PPMP20009 Leading Lean Projects: Case Study of Australian Engineering

This report analyzes the challenges faced by Australian Engineering Works (AEW), an equipment manufacturer struggling with declining market position and profitability. It identifies key issues such as poor product quality, defective raw materials, and ineffective marketing strategies. The report employs various tools and techniques, including control charts, flowcharts, scatter diagrams, fishbone diagrams, Pareto diagrams, and histograms, to analyze the root causes of these problems. Furthermore, it presents a comprehensive risk management plan, including a risk register, qualitative and quantitative risk analysis, and risk response strategies. The report also discusses the appropriate leadership style required to implement changes and improve AEW's overall performance. The document is available on Desklib, a platform offering a wide array of study resources, including past papers and solved assignments to aid students in their academic pursuits.

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.

6PPMP20009 LEADING LEAN PROJECTS
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.

7PPMP20009 LEADING LEAN PROJECTS
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

10PPMP20009 LEADING LEAN PROJECTS
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