Implementing Lean Principles in Government Projects

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PPMP20009: Leading Lean Projects
Assessment 1
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To: All Staff
CC: Board of directors
Date: 10 May 2019
Subject: The introduction of the principles of lean project management for undertaking
government work.
The "lean project management" refers to the application of the principles of lean manufacturing
for practicing project management. The focus of lean project management is on making
improvements and reducing the waste by making the optimum utilization of the resources of the
organization. The purpose of the memo is to inform the organization’s all staff members
regarding the implementation of the “lean project management principles” in future projects of
consultancy so that the organization can undertake easily the government’s project work. The
memo will also provide employees with information about the proposed process of
implementation of "management of lean projects”.
Initial reasons for the implementation of LPM:
The main reason for the implementation of LPM is that with the effective implementation of the
different principles of “LPM” our project management consultancy will be better able for
undertaking the work of government projects which will bring additional revenue to the
company and will enhance consultancy’s credibility and reliability. All the process of the
organization’s management will be considered by the LPM with the purpose of introducing
improvements in them. The second reason for LPM's implementation is that it will help in
enhancing the project team’s efficiency and they will be able to perform more effectively. The
third reason is aiming to eliminate the time wastage and making the best utilization of the
organization's resources so that the overall improvements in the management consultancy can be
made. The overall improvement will lead to creating better value for the products and services of
the organization in the long run (Emblemsvag, 2014, p. 185).
The fourth reason is that the five principles of LPM will help the consultancy in understanding
the desires and need of customers in the better manner and the organization will focus more in
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adopting such activities and making such decisions that can increase the satisfaction level of
customers and customers are very important stakeholders of all the organization. By this the
customer loyalty will also increase which will enhance the brand image of the consultancy,
hence getting many projects which will ultimately increase the profitability level and profit
margins of the organization and the path for the consultancy’s growth will be easier.
The value stream principle will help the consultancy in eliminating all the unvalued things so
that the project’s work can flow smoothly and can proceed further without any delays and
interruptions for achieving the final goals. Identification of value, mapping the stream of value,
creating flow, establishing pull, and seeking perfection are the LPM’s five principles. The
financial and material resources of the organization and time of employees can be efficiently
used through this which will help in eliminating the waste. The high margins of profits, increased
quality of the product, decreased costs, and greater satisfaction of customers will be achieved.
The good knowledge will be empowered by the team members and this will help in making
effective decisions. The consultancy will be better able for timely completion of projects within
the allotted budgets along with meeting the requirements of customers, manufacturing lead time
can be reduced, a culture of empowerment will be developed which will motivate the employees
and their productivity level resulting in effective performance of management’s functions such as
organizing, directing, monitoring, planning and controlling (Sunder, 2016, p.140).
Benefits to different stakeholders by the implementation of LPM
The project management consultancy’s stakeholders include employees, government, investors,
customers, creditors, suppliers, and directors. Each stakeholder will benefit individually through
the LPM’s principles introduction in the organization. These are described below-
Government-
 Reduction of wastage through the application of principles and tools of LPM
 Availability of clean and quality products in the market
 The funding of tax-payers can be done efficiently
Customers-
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 They will get high-quality services as the LPM will focus on improving the process of
management and ensuring the delivery of quality services.
 Service-oriented values of the organization will increase customer satisfaction and
customer loyalty will develop towards the organization.
Directors-
 It will reduce the unproductiveness and inefficiencies which will make it easier for the
directors and managers of the company to focus more on important areas and projects Better decisions can be made by directors as the LPM will improve consultancy’s
management. Data analysis will become easy Reduction of wastage of time will enable them to make effective use of the capabilities
of employees and financial and material resources of the organization can be utilized
more efficiently High margins of profit Better visibility of project at the team level and more efficient process of business
Employees-
 Empowerment’s culture will be developed
 It will allow employees to participate in the decision-making process and improvements
process which will enable them to implementing the different operations in a better way.
 The proper management of different resources and risks
 Enhancement in the employees’ collaboration which will reduce the conflicts and
disputes among the employees
 The accountability of employees will also get increased through this which will enable
them in performing their work on time or within the deadlines
 Team morale will increase as through the LPM’s implementation the productivity level
of employees will improve
Investors-
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 They will get a high amount of return due to the efficient business process and high
margins of profits to the consultancy
 The credibility towards the consultancy will increase which will make them invest more
with the expectations of high return
Critical success factors needed to be within a consultancy organization so as to achieve the
LPM's successful implementation
Critical success factors are significant for the growth and success of the organization. It is the
CSF through which the project management consultancy can successfully implement “lean
project management’s principles”. The consultancy should have integrated process and the core
integrated process includes risk management, change management, TQM and six sigma, and
concurrent engineering.
The proper programs of training and development should be organized for the whole employees
regarding the lean as without its knowledge the successful implementation will not be possible.
So all the employees have to attend the training and development programs which the
consultancy will plan to organize and this will help all the staff members in smooth operations of
their tasks. Their productivity level will also get increased and the efficiency of performance will
enhance.
The support and involvement of management will be required as one of the priorities in the CSF
for lean project management. The management team should understand and learn the LPM
principles and their commitment will enable the consultancy’s employees in understanding new
projects of lean management. Through highlighting the clear mission and vision all the staff
members will get involved. The team of management should act as a driving force for making
continuous improvements and communicating employee’s organizational goals, lead them by
example, highly engage themselves, and totally commit for driving into the culture of LPM
(Knol.et.al, 2018, p.3960).
Effective programs of leadership development will help the consultancy in producing good and
strong leaders who will educate the staff about lean management’s basic requirements and
concepts. It is very essential that LPM should be linked with the business strategies of
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consultancy so that all the strategies of business can achieve the quality services, reduced waste,
decreased costs, improved process, and functions of management. The knowledge regarding the
different tools and techniques of lean will be provided to the employees which include daily
management, the concept of team, problems solving techniques, mapping of the value stream,
waste reduction and visualization.
Frequent and proper communication should be maintained on the results of LPM so that the
focus on the projects can be made reducing the costs, eliminating the waste, and variability
reduction in the process. The potential areas of improvements will be provided through this and
analysis of the gap can be made enabling to develop the strategies so that the organizational
objectives can be achieved.
Organizational culture is that CSF which the implementation of LPM will require adjustments
in an attitude of employees should also get change so that there is no resistance to change and
the LPM principles can be introduced successfully resulting in generating high margins to the
organization and moves it towards the growth of success. For this, it is significant for all the staff
members to understand the necessity of LPM. Creation of a supportive culture of an organization
is crucial for its implementation (Pons, 2017, P.478).
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References
Knol, W., Slomp, J., Schouteten, R., & Lauche, K. (2018). Implementing lean practices in
manufacturing SMEs: Testing ‘critical success factors’ using Necessary Condition
Analysis. International Journal of Production Research, 56(11), 3955-3973. DOI:
https://doi.org/10.1080/00207543.2017.1419583
Pons, D. (2017). Success factors and barriers to implementing lean in the printing
industry. Journal of Manufacturing Technology Management, 28(4), 458-484. DOI:
https://doi.org/10.1108/JMTM-05-2016-0067
Sunder M., V. (2016). Lean six sigma project management a stakeholder management
perspective. The TQM Journal: The International Review of Organizational
Improvement,28(1), 132-150. DOI: https://doi.org/10.1108/TQM-09-2014-0070
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