AEW: Lean Project Management Analysis and Recommendations

This report provides a comprehensive analysis of Australian Engineering Works Private Limited (AEW), focusing on its challenges within the plastic moulding industry for telecommunications. The report investigates the root causes of AEW's declining profitability, attributed to increased market competition, the emergence of new suppliers, and employee turnover. Various Lean project management tools and techniques are applied, including histograms, Pareto charts, the 5 Why technique, check sheets, fishbone diagrams, scatter plot diagrams, and chart titles, to identify and analyze the key issues. A risk management plan is developed, encompassing risk identification, qualitative risk analysis, and risk response strategies. The report also explores appropriate leadership styles for driving change within the organization. The report concludes with recommendations for AEW to regain its market position and improve its profitability, offering valuable insights into project management and strategic leadership.

Running head: LEAN PROJECTS MANAGEMENT
Leading Lean Project
Name of the Student
Name of the University
Author Note:

2
LEAN PROJECTS MANAGEMENT
Table of Contents
1.0 Introduction...........................................................................................................................4
1.1 Root cause of downfall of AEW............................................................................................4
2.0 Identification of the problem................................................................................................5
2.1 Application of tools and techniques: Histogram..............................................................6
2.2 Application of tools and techniques: Pareto Chart................................................................7
2.3 Application of tools and techniques: 5 Why Technique........................................................7
2.4 Application of tools and techniques: Check Sheet................................................................8
2.5 Application of tools and techniques: Fish Bone Diagram.....................................................9
2.6 Application of tools and techniques: Scatter Plot Diagram.................................................10
2.7 Application of tools and techniques: Chart Title.................................................................11
2.8 Application of tools and techniques: Stratification.............................................................12
2.9 Assumptions........................................................................................................................12
3.0 Risk Management Plan............................................................................................................12
3.1 Risk Register........................................................................................................................13
3.2 Qualitative Risk Analysis....................................................................................................14
3.3 Risk responses.....................................................................................................................15
3.4 Risk responses implementation...........................................................................................15
3.5 Monitoring of risk responses...............................................................................................16
3.6 ITTO....................................................................................................................................16
4.0 Leadership style appropriate to bring about the change..........................................................17
4.1 Strategic Leadership............................................................................................................17
4.2 Facilitative Leadership.........................................................................................................17
4.3 Paternalistic leadership........................................................................................................17
5.0 Conclusion...............................................................................................................................18
6. Reference...................................................................................................................................19

3
LEAN PROJECTS MANAGEMENT
1.0 Introduction:
This paper will be focusing on the lean project management of Australian Engineering
Works Private Limited (AEW). The challenges faced by the senior management team of AEW
will be addressed in this paper. The root causes of the problems will be evaluated on the basis of
few tools such as the pareto chart, histograms, check sheet, fish bone diagram and scatter plat
diagram (Anholon & Sano, 2016). Being one of the most reputed equipment manufacturers in
plastic moulding across the major tele communication organizations in Australia the business is
facing difficulties due to the emergence of new suppliers and new organizations as a result the
consumers of this organization are opting for new substitute products, the net profitability of the
business is going down and the ineffective employee turnover number is also a serious concern
as most of the experienced and senior employees of this organizations were joining the new
players in the market (Junior, Alves & Mendes, 2017).
1.1 Root cause of downfall of AEW
The paper focuses on AEW regarding the crisis they are facing due to the emergence of
new suppliers and new similar business organizations. The emergence of the new organizations
is one of the main root cause of the problems faced by AEW (Arai, 2017). The new
organizations are providing improved and innovative product to the consumers of this industry
which is the other reason behind the downfall of this organization. The senior employees joining
the new organization as they are providing better career opportunities is the other threat of this
organization (Elbert, 2016).
Emergence of new suppliers: Like every business organization, AEW faces severe
challenges thrown by the new suppliers. The emergence of the numerous suppliers is a serious
concern for the Australian Engineering Works Private Limited (Hammadi & Herrou, 2016). It
can be said that the emergence of numerous increases the bargain powers of the suppliers. Every
supplier has their own pricing policy and the AEW has to make all the possible changes in order
to regain their lost market reputation and business profits (Drew, McCallum & Roggenhofer,
2016).
New options for the customers of this organization: The organizational structure of
AEW should be maintained at all cost so that the efficiency and the productivity of the

