PPMP20009, Term 2: Continuous Improvement Plan for PEW Project Report

This report presents a comprehensive continuous improvement plan for Precision Engineering Works (PEW), an original equipment manufacturer in the telecommunications industry. Facing declining profitability due to increased competition, the report identifies the root causes of PEW's challenges, including ineffective project management, lack of stakeholder communication, and inadequate market analysis. It utilizes tools like data tables, Pareto analysis, and cause-and-effect diagrams to diagnose the issues. The report proposes a continuous improvement plan based on the PMBOK methodology, focusing on improving project efficiency, customer satisfaction, and strategic alignment. It details problem mitigation strategies, resource allocation, communication plans, and performance tracking, aiming to enhance PEW's competitiveness and long-term sustainability. The plan addresses issues such as employee skill gaps, strategic alignment, and project cost estimation, providing actionable steps to improve PEW's operational performance and market position.

Leading Lean Project

Contents
A. Project Overview...........................................................................................................................2
Project Aim:......................................................................................................................................2
Project Scope.....................................................................................................................................2
B. Identification of root cause analysis...............................................................................................2
C. Application of tools and technologies............................................................................................3
Assumptions......................................................................................................................................4
D. Continuous improvement plan.......................................................................................................4
Problems identified............................................................................................................................5
Action Taken.....................................................................................................................................6
Resources Required...........................................................................................................................6
Follow-up action and status...............................................................................................................8
E. Competencies..............................................................................................................................12
Business and strategic management.................................................................................................12
Technical Management....................................................................................................................13
Leadership.......................................................................................................................................14
F. Conclusion...................................................................................................................................14
G. References...................................................................................................................................14
H. Appendix.....................................................................................................................................16

A. Project Overview
The PEW organization deals with the development and manufacturing of the plastics
moulding parts for the growth and development of the telecommunication industry. It is a
repute company and serving the telecommunication industry from last 30 years. The market
competition is increasing at a very high rate. The emergence of new suppliers has a direct
impact on the decreasing profit of the company which is about 45%. The suppliers are
provided the tools and equipment at better price. The owner of the company has decided to
improve the relationship with the customers and suppliers. The management team is looking
forward to analyse the root cause of the scenario and the solution to improve the turnover of
the enterprise. The purpose of this paper is to identify the root cause of the organization
failure, use of tools and technologies to understand the real situation of the company, and
develops a continuous improvement plan for attaining long term sustainability of the
enterprise.
Project Aim:
The aim of the project is to develop a continuous improvement plan for increasing the
turnover of the PEW organization.
Project Scope
The scope of the project is to analyse the problem domain which exist with the failure of the
organization working policies. The identification of the root cause for the inefficiency of the
operational plan should be clearly identified with the application of tools and technologies.
The continuous improvement plan should be developed for optimizing the profitability and
turnover of the organization with the deployment of project management methodologies.
B. Identification of root cause analysis
The study of the PEW project report helps in analysing the root cause of the project failure.
The case study helps in identifying the area of improvement for increasing the profitability of
the enterprise. The PEW organization is not having effective plan and process schedule for
developing and manufacturing of the products and tools. The limitation of the project activity
schedule results in overrunning of the cost which has a direct impact on the financial stability
of the enterprise. The internal and external stakeholders are not connected with effective
communication system. The organization hierarchy is not properly developed for managing

the flow of communication. The project owner and the top executives of the organization are
not actively participates in making good and healthy relationship with the suppliers and
customers. There is no medium undertaken for managing relationship with the global
customers (Owens, 2010). The sale of the product is limited to the local customers only. The
organization does not design an improvement plan for considering the feedback and reviews
of the customers (Otieno, 2014). The market analysis and the price fixed by the market
competitors are not taken under consideration during the setting of price and cost of the
manufacturing product. There is no technology indulged for promoting the product among
the customers. The organization do not sale out their manufactured product with a tag line or
a brand name (McClinton, 2013). The sale of the organization can be improved by
overcoming the issues and problems associated with the working architecture of the PEW
enterprise.
C. Application of tools and technologies
The tools which are used for identifying the root cause of the decreasing rate of product sale
are listed below:
Data Tables: The data tables are prepared for analysing the gaps and flaws which exist with
the working architecture of the organization. The development of the work matrix helps in
analysing the contribution of the stakeholders according to the salary provided to them. The
division of work should be according to the efficiency and capability of the stakeholders. The
data tables helps in analysing the status of work done by the stakeholders in the given period
of time. It helps in identifying the process of communication used for managing the flow of
information and resources among the member participants.
Pareto Analysis: The Pareto analysis helps in identifying the team management plan for
solving the problems and complexities associated with the operational plan of the PEW
enterprise. It is the visual format for identifying the limitation and problems. The progress
report of the enterprise can be analysed.
Cause and Effect Analysis: The cause and effect diagram helps in developing the graphical
representation of the problems and their impact on the working operational plan of the
enterprise. The limitation of the project charter, cost estimation, distribution of
responsibilities, system analysis, quality standards, stakeholder engagement plan, and others

