation to understand the main reason by which the company can
be able to carry out the work in the appropriate and required manner. The continuous
4
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improvement is highly required by the company as the market is getting changed highly and
effectively. The cause and its effect on the business activities and operations are able to get
understood in an effective and appropriate manner by this. The performance of the company is
getting performed as compared to its competitors. It is because the competitors are providi9ng
more effective and appropriate approaches and strategies in the competitive world.
Control chart
This is another approach where the chart is been presented which showcases the data and
information about the overtime which is having the center line. This will be aiding in detecting
the value which is having the controlling limits. This is simple words can be understood as the
way to visualise the processes and procedures of the overtime done by the company. This is very
effective and useful in determining the differences in the planned and the actual performance. In
accordance with PMBOK, the controlling activity is if get performed then it is also very
important to make an appropriate and effective adjustment in the appropriate manner (Phillips,
2016). When the planned things are not get performed then there is a need for adjustment arises.
The company is lacking in meeting the market needs as the competitors are availing to them.
Therefore, PEW needs to make an adjustment in the working as well as its planning processes.
Flowcharting
The flowchart is the way of presenting the workflow that is getting done in the project or the
production. All the processes and activities are getting to know with the help of this tool, from
the beginning till the end all the steps are presented in the diagram. This will help the company
in knowing the problems and at what stage the problems are taking place. This is helping the
phases and its interconnection with each other. The company will be able to know how the
operations and activities are getting performed.
The company will also be able to know its loopholes and pitfalls with this flow diagram as the
flow of work can be able to get analysed in the appropriate and effective manner (Phillips, 2016).
The performance of the company is able to get influenced as due to a high level of competition in
the market and the customers are willing to use the products and services which is satisfying
mostly in terms of quality as well as the prices.
5
effectively. The cause and its effect on the business activities and operations are able to get
understood in an effective and appropriate manner by this. The performance of the company is
getting performed as compared to its competitors. It is because the competitors are providi9ng
more effective and appropriate approaches and strategies in the competitive world.
Control chart
This is another approach where the chart is been presented which showcases the data and
information about the overtime which is having the center line. This will be aiding in detecting
the value which is having the controlling limits. This is simple words can be understood as the
way to visualise the processes and procedures of the overtime done by the company. This is very
effective and useful in determining the differences in the planned and the actual performance. In
accordance with PMBOK, the controlling activity is if get performed then it is also very
important to make an appropriate and effective adjustment in the appropriate manner (Phillips,
2016). When the planned things are not get performed then there is a need for adjustment arises.
The company is lacking in meeting the market needs as the competitors are availing to them.
Therefore, PEW needs to make an adjustment in the working as well as its planning processes.
Flowcharting
The flowchart is the way of presenting the workflow that is getting done in the project or the
production. All the processes and activities are getting to know with the help of this tool, from
the beginning till the end all the steps are presented in the diagram. This will help the company
in knowing the problems and at what stage the problems are taking place. This is helping the
phases and its interconnection with each other. The company will be able to know how the
operations and activities are getting performed.
The company will also be able to know its loopholes and pitfalls with this flow diagram as the
flow of work can be able to get analysed in the appropriate and effective manner (Phillips, 2016).
The performance of the company is able to get influenced as due to a high level of competition in
the market and the customers are willing to use the products and services which is satisfying
mostly in terms of quality as well as the prices.
5
Histogram
This is the tool which is used by the company to understand and to determine the central
tendency about the data and information which is gets attained by the company’s performances.
The tool with the statistical data and facts provides the understanding of the improvement areas
of the company’s performances and operations. This is the graphical presentation of the data and
information which is very effectively describing the traits and characterises of the data.
This will further help the management of the company to make decisions and choices regarding
the business operations and functions. With the help of histogram, PEW can enhance its planning
and strategies as with the help of this the improvement in the current working styles and methods
can be attained in the appropriate and required manner (Kotter, 2012).
Pareto chart
The company needs to use this method in a continuous way as with the help of this PEW will be
able to determine the problems which are needed to be managed and handled on an immediate
basis. The Pareto chart is the technique where the statistical approach is been used to analyse the
problems which need the immediate action then only the management of the problems can be
obtained and attained in the effective and appropriate manner (Rowe, 2015).
This is very important as with the help of this the organisation can be able to manage the
problems and can overcome the issues on time. The market shares and values can also be able to
get obtained by the PEW Company as with its assistance the organisation will be able to obtain.
The ideas and thoughts are highly indulged with this approach as the solution for the identified
problem is able to get attained on an instant basis.
