To: ALL STAFF

From: Raj Kumar Peru, Director

Subject: PPMP20009 Leading Lean Projects

Date: May 17, 2019

The purpose of the memo: To inform all the staff about the decision and proposed
implementation process for LPM.
 LEAN PROJECT MANAGEMENT

Introduction
Lean project management (LPM) is a procedure where the lean manufacturing techniques are
actualized in the project management. There are different sorts of project that an organization will
attempt like giving administrations, creating items and procedures. So as to concentrate on the
constant improvement of this procedures, the lean project management utilizes various information
driven strategies to deal with the activities. With the usage of lean manufacturing methods in a
project the management offer significance to the accompanying perspectives in any project:
 Improvement of quality
 Cross functional work team empowerment
 Analysis of data
 Improvement in the customer value
 With the efficient use of materials, financial resources and employee time the waste
production can be minimized.

In a complex projects which are mostly impacted by the factors like cost and limited resources
then the lean project management is the best approach to implement and get effective results. There
are different methods in the lean project management they are Deming cycle, Kanban and lean six
sigma (DMEDI). In order to eliminate waste, the lean project management methods primarily
focuses on the following aspects in a project such as visual documentation tools, ongoing analysis,
in depth analysis and process improvements. The main objective of the lean techniques is to
improve the profit margins and also customer satisfaction by cutting waste in the projects.

Initial reasons for implementing LPM

As referenced before, the principle motivation behind executing LPM is decrease non-value work
action from the manufacturing procedure. There are four principle explanations behind
implementing the LPM they are as per the following:
Stream lines the organization's procedures: By implementing lean in any project or association
will increments and witness the efficiencies of the producer by making them to work at their
maximum capacity by stream covering the whole activities in the association right to the dispersion
from the front office. This will help in the decrease of the manufacturing cost and speed to the
market will be expanded.
Removes waste: The major reason for the implementation of lean is that it removes waste in the
manufacturing. Generally, lean removes wastes in nine areas they are as follows: motion, waiting
time, inventory, quality, information, overproduction, transportation, creativity, processing and
inventory.

Building team commitment: one of the bit of leeway by executing lean is it will fabricate and
improve team responsibility, on the grounds that for implementing lean in any association it need
full participation of the considerable number of representatives this makes every one of the workers
to be required by making them know every one of the procedures in the manufacturing. This can
acquire better outcomes for the association.

The job is never done: lean provide continuous improvement in the project, in order to become
leaner it will provide continuous opportunities.

Benefits that can be gained by the various stakeholders in a project from implementing LPM
As I referenced before there are a few advantages by implementing the LPM in any project in an
association. There are likewise a few advantages for every one of the stakeholders associated with
the project and association. Coming up next are the advantages required for the partners by
executing the LPM. The major benefits of implementing the lean project management are: it will
add value to the project by removing waste and providing neat and clean product. It will reduce
overall waste in the project by implementing proper lean techniques. Inventory will be reduced
because leach techniques does not need much of inventory for longer period, they only need for
short durations. Since lean is not a Push technique it will provide better efficiency by improving
the efficiency of the equipment and resources. Because of the LPM implementation, the project
will be evaluated at each phase this will help to complete the project on time. LPM also improves
the major important factor called lead time reduction. By the LPM the break down time of the
equipment will be reduced due to proper maintenance this will increase the overall efficiency of
the equipment and project.

