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How to apply Lean to Project Management
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Lean Project Management
John Bun
ScenarioCompany ABC
The needImprove IT service request response time
The How?
Start the project
Conclusion
We need a tool to register and follow up service requests
Results
a request for service is a waste of time Lack of visibility of overall workloadInterviews
Business IT Service Providers
Cross Functional Teams
The Project starts and delivers
Business CaseExecutive
Committee approval
Project Manager reports weekly
Steering comite meets
monthly
Training for the tool is
taking place
Users complain
about user friendliness
Project closes within
budget, time and scope
CEO declares: ¨I
see this as a qualified
win. system is up and
some people are already
using it!”
Is this a successful project?
Did the project take the need away?
Causes projects are failing
• People tend to jump to solutions
• During the project, solution is not challenged anymore
• Unanticipated events occur during the life cycle of projects
• ………………….
Project management - definition
• A temporary activity undertaken to create a unique product, service or result
• A project is goal oriented and consists of a series of interrelated non routine tasks
• Timely execution of a solution to address a need, opportunity, or problem
The Project Management Body of Knowledge (PMBOK) provides a framework that support central lean tenets including alignment, standard work, structured problem solving and effective teams
Lean - Definition
• A management strategy to improve and organize the operational activities of companies
• Goal is “Operational Excellence’” when each and every employee can see the flow of value to the customer, and fix that flow before it breaks down (Kevin J. Duggan)
Lean project management - definition
Reinforce the effectiveness of project managementby emphasizing
iterative discovery,problem solving, value delivery, and
eliminating wasteful tasks,
resulting in improved quality, reduced total elapsedProject time and reduced project costs.
Objectives (Promises) of Lean Project Management
Improved customer satisfactionFocus during every project and project activity on Value for the Customer
Shorter through put timesSmart standardized work processes,
Project Cost SavingsElimination of waste, remove non value added activities
Continuous organization improvementFocus on learning and critical attitude during project
Professionalism and Quality improvementContinuous feedback, empowered teams
• betere klantgerichtheid en daardoor hogere waardering van klanten;• snellere dienstverlening door slimmere werkprocessen en daardoor kortere doorlooptijden;• meer efficiëntie door elimineren van verspilling en daardoor (flinke) kostenbesparingen;• consequent werken aan de oriëntatie op leren en daardoor op continu verbeteren;• versterking van de ontwikkeling van de gezamenlijke professionaliteit en daardoor van de kwaliteit.• betere klantgerichtheid en daardoor hogere waardering van klanten;• snellere dienstverlening door slimmere werkprocessen en daardoor kortere doorlooptijden;• meer efficiëntie door elimineren van verspilling en daardoor (flinke) kostenbesparingen;• consequent werken aan de oriëntatie op leren en daardoor op continu verbeteren;• versterking van de ontwikkeling van de gezamenlijke professionaliteit en daardoor van de kwaliteit.
Project Preparation
Project Closure
Pro
ject
M
anag
emen
t
Quality M
anagement
design
develop
deploy
define
Traditional Project Management
Lean Project Management
• Small projects (max 90 days) limited scope and specific milestones)
• More time is invested in defining the project in terms of business value and measuring and analyzing business value
Lean project management – Critical Success Factors
Traditionally Project Managers
• measure their success on delivery of a planned focus within time and budget and are not used to measure their success on the benefits they deliver to their customer
• are focused on the own project activities and act from build expertise it is
difficult for project team to let loose existing ways of working
• are resistant to scope change and do not keep an end to end focus therefore miss opportunity; this results in suboptimal results and more unsatisfactory results delivered at a faster pace
For Lean Project Managers the focus has to go to
• Flexibility • Quickly delivering incremental value to internal and external
stakeholders.
Lean Project Management
Project Preparation
Goals: speed up PDCA cycles
Principles of Lean Thinking
>
>
>
>
Lean Approach
I
Create an Obeya Room (project war room)Daily (short) stand up meetings
Keep focus on business value
Keep Strategic Alignment
Team spirit, focus on collaboration and communication
Escalate sensibility to prevent waste
Minimize project administration
Shared visions and goals
Put improvement ideas in action
Daily directive: value creation by problem solvingrelieve project from redundant routinesMake decisions at the right time
>
Visual Project Management Ability to understand the status of a project in 5 minutes or less by simple observation without use of computer or speaking to anyone
Define scope
Goals
Principles of Lean Thinking
>
>
>
Lean Approach
To speed up a project you must first slow down
Identify root causes by (inter) team based problem solving
I
Further specify Business CaseFind root causes of problems, needs or opportunities
Focus on root causes not symptoms
Every project needs a SMART Business Case
Correctly specify value for customer
Measure and Analyze
Goals
Principles
>
>
>
>
Lean Approach
Process times
I
Current State Map (Measure)- Define activities- Measure process times- Measure lead time
Envision potential improvements(and select the one with most benefit)
- Develop a Future state map- Set targets- Prioritise efforts Iterations
Lead times
Empower the team
Define value added activities
Do not mistake activity for productivity
Identify and eliminate waste
Management by facts
Value Stream Awareness- Defined approach to analyze situation (based on
delivery of business value)
Improve – Monitor and Control Improvements
Goals
Principles
>
>
>
>
Lean Approach
I
closed loop feedback, to measure the impact of improvements
Focus on A3 Thinking
Plan Do Check Act Problem Solving
Flexibility in developing solutions
Create flow (non interrupted process)
Lean Thinking Evolving benefits
Fast customer requirements implementationEncourages flexibility and iterative problem solvingFocus on business process improvement
Keep sense of urgency
Close and action
Goals
Principles
>
>
>
>
Lean Approach
Take actions to deploy lessons learned
I
Consolidate lessons learned from previous stages
Make adjustments to project management practices – standardized work
Train and reinforce Lean Principles
Project is an opportunity to work on process improvement while getting the work done
Move beyond defending individual positions and ownership of ideas, serving the greater goals of the team, organization and its customers
Define lessons learned
Manage towards perfection
Benefits of Lean Thinking in Project Management
• Deliverable generate value at each improvement cycle, rather than only at the end of the project. Faster introduction of new product (to increase market share)
• Improvement cash flow: shorten time between spending and receiving money
• Agility and pro activity during project• Focus on current problems• Less risky• More likely to succeed, which increases buy-in for subsequent
stages• Less work in process, simpler coordination of tasks and
resources• Effective team engagement in root cause analysis and iterative
problem solving