PPMP20009 Leading Lean Projects: Risk Analysis & Leadership at AEW

This report addresses the challenges faced by Australian Engineering Works Private Limited (AEW) due to new market entrants and employee attrition. It employs tools like histograms, Pareto charts, and fishbone diagrams to identify the root causes of declining profitability. The report includes a risk management plan with risk registers, qualitative risk analysis, and risk response strategies, including contingency plans and monitoring. Various leadership styles, such as charismatic, transformational, and transactional leadership, are discussed to determine the most suitable approach for AEW. The analysis highlights the importance of innovative strategies, efficient recruitment, and understanding market trends to mitigate risks and improve AEW's competitive position. The report concludes with a detailed examination of risk responses and their implementation, emphasizing the need for continuous monitoring and adaptation to changing market conditions.

Running head: LEAN PROJECT MANAGEMENT
LEADING LEAN PROJECT
Name of the Student
Name of the University
Author Note:

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LEAN PROJECTS MANAGEMENT
Table of Contents
1 Introduction...................................................................................................................................3
2 Problem Identification..................................................................................................................4
2.1 Histogram..............................................................................................................................4
2.2 Pareto chart............................................................................................................................5
2.3 Check sheet............................................................................................................................5
2.4 Control Activity.....................................................................................................................5
2.5 Fishbone Diagram..................................................................................................................6
2.6 Scatter Plot Diagram..............................................................................................................6
2.7 Chart Title..............................................................................................................................6
2.8 Stratification..........................................................................................................................7
3 Plan of Risk Management.............................................................................................................8
3.1 Risk Register..........................................................................................................................8
3.2 Qualitative / Quantitative Risk Analysis...............................................................................9
3.3 Risk Response......................................................................................................................10
3.4 Risk responses implementation...........................................................................................11
3.5 Monitoring of risk responses...............................................................................................12
4 Leadership style appropriate to bring about the change.............................................................12
4.1 Laissez –Faire......................................................................................................................12
4.2 Transactional........................................................................................................................12
4.3 Servant Leader.....................................................................................................................13
4.4 Transformational Leaders....................................................................................................13
4.5 Interactional Leaders...........................................................................................................13
4.6 Charismatic Leaders............................................................................................................14
6. Reference...................................................................................................................................15
7 Appendix.....................................................................................................................................18
7.1 Histogram............................................................................................................................18
7.2 Pareto chart..........................................................................................................................19
7.3 Check sheet..........................................................................................................................19
7.4 Control Activity...................................................................................................................20
7.5 Fishbone Diagram................................................................................................................21
7.6 Scatter Plat diagram.............................................................................................................22
7.7 Chart Title............................................................................................................................23
7.8 Stratification........................................................................................................................24

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LEAN PROJECTS MANAGEMENT
1 Introduction:
The paper will be assisting the senior management team of Australian Engineering Works
Private Limited (AEW) as they are facing serious challenges from the emergence of new
suppliers and emergence of new business organizations as a result the consumers of this industry
now have more options, some of the consumers are opting for better products from the new
organization. The other challenge faced by the senior management team of AEW is the risks
coming from the senior employees as they were joining the new players of the same industry
(Furterer, 2016). AEW has been facing a decrease in net profit due to the discussed challenges.
This paper will be finding the root cause of this issue with the help of specific tools such as the
histogram, pareto chart, fish bone diagram, scatter plot diagram, why technique, Chart title
diagram, check sheet, control activity diagram and stratification table. Each of the above
discussed tools have their own signification in understanding the impact of the different types of
risks faced by this business organization (Brioso, 2015). The problem identification unit is
followed by the risk management plan consisting of the risk registers stating the impact of each
of the discussed risk associated with the organization. It is followed by the qualitative risk
analysis and risk response plan where the contingency plan will be discussed briefly (Orzen &
Bell, 2016). The monitoring of the risk is also mentioned in the paper.
The various leadership qualities which can have their impact in the working environment
of AEW will be stated in the paper in a descriptive manner such as the charismatic leaders,
transformational; leaders, interactional leaders, servant leaders, transactional leaders and Laissez
Faire style leaders (Ansah, Sorooshian & Mustafa, 2016). The appropriate leadership style
required to mitigate the risks found in AEW will be also mentioned in the paper. Thus, from this
unit of the paper we understand the importance of the risks which are being faced by AEW
(Kliem, 2015). The paper will also highlight the root causes of the risks with the help of tools
such as Pareto chart, Scatter Plat diagram, Chart Title, 5 Why technique, Fish one diagram,
stratification and check sheet.

