PPMP20009 Lean Project Management Implementation Report

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PPMP20009: Leading Lean projects

To: All the staff
CC: Board of directors
Date: 10 May 2019
Subject: The introduction of lean project management (LPM) principles for securing government
work.
Lean concepts are applied in the lean project management such as lean manufacturing, lean
construction, and lean thinking to the management of projects. Different types of projects are
worked on by different companies including the development of services, products, and or
processes. The data-driven methods are used by lean project management for managing the
projects by continuously focusing on making improvements in the process. The main aim of the
memo is to inform to all the staff members about the decision of introducing lean project
management principles in all the future projects so that the consultancy can easily undertake
government work. The proposed process of implementation of LPM has also been informed
through this memo.
Initial reasons for implementing LPM
According to Alhuraish.et.al, (2017), the main reason for implementing lean project management
is to ensure better management of the organization so that all the functions of management such
as planning, organizing, controlling, monitoring and directing can be performed more efficiently
and by its effective application our company will be able to get the government projects easily.
The second reason for implementing LPM is increasing the output of the organization with
minimum wastage and creating a better team while managing the operations. In the long run, the
process improvements will lead to better results and better values of products and services. The
third reason for implementing LPM is the faster development, greater satisfaction of customers,
improves the morale of employees and their active participation and involvements, higher profits
of the business and increased business along with its growth and success at the fast pace. The
requirements of projects can be responded quickly with fewer delays.

The five principles of lean manufacturing include identify value, map the value stream, create
flow, establish pull, and make continuous improvements. The LPM will increase the focus of the
employees on the activities that can bring value to the company. The increased focused of
employees will result in increasing their productivity level, and efficiency as there will be no
distraction from the unclear tasks. Finally, the decision for the implementation of lean project
management has been taken so that the government projects can be undertaken by the
consultancy and with its implementation, the stability will be built that will help in identifying
the problems and resolving them. The effective use of resources can be made by the consultancy
reducing its wastage. The maximum profits can be earned by decreasing the costs and this will
make the consultancy able to add all the savings to the profits. The continuous improvement can
be made through this and ensure that every employee actively participates in the improvement
process (Emblemsvag, 2014, p. 185).
Benefits to stakeholders
There are many stakeholders of the companies including government, employees, customers,
creditors, investors, suppliers, consultant, and shareholders.
Customers:
Customers get following benefits –
 They will get the enhanced customer service
 Quality products and services will be provided due to the implementation of a rigorous
check of quality.
 Customer value will be created by making the optimum utilization of resources
Government:
The government will get benefits from the organization's implementation of LPM in the below-
mentioned ways-
 Efficient operations of the tax-payer fund
 Clean and neat products will be made available
 Waste reduction

Employees:
Employees will get the following benefits from the LPM's implementation-
 Stability of workflow
 Enhance their focus on different activities of the organization
 Being focused on delivering value, employees productivity will increase along with their
efficiency
 They will be able to make active participation in the improvements
 Risks and resources will be managed effectively
 Accountability and collaboration among employees will increase
Directors:
 Work will be done efficiently by the employees which will reduce the tension of the
directors
 The analysis of data will be made easier
 Efficient use of financial resources, materials, and employee’s time that will eliminate the
wastage
 Will be able to make better decisions
 Greater visibility of the progressed work
 Reduced cost of operations
 Can make smart and value-driven decisions
 Better management of the organization
Investors:
 This will improve the return on investment on the projects as the profitability of the
company increases with the savings of costs
 Risks management will be improved
Creditors:
 They will get an early payment or timely payment as the financial condition of the
company will get improved through this

 They can enhance their business by providing more credit facility to the companies
Critical success factors within consultancy organization for achieving the successful LPM’s
implementation
Critical success factors are the strengths that the organization possesses which will help it in
achieving its objectives and mission. It affects the viability, efficiency, and effectiveness of the
organization. There are various critical success factors that are required to be in our consultancy
organization so that the LPM can be implemented successfully. It is very significant for the
consultancy organization to be service-oriented and provide customers with high-quality services
which will increase the satisfaction level of customers and the loyalty of customers will enhance
through this. The management of consultancy will be required to develop the zero defect
mentality as the effectiveness of LPM depends on cultivating a mindset which focuses on
refusing the accommodation and acceptance of defects. The prevention of culture should be
developed. This will make the organization's people prevent non-conformities and defects.
Quality is the target of LPM and this can be achieved if the organization mainly focuses on
understanding the requirements of customers. The objectives of the project should focus on
aligning the critical requirements of quality to customers with the strategies of business of the
organization. The commitment and involvement of top management is the factor which is of high
priority for the implementation of LPM so the organization’s management team should be
involved and the proper support should be provided in understanding and learning the principles
of LPM. The lean implementation’s new projects can be easily understood by the employees
through the commitment of management. The better results can be achieved by involving top
management from the very beginning. This will enable the better allocation of resources and
prioritizing the projects, developing a strategic plan, drawing the LPM implementation team, and
establishing the supporting policies. For the successful LPM's implementation in consultancy
organization, it will be required that there is proper management of resistance to change.
Therefore, it is expected from all the staff members of the organization to kindly provide your
support and dedication in introducing innovations and changes in the organizations so that the
organization can gain competitive advantage and can enhance its growth and success which will
ultimately benefit the employees and the organization as a whole (Browne.et.al, 2016, p. 42).

There should be proper planning of lean management programs so the plans will be divided into
proper steps. Performance targets will be clearly defined and will be monitored properly.
The effective leadership style should be adopted by the leaders of the organization as the project
of lean management will require leading from the front by competence displaying in key
methodologies, hand-on-approach adopting in the implementation, project selling to stakeholders
overcoming the change resistance among the employees. The skills of project management,
skills, and participation of employees, providing regular and continuous training and
development programs are also required that our organization must be having so that the
successful implementation of LPM can be done. Therefore, the organization will provide with
the effective training and development programs to all the employees so that they can make an
effective contribution in the growth and success of the company reducing the wastage of
resources and time and effective and optimum use of resources can be made. The LPM’s
successful implementation can occur only when there is involvement of file and rank take up
responsibility for implementing interventions of lean project management in the domains of their
work. The tools and techniques of lean should be used effectively such as visualization, team
concept, reduction of waste, problem-solving, value stream mapping, and continuous
improvements. It is very essential that the monitoring and controlling are exercised and the
proper evaluation of the performance of employees are made so that the training can be
provided as per the needs and lacking areas. All these success factors are required to be needed
in the consultancy organization so all the staff members are advised to perform well because
there will be a proper evaluation of performance and appraisal will also be awarded for the high-
performance employees.

References
Alhuraish, Robledo, & Kobi. (2017). A comparative exploration of lean manufacturing and six
sigma in terms of their critical success factors. Journal of Cleaner Production, 164, 325-
337.
Browne, W., Dreitlein, S., Ha, M., Manzoni, J., & Mere, A. (2016). Two Key Success Factors
for Global Project Team Leadership: Communications and Human Resource
Management. Journal of Information Technology and Economic Development, 7(2), 40-
48.
Emblemsvag, J. (2014). LEAN PROJECT PLANNING: USING LEAN PRINCIPLES IN
PROJECT PLANNING. International Journal of Construction Project
Management, 6(2), 185.
Sohi, Hertogh, Bosch-Rekveldt, & Blom. (2016). Does Lean & Agile Project Management Help
Coping with Project Complexity? Procedia - Social and Behavioral Sciences, 226(C),
252-259.