Leading Lean Project: Assignment 1 Individual Memo

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LEADING LEAN PROJECT_ASSIGNMENT 1 INDIVIDUAL
MEMO

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Leading Lean Project Assignment 1 Individual Memo
Table of Contents
Introduction......................................................................................................................................3
Principal reason for incorporating LPM..........................................................................................3
Benefits of implementing LPM on stakeholders.............................................................................5
CSF or Critical Success Factors required achieving successful LPM installation..........................8
Steps to ensure CSF and achievement of LPM through consultancy staffs..................................11
Training requirements for incorporation of LPM..........................................................................13
Assessment of successful LPM to attract government tenders hip................................................14
Conclusion.....................................................................................................................................14
Reference list.................................................................................................................................16

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Leading Lean Project Assignment 1 Individual Memo
To: Employees
From: Quay
Subject: Implementation of Lean project management to attract government tender
Date: 17 May 2019
Introduction
Business organisations work on several projects that involve developing services,
processes or products. In order to maintain projects, lean project management is an effective
method that utilises data driven methods which emphasises on continuous improvement of entire
process. LPM can be considered as an effective method that can be implied for those complex
projects which are allocated with limited amount of resources and costs. There are several
methods related to LPM such as; lean Six Sigma, Kanban and Deming Cycle. This study is based
on analysis of LPM and understanding its CSF or Critical Success Factors. The researcher needs
to critically evaluate benefits of LPM as director of Quay consultancy services of Australia. As a
responsible director, the researcher needs to assess this LPM technique.
Principal reason for incorporating LPM
Lean Project Management can be defined as implementation of principles regarding lean
manufacturing to practice of management of projects. Core principles of this LPM are to
minimise waste while maximising value. Principles of LPM have been postulated by Toyota in
1950. It was first time implicated in the year 1970 in order to combat energy crisis. The specific

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Leading Lean Project Assignment 1 Individual Memo
term ‘lean’ here refers to utilisation of what is most important and necessary. This limitation is
maintained in LPM in terms of space, labour, equipments and amount of raw materials. In order
to achieve tenders from Australian government, Quay must implement LPM so that they can
represent them as sustainable workshop. Three different types of wastes can be recognised in
lean manufacturing. These are termed as Mura, Muri and Muda. Collectively, these three types
of wastes are called as 3M. Muda signifies those activities which absorbs resources but do not
provide additional value. Muri refers to excessive utilisation of employees or equipments. On the
other hand, Mura can be explained as operational unevenness that reduces productivity and
efficacy in the long run. Within the process of managing projects, LPM put stresses on
decreasing these 3M.
Figure 1: Principles of LPM
(Source: Created by researcher)

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Leading Lean Project Assignment 1 Individual Memo
Value: The main principles of implementing LPM signify its values. It helps in determining
value of projects in mind of consumers. Hence, it helps in identifying and enhancing value of
projects in front of customers.
Value stream: Ultimate objective of lean is to eliminate waste and for accomplish that one must
add value stream to LPM. LPM also incorporates value stream which helps in mapping the entire
process of project management. After successful mapping of that entire project, LPM also helps
in analysing areas of waste. Wastes here can be referred to unnecessary actions or steps that
compromise quality or tax resources. Aforementioned three types of waste are always revealed
by value stream mapping procedure. This process effectively eliminate after examination of
movement, features, materials and steps.
Flow: In addition to that, it helps in making value flow via elimination of wastes. Identified
waste can be discarded in value stream through generation of an improvement plan. Future state
of this project process can be represented by this plan.
Pull: In order to pull customers and make them retained generation of value flow is very
important. Optimal scenario can be moving that project forward or creating product on
requirement of customers.
Perfection: In order to save resources and reduce inventory, Quay must move close to this LPM
as much as possible. In quest of perfection, continuous improvement must be embraced.
Maximisation of efficiency and productivity and elimination of waste can be installed by
implementation of regular and continuous project assessment.

