Lean Project Management Implementation in Consultancy Firms

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Lean Project Management
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Memo
To:
From:
Subject:
Date:
Introduction:
Lean project management means applying the lean project principles on the manufacturing and
production process while practicing the project of management. The main reason behind the
usage of lean project management is that it helps in increasing the respect and value by
decreasing the wastage in the manufacturing or production process of the product. It is necessary
for every company to reduce the wastage quantity in the process of production by using the lean
project management which will automatically help a company in producing more products in
lesser time so that they can achieve their desired goals and objectives. The time of production
has also been reduced by the help of lean project management because it makes the workers
understand the value of time and what kind of activities, they should do to decrease the
production time and quantity of wastage within the company or organisation.
In this study, a manager in the consultancy firm who is gives advice to other companies or
manufacturers so that they can achieve their desired targets in a very effective and efficient
manner. The government work is a very important contract to tender to any type of company to
get because it is not easy to meet the requirement of the government to undertake the government
work. Consultancy firm wants to take the work of the government because they have met all the
guidelines of the government and they are ready to fulfil the requirement of government by
providing best services to the general public and other companies who work with the
government. The consultancy company’s director wants to apply lean project management in
their firm so that their customers reach increases and due to this application, they will also be
able to undertake the government work.
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1. The initial reason for implementing the LPM
The business of production of all the type of companies has to pass those difficult times in
competing with the other companies the global market. The effect of lean project management
has a very emerging effect on the company in a positive manner which helps them in the process
of production and companies can also focus on the customers and a higher level of competition
in the market and also satisfies the customers in a very effective and efficient manner (Athlon, et.
al., 2016).
The lean project management strikes away and reduces the invaluable activity in the company so
that the process of production can go smoothly. Here are some of the highly important reasons
behind the usage of lean project management in those companies whose work is to manufacture
products and services.
 Streamlining the process of organisation or company:
To apply the lean in the company gives liberty to the producers to streamline the method
with the whole company which is surrounded by the competitors. Company’s front office
was distributing the lean project in the whole process of production of products
demanded by the respective customers of the company. The company should be very
careful while producing the product because if the raw material is handled
inappropriately then there are chances of a higher amount of wastage which will lead to a
loss for the company (Cherubini, et. al., 2015). It is not important for the manufacturers
that they should produce the highest quality product but they should also look for the
wastage which has been done while the process of production because it will
automatically lead to the higher amount of cost of raw material in the company and it is
not a good habit.
 Remove wastage: It is very important for the company to control on their waste product
which has been excreting out of the raw material in the process of production because if
they do not reduce the amount of wastage, they are producing they will eventually reduce
their profit. Lean management shows the areas where a company have its wastage of raw
material. The raw material is not only of tangible things like goods but it can also be in
the form of intangible things like information (Elias, 2016). Information can also be the
raw material for the companies whose work depend on that, so they should take care of
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the information which they receive from a different type of sources because it will
automatically lead to their increase of profit and reason for growth. Places where wastage
can happen are motion, transportation, inventory, waiting time, quality, and information,
processing, under production, overproduction and many more.
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2. Describe the benefits that can be gained by the various stakeholders in a project
from implementing LPM
The benefits attained by the various types of stakeholders after the application of lean
management in the organisation are that they can produce a higher number of products in the
same amount of raw material which is used by them earlier in the manufacturing process (Irujo
& Perez-Ezcurdia, 2017). The usage of lean project management is done by the companies to
reduce their wastage of raw material because it will eventually help in higher amount or
production without the higher amount of requirement of raw material. This habit will gradually
lead to a larger amount of profits in the company. The goodwill of the company will also be
raised in the market by this whole activity because it is like a chain which is important for all the
types of companies whether it is a consultancy firm or any other manufacturing company if they
want to grow in their business career (Kiani Mavi and Standing, 2018). The stakeholders who are
going to be benefited by the lean project management are government, banks, a board of
directors, employees, shareholders, customers etc.
Here are the few leading effects of the lean project management which are benefiting the
different types of stakeholders in the company.
 The benefits to the stakeholders are that the profit of the company is raised due to the
help of lean management project because this method of project management is used to
decrease the wastage in the company during the process of production which
automatically leads to increase in the profits. Due to the usage of lean manufacturing the
production process is really helped because workers utilise their time in doing a valuable
job in the company besides doing the useless activities.
 The lean project management also helps the company in satisfying the customers in a
very effective manner because it reduces the amount of wastage in the production process
which gradually leads to the higher amount of production and that increased production
will help in fulfilling the requirement of the customers. To meet the demand of the
customers is not an easy task because it takes time to produce that much amount of goods
and services which can fulfil the requirements of the customers but by using the lean
manufacturing this dream can also come true of the companies (Ma, et. al., 2018). If a
company adopt some of the good habits of production, they can change the way of
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Woking of other companies and can set the example of working in a different manner.
The working environment of the company should be suitable for the workers so that they
can give their best performance and can produce higher amount or product.