had a direct impact on the project schedule, quality of product, delay in the project,
overrunning of cost, and resource utilization.
Check List: The quality checklist is prepared for analysing and reviewing the customer
demands with the expected quality of the manufactured product of the PEW organization.
The checklist is prepared for analysing the status of the project processes undertaken such as
completion of the project scope management plan, identification of risks, project benefits,
costs, and others.
Histogram: The histogram is prepared for analysing the resource utilization for completing
the project activity schedule within the given specified time. The emphasis should be given
on tracking the work performance of the team members and their contribution in the
completion of the project schedule.
Scatter Diagram: The scatter diagram is used for analysing the sale of the manufacturing
product. The profit and loss of the organization can be measured with the demonstration of
the scatter diagram.
Control Charts: The control charts are used for analysing the performance of the project
schedule and the completion of work with the given specified time of the project.
Assumptions
 It can be assumed that the project stakeholders are having good expertise in their
respective work
 The distribution of the resources and information is effectively carried out in the
working and operational plan of the enterprise
 Employees accept the change management plan without putting any obligations
 Work is divided among the team members according to their skills and expertise
 Machinery and equipment are of good quality
D. Continuous improvement plan
The continuous improvement plan is developed for the PEW organization to manage stability
in the global competitive world. The efficiency of the manufacturing product sale should be
increased for enhancing the profit and turnover of the enterprise. The PMBOK methodology
is selected for developing the continuous improvement plan for the enterprise. The
deployment of the PMBOK methodology helps in increasing the customer satisfaction,

alignment of strategic plan of the business with the organization goal and objectives,
increases manufacturing productivity of the organization, helps in gaining competitive
advantage, increases operational functionality of the enterprise, improving better
management of the cost estimation plan, analysing the market competition and trend and
technologies used by them in the development of the product, predicting the performance of
the project that it meets the quality standard or not, improving level of communication
between the member units, and increasing efficiency of decision taking.
Problems identified
The following tables shows the problems which are identified with the deployment of
continuous improvement plan and changing the traditional way of completing the project
manufacturing process.
Problems
Identified
Issues
Severity
Issues
Likelihood
Issues
Ranking
Risk
Probability
Risks
Impact
Risks
Description
Change in the
organization
goal and
objectives
4 2 6 High Medium The employees
are not aware of
the change in the
organization goal
and objectives
Strategic
issues
1 3 4 Medium High The strategy of
the project is not
appropriate
according to the
need and
requirement of
the project goal
Selection of
correct project
methodologies
3 1 4 Medium Low The right
methodology is
not selected for
developing the
project schedule
Incompetency
of the
employees
1 2 3 Low High The employees
are not having
skills and

expertise in
carrying over the
required project
responsibilities.
Wrong
estimation of
project cost
3 3 6 High Medium The market
analysis of the
project is not
properly done
Action Taken
Problems Identified Problem mitigation strategy
Change in the organization goal and
objectives
The changes in the organization goal and
objectives should be done with the active
participation and contribution of the stakeholders
Strategic issues The strategy and operational plan should be
developed according to the project goal
Selection of correct project
methodologies
The project management methodologies helps in
improving the design of project schedule
Incompetency of the employees The extra training program should be arranged for
the employees to develop their skills and expertise
according to the project requirement
Wrong estimation of project cost The market analysis and price fixed by the
competitors should be evaluated before
developing the project cost estimation plan
(Krahn, and Hartment, 2006)
Resources Required
Resources No. of units Responsibilities
Project Owner 1 Identification of change
request
Clarification in the

requirement specification
plan
Project Manager 1 Identification of root cause
Selection of project
methodology
Selection of tools for
analysing the problems
Development of cause and
effect diagram
Development of project
schedule
Distribution of required
work
Setting of time duration
System designer 2 The system is designed for
developing the marketing
strategies for the
organization (Mansfield
community, 2013)
Internal Consultant 2 Innovative ideas for
branding
Innovative marketing tools
Development of product
features videos
External Consultant 2 Focuses on managing good
working climate’
Focuses on developing good
relationship with the
supplier
Focuses on managing
relationship with the
customers from the global
world

Focuses on minimizing the
political risks and control
over the working
performance of the project
(Rauber, 2014)
Risks Manager 1 Identification of problem
domain
Development of problem
mitigation strategy
(Passenheim, 2015)
Quality manager 1 Develops the quality
standard for the project
Project Sponsors 3 The funding should be
approved by the investors.
Follow-up action and status
Resources Messages Frequency Communication
tools
Receiver Status
Project
Owner
Identification of
change request
Clarification in
the requirement
specification
plan
Monthly Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Manager
Completed

Project
Manager
Identification of
root cause
Selection of
project
methodology
Selection of
tools for
analysing the
problems
Development of
cause and effect
diagram
Development of
project schedule
Distribution of
required work
Setting of time
duration
Daily Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Owner
System
Designer
In-process
System
designer
The system is
designed for
developing the
marketing
strategies for the
organization
Daily Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
(Kharaiweish,2013)
Consultants In-process
Internal
Consultant
Innovative ideas Monthly Emails Designer In-process

for branding
Innovative
marketing tools
Development of
product features
videos
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Manager
External
Consultant
Focuses on
managing good
working
climate’
Focuses on
developing good
relationship with
the supplier
Focuses on
managing
relationship with
the customers
from the global
world
Focuses on
minimizing the
political risks
and control over
the working
performance of
the project
(Moujib and
Monthly Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Manager
Project
Owner
Completed

Aziz, 2017)
Risks
Manager
Identification of
problem domain
Development of
problem
mitigation
strategy
(Vaskimo, 2012)
Fortnightl
y
Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Manager
Completed
Quality
manager
Develops the
quality standard
for the project
Monthly Emails
Telephone
Face to face
discussion
Round table
discussion
Newsletter
Circulars
Audio
Conferencing
Video
Conferencing
Social Networks
Project
Manager
Not
Started
Project
Sponsors
The funding
should be
approved by the
investors.
Emails
Telephone
Face to face
discussion
Round table
discussion
Project
Manager
In-process