Lean Principles in Project Management: A Comprehensive Guide

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Lean project management

MEMO
Introduction
Lean management Project signifies the solicitation of lean manufacturing codes on the project
management with the aim of achieving goal which is to “Add value while Minimizing Waste”.
The idea of Lean Project Management (LPM) generated after the end of World War-II. Post
World War, devastation of Japan resulted in scarcity of resources and equipment. As a concern,
manufacturers/producers were in a need of inventing ways to grow well in a different economic
environment. Consultants were sent to Japan in order to rebuild production capabilities of
manufacturers of Japan. With the help of the consultants, Japanese Manufacturers refined the
concept of JIT (Just in time). The object of JIT was to accelerate the efficiency and minimize the
number of inventory stocked. Later, by the end of the year 1973, 3 ideologies: Mura, Muri and
TO All staff
CC Board of Directors
DATE 5 April 2019
SUBJECT The Introduction of Lean Project Management
(LPM) principles to secure government work

Muda, were introduced which aimed at eliminating waste. Muri refers to overtasking of
Manpower and overeating of machinery and equipment. Mura refers to the practices which
resulted in unevenness of costs. And Muda refers to the acts which result in over consuming of
resources. Hence, implication of LPM results in adding efficiency to the project management of
the companies. The memo aims at understanding the implementation of LPM and how it would
benefit the Stakeholders. It emphasis on analyzing the critical success factors involved in
implementation of LPM.
Implementing the Lean Project Management
The idea of applying lean principles to the management of project focuses on adding value to the
products with minimizing the amount of wastes. There are five core principles based on which
LPM is implemented.
1. Identifying Value
2. Map Value Stream also known as business process mapping.
3. Creating flow of value
4. Establishing pull of system
5. Seeking concept of continuous improvement
According to Smith and Jones (2018), the main reason for impemeting LPM is that it helps in
streamlining company’s Processes. Implementation of LPM has witnessed in pulling the
potential of the system of the company. It enables the manufacture to add efficiency to the
management by streamlining the process which includes functions performed by the front office
to the process of distribution of the products. Increasing the potential of the system resulted in
minimizing manufacturing cost and fast-tracking the market. This applies to Energy Australia
because it improves the efficiency of the business processes by managing risks and ensures
major return on investments. A second reason to implement LPM is that it removes Wastes; there are
seven areas of waste which are addressed by lean, i.e.: overproduction, motion, waiting time,
over processing, inventory, quality issues/defects and transportation. The elimination of waste
shall help the company to eradicate time consumed in performing unnecessary activities.
Another reason which encourages the implementation of LPM is that it helps the company to
build team commitment. The company must consider the need of change; it needs involvement
of all the members of the company. Implementation of LPM has resulted in improving team

coordination. Finally, the decision to implement LPM has been taken because it ensures continuous
improvement. It shall attract opportunities to the menufacturers to become more lean.
Benefits to stakeholders
Stakeholders are the people related with the day to day operations of the business. While
developing business strategies the positions of stakeholders are considered as they have major
impact on the business. The term stakeholders include, government, creditors, employees and the
like. Implementation of LPM not only adds value and increase the efficiency of current
manufacturing process but it also benefits the Stakeholders in a very significant manner (Sunder,
2016).
The government
Several reports and and surveys have shown that implementation of LPM has resulted in
improving efficiency of the operations of government. According to the reports it has positive
impact on effectiveness of the government. The government will benefit from the organisations
implementation of LPM in a way that it shall help the government in regulating its policies
effectively. LPM results in improving quality and increased productivity. With the successsful
integration of LPM with other business process shall help all the people related with business.
By reducing the emmission of waste it shall help in mimizing the risks involved in the
manufacturing processes. LPM enaables the mangaer with quick decision making and hence it
accelerate the project to complete quicker. Hence, the government shall not have to spent more
time inspecting risk factors involved in the business as LPM reduces and manages risk factors.
Employee: As LPM aims at adding value and minimising the practices which reduce the
effectivenesss of the products. The wastes which LPM treats also include overtasking of
Manpower. With the implementation of LPM, employees shall definitely be benifited as LPM
will help in minimizing the activities which result in abusing the efficiency of the employees.
LPM not only would help in improving the efficiency of the training provided for the
implementation of LPM has maajor significance in adding value to the careers of the
employees. Also, in the process of evaluaating the success of training prograams the employees
are rewarded with several awards. Hence, the implementation of LPM would not only benfit the
organisation but it would also benefit the people related to the business.

