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2015-09-24T12:37:51Z

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Lean in Project Management

2015-09-24T12:36:16Z

Lea:

The article handles the topic of Lean Management within Project Management with a focus on the Relay Racer theory. As Lean has been in important in Manufacturing processes since Taiichi Ohno developed the Toyota Production System, it has been applied to more than just production. Lean nowadays is applied throughout all departments in a company in order to eliminate as much was as possible and thus increase profits.

First the thinking behind Lean will be explained. Afterwards the subject of Lean Project Management will be introduced by giving an overview of the idea, key principles, waste types and where Lean affects the process and knowledge areas of Project Management. Lean Project Management will be further be described by looking at Lawrence Leach’s “8 Principles for Success”. It incorporates the standards of the PMI while giving guidance on where to focus when being lean and setting up a Lean Project. The article then focuses on the Relay Racer Theory which is crucial for eliminating waste within Lean Project Management such as wrong understood requirements and approval delays. Finally, the applicability and limitations of the theory will be discussed.

= Lean thinking =
Taiichi Ohno who developed the Toyota Production System is considered the founder of Lean manufacturing.<ref name="Leach2005">Leach, L. P. (2005) “Lean Project Management: Eight Principles for Success. Combining Critical Chain Project Management [CCPM] and Lean tools to accelerate project results” Boise, Idaho.</ref> He was the first one to consistently and thoroughly eliminate waste and thus accelerate production efficiency. Lean manufacturing relies on 5 key principles which are:<ref name="Leach2005"></ref>
*Identify and define value;
*Identify and map the value stream;
*Create Flow;
*Establish Pull;
*Pursuit perfection.

Within these principles the focus lies on eliminating waste. The different types of waste, called Muda in Japanese, which can occur were defined by Womack and Jones<ref name="Womak1996" >Womak, J., Jones, D. (1996) “Lean thinking: Banish waste and create wealth in your corporation” New York. Simon and Schuster.</ref>:
*Defects in products;
*Overproduction of items no one wants;
*Inventory waiting to be processed;
*Unneeded processing;
*Unnecessary transport of goods;
*People waiting for input to work on;
*Design of goods and services that do not satisfy customer needs.

Lean manufacturing’s core issue is to identify and reduce waste and become more effective and efficient. Cusumano and Nobeoka<ref name="Cusu">Cusumano, Nobeoka (1998) “Thinking beyond Lean” New York, The Free Press.</ref> start to extend Lean ideas to multiple project systems. Projects should be linked strategically through product portfolio planning, technologically through the design of common core components and organizationally through overlapping the responsibilities of project managers which is the beginning of thinking about Lean Project Management.

=Lean Project Management=
Lean tries to improve established methods and standards in project management. There is no one way definition of how a project can be made Lean but the existing methods are a support to develop Lean Project Management. <ref name="Reusch2013" > Reusch, P. J. A., Reusch, P. (2013) “How to develop Lean Project Management?” The 7th IEEE International Conference on Intelligent Data Acquisition and Advanced Systems. Berlin, Germany.</ref>

Lean Project Management is trying to optimize the process by reducing the non-value adding activities and optimizing the value adding ones. <ref name="Bertelsen" >Bertelsen, S. „Bridging the gaps – towards a comprehensive understanding of Lean Construction” The international Group for Lean Production.</ref> Usually there are more non-value adding activities than value adding, this moves the focus from the optimization of the value generation to the reduction of waste. Looking at the key principles of Lean, waste is usually defined as waiting time. Waiting in project based productions or enterprises does not primarily have to be a disadvantage. Buffers, for example, were found to rather support Project Management than to hold up the project. <ref name="Bertelsen"></ref>

Reusch<ref name="Reusch2013"></ref> expanded the 5 key principles of Lean and adjusted them to Lean Project Management. The key principles for Lean Project Management were identified as:
*Specify what creates value from the customer´s perspective;
*Identify all the steps along the process chain;
*Make those processes flow;
*Identify waste – based upon needs and expectations of customers;
*Eliminate waste – based upon needs and expectations of customers;
*Make only what is pulled by the customer;
*Strive for perfection by continually removing wastes;
*Amplify learning;
*Make decisions at the right time;
*Empower the team;
*build integrity;
*See the whole.