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3. Describe the Critical Success Factors (CSF) needed to be in place within the
consultancy organisation to achieve successful implementation of LPM
The lean project management is among the best approach for project management which helps in
deriving the important part of the project and also helps in increasing the efficiency. The main
motto of the implementation of lean project management is to understand the necessary factors
or elements which are presented within the project. This activity leads to a decrease in the
performance and unable to accomplish the goals and objectives of the project (Netland, 2016).
There are main purposes of the critical success factors for the company by applying lean project
management are:
 Identification of risk and analysis: there are various types of previous projects which
are not succeeded because project management teams fail in the analysis of fear factor
which affects the performance of the project. Lean project management has some primary
system that is not only helpful for examining the risk factors included in the project but
also helps in creating the strategies and methods by which manager of the project can
cover the risk factors in the project in a very efficient and effective manner.
 Increase productivity: The lean management project management helps in upgrading
the level of production in the project by making the functioning of the project in a better
manner — this help in upgrading the performance and productivity of the project
efficiently and effectively.
 A decrease in the complexities of the project: the main factor of the success of lean
project management helps in decreasing the complicatedness of the project with the help
of application of proper and important methods of lean manufacturing. The important
objective of every manager of the project is to decrease the complexities of the project
and to achieve the goals of the project efficiently and it has to be done with the
application of lean project management in a very best and effective manner (Rodríguez-
Segura, et. al., 2016).
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Describe the steps by which you propose to ensure CSF are in place and how to achieve the
LPM mindset within the consultancy staff
A critical success factor means the actions plan which is required by an organization to be
performed for achieving the organizational goal. It focuses on the work which is most important
for building an organization it helps in attaining the goal with using most effective tools and
techniques
Steps for critical success factor are as follows:
 The first step in this process is to understand the necessity for critical success factor in the
business.
 The second step is to create a solution to the problem which has arisen in front of us.
 The third step is the valuation of the proposal which is made to identify the actual benefit
from the proposed project (Sertyesilisik, 2016).
 The fourth step is bringing innovation and creativeness in the work assigned the Last step
is the calculation of cost and reducing the cost. Then comes strategy implementation
which includes establishing an objective for a month, quarter and annual. Then making
policies accordingly for allocating resources and checking the performance of employees
and company and the last thing is controlling the performance.
 Implementation of lean project management helps in developing strategies for the
company which helps in improving the company value in the market. It helps the
company in determining to the most important task and reporting timely about the
completion of the task. It creates a clear picture of what the company wants to achieve
within the next few years. This helps in creating the ability to cooperate with staff as well
as management.
Steps to achieve lean project management
Selecting and prioritizing projects means selecting the best alternatives. In this process, the
company has to complete the projects within the time period. Employees are guided to focus on
one project at a time, not to engage in more than work project (Sohi, et. al., 2016). Lack of focus
on work results in poor performance of an employee which impact the target to be achieved
within a period of time
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Project planning is one of the main things which are to be kept in mind after the completion of
the selection of the project. Identification and scheduling of the risk is the first thing which is
done on project planning. With the help of proper planning, risk can be reduced which results in
the completion of the project on time (Sreedharan, et. al., 2018). Executing the project and then
Monitoring and reporting the project at last Closing the project. Analyzing the need for training
is the important step in this process. Then comes organizing the resources accordingly. After this
deciding the kind of training this is needed to be given to employees. After deciding the type of
training the training is given to employees and the last step is functioning of change will help in
the effectiveness of training.
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List and describe training requirements for individual staff
Training is the most important thing which is required to be performed in each and every
organization, as it provides a framework for the employees to do a task. It helps to guide the
employees to do work effectively and efficiently for an organization (Stichhauerova and
Pelloneova, 2018).
Tools for training
To decrease the wastage of time, tools and technique are required to be implemented like PDSA
which means a plan, do, study, act. In this process, a plan is made and execution of plan id done
the study related to that plan is conducted and the last step is taking action. This helps in the
management of individual as well as a team. It helps in solving problems in a systematic way
which results in the continuous development of the company
The second tool is the DMEDI which means define measure, explore, develop and implement. In
this a defining the project and classification according to its worth and necessity to the client. M
denotes measuring the success of the project. E denotes looking at of new method for finishing
the project and I stand for implementation.
The training necessities are like good communication within the staff for completing a project on
time. The staffs are required to have a positive outlook towards work. There must be trust
between the employees and the organization. Good decision-making skills are required to
complete the project on time. With effective communication as well as decision making skills
this can be done (Sunder and Vijaya, 2016).
Types of skills which are required are like communication skills helps in improving the ability
of communication, time management skills help in managing time efficiently, stress management
skills helps in managing the stress level among employees by doing different activities, patience
helps employees to listen and understand what is required to be done to complete the project.
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Self-improvement is required to develop the ability to work confidently with other team member
and conflict resolution for solving the issues among the employees.
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Types of
Training
On the job
training
Off the job
training