Advantages to the Firm/Team

 Profitability of issue will be improved.
  Client fulfillment will be improved enormously.
 The incomes from the customer will be expanded.
 Risk the management will be improved.
 The separation between the contenders will be expanded extraordinarily.
 In the workplaces there will be an extraordinary consistency.
 With the project team the collaboration and coordination will be expanded.
Advantages to the customer
 The consistency will be improved significantly.
 The correspondence among the customer and the association will be improved so that there
will be no curve balls for the customer.
 Legal works can be more overseen than previously.
 The administrations will be with in the financial limit and will be on schedule.
 They efficiencies of the item or administrations will be improved.
 The consistency will be improved and the work quality will be upgraded.
 The trust and connections will be improved among the customer and the temporary
workers.
Critical Success Factors that need to be in place for successful implementation of LPM
Critical success factors (CSFs) are the sure explicit methods, components or exercises on which
the project coherence is depended. For each successful project execution there will be sure critical
success factors that characterizes the accomplishment of that project in any association. These are
otherwise called key outcomes regions (KRAs). While project any project, one should initially
recognize the critical success factors that administers the accomplishment of that project and
spotlight on them to accomplish better outcomes. In comparative manner there are likewise lean
project the management has additionally CSFs that oversees its successful usage in any project.
An investigation demonstrated that the out three lean usage two are getting neglected to execute
effectively due to poor CSFs in their projects. Up on research, I found that for the effective usage
of LPM there are five key CSFs that should be engaged in any project. They are as per the
following:
 Commit to lean program: everyone thinks that the commitment to the lean program is
just providing and implementing the lean principles from the managerial level by sitting in
the office, but that does not enough for the successful implementation of the LPM, every
manager should come to the work floor and participate in the discussion about the LPM
implementation and should share and listen to the suggestions given by the employees.
They should also clearly explain the employees about the importance of LMP
implementation for the better change.
 Train the workforce: this basic achievement factor is additionally key for the effective
execution of the LPM, in this, an appropriate data and preparing ought to be given about
the lean systems and strategies that we are proposed to actualize in the association to the
specialists. Without appropriate learning on the lean it is absurd to expect to actualize LPM.
The principal people to be prepared about the lean in an associations are project chiefs,
since they are the person who lead the project from the front and guide the laborer a
legitimate way to accomplish the project objectives. The greater part of the preparation or
finding out about the lean should be possible through work however toward the starting
stage a help ought to be given. So for this reason a nearby outside consultancy firm can be
contracted.

 Have a plan and follow it up: before implementing the lean everyone should develop a
proper plan which consists of how to introduce the lean techniques in the project, how to
bring awareness among the team, how to train them and then should follow the plan
accordingly. The plan should consist of what method or technique that we are intended to
use in the project, the vision of the project, the targets should be clearly set and monitored,
and also in order to check whether the plan is implementing correctly we should conduct
regular meeting and discuss about the changes to the lean implementation.
 Allocate resources and share the gains: on the major basic achievement factor is
dispensing the required spending plan and assets required for the successful execution of
the LPM in the project and should impart the advantages to the representatives with the
goal that they will have appreciation towards the association and will work all the more
proficiently. This is on the grounds that successful execution of lean and fulfillment of the
project is unimaginable in any association without the assistance and coordination of the
 nearby team. Indeed, even structure the start of the project the reward and acknowledgment
strategy ought to be executed and every representative ought to be perceived and
remunerated for their work.
 Use lean tool and methods: finally this is the most important critical success factor that
play crucial role in the successful implementation of LPM. Value stream mapping, daily
management, team concept, waste reduction, visualization, problem solving and
continuous improvement are the most common lean tools and methods that are
implemented for the successful implementation of the LPM. Alone these tools and methods
cannot achieve success in any project but along with the above mentioned CSF these lean
tools and methods proved to be best for any successful implementation of LPM.

Steps by which you propose to ensure CSF are in place and how to achieve the LPM mindset
within the consultancy staff
As referred about over the critical success factors assume a fundamental job in execution of LPM
in a project with the assistance of outside help consultancy in light of the fact that these critical
success factors that I have portrayed above are the key outcome regions in the project. I have
proposed the accompanying strides to guarantee whether CS are set up and to accomplish the LPM
mentality inside the consultancy staff:
Management engagement and commitment: this factor should be considered to achieve the
LPM mindset with the consultancy staff because any successful initiative like LPM
implementation should be done by the management with sheer interest and commitment towards
the achieving a common goal for the organization, they should bring awareness among the
employees in the project team. If strong commitment and engagement from the top management
is lacked then the spirit and energy to participate in the project will be decreased for the team
members. Studies shows that due to poor management commitment and engagement the
implementation of LPS has been failed in some companies.

Reward and recognition system: the working execution of an utilize can be improved, all things
considered, by implementing legitimate reward and acknowledgment framework in an association.
It is typical that each individual will look for some sort of acknowledgment for the work he
performed in a project. By giving legitimate acknowledgment or remunerating a worker for his
indispensable commitment towards the advantage of the association will support the eagerness
towards his work and they will put additional push to take care of business. While presenting the
new systems like LPM in the work environment, it will be smart thought to present reward and
acknowledgment approach in light of the fact that the colleagues will indicate enthusiasm towards
the new strategy and add to accomplish the objectives.
Competency of master black belt and black belt: in most of the organizations the
implementation of LPM in the projects has failed due to poor project management skills. Most of
the organizations will hire the BB and MBB project leader who does not have full time experience
on the LPM techniques or tools and they will not be able to guide the team members in the right
direction. So, while hiring BB and MBB one should hire well experience and committed person
for the project manager position so that he will make strategic planning for the implementation of
new LPM techniques in the project. It is clearly evident that MBB and BB are crucial steps that
need to be checked for the success of LPM program.