Further Reusch identified examples of waste in projects in relation to the categories of waste introduced above. The results are shown below.
{| class="wikitable"
|+Waste in Lean Project Management
|-
!Waste type in projects
!Cause
|-
|Lack of effectiveness in projects
|Ignoring available products services standards, ignoring innovations

|-
|Lack of efficiency
|Communication problems, lack of information, ignoring information, missing skills, weak organization (waste of time in meetings, needless meetings), collecting redundant or useless information, not considering standards
|-
|Waiting
|Communication problems, lack of information, lack of resources
|-
|Over-production in projects
|Wrong definition of requirements, overlapping and not harmonized processes
|-
|Rework
|Wrong specifications, missing competencies, insufficient or not effective control
|-
|Motion
|Lack of resources
|-
|Over processing
|Overburden of regulations
|-
|Inventory related waste
|Planning errors, lack of resources
|-
|Transport related waste
|Planning errors, lack of resources
|-
|}

These waste types have to be identified alongside the process of Project Management. The standard process of project management is defined by PMI (Project Management Institute) in their Project Management Body of Knowledge (PMBOK).<ref name="PMI2004" >PMI. (2004) „A guide to the project Management Body of Knowledge, Third Edition.” Newton Square, PA, PMI. </ref> The process is:
*Initiating
*Planning
*Execution
*Closing
*Monitoring and Controlling

The PMI has also defined nine knowledge areas for project management which are crucial for a successful delivery of a project. These knowledge areas include Integration, Scope, Time, Cost, Quality, Human resources, Communication, Risk, and Procurement.
Looking at the process and knowledge areas, Lean Project Management has to focus on eliminating waste within these areas. Leach<ref name="Leach2005"></ref> narrowed this thinking down by saying that “each task is a process”. Each process requires inputs and outputs. The outputs then go to the successor and the sum of them create the project result. Waste has to be eliminated in the entire process, in each task and among the interfaces of input and output.

As Lean Project Management is a broad topic and different interpretations for “How to make a project more lean” exist, this article focuses on Lean Project Management identified by Lawrence Leach who adapted PMI standards and Lean Thinking to Project Management in order to develop eight principles which can support a project leader or organization on its way to eliminating waste.

=Lean Project Management by Leach=
Leach<ref name="Leach2005"></ref> introduced 8 principles which can lead to successful project results by using lean tools and critical chain management. (see Figure 1) A short overview of each step will be given below.
[[File:8 Principles by Leach.png|frame|200px|Figure 1: 8 principles by Leach]]

==Principle 1: Project System==
The project system is defined as the interaction of People, Process and Product that the project will produce. The system defines how the project will be executed and whether it will be successful. Further, each project is different. In order to act Lean, one should not rely on standards but adjust to the environment. The project leader has to identify the system, the inter-relationships and its sub-processes and evaluate what is essential in order to be successful.

The next step is to make sure to create a critical chain with resource leveling and using buffers. Resource leveling means that one person only works at one job and not on three jobs at the same time while other people have to wait for that person to finish. Figure 2 and 3 show how waste can be reduced through resource leveling and buffers. In Figure 1 Larry is assigned 3 tasks at the same time. In Figure 2 he is assigned 3 tasks but in different time slots. In Figure 2 the project ends in the beginning of March and has a buffer until the end of March. In Figure one there are no buffers and the project only ends at the end of March.

Leach shows that these tools allow projects to not having to finish all tasks on time to finish a project on time, that sometimes one can finish sooner by starting later and that adding buffers can reduce total project duration and cost. All of this can only be accomplished if one knows the system and the interrelationships.
[[File:Critical chain.png|frame|200px|Figure 2: Reducing waste by implementing buffers and resource leveling]]

==Principle 2: Leading People==
[[Stakeholder Analysis]] and Management is one of the most critical and important issues for success. One has to remember that project team members are also stakeholders and one of the most important ones. Leaders who are able to keep stakeholders supporting the success of the project will confront less obstacles. Furthermore, an effective team leader guides the team through predictable team development phases, uses win/win problem solving methods to smoothen conflicts, allocates responsibilities to each member to support performance and matches skills with tasks.

==Principle 3: Charter==
The project charter helps to achieve the project goal through financial, customer, process or employee results. It established a project vision. The charter allows the team to create a project plan. This process should be used to identify and resolve issues and actions that will and could arise during the project. Not all issues can be resolved right in the beginning but knowing about them and appointing one person to one issue will lead to faster resolution in the future.

==Principle 4: Right Solution==
One of the waste types in Lean are products or services that do not meet the customer’s needs. Requirements thus are the basis for the design of the solution. The idea what success looks like by stakeholders has to be incorporated in the modelling of the solution. Leach proposes to develop more than one solution and in the end select the one that reflects the stakeholders needs the most. Tools that support the team on the way of executing the solution practically are the [[Work Breakdown Structure (WBS)]], Milestone Sequence Chart and work packages.