4
LEAN PROJECTS MANAGEMENT
organization is maintained. Fresh innovative measures should be taken in the production rooms
to deal with the changing requirements of the consumers so that they do not consider the options
provided by the other similar organizations (Ruben, Vinodh & Asokan, 2018). Customer centric
business strategies are needed to be considered by the senior management team of Australian
Engineering Works Private Limited. Customized products and professional delivery packages
are important for the maintaining consumers. Transparency in the production and marketing
strategies can be useful for the organization as well. AEW should be profiling the existing
customer so that the issue of new options for the consumers can be resolved to a significant
extent (Gaudenzi & Christopher, 2016).
Competitiveness coming from the similar organizations: Australian Engineering
Works Private Limited should be periodically conducting internal as well as external
environmental analysis so that the senior management team can understand the potential
strengths, opportunities, threats and weakness of the organization so that they can create and
implement new business strategies to have a competitive advantage over the new similar
organizations (Taib & Bakri, 2018). Maximization of the values and minimization of the waste
are the other considerations of every business organization which helps them to stay competitive
from the similar organizations (Tuli & Shankar, 2015). AEW should be incorporating new
managers so that he can frame new strategies which will be beneficial for this organization.
Experienced employees are joining new players who are providing similar services:
The emergence of new suppliers in Australian Engineering Works Private Limited resulted in
their senior staffs started joining new players (Dev & Kumar, 2016). This is one of the most
important among all the root cause of the problems faced by Australian Engineering Works
Private Limited. Innovative incentive schemes along with career plan graph should be there for
the employees of the organization (Petersen, Madsen & Bilberg, 2016). Better career
opportunities should be there for the senior employees. Professional staff orientation should be
practiced in AEW so that it can restrict senior employees to join their competitive rivals.
2.0 Identification of the problem
The decrease in profitability in the business is due to numerous reasons such as the
emergence of new suppliers with an improved bargain power, emergence of new similar business
organizations who are providing better quality products, as a result the consumers of the business

5
LEAN PROJECTS MANAGEMENT
are opting to get better quality products (Taib & Bakri, 2018). The emergence of the new
suppliers and new similar organization is the main reason behind the high market competition for
this business organization. The identification of the problems will also address the situation in
which the senior and experienced employees of AEW are joining the new players in the market
for better career opportunities and professional growth. The following units of the paper will be
discussing about the different categories of tools which are required to study the root cause of the
problems faced by Australian Engineering Works Private Limited.
2.1 Application of tools and techniques: Histogram
Figure 1: Histogram of the challenges faced by AEW
(Source: Created by the author)
The frequency and arrival time of the threats coming from the market competition and the
new options for the consumers of the industry are the most important challenges faced by
Australian Engineering Works Private Limited (AEW). These are the prime root cause of the
current situation faced by this business organization. However, the frequency of the other two
challenges such as the threats coming from the new suppliers and the issue of senior employee
retention are comparatively low (Wang, 2017).

6
LEAN PROJECTS MANAGEMENT
2.2 Application of tools and techniques: Pareto Chart
Figure 2: Pareto chart of the challenges faced by AEW
(Source: Created by the author)
This Pareto chart can be also considered as a histogram chart helps in understanding the
impact of the different risks associated with AEW. The frequency of the challenges faced by this
business organization is presented in a descending order in the picture. The cumulative
percentage is also presented from left to right in the picture (Fowler, 2017). This picture helps in
understanding the non-conformity associated with the organization.
2.3 Application of tools and techniques: 5 Why Technique
The 5 WHY Technique can be defined as the type of tool which is used in the
interrogation purpose of any specific situation in an environment. Solving the problems can be
easier with the help of this tool (Netland, Schloetzer & Ferdows, 2015). This tools can be
successfully utilised to analyse what are the problems faced by Australian Engineering Works
Private Limited (AEW). The probable questions regarding the situation faced by AEW using the
5 why tool are as following:
5 Why Technique

7
LEAN PROJECTS MANAGEMENT
 What are the reasons behind the business loss of the organization?
 What does the management teams react when new players arrive in the market?
 What is the role of the project managers to deal with the ever changing demand
of the consumers?
 What are the ways to satisfy both the internal and external stakeholders of
Australian Engineering Works Private Limited?
 What are the career prospects of the employees working in this organization?
Table 1: 5 Why Technique tool
(Source: Created by the author)
These questions can be very much useful to understand how each of the challenges faced
by this business organization are attached to each other. The threats coming from the new
consumers are the main reason behind the decrease in profit margin (Balaji & Senthil Kumar,
2018). One of the root cause of this issue is the ignorance of the management team of this
organization as they needed to revise their business strategies in order to deal with issues like
meeting the demand of the consumers and also for meeting the requirements of the external and
internal stakeholders.
2.4 Application of tools and techniques: Check Sheet
Name of the organization: Australian Engineering Works Private Limited
Product Name: Plastic equipment services in telecommunication sector
Date: 05.02.2019 Time: 10:30 AM
All items inspected
Serial Number Defect Marks (Out of 5) Count
01 Senior employee
retention
3
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