Customers: Every business organization earns profit from its customers hence it can be said that
customers or clients are the base of every business. For a business to become to become
successful it is important that it understand the requirements and needs of it customers for
gaining customer satisfaction. LPM would help in understanding the customer needs which will
ultimaately result in better customer services. LPM helps in reducing the waiting period by
accelarating the motion in the transportation and distribution of the products. Therefore,
customers will get delivered their desired goods and services on time with the implementation of
LPM.
Investors and Creditors: Investors invest in an organization to earn return on investments but
before makin any investment, the investors do a thorough study of the financial position of such
organisatio. The implementation of LPM will result in reduction of the cost of the process of
manufacturing profits which would result in major profits and consequently investors will get
benifited. Investors shall be benifited from various creative approaches that shall be applied in
the process of lean project management. It shall also boost financial criteria which would result
in gaaining trust of the creditors. The concept of value stream of LPM shall have positive impact
on the credibility of the organisation.
Critical success factors of lean project management
Critical Success Factors (CSF) are the attributes which has major significance in enhancing the
performance of the business processes. It is evident through the surveys and reports that out
three two LPM programs fail to achieve its objective. In order to check whether the organization
is on right track in implementing the LPM, following critical success factors need to put in place.
1. Commitment: The commitment of manager and managerial staff is the most
important success factor in implementing LPM. The manager must take
participation in the implementation as leading from office is not sufficient. The
manager must address the issues and suggestions from the staff, also he/she is
obliged to make his/her staff understand the importance of lean project
management.
2. Train the staff: In order to implement the LPM successfully, the manufacturers
are at the responsibility of training and educating its staff regarding the principles

and process of LPM. The staff must have knowledge about the importance of
LPM in order to succeed in implementing the LPM. Most importantly the
managerial staff should have the knowledge of the methodology for
implementing it. At the initial stages of the implementation any external resource
like consultancy firms or the internal corporate resources may help them in
educating about LPM. Moreover, the management can learn about the
advantages of LPM from the corporates who have successfully implemented the
lean management project. Taking help from other corporates is much more useful
then acquiring knowledge from external consultancies.
3. Make a plan and follow it: In order to have aa successful implementation of the
LPM there’s a need of a vision. The organization needs to have a vision of where
it sees itself. The organization needs to have a plan for implementation of LPM
and as well as to achieve the place where it wants to stand in the near future. To
resolve the complexity of the plan it must be divided into steps. This will not
only help in reducing the complexity but it would give directions to the staff to
the manner in which the plan has to be followed. Delegating the authorities and
defining the measures of performances will result in successful implementation
of the plan. Making a plan and giving directions is not enough, the manager must
hold meetings with its staff for addressing the issues faced by the staff in
implementing process. Manager must integrate lean principles with other
business processes in spite of treating it as a temporary business project.
4. Allocation of resources and distribution of gains: The employer is at the
responsibility of distributing resources required by the staff implementing the
LPM. The gains acquired must be distributed among the employees to encourage
and motivate them. Likewise, the performance of the employees must be
recognized and additional rewards should be given to them. The recognition of
the performance will motivate the employees’ involvement in implementation of
LMP. But while designing the reward schemes, manger should take reasonable
care as the results of the schemes are sensitive to dealt with.
5. Competency of the Black Belt and Master Black Belt: The key for successful
implementation of LPM is by conducting competitions and training programs.