==Principle 5: Manage Variation==
Two different kind of variations are introduced. The common-cause variation and the special-cause variation. Common-cause variation repeatedly occur within a project whereas special-cause variations are usually caused by factors outside the system and are rather not predictable. Special-cause variations are hard to predict but common-cause variations exist in every project. Common-cause variations can be minimized by using buffers. There are four different buffers which can be applied in order to manage variation.

''The project buffer:'' This is a time buffer at the end of a project and assures that there in general is “room left” when something goes wrong.

''The feeding buffer:'' These are time buffers in order to fill the time between a non-critical part of a project with a critical one. (see principle 1)

''Capacity constraint buffer:'' This is a resource capacity buffer which makes sure that the resource that is occupied the most during a project gets appointed a buffer in order to handle common-cause variations.

''Cost buffer:'' This is a monetary buffer which gives room for cost variations within the project.

==Principle 6: Manage Risk==
Risk management is the tool to manage special-cause variations in a project. Risk management has to be an ongoing process in order to identify variations, therefore the project leader and the team members have to take action for risk management in order for it to be effective. The ongoing process of risk management involves identification of risks, analysis, monitoring and controlling. Risk Management not only is one of the nine Knowledge areas of the PMBOK but through the actions of monitoring and controlling, actively contributes the fifth process step of project management “Monitoring and Controlling”.

==Principle 7: Project Plan==
The Project Plan is defined as how the project is executed, monitored and controlled, and closed.<ref name="PMI2004" ></ref> Tools for creating the plan include the project vision, a Work Breakdown Structure, key milestone sequence chart, action list, work package assumptions, risks. In Lean Project Management the focus has to be put on resource leveling and task assignment. A smooth project plan can be assured when the total number of resources demanded in one time slot never exceed the total number of resources available. Task assignment should be managed by at least assigning one resource to one task and matching the resource skills with the needed skills for the task.

==Principle 8: Execute==
The execution of a Lean Project Management takes place efficient, effective, straight forward, without loops, pulled by the customer and executed to the needs of the customer. In order to assure these the relay race theory or metaphor can be used. It will be explained in the next section.

= The relay race theory =

==The relay race and Lean Project Management==
This theory or metaphor is important for lean project management as it can describes the most Lean way of how dependent tasks should follow each other. It enables efficient hand overs of tasks and makes predictable schedules possible.
Looking at the relay race we can link the actions of the runners to actions within projects. In a project one ideally would want to have:<ref name="Mas2002" >Mascitelli, R. (2002) “Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits Through Lean Project Management” California, Technology Perspectives. </ref> <ref name="Leach2005"></ref>

*early collaboration to ensure understanding of requirements of the customer (practicing the handover of the baton);
*a period of collaboration at the end of a task/project to ensure that the task team and the customer are on the same page (matching the speed with the second runner);
*a well-executed transaction process and passing on the results as soon as the task is done (placing the baton into the other runner’s hand);
*an agreement of the customer that the task has been fulfilled successfully (making sure that the runner has the baton firmly in his hands;
*a start of the task as soon as the input is available (the runner would never stop once he holds the baton in his hands);
*to work 100% on the task in order to avoid delays (the runners are fully focused trying to win the race)

Every meeting, every support task, every funded activity should have a tangible output. In project management, for example, decisions are outputs of meetings. If a task does not have an outcome, it wouldn’t contribute to the project and thus be waste. Further, every task has a customer and this customer does not have to be external but can also be internal (department or a colleague).

Looking at the relay racer in Lean Project Management one wants to link dependent tasks as lean as possible without creating waste. This method is a pull method and can be compared to Toyotas Kanban system where products are “pulled” through the production through Kanban cards which tell the predecessor the exact quantity of items that are needed.<ref name="Mas2002" ></ref>

The traditional working method is just task dependency. Here Task B is dependent on Task A. When Task A is finished, the results or output is handed over to Task B.

In Lean Project Management one tries to link the tasks. Just as in a Pull Production, tasks are dependable on each other. Task B is the customer of Task A. The customer determines when the previous task is complete, the customer is involved at an early stage and there has to be an early definition of the content and format of the deliverable.

By doing this the project leader will be able to eliminate waste types like overshoot and undershoot of information/content, delays and errors in project. This method can be used for internal projects, for external projects, for program management and portfolio management.