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Leading Lean Project Assignment 1 Individual Memo
Benefits of implementing LPM on stakeholders
Organisations like Quay implements LPM in order to be benefitted from this. Major
benefits that have been reported by application of this LPM can be described as reducing lead
times, reduced overall costs. Other benefits are lower storage costs from lowering inventory,
improved efficiency and productivity. Customer satisfaction becomes higher due to achieving
higher quality services or products.
Figure 1: Benefits of lean project management
(Source: Created by the researcher)
Increased visibility or transparency: LPM allows greater visibility of project status and risks,
long and short term plan, task priorities. LPM additionally aids in understanding that is doing
work and helps in assessing progress of project.

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Leading Lean Project Assignment 1 Individual Memo
Content customers: Seasoned product developer knows how to make their customers content
and happy. Development of products with less time possible allows faster delivery of services
and products. On the other hand, knowledge of reduced waste in manufacturing products helps in
retaining customers.
Enhance control: In order to manage resources and risks effectively, knowledge and better
understanding of entire team is required. As opined by (Young et al. 2016), better decision
making capability empowers team members to be more agile and responsive towards
development system.
Greater options: Selection of lean managements provides much opportunity to use alternate
route to not only make business sustainable but also reduce resource usage.
Increased productivity: Concept of lean managements of projects is not equivalent with “push”
techniques. Hence, it get much time for maintenance of services or products. In addition to that,
it also helps in curtailing breakdown timings. As a result, efficiency or productivity increases a
lot.
Faster projects: Better understanding in product development system and spending less time
allows quay to accomplish next project faster than previous. It is also aided by refined capability
of making fruitful decisions.
Sense of accomplishment: Sense of fulfilment can be achieved by accomplishing product
development project before being late, missing the market. It can be also felt when project can be
accomplished before strike of competitors. Satisfaction comes when high quality or valued
products are generated within less available time and as per commitment to consumers.
Enhanced profit value: Profit value can be increased exponentially by reducing excessive time
requirement for manufacturing of products. Customers’ needs can be fulfilled within time when

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Leading Lean Project Assignment 1 Individual Memo
creation of services or products is faster. In this way, profit value can be enhanced with increased
productivity and less time period.
Better resources: Resources can be obtained in enormous amounts because everyone wants to
work with leading and sustainable organisations. With much financial resources, it becomes easy
for Quay to gather adequate funds required for spare parts, test equipments and software tools.
Through much financial resources, it is also easy to accumulate sufficient human resources so
that they can carry the load.
Quality products: More options and more control allow meeting objectives of accomplishing
projects with less time, space and resources available. It does not mean that project management
will lead to deliver products or services that are devoid of values and quality. Greater and quality
products can be delivered when Quay get to know customers’ demands. Knowledge about
having sufficient control upon development system also helps in delivering quality services or
products.
Time reduction: Reduction of time is an integral part of this useful technique and it is frequently
used up by project managers to accomplish projects within less available time period.
Better efficiency: Efficacy of other resources and equipments get improved by adaptability of
this technique. According to Oakland & Marosszeky (2017), this lean technique is different from
principles of “push” technique.
Waste elimination: Appropriate lean techniques are implicated in order to eliminate
unnecessary or waste materials. The waste materials are identified as Muda, muri and mura.
Inventory reduction: Lean management of projects curtails the amount of inventory within a
store. The reason is that it requires availability for a shorter period of time.

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Leading Lean Project Assignment 1 Individual Memo
CSF or Critical Success Factors required achieving successful LPM installation
Critical success factor or CSF can be defined as some actions that need to be
accomplished to high quality or standard. It is also known as KRAs or Key Result Areas which
helps in achieving project goals (Chou & Pramudawardhani, 2015). CSF is also a method of
prioritising certain tasks during execution of project plan. CSF identification aids in
understanding critical or urgency rate of a task. In this way, individuals within a team can better
imbibe their role and perform task better to achieve project objectives.
Figure 2: Steps of lean project management
(Source: Man & Chua 2018)
It has been frequently observed that people fail to successfully implement LPM in their
organisations because they lack CSF. In order to be successful in installing LPM, Quay must
learn from these CSF and act accordingly.