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LEAN PROJECTS MANAGEMENT
2 Problem Identification:
A list of project management tools will be used to find the root cause of the issues faced
by Australian Engineering Works Private Limited.
2.1 Histogram
The histogram helps in understanding how each of the risk are examined with the help of
the variables of the risks and the interval between each of the risks The distribution of the risks is
also identified in the histogram (Özdemir, 2016). The arrival time and frequency of the risks
faced by AEW are considered in this tool. Apart from finding the main risk from a series of risk
it also highlights the importance of mitigating the other significant risks.
2.2 Pareto chart
The pareto chart is also defined as a type of histogram used to understand the impact of a
specific risk among a series of risks. The pareto chart diagram helps in understanding the impact
of each of the risks and the ultimate conclusion for these adverse situation (Cleophas &
Zwinderman, 2015). The threats from the market competition is the most vital threat according to
the pareto chart and it is followed by the other threats like employee retention and threats from
the emergence of new suppliers. The frequency of the challenge is stated in the diagram.
2.3 Check sheet
The check sheet diagram helps in understanding the 4 defects which are the main cause
behind the decrease in net profitability along with the importance which has to be given to each
of them based on marks out of 5 (Douglas, 2018). The defects which are the most vital will be
presented in the table. The check sheet helps in understanding that the market competition and
the threat coming from the new suppliers are the most essential risks which has to be mitigated
as soon as possible.

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LEAN PROJECTS MANAGEMENT
2.4 Control Activity
The impact of controlling the four different categories of risks are considered while
created the control activity diagram. The time taken by the risks are also mentioned in the
diagram. The limits of the risks are also mentioned in the diagram (Koehler, 2017). The threat
from the consumer opting for new options are considered in this diagram.
2.5 Fishbone Diagram
The fishbone diagram helps in understanding the root causes behind the failure of the
organization. Each impact associated with the cause are stated in the paper. The issue of senior
employee retention has been selected are analysed using the concepts of the fishbone diagram.
Each probable reasons behind the senior employees joining new players are examined and
diagram is created accordingly.
2.6 Scatter Plot Diagram
The scatter plot diagram helps in understanding the increasing impact of the four reasons
behind the downfall of AEW. The impact of each of the risks may be different from each time.
Two variable are plotted in the X-axis (Visveshwar et al., 2017). According to the given scatter
plot diagram it can be said that the threats coming from the clients of this organization opting for
new substitute products and the emergence of the new similar organization are the twi main risks
of AEW.
2.7 Chart Title
The chart title of this assignment helps in understanding the different impact of the four
discussed risks such as the market competition, threat from substitute products, inefficient
employee turnover and ineffective business strategy. The threat from the substitute products have

6
LEAN PROJECTS MANAGEMENT
maximum impact on the profitability (Akpolat, 2017). From the chart title we can understand
that the tough market competition and the threats coming from the consumers using alternative
products are the main risks associated with AEW.
2.8 Stratification
The stratification pyramid helps in understanding the importance of the risks which have
maximum impact on the business loss suffered by this business organization, it was found that
the lack of innovative powers is the primary reason behind the failure. Lack of business
strategies and no efficient recruitment procedure can be the other two reasons (Tupa, Simota, &
Steiner, 2017). The lack of innovative products and the inefficient business strategies are the two
main cause behind the downfall of AEW. The stratification pyramid also helps us understanding
that business organizations must have professional recruitment system and appraisal process so
that the resources of the company can be utilised for longer period of time.
5 Why’s technique
The 5 Why technique is defined as the type of technique which are used for investigation
purposes. According to this investigation technique it can be said that the problems for which the
net profitability of AEW has decreased can be identified with the help of the 5 questions. This
tools can be very much useful to analyse the problems faced by business organizations
(Matthews, Yousefi & Kuncheva (2018). The probable questions which can be useful to
understand the root cause of the problem are as follows:
 What is the existing market position of AEW among the similar organization?
 Which stakeholders are responsible for the business loss?
 What is the root causes of the risks faced by AEW?