==Application of Relay Race Theory==
The implementation of lean linkages between dependent tasks involves the definition of requirements and deliverables, successful handovers of outputs and the elimination of approval delays. <ref name="Mas2002" ></ref>

'''Define Deliverables and requirements'''
Sometimes it is not easy if for example an internal customer doesn’t know yet what his requirements are or what the deliverable should look like. In order to support the process some actions can be taken to refine the understanding of the output.
*Use deliverables from earlier projects to inspire needs;
*Produce prototypes and ask for feedback;
*Make sure that everyone uses the same or compatible information technology. For example Word and Latex.
This approach is less wasteful than into-the-blue hand-offs. Furthermore, does this early involvement of customers, internal or external, lead to enhancement of relationships and team building. Unused prototypes can be used for other project to inspire needs and requirements for projects. Even realizing what is not a requirement is constructive since this is yet an elimination of waste.

'''Successful hand-off'''
Hand-offs usually fail because requirements are not met and iterations have to be initiated. The closer one gets to the completion of a task, the more urgent it becomes to involve the customer for approval. This leads to the ability to still adjust to changes and decrease the time of the final approval by only approving the last changes that have been made since the first approval. The feed-forward method <ref name="Mas2002" ></ref> can be used for this task. Before the project is completed a preliminary document of approval is send to the customer. The unapproved steps can then be revised, refined and in the end only the changes have to be approved (see Figure 4).
[[File:Feed_Forward_Method.png|frame|50px|Figure 2: Reducing waste by implementing buffers and resource leveling]]

'''Eliminate Approval delays'''
Approval delays can be subject to waiting time for example because of a missing signature. The project leader has to make sure that not too many obligatory signatures exist. Furthermore, internal deliverables should rely on trust and discipline and not have to be approved by hierarchical authorities. Deadlines for feedback allow the task keeper to move the output to the next customer.

= Application of Lean Management =

= Limitations =

= Annotated Bibliography =

=References=
<references />

2015-09-21T20:58:42Z

Lea:

File:Critical chain.png

2015-09-21T20:55:46Z

Lea:

Lean in Project Management

2015-09-21T20:55:16Z

Lea:

Lean Project Management

2015-09-21T20:41:12Z

Lea: Undo revision 11678 by Lea (talk)

Many companies fully or partially live in a project world, although most of them do not act as project-driven companies. Competition in industry increasingly makes more important the desire of optimizing what leads to provide our customers better service or product, within the time and cost agreed, and to the extent expected by them. Lean Project Management (LPM) seeks precisely that goal.

The purpose of this article is to explain how the Lean principles can be applied to make project management more efficient. Lean Project Management guide organizations toward a model of high productivity management at all stages of a project. The procedure used to analyze this issue throughout the article is the following. First, the background is provided since LPM arises as an application of the Lean manufacturing philosophy to Project Management. Also the general current situation of projects is pointed out in order to clarify that there is a necessary room of improvement. Second, the objectives and principles of LPM are defined. By recommending tools and techniques in all stages of a project process it is shown how to manage projects in a Lean way. The idea of the article is not to explain a specific LPM tool, but to provide a general framework of how to manage a project based on this philosophy. Special emphasis has been made in the controlling and monitoring step as it affects the rest of the project process and it is the most crucial step from a Lean perspective. For this reason more attention is given to the idea of continuous improvement and kaizen. Finally, a final discussion summarizes pros and cons of LPM. A collection of books and papers will support these ideas throughout the article.

=Background=

== History ==

Kiichiro Toyoda, Taiichi Ohno, and others at Toyota are the developers of the Toyota Production System (TPS) in the 1930s. This system shifted the focus of the manufacturing systems from individual machines and their utilization, to the flow of the product through the total process. Lean manufacturing is a management philosophy derived mostly from the TPS and Lean principles are derived from the Japanese manufacturing industry. The philosophy has identified as “lean” only in the 1990s and the term was used first by John Krafcit who described the thought process of lean in the book “The Machine That Changed the World”, co-authored by James P. Womack, Daniel T. Jones, and Daniel Roos. Lean implementation is focused on getting the right things to the right place at the right time in the right quality to achieve perfect work flow, while minimizing waste and being flexible.