Organization Financial Capability: for any project achievement the most significant factor that
is considered in the budgetary ability of the organization. Fund is the components that makes each
thing occurs in a project like, contracting colleagues, gaining assets, consultancy and preparing
will likewise be masterminded just if the organization has great monetary capacities. Since
preparing is one of the real thing that the administration ought to give to the workers about the
recently presented LPM systems or instruments generally the colleague can't execute according to
the organization desires which will prompts increment in the waste generation and just as spending
plan of the project. With legitimate speculation the administration will most likely give sufficient
assets, instructional meetings and materials, can give reward and acknowledgment arrangement
and a lot more to inspire the representatives. With this the targets of the project can be
accomplished effectively by executing LPM methods and apparatuses.
Frequent communication and assessment on LPM results: this is also one of the important step
that can be used to ensure CSF are in place for successful implementation of LPM. Because regular
communication between the management and team members will help to discuss the problems
existing in the newly implemented methods that they are facing and the mangers can provide
solutions. With poor communication among the team members and also management will leads to
loss of momentum in the team and will lead to poor performance. So, the project manager should
conduct regular meetings with the team members and discuss about the project progress and listen
to their suggestions.
Training requirement for individual staff
For the successful usage of the lean project the management project in a project, the staff associated
with that project must be prepared appropriately about LPM systems and apparatuses for their
better understanding. Without appropriate preparing on the recently presented strategies,
representatives won't include in the project completely and they can't add to the thing which they
don't get it. All in all it will be huge misfortune for the project also and association. The
fundamental preparing prerequisites for the staff on LPM are as per the following:
 Training on what is lean project management and its identity executed.
 What are the key achievement factors that ought to be considered in a project while
implementing the LPM?
 Training on voice of the client, wellspring of the voice of clients and basic client
prerequisites.
 Training on basic to quality (CTQ) and basic to process (CTP) which affects the basic client
prerequisites.
 Proper preparing on esteem stream mapping (VSM) and esteem examination (VA).
 Most significantly the LPM systems that diminishes squanderer precaution.
These are the essential training prerequisites for the staff in a project team with the goal that we
can execute LPM in the project effectively.

Method to assess when the consultancy has sufficiently adopted the LPM approach to be
able to tender for government work
In order to assess the successful adoption of LPM approach by the consultancy so that they can be
able to tender for government work, I have used the method of DMAIC method of LPM. This
frame work was developed by Motorola Six Sigma research institute in 1990’s. DMAIC means
define, measure, analyze, improve and control. In every project, if we implement this frame work,
it will first define the opportunities that are available for the development of organizational goals
and provide largest payoffs. Then it will measure the organizational performance level, after that
analyze the problems involved in the process and what is the root cause of those problems, then it
will provide solutions that are necessary for the improvement of performance of the organization
and how to implement these solutions. Finally this interface will provide the method to control the
performance of the organization and maintain the profits that has been achieved.
Summary
At long last, I might want to close by saying that implementing the lean project management
techniques effectively in an association we can improve the overall revenues and furthermore
consumer loyalty by cutting waste in the activities. With the assistance of LPM execution we can
give better productivity by improving the proficiency of the hardware and assets. As a result of the
LPM usage, the project will be assessed at each stage this will finish the project on schedule. LPM
additionally improves the major significant factor called lead time decrease. By the LPM the
separate time of the gear will be decreased because of legitimate upkeep this will build the general
productivity of the hardware and project.

Yours sincerely
Raj Kumar Peru

References
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Lean Project Management | Benefits & Pitfalls. (2019). whydoitrain, https://whydoitrain.com/lean-

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McKewen, E. (2013). Top 4 Reasons for Implementing Lean Manufacturing. CMTC Manufacturing Blog,
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Netland, T. (2015). Five critical success factors for implementing lean programs. better operations,
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Susan Raridon Lambreth. (2017). Learning from Failure and Success: Mastering Legal Project
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