Run chart
The trend of changes which is taking place in the company is getting understood with the help of
this approach. This tool is very effective and suitable to understand the changes and according to
it, the company can be able to make appropriate decisions and choices. The project that is been
operated by the company will be presented effectively through this approach with the help of this
the company can be able to analyse the problems and issues which is been faced by the company.
6
This is the tool which is used by the company to understand and to determine the central
tendency about the data and information which is gets attained by the company’s performances.
The tool with the statistical data and facts provides the understanding of the improvement areas
of the company’s performances and operations. This is the graphical presentation of the data and
information which is very effectively describing the traits and characterises of the data.
This will further help the management of the company to make decisions and choices regarding
the business operations and functions. With the help of histogram, PEW can enhance its planning
and strategies as with the help of this the improvement in the current working styles and methods
can be attained in the appropriate and required manner (Kotter, 2012).
Pareto chart
The company needs to use this method in a continuous way as with the help of this PEW will be
able to determine the problems which are needed to be managed and handled on an immediate
basis. The Pareto chart is the technique where the statistical approach is been used to analyse the
problems which need the immediate action then only the management of the problems can be
obtained and attained in the effective and appropriate manner (Rowe, 2015).
This is very important as with the help of this the organisation can be able to manage the
problems and can overcome the issues on time. The market shares and values can also be able to
get obtained by the PEW Company as with its assistance the organisation will be able to obtain.
The ideas and thoughts are highly indulged with this approach as the solution for the identified
problem is able to get attained on an instant basis.
Run chart
The trend of changes which is taking place in the company is getting understood with the help of
this approach. This tool is very effective and suitable to understand the changes and according to
it, the company can be able to make appropriate decisions and choices. The project that is been
operated by the company will be presented effectively through this approach with the help of this
the company can be able to analyse the problems and issues which is been faced by the company.
6
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The problem of poor performance and the threats of its competitors can be determined and the
decisions and choices according to the detected problems and issues (Rowe, 2015).
Scatter diagram
This is the method which will be helping in understanding the relationship between two or more
variables. The cause an effective will be able to get understood in an effective and appropriate
manner with the help of this approach the company will get to know appropriately that the
competitors are playing an essential role in the company’s reducing shares value. The
competitors are availing quality and effective services to the customers. The company can also
be able to manage the problems with its assistance as it will be helping in knowing the
contribution of each data and action that is required in the project on which the PEW Company is
operating (Rondinelli, 2013).
Assumptions
There are some assumptions and perceptions which has been considered by the company as to
understand and to determine the root causes of the problems and issues which is been faced by
the company. The assumptions are-
The company is not doing any improvement activities which have created to perform the
research to understand the rootcause of the problems.
It has been assumed that all the tools and techniques are used by the company to
understand the problems.
The problems are having great impact presently and in the future time.
The company does not actually know the market trends and changes in technologies.
7
decisions and choices according to the detected problems and issues (Rowe, 2015).
Scatter diagram
This is the method which will be helping in understanding the relationship between two or more
variables. The cause an effective will be able to get understood in an effective and appropriate
manner with the help of this approach the company will get to know appropriately that the
competitors are playing an essential role in the company’s reducing shares value. The
competitors are availing quality and effective services to the customers. The company can also
be able to manage the problems with its assistance as it will be helping in knowing the
contribution of each data and action that is required in the project on which the PEW Company is
operating (Rondinelli, 2013).
Assumptions
There are some assumptions and perceptions which has been considered by the company as to
understand and to determine the root causes of the problems and issues which is been faced by
the company. The assumptions are-
The company is not doing any improvement activities which have created to perform the
research to understand the rootcause of the problems.
It has been assumed that all the tools and techniques are used by the company to
understand the problems.
The problems are having great impact presently and in the future time.
The company does not actually know the market trends and changes in technologies.
7
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Continuous Improvement Plan
Problems identified
The problems which have been understood from the case and the different tools are that the
company is losing its customer base due to a high level of new entrance and competitors in the
market. The company has identified that the issues of sustainability in the cut-throat competitive
market are because of the lucrative market. The entry and exit in the market are free which is
availing of benefits to one and a threat to another (Graham & Englund, 2013). PEW is lying
under those categories where the problems and issues are affecting the business operations and
activities adversely.
Actions Taken
The different resources are there which can be able to use by the company for the improvement
and enhancement of the working process of the company with the effective and appropriate use
of the six sigma technique the company has set standards and plans. These standards are very
useful and effective as with the standards the company can attain a high level of quality in the
work and it can also be able to avoid wastage and errors can also be able to get reduced. The six
sigma approach is the one which is used for the continuous improvements in the working and
operations of the firm. There are a few aspects which are focused on the six sigma concept.