== Current status ==
Toyota has been the leading lean exemplar in the world and stands as the strongest proof of the power of lean enterprise. This continued success has over the past two decades created an enormous demand for greater knowledge about this management philosophy. Nowadays, there are hundreds of books and articles about lean thinking and there is an increasingly trend to spread the lean principles beyond manufacturing to other sectors (construction, services, logistics, healthcare…). Also lean thinking is beginning to take root among project managers and LPM is the application of Lean manufacturing to Project Management to improve quality and increase efficiency in projects. Firms are operating in fast-changing and highly competitive markets in which the quick adjustment to dynamic environments is essential, project managers increasingly work to improve quality, flexibility and customer response time using principles of Lean thinking <ref name="Leanmanufacturing">Rosemary R. Fullerton, Frances A. Kennedy, Sally K. Widener, (2014) ‘Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices’, Journal of Operations Management, Volume 32, Issues 7-8, November 2014, pages 414-428.</ref>.

According to several studies from the [http://www.pmi.org/ ''Project Management Institute''] (PMI) and others that look into the success/failure rates of projects, only 40% of projects met schedule, budget and quality goals. The rest were aborted or completed unsuccessfully. This means that more than one out to three projects fails. Also, it seems to be evident that the longer the project and the team size, the harder is the failure. The studies reveal that the main causes for projects failing are breakdown in communications, a lack of planning and poor quality control. As a consequence, the root cause for project failure can usually be tracked back to a lack of proper Project Management. Therefore there is a room of improvement in project processes and this is the goal of LPM philosophy.

= Principles of LPM =

[[File:5principles.png|frame|200px|text-bottom|right|Figure 1: The 5 principles of LPM]]

Lean Project Management uses the five main principles from Lean manufacturing into a Project Management context to focus on delivering more value with less waste and reduced time in a project context. They represent essential conditions to achieve both market acceptance and operational excellence <ref name="Ronald">Ronald Mascitelli, (2002) ‘Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits Though Lean Project Management Institute'.</ref>.

*Principle 1: Specify the '''value''' of each project desired by the customer.

*Principle 2: Identify the '''value stream''' for each project.

*Principle 3: Make the project '''flow''' continuously without interruptions.

*Principle 4: Introduce the customer '''pull''' from the project team between all continuous flow steps.

*Principle 5: '''Continuously''' pursue '''perfection'''.

In figure 1 is clearly depicted how the continuous improvement principle has to be taken into account when addressing the other principles. In addition, LPM establishes three important statements:

*It is not necessary to finish each task on time to finish a project on time.

*Starting a project sooner does not mean it will finish sooner.

*Adding buffers (protection spaces) reduces project time and cost.

A principle that underlies LPM is that any project worth doing is worth doing fast <ref name="Leanmanufacturing">.</ref>
. As a result, Lean Project Management helps projects run smoother and it is the quickest way to shorten project duration, reduce quality defects and boost productivity levels.

= How to manage projects in a Lean way =

Based on the principles of LPM, it is explained how to manage a project in a Lean way. Some specific Lean tools and techniques that can be applied to projects are proposed through the project process. [[File:Steps.png|frame|200px|text-bottom|right|Figure 2: PMI 5-phase delivery model]]Project Management can be highly complex. For this reason, the analysis is done in a sequence of steps which need to be completed to accomplish projects. In the "traditional approach" <ref name="RobertK">Wysocki, Robert K (Robert k), ‘Effective Project Management: Traditional, Adaptive, Estreme'.</ref> processes are grouped in five development phases:

1. Initiating Process

2. Planning Process

3. Executing Process

4. Closing Process

5. Monitoring and Controlling Processes

The groups overlap, and the last group applies to all of the processes <ref name="PMBOK"> Booksurge Publishing (2006), 'Project Management Body of Knowledge',PMBOK Guide, Fourth Edition, December 2008'.</ref> (see Figure 2). It is relevant to consider that projects and Project Management processes vary from industry to industry; however, these five steps of the delivery model are more traditional elements and can be applied to all kinds of projects. Even if the company is not directly project related, there is always an overarching goal to benefit the organization by means of projects; typically offering a product, changing a process or solving a problem.

== Initiating Process ==
Many organizations start projects without considering whether they can actually complete them <ref name="pmi">Project Management Institute, (2006) ‘The Standard for Porfolio Managements.’</ref>. With LPM, the initiation process is key as it will prevent mistakes later. At the first stage, it is analyzed how companies select projects and assign the tasks of the projects, also if they have all resources they need to get the project done.
*'''Evaluation, selection and prioritization of projects'''
Following Principle 1 and the philosophy of only keeping activities and projects which add value desired by the customer, the first decision before starting any project is prioritize the present portfolio. There is no sense to squander time and resources doing work that the project’s customer is not willing to pay for. Evaluation, selection and prioritization of projects are a required practice to implement Lean thinking, the reason is simple: it is less costly to stop a project before it has been started.