8
LEAN PROJECTS MANAGEMENT
Figure 3: Check sheet identifying the defects of AEW
(Source: Created by the author)
This check sheet helps in understanding the different categories defects for which this
business organization is suffering (Tonchia, Tonchia & Mahagaonka, 2018). The check sheet
table helps in understanding the how market competition and the threat coming from the new
suppliers are the primary reasons behind the business loss of this organization.
2.5 Application of tools and techniques: Fish Bone Diagram
Figure 7: Fishbone diagram finding the root cause of the issues faced in AEW
(Source: Created by the author)
The above fish bone diagram helps in understanding the root causes of the problems
faced by AEW. The different causes of the problems faced by AEW are the emergence of the
new players, increasing demands of the consumers who are getting better products from other
organizations, market competitions from the rival organizations and the inefficient employee
turnover maintained over the years by AEW.

9
LEAN PROJECTS MANAGEMENT
2.6 Application of tools and techniques: Scatter Plot 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
Figure 8: Scatter Plot diagram finding the root cause of the issues faced in AEW
(Source: Created by the author)
The scatter plot diagram helps in understanding the impact of the different categories of
problems faced by AEW. The diagram helps in understanding that the root cause of the decrease
in profitability of this business organization (Kou, Lee & Wei, 2015). According to the scatter
plot diagram the alternate option for the consumers and the market competition faced by the
AEW due to the emergence of new players are the most significant cause of the downfall of this
organization.

10
LEAN PROJECTS MANAGEMENT
2.7 Application of tools and techniques: Chart Title
Impact
Substitute products Market competition
Inefficient employee turnover In effctive business strategy
Figure 9: Chart title finding the root cause of the issues faced in AEW
(Source: Created by the author)
This chart title helps in understanding the importance of the different categories root
causes of the issues faced in AEW. The emergence of the substitute products and the market
competition are the two most important causes behind the downfall of the net profitability of
AEW. The other two cause behind the loss of this organization are the ineffective business
strategy and the inefficient employee turnover.

11
LEAN PROJECTS MANAGEMENT
2.8 Application of tools and techniques: Stratification
Figure 10: Stratification technique finding the root cause of the issues faced in AEW
(Source: Created by the author)
The above stratification figure helps in understanding the root causes behind the negative
impact on the net profitability of AEW. The above figure helps in understanding that this
business organizations needs to have more innovative products so that the issue of new options
for the consumers can be addressed (Chaple & Narkhede, 2017). The recruitment policy and the
turnover rate of the organization should be carefully maintained so that each employee of the
organization know about their career paths and aspirations which can get fulfilled in this
organization.
2.9 Assumptions
Innovative products and better quality of services may have an impact for the consumers
who are opting for products from the new organizations.
o Efficient business strategies should be created for the new suppliers to decrease their
bargain powers (Ansah et al., 2016).
3.0 Risk Management Plan
No
inno
vativ
e
prod
ucts
Lack of business
strategies
Ineffective recruitment system

12
LEAN PROJECTS MANAGEMENT
3.1 Risk Register
Serial
number
Risk Cause of
risk
Concern Impact Mitigation
plan
1 Senior
employees
joining new
organizations
Bad
recruitment
policy and
low
maintenance
in employee
turnover.
Senior
Management
of AEW
Low Hire a
dedicated
recruitment
team
understanding
the changing
requirements
of the
consumers.
2 New options
for the
clients
No
innovative
products or
services
Senior
management
team
High Get help from
the marketing
team to
understand the
requirements
of the
consumers.
3 Competition
in the market
Inefficient
business
strategies
Project
Manager
Moderate SWOT
analysis/
PESTEL
analysis
4 Emergence
of new
suppliers
Increasing
bargain
powers of
the new
suppliers
Project
managers
High Contractual
agreements
can be a
contingency
plan for this
assignment.
Table 1: Risk Register