D- Defining the problems and identified issues in a detailed manner by the company is
getting done in this phase of six sigma approaches.
M- The measuring is the second phase which is been understood and get done in the
appropriate manner. Here the impact and effect of the issues will be analysed in the
proper manner so that appropriate solutions can be drawn (Ross, 2017).
Analysis of the causes and its ultimate effects will be able to get to know by the firm
through this phase in six sigma concept.
The improvement process will be performed here by knowing all the areas where
enhancement is highly needed.
At last, the controlling on the each performed activities will be done so as to determine
the differences and variances and according to the differences actions and strategies can
be made.
8
Problems identified
The problems which have been understood from the case and the different tools are that the
company is losing its customer base due to a high level of new entrance and competitors in the
market. The company has identified that the issues of sustainability in the cut-throat competitive
market are because of the lucrative market. The entry and exit in the market are free which is
availing of benefits to one and a threat to another (Graham & Englund, 2013). PEW is lying
under those categories where the problems and issues are affecting the business operations and
activities adversely.
Actions Taken
The different resources are there which can be able to use by the company for the improvement
and enhancement of the working process of the company with the effective and appropriate use
of the six sigma technique the company has set standards and plans. These standards are very
useful and effective as with the standards the company can attain a high level of quality in the
work and it can also be able to avoid wastage and errors can also be able to get reduced. The six
sigma approach is the one which is used for the continuous improvements in the working and
operations of the firm. There are a few aspects which are focused on the six sigma concept.
D- Defining the problems and identified issues in a detailed manner by the company is
getting done in this phase of six sigma approaches.
M- The measuring is the second phase which is been understood and get done in the
appropriate manner. Here the impact and effect of the issues will be analysed in the
proper manner so that appropriate solutions can be drawn (Ross, 2017).
Analysis of the causes and its ultimate effects will be able to get to know by the firm
through this phase in six sigma concept.
The improvement process will be performed here by knowing all the areas where
enhancement is highly needed.
At last, the controlling on the each performed activities will be done so as to determine
the differences and variances and according to the differences actions and strategies can
be made.
8
Resources required
The resources which are used in these actions are the human resources, financial resources and
especially the time factors has been highly understood and considered. These resources are very
important and essential for this the company can be able to manage and handle the issues which
it is facing (Basu & Wright, 2012). The strategies and plans which will be planned by the
company can be able to get success when these resources are used effectively.
Follow up actions and status
The feedbacks and continuous check over the work have been done in the effective manner as to
check the improvement status, whether it is get performed in the appropriate and required
manner or not.
9
The resources which are used in these actions are the human resources, financial resources and
especially the time factors has been highly understood and considered. These resources are very
important and essential for this the company can be able to manage and handle the issues which
it is facing (Basu & Wright, 2012). The strategies and plans which will be planned by the
company can be able to get success when these resources are used effectively.
Follow up actions and status
The feedbacks and continuous check over the work have been done in the effective manner as to
check the improvement status, whether it is get performed in the appropriate and required
manner or not.
9
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Competencies
Business strategic management
The company is having great knowledge of the market and can retain its position in the market as
it knows how to play in the effective and appropriate manner. The competencies which it has are
that it is futuristic. It focuses on the quality; therefore, the skilled and trained employees are hired
by the company.
Technical management
It is having the nature of adapting the changes, therefore, the things and market changes are able
to get accepted in an effective and appropriate manner by the PEW Company. Quality is
concerned most by the company which is very important and essential which is highly offered by
the company (Pyzdek & Keller, 2014). The assets of the firm are also very strong and effective
which can be used in the best possible manner and it can also be able to attract the customers
back if it planned more significantly. The recent technologies are to be planned to use by the
firm.
Leadership approach
The leadership approach is also very effectively and appropriately used by the company the
participating or the democratic leadership styles is been effectively be used by the firm which is
the traits that can effectively be used by it to perform well in the competitive world. The hard
work and eligible employees are there which one of the biggest strength which it has is. The
company is also focusing on the training and development of the staffs so that the problems and
issues can be able to get managed and handled in the effective and appropriate manner (Madu,
2012). The strategies are very effectively and appropriately used by the firm in the required and
desired manner.
10
Business strategic management
The company is having great knowledge of the market and can retain its position in the market as
it knows how to play in the effective and appropriate manner. The competencies which it has are
that it is futuristic. It focuses on the quality; therefore, the skilled and trained employees are hired
by the company.