Several methods exist for the selection of projects. The most common are quantitative methods, qualitative methods and hybrids methods, but sometimes more than one method is used ([http://apppm.man.dtu.dk/index.php/Project_Evaluation_and_Selection_for_the_Formation_of_the_Optimal_Portfolio ''Project Evaluation and Selection for the Formation of the Optimal Portfolio'']). In choosing which projects to fund, the decision maker must have some concrete objectives in mind; in this case the main objective is to maximize value creation for the customer. A common, simple and efficient way that can help to come to a conclusion is the rating of all the projects according to criteria that lead to the main goal of the company. These criteria are previously weighed based on whether more or less provide customer value. Of course this is a simplification of reality and a combination of required internal resources and externalities which affect the project execution should be considered in the analysis. Customers (and in general stakeholders) must clearly define their expectations of the project and at this point, this is a good method to know the goals of the customer and to define the scope of the project.
*'''Leading People'''
Some considerations for project leadership must be taken into account in the first stage of the project process. Leading all of the people with an interest in the project bring to the project success. First of all, the selection of a capable '''Project Manager''' has a considerable influence on the success of a project <ref name="Selectionmanagers">H. Mikkelsen, E. Folmann (1983),‘Selection of managers for international projects’, International Journal of Project Management, Vol1, No4.</ref>. This person controls the project value stream, and based on the Principle 3 of LPM is in charge of making the project flow continuous and without interruptions. Related to this, the Project Manager must also ensure smooth handoffs to maintain the flow of work. If the work is extended to deliver Lean projects, the Project Manager will spend more and more time and effort working with other Project Leaders to coordinate and control the cross-project functions. Interruptions occur when there is a task change, especially if the change involves a cross-project function <ref name="EightPrinciples">Lawrence P, Leach, PMP, (2005) ‘Lean Project Management: Eight Principles for Success.’ Combining Critical Chain Project Management [CCPM] and Lean tools to accelerate project results.</ref>. It is important to understand that the focus should be on when hand-offs between groups occurring; every time an employee moves from one task to another, it causes errors and delays. Moreover, the Project Manager needs to understand and get involved in the Lean philosophy. Taking into account Principle 1, this person is primary responsible to ensure that projects achieve client satisfaction. A project leader able to keep stakeholders actively supporting project success throughout project execution is key.

The next pillar of a good Lean project is the '''Team''' since most of the time the project team is newly formed. Team building is complicated as to implement Lean thinking it is necessary people willing to learn new ways of working. The appointment of unsuitable staff will result in a loss of time and money which go against the LPM principles. Nevertheless, once the team is selected it is also crucial to clarify the goal and see if all members of the group are more or less in the same direction. One of the best ways to do this is to get them to work on the Project Charter <ref name="EightPrinciples">.</ref>, developing the project vision and providing a goal that they all share in common. In this way, the team members will know in the initiation phase how they are going to work together.

== Planning Process ==
[[File:Project_Plan.png|frame|200px|text-bottom|right| Figure 3: Project Plan Process develops all parts of a Project Plan]]
This step considers the elaboration of an effective '''Project Plan''' which provides all project stakeholders the roadmap for projects. A Project Plan is the primary tool to guide projects to success <ref name="EightPrinciples">.</ref>. It provides the project schedule and control to it. Principle 2 will be the focus of the planning step since companies need to have a breakdown structure of their projects that details each task and who are going to do it in order to proceed as LPM states. An additional point of LPM is the need to ensure the flow of all projects. Thus, the value stream for each project is identified in this step as Principle 2 points out. Although a project schedule is an essential part of the Project Plan, it is not the only one, it also provides all that project stakeholders need to facilitate communication between them and succeed on the project (Principle 4). The Project Plan provides a flow of the process to authorize and control work, and to report progress on the project (an example is provided in figure 3). It provides a project task network with the following targets <ref name="EightPrinciples">.</ref>:
{{#ev:youtube|www.youtube.com/watch?v=OdyGBFGFx1c|200|right|Visual Project Management|frame}}
*Define project delivery date

*Determine sequence of activities necessary to create all project deliverables

*Estimate project resources

*Enable resource scheduling

*Schedule material delivery

*Determine material order schedules

*Provide the baseline for project performance measurement

All those purposes fit with Lean thinking and support its principles.