The staff must be judged on the basis of their technical capabilities to implement
LPM. Apparently, the members who have MBB and BB are more skilled in
planning successful plan for implementing LPM. It has been observed in several
research reports that effective training programs is a CSF for the successful
implementation of LPM.
6. Application of Lean tools and methods: Another CSF that needs to be in place
for successful implementation of LPM is using the lean tools and methods. The
most popular lean tools and methods are waste reduction, team concept,
continuous improvement, Value stream mapping, daily management, problem
solving, visualization, team concept and 5s.
For the successful implementation of CSF, it is important that the CSFs mentioned in the memo
should be put together for successful implementation of LPM. All the CSFs complement each
other hence must each CSF must be treated equally.
Steps to ensure CSF are in place and how to achieve the LPM mindset within the
consultancy staff
In order to make sure whether CSF are in place the manger needs to follow the following steps:
1. Determine ways to analyze if the organization is hitting CSF: This can be determined by
analyzing how the organization is dealing with following areas
 How the organization can grow with the present client base?
 Performance improvements within the organization.
2. Establish a champion for each CSF: Appointing one leader over each CSF would help in
ensuring whether the CSF is moving in the desired direction. The leader appointed could
be from another department and is more prominent in leadership. The leader would be in
charge of promoting CSF which comes under his leadership and shall also be
responsible for communicating updates.
3. Tracking CSF: The CSFs change with the change in organization’s strategies.
Consequently, it is important to track the frequency of CSF. Being the major project
management consultancy that it makes sure that the CSFs are placed as required for the
successful implementation of LPM.

In order to achieve LPM mindset within staff it is important to aware the staff regarding the
urgency of establishing LPM. Creating a guiding alliance shall help the staff in understanding
the significance of lean principles. Communicating organization’s change vision to the staff is
not enough they also need to be empowered with broad-based action. Also the staff would be
introduced with schemes which would result in achieving short term wins. Consequently, the
consolidation of short term wins would produce change. The leaders, managers require the
expertise in making quick decisions. There are several tools which aid in management of the
project and transformation of the organization. For example: work cells; these are strategic
prearrangement of resources which shall result in improving the flow of process while
minimizing the waste. The staff would be introduced to the 5s i.e. sort, shine, set in order, sustain
and standardize.
Training requirements for individual staff
In order to carry out successful implementation of LPM, it is essential that the staff must obtain
sufficient knowledge regarding the benefits of LPM. Therefore, the organization must conduct a
training program. For successful orientation of a training program, following are the
requirements that need to be fulfilled.
1. Define goals: The objective of every training program is to clarify the goals for which the
company is working and the goals need be measurable. The trainees must be aware of the
company’s long term and short term goals therefore they must define goals to them. But
before defining goals to the employees the manager and the leaders of the training
program must layout a systematic plan to achieve the defined goals. After finalizing the
objective and goals of the company, the manager must clarify the standards on which the
effectiveness of the performance of the trainees will be measured.
2. Engagement of Employees: The success rate of training program depends on how
engaged the employees are with the training program. The employees must understand
the importance of the training program. If they feel that the training program is not
adding value to their knowledge, career and efficiency then it would be difficult to keep
them engaged. In order to give them more persuasive learning experience following
methods can be adopted:
 Case-study based learning

 Time-management
 Gamified learning
 E-learning techniques
3. Track Results: For evaluating the effectiveness of the training program it is important to
assess the results of the training. Post-training the goals of the organization should be
measured for ensuring that the training has helped in improving the efficiency of the
training program. Once the employees are trained, they must be assigned with a project
to which they can apply their skills they have learned through the program. In order to
analyze and evaluate how effectively the employees are using their new skills, the
manager can consider conducting following activities:
 Quizzes
 Surveys
 Measure customer satisfaction
 Review Support requests
Method to assess when the consultancy has sufficiently adopted the LPM approach to be able to
tender for government work
Following are the methods which shall help in assessing whether consultancy has adopted LPM
in order to secure tender from government:
1. Conduct reviews to assess whether the staff has learned the importance and
implementation of LPM. This shall include research questions.
2. Identifying gaps between the plan developed and results
3. Analyzing the improvements made after implementation of LPM
4. Compare the results of LPM
5. By examining the development validity of the operations of the business
6. Monitoring dashboards to detect issues
7. Conducting meetings to address issues
Conclusion
As per the points discusses in the memo it has been concluded that implementation of LPM shall
result in increasing the effectiveness and efficiency of the business processes. It shall not only

benefit the business but shall also benefit the people related with it, such as stakeholders. The
adoption of LPM shall also result in minimizing the practices of activities which are not
necessary for an organization. In order to enable staff to understand the importance of LPM
several training programs need to be conducted. The decision to implement LPM has been made
because it shall add value to the business and to career of the staff. Also various measures need
to be taken for aanalysing whether Critical Success Faactors are put in placed to ensure the
successful implementation of LPM. Lastly, the implementation of LPM shall be assessed by
reviewing results achieved by it.
Yours sincerely,
Ruth O'Neill

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