Technical management
It is having the nature of adapting the changes, therefore, the things and market changes are able
to get accepted in an effective and appropriate manner by the PEW Company. Quality is
concerned most by the company which is very important and essential which is highly offered by
the company (Pyzdek & Keller, 2014). The assets of the firm are also very strong and effective
which can be used in the best possible manner and it can also be able to attract the customers
back if it planned more significantly. The recent technologies are to be planned to use by the
firm.
Leadership approach
The leadership approach is also very effectively and appropriately used by the company the
participating or the democratic leadership styles is been effectively be used by the firm which is
the traits that can effectively be used by it to perform well in the competitive world. The hard
work and eligible employees are there which one of the biggest strength which it has is. The
company is also focusing on the training and development of the staffs so that the problems and
issues can be able to get managed and handled in the effective and appropriate manner (Madu,
2012). The strategies are very effectively and appropriately used by the firm in the required and
desired manner.
10
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Conclusion
From the discussion, it has understood that the project management is a very important aspect in
an organisation as this will be helping in maintaining the quality and requirements of the project.
It has also been understood that the quality and better services are the demand in the market
which need to be availed by the company in the required and desired manner. The problems
which PEW Company is facing is understood in a detailed manner with the help of this it has
also been understood and analysedthat the competitors in the market are threatening the company
to carry out the work in the proper and effective manner. There has been a discussion of several
tools and techniques which in detailed has understood and analysedin this study. The company
has introduced the continuous improvement plan which will be aiding the firm to carry out the
work in an effective and competitive manner. The Six Sigma approach has been effectively used
by the company as an action for improvement and quality management.
11
From the discussion, it has understood that the project management is a very important aspect in
an organisation as this will be helping in maintaining the quality and requirements of the project.
It has also been understood that the quality and better services are the demand in the market
which need to be availed by the company in the required and desired manner. The problems
which PEW Company is facing is understood in a detailed manner with the help of this it has
also been understood and analysedthat the competitors in the market are threatening the company
to carry out the work in the proper and effective manner. There has been a discussion of several
tools and techniques which in detailed has understood and analysedin this study. The company
has introduced the continuous improvement plan which will be aiding the firm to carry out the
work in an effective and competitive manner. The Six Sigma approach has been effectively used
by the company as an action for improvement and quality management.
11
References
Basu, R., & Wright, J. N. (2012). Quality beyond six sigma. Routledge.
Fullan, M. (2014). Leading in a culture of change personal action guide and
workbook. John Wiley & Sons.
Graham, R. J., & Englund, R. L. (2013). Creating an environment for successful
projects. John Wiley & Sons.
Heller, S. (Ed.). (2017). Teaching graphic design: Course offerings and class projects
from the leading graduate and undergraduate programs. Skyhorse Publishing Inc..
Kotter, J. P. (2012). Leading change. Harvard business press.
Madu, C. N. (Ed.). (2012). Handbook of total quality management. Springer Science
& Business Media.
Phillips, M. (2016). Reinventing communication: How to design, lead and manage
high performing projects. Routledge.
Pyzdek, T., & Keller, P. A. (2014). The six sigma handbook(Vol. 4). New York, NY:
McGraw-Hill Education.
Rondinelli, D. A. (2013). Development projects as policy experiments: An adaptive
approach to development administration. Routledge.
Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.
Rowe, S. R. (2015). Project management for small projects. Berrett-Koehler
Publishers.
12
Basu, R., & Wright, J. N. (2012). Quality beyond six sigma. Routledge.
Fullan, M. (2014). Leading in a culture of change personal action guide and
workbook. John Wiley & Sons.
Graham, R. J., & Englund, R. L. (2013). Creating an environment for successful
projects. John Wiley & Sons.
Heller, S. (Ed.). (2017). Teaching graphic design: Course offerings and class projects
from the leading graduate and undergraduate programs. Skyhorse Publishing Inc..
Kotter, J. P. (2012). Leading change. Harvard business press.
Madu, C. N. (Ed.). (2012). Handbook of total quality management. Springer Science
& Business Media.
Phillips, M. (2016). Reinventing communication: How to design, lead and manage
high performing projects. Routledge.
Pyzdek, T., & Keller, P. A. (2014). The six sigma handbook(Vol. 4). New York, NY:
McGraw-Hill Education.
Rondinelli, D. A. (2013). Development projects as policy experiments: An adaptive
approach to development administration. Routledge.
Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.
Rowe, S. R. (2015). Project management for small projects. Berrett-Koehler
Publishers.
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