After the elaboration of a reasonable schedule, the focus should turn to the reduction of waste. Looking at each worker contribution to the project and creating a list of prioritized tasks that each person needs to accomplish help to make the project flow smoother (Principle 3). Since projects involve multiple employees contributing to the project at different times, it is recommended the use of a '''scheduling software''' to build, status and report on the project. By means of a computerized system it is easier to record the start and completion date of each task and automatically generate a daily updated list of priorities. Some examples of commercial scheduling software which are already being implemented in industry can be seen in the links bellow. Also the video on the right side exemplifies clearly the idea.

[https://kanbanflow.com/ ''www.kanbanflow.com'']

[http://www.agilezen.com/''www.agilezen.com/'']

== Executing Process ==
From a Lean point of view, the execution of projects reveal the Lean principle of Pull to cause projects to flow from start to finish with minimal generation of waste (Principle 4). A comparison with Lean production is clear; hand-offs going through work cell to work cell can be seen as hand-offs in LPM going from one task to another.

LPM uses '''buffer management''' as a visual control tool during project execution. Implementing Pull and enhanced flow for projects requires answering three questions <ref name="EightPrinciples">.</ref>:

*'''Which task do I work on next?'''
Tracking the real-time status is a LPM requirement, in this way it is important to state not only when the tasks start and finish, also the remaining duration for the task in-progress. It is common to update the status whenever a task starts or finish and additionally once a week. Currently, software exist which updates tasks using remaining duration and also prioritizes tasks to be worked on. Tasks causing significant project buffer use should get the highest priority. By doing this, tasks are completed in the minimum possible time and resources are focus on one project task at a time.

*'''When are you going to be done?'''
[[File:Thefeverchart.png|frame|200px|text-bottom|right|Figure 4: Tracking project progress with a 'fever chart' signals the project team when to take action to recover buffer]]
A simple method used by LPM to track schedule performance of a project is called “The Fever Chart”, this tool implements the Lean idea of visual control for projects. It follows the principle that the amount of project buffer penetration provides the signal to take action to recover buffer. As shown in figure 4, three areas of different colors form the visual graphic of the Fever Chart. Projects that are in the green region are going well, projects in the yellow region need the development of plans to recover buffer and projects in the red region require management attention and the implementation of recovery plans in order to finish the project on time. Note that projects with buffer penetration less than 100% may still be on track to complete on time <ref name="EightPrinciples">.</ref>. Project Managers are the responsible of monitoring the Project Buffer at the appropriate time intervals for the project, usually daily but at least weekly. They can use also plotted trends of buffer. This process provides a unique anticipatory project management tool with clear decision criteria. Buffer reporting relies on realistic estimates of how many days remain to complete a task, giving project managers better insight to the performance of projects.

*'''How much is going to cost?'''
When the cost of a project is important, a cost buffer should be used in the same way (using the same graphics as above). In this case, the cost buffer penetration is the percentage of the cost buffer consumed. It has to be considered the cost variation of each of the project cost elements. The purpose is to compare or control the actual cost with the cost of the project because the actual cost is influenced by the schedule. Using the cost buffer is a way of combining conventional project management methods with LPM.

== Monitoring and Controlling Processes ==
The controlling and monitoring step is applied to all the project process and automatically leads to the Principle 5 of LPM; continuously pursue perfection or in other words '''continuous improvement'''. This approach states that the project team should never be satisfied with the status quo and always have to look for ways to make things better. One of the Lean manufacturing approaches to achieve the continuous improvement philosophy is the '''kaizen''' initiative. Kaizen is a Japanese word which means “good change”. When Japanese people started using kaizen mindset, their companies were four times more productive and obtained quality that was 12 times better than that of their western counterparts <ref name="Kaizen"> Ángel Medina, (2014) 'Agile Kaizen. Managing Continuous Improvement Far Beyond Retrospectives', Springer Berlin Heidelberg </ref>. Soon, several tools and techniques were defined in order to support this improvement process. The central tenant of kaizen is the focus on generating and promoting positive short-term results and quickly analyses the small, manageable components of a problem. Later, the rapid implementation of a solution with ongoing, real-time reassessment is applied.

Kaizen is a lifetime path of searching, reflecting, learning, and improving. It is used to make small, incremental improvements that accumulate into significant results. While this methodology has been used mainly in manufacturing operations, it is focused on helping individuals and small teams become as efficient and effective as possible at the job they do. For this reason can be applied to Project Management and the procedure applied to LPM is as follows:
[[File:PDCA.png|frame|200px|text-bottom|right| Figure 5:The Plan-Do-Check-Act Cycle]]
The first step is the identification of the process steps, decision points and roles in order to detect if there are steps in the process which do not add value to the customer (Principle 1). Any step that does not add value should be eliminated. Now that areas of improvement have been detected, only the process causing the most pain is addressed. The procedure then is repeated to identify the next improvement. The key is to look at those activities that are repeated throughout the project process (weekly meetings, status reports, or customer reviews) and find small, incremental improvements. <ref name="pmiarticle"> Bob Tarne, PMP, CSM, CSSBB, (2009) 'How Continuous Improvement Can Help Your Project', Project Management Institute </ref>.