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Leading Lean Project Assignment 1 Individual Memo
Utilisation of lean methods and tools: It is very crucial to utilise lean methods and tools in
project development through lean process. Certain lean methods and devices that are frequently
used by many organisations are 5S, value stream mapping and daily management. Other
significant tools are continuous improvement, team concept, and problem solving, visualisation
and waste reduction. As per Plenert (2016), lean production philosophy beholds all of these well
known methods. Successful incorporation of LPM in a plant, such methods and devices are
necessary and proficient. These tools when implicated alone, they fail to give progressive results.
Hence, Quay must use these tools along with other four CSF.
Sharing of profits and allocation of resources: Success can be achieved when adequate amount
of resource are allocated. It is also crucial to share a good amount of profit ratio with all of the
existing employees to make them satisfied and content. Turning lean program within Quay
cannot be feasible without proper coaching and support of local lean team. It also requires
distributed workforce within that organisation to implement Lean successfully. This type of
leaning transformation also requires a dedicated budget system. In addition to that, profit that is
earned by Quay through improvement and development must be shared with employees
(Quayconsulting.com.au, 2019). At initial stages, recognition and reward schemes can be
beneficial. Leaders and managers of project development must take into account effects of these
schemes in different cultural backgrounds while designing them. Employees with persisting
variation in cultural trait may behave sensitively with such recognition and reward schemes.
Having a useful plan and following it: One of the most crucial CSF is to preparing effective
planning and following it. Project managers of Quay must make distinct vision regarding
organisational needs. They must prepare an exact lean program planning at initial stage before
initiating LPM. This planning must be segregated into definite steps. Distinctly defined

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Leading Lean Project Assignment 1 Individual Memo
performance targets must be monitored and set. In order to regulate proper implementation of
certain leaning projects, regular monitoring and meetings must be held up. Managers must focus
on integrating lean rather running it separately in everyday business.
Providing training to workforce: Entire workforce of Quay must be trained and educated to
deliver lean implementation significantly to a project management. Without appropriate
understanding of lean, implementation of this could not be possible. At initial stages, managers
and leaders of Quay need to be educated and trained in LPM. One of the superior methods of
learning is to learn by doing work practically. In spite of that, some theoretical knowledge and
local coaching at beginning of LPM is necessary for project managers of Quay (Salgin et al.
2016). Adequate knowledge in the nascent stage can be accumulated by internal corporate
resources or external consistency firms. Another effective and quick way of learning can be
identified as by benchmarking similar organisations who have already installed lean in their
project management. As a whole, it can be commented that, it is better to rely on accumulating
local knowledge rather than taking continuous help from consultants.
Making commitment to lean program: Final but most significant success factor can be
explained as managerial commitment. It is very crucial in implementation of LPM without any
regard of location, corporation, plant size or other factors. Being lean project manager does not
mean to lead from office, but also to take part personally in that process (Salgin et al. 2016).
Thus, they can participate in answering questions of employees about importance of lean
management. It is also to ensure better communication, suggestion and listening to all employees
regarding LPM.

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Leading Lean Project Assignment 1 Individual Memo
Steps to ensure CSF and achievement of LPM through consultancy staffs
Aforementioned success factors are only helpful and effective for business organisations
like Quay when it is associated with indomitable will of good leaders and project managers. An
enthusiastic project manager can only make it possible to apply all these factors together with
their organisations and create a suitable team force through which LPM can be achieved. As per
contingency theory, common advices can never be universal rather contingent on that particular
situation. Success factors may also vary over time as per situational context. With advancing or
modernising era, there is an increasing trend of utilising automation and mobile technologies.
Hence, there are also some risk factors behind implementation of LPM in terms of CSF. LPM
consultants possess great role in orienting installation of LPM towards success. Lean consultants
are professional who are liable for operating lean operations proficiently through providing
empowerments to clients (Netland, 2016). Their principal responsibility is to cut down waste and
make employee understand that learning process is much efficient that regular project
management. Key liabilities of lean managers are mentioned as below.
● Lean consultant staffs help in regulating lean office and install lean principles. They are
also liable for maintaining quality of performances which is based on innovation of
processes.
● Lean consultants provide their own expertise and knowledge in this process and aid in
gradual improvement of that project.
● They also provide proper guidance and apply their technical knowledge in more complex
lean projects.