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LEAN PROJECTS MANAGEMENT
 What are the impact of each of the risks?
 Why is the not providing the career prospects to the employees?
Table 1: Application of 5 Why technique on the case study
(Source: Created by the author)
3 Plan of Risk Management
3.1 Risk Register
Serial
Number
Reason
behind risk
occurrence
Description
of risk
Risk impact Contingency
1 Senior
management
employee
New
suppliers
coming to the
market
High New business
strategies
must be
incorporated.
2 In efficient
production
team
New option
for
consumers
Moderate The current
trends have
to understood
by the
production
team.
03 Senior
management
team
Market
competition
High SWOT
analysis can
be useful to
understand
the current
market
condition.
04 Better career
prospects in
the other
organizations
Senior
employees
are joining
new players
Moderate Maintain
good
employee
turnover.
Table 2: Risk Register of AEW
(Source: Created by the author)

Running head: LEAN PROJECT MANAGEMENT
3.2 Qualitative / Quantitative Risk Analysis
Identification of risk Qualitative Risk Analysis Risk Plan Response Risk Monitor
Categ
ory
Risk
Id Risk Risk Event Probability (P) Impact (I)
Ris
k
Sco
re
(PI
)
Risk
Ran
k
Potential
Response
Cost
Implication
Ris
k
Ow
ner
Date
Raised
Date
Closed
Stat
us
Hi
gh
Medi
um
Lo
w
Hi
gh
Medi
um
Lo
w
0.
25 0.5 0.
75
2.
5 5 7.
5
Financ
ial
Risk
1
Competitio
n in the
market
Business direction ¤ ¤ 1.2
5 3
Improve
corporate
strategy $400
Ne
w
org
aniz
atio
ns
10.01.20
19
20.01.2
019
Organi
zation
al
Risk
2
Employees
are joining
new
players
Change in
management
structure
¤ ¤ 2.5 2
Professional
appraisal
process $300
Ma
nag
eme
nt
tea
m
20.1.201
9
10.03.2
019
Financ
ial
Risk
3
New
option for
consumers
Material Pricing ¤ ¤ 3.7
5 1
Improve the
range of
products
and product
quality
$800
Sen
ior
man
age
men
t
1.1.2019 25.2.20
19
Techni
cal
Risk
4
New
suppliers
coming to
the market
Management of
resources/ project
budget
¤ ¤ 0.6
25 4
SRM
Technique $3,000
Ma
nag
eme
nt
10.10.20
18
28.11.2
018

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LEAN PROJECTS MANAGEMENT
Work in
progress
Work under
plan

Running head: LEAN PROJECT MANAGEMENT
3.3 Risk Response
Risk Risk Ownership Strategy Connection
New suppliers
coming to the
market
The new suppliers The business
management
techniques can be
successfully used to
minimised the risk
coming from the
new suppliers
(Shokri, Waring &
Nabhani, 2016).
The business
practices with the
external
stakeholders must
be revised
according to market
conditions.
Competition due to
the new players
New players Business reach
should be increased
and fresh marketing
strategies should be
implemented
(Holmemo, Rolfsen
& Ingvaldsen,
2018).
Business trends
should be
understood by the
engineers of the
organization.
New option for
clients
Consumers Customer
engagement
procedure should be
adopted by this
business
organization
Security of products
and services should
be maintained.
Employees joining
new players
Senior staffs Professional
appraisal procedure
Bonus and
incentive schemes
for employees at all

11LEAN PROJECTS MANAGEMENT
level.
Table 3: Risk responses
(Source: Created by the author)
3.4 Risk responses implementation
Risks Explanation of implementation plan
Risk from employee joining new players Efficient recruitment procedure and the
formal appraisal policy would have saved
the senior most staffs of AEW to join the
new players in the market.
New option for clients Advanced customer engagement
procedure would have minimised the issue
coming from the clients as they were
considering products from the new
organizations.
Tough competition in the market The requirements and needs of the
consumers should be understood in order
to deal with the problem. External
environmental analysis tools such as
PESTEL and SWOT analysis would have
made this organization understand their
market position.
New supplier coming to the market CRM technique can be hugely beneficial
to deal with the threats coming from the
emergence of the new suppliers with
enhanced bargain powers.

12LEAN PROJECTS MANAGEMENT
Table 4: Implementation of risk response
(Source: Created by the author)
3.5 Monitoring of risk responses
Each of the discussed risks associated with AEW should be carefully monitored
so that the contingency plans which are described above can be successfully implemented
(Mayer, et al., 2016). Along with the effort from the management team the role of the
project managers with different categories of leadership style may be significant to deal
with the risks.
4 Leadership style appropriate to bring about the change
The diffident categories of leadership qualities which can play their role in
dealing with the different types of risks which are being faced in AEW are interactional
leader, charismatic leader, transformational leaders, servant leader, transactional leaders
and Laissez Faire Style leaders.
4.1 Laissez –Faire
Allowing the distributors of AEW to take business decisions to deal with the
suppliers of this organization could have avoided the threat coming the emergence of new
suppliers (Hillson, & Murray-Webster, 2017).
4.2 Transactional
The incorporation of a feedback platform could have been useful in the working
organization of AEW to understand why the consumers are opting for new products and
why is a threat if new players comes in the same market (Frankel & PGCMS, 2018).