This is a specific case in which the PDCA Cycle is applied to LPM. The PDCA (Plan-Do-Check-Act) Cycle is a more general and popular Project Management tool that ensure the continuous improvement of processes.
The four phases of the PDCA Cycle are represented in figure 5 and involve:
*Plan: Identification and analysis of the problem.
*Do: Developing and testing of the solution.
*Check: Measurement of the solution.
*Act: Implementation of the solution.
A lot of iterations of the “Do” and “Check” phases can take place.

The controlling and monitoring step of a project can be analogous to the PDCA cycle since it refers to the other steps of the process and evaluates constantly the activities that take place during the overall project process.

== Closing Process ==
Project closure includes closing all of the project facilities, administrative closure and ensuring all project stakeholders have moved on to their next project or task. There is no much to say about the closing process from a Lean point of view. At this point, all processes need to be documented. It is important to document each of the previous steps; writing down what has been done ensure repeatability and the chances of doing good things that have been done good before increase or even will be done faster. Emphasizing the concept of continuous improvement, it is easier to find the cause of a mistake that has been documented and consequently action will be taken with greater success. The project should end with the beginning in mind <ref name="EightPrinciples">.</ref>, by bringing all stakeholders back together to collect the intellectual property developed during the project because it might help for the next ones.

= Discussion =

Since projects are becoming increasingly complex and uncertain, interaction between activities and resources is growing in ways not considered by traditional methods of Project Management. Nowadays, managers need more agile project management methods that are able to recognize and deal with uncertainty and to produce the expected results. LPM appears as the most convenient approach capable to deal with complexity and uncertainty.

It can be concluded from the analysis done throughout the article, that LPM philosophy would become an important part of the companies’ culture; they would see the long-term benefits of applying LPM tools and techniques. It is proved that LPM would give them a considerable competitive advantage. As the Project Management Institute states, when implemented correctly, LPM increases productivity on average 100 percent, reduces project duration an average of 30 percent, and reduces quality defects an average of 50 percent.

Nevertheless, despite all the benefits LPM provides to a company, it is not always recommended to use this approach into a project; traditional project management has proved to be successful for simple and certain projects, where the problems that arise can be solved without difficulty. Therefore, LPM is appropriate for complex and uncertain projects, where the management of the workflow, and the perspective focused on customer’s value are the main characteristics. Thus, to decide which method should be applied, it results necessary to evaluate the uncertainty and risks of each project before the beginning, but this falls outside the scope of the present article.

Finally, it is important to notice that attempting change in an organization can be difficult. Big changes are met with fear, doubt, laziness and other barriers. Big changes provide slower results, and if there are not immediate results there are more probabilities of abandoning the change. In that sense LPM is a good method because it takes small steps that can be measured and solidified providing at the end meaningful results. Due to this reason, LPM has a high probability of success in the future of a lot of organizations.

= See also =

The article is linked to other relevant pages in the APPPM wiki and they are relevant for further information on the topic:

*[http://apppm.man.dtu.dk/index.php/Project_Evaluation_and_Selection_for_the_Formation_of_the_Optimal_Portfolio ''Project Evaluation and Selection for the Formation of the Optimal Portfolio'']

*[http://apppm.man.dtu.dk/index.php/The_A3_report ''The A3 report'']

*[http://apppm.man.dtu.dk/index.php/Kaizen_Event_-_a_managerial_tool_for_problem-solving ''Kaizen Event - a managerial tool for problem-solving'']

*[http://apppm.man.dtu.dk/index.php/Agile_Project_Management ''Agile Project Management'']

= References =

<references />

= Further reading =

*Ángel Medinilla, (2014). 'Agile Kaizen: Managing Continuous Improvement Far Beyond Retrospectives'. Springer Berlin Heidelberg.

*Graves, Samuel B., Ringuest, Jeffrey L. (2003). 'Models & Methods for Project Selection'. Concepts from Management Science, Finance and Information Technology. International Series in Operations Research & Management Science, Vol 58.

= External links =

[http://www.pmi.org/ ''Project Management Institute'']

[[Category:Project Management]] [[Category:Lean Management]]

Lean Project Management

Lean in Project Management

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