Lean Tools in Project Management

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[[Category:Project Management]][[Category:Management]][[Category:Lean Program Management]][[Category:Visual Tools]]
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''Developed by Thomas Børgesen Bachmann''
  
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This article covers the basic principles of '''''Lean Thinking''''', and describes which tools and techniques there are available in [http://apppm.man.dtu.dk/index.php/Lean_Project_Management Lean Project Management]. The purpose of the article is to give an overview of '''''Lean Thinking''''' and how to approach the Lean Tools in [https://en.wikipedia.org/wiki/Project_management Project Management]. The article contains a description of the background of Lean, different '''''Lean Thinking''''' principles, tools, and how to approach '''''Lean Thinking''''' in Project Management. However '''''Lean Thinking''''' philosophy was originally described in the automotive industry, the topics will compare the originally philosophy of Lean and how to apply different Lean tools in Project Management. The two main topics in this article are '''''Lean Thinking''''' and ''Project Management'' and the definitions of these are:
 
  
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'''The definition of [https://en.wikipedia.org/wiki/Lean_manufacturing Lean Thinking]''': To maximize the customer value, while elimination waste. Create more value with fewer resources.<ref>1. http://www.lean.org/WhatsLean/, accesed: 23-09-15</ref>.
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The philosophy of Lean Thinking was originally applied in the automotive industry. Later it became clear that the philosophy was not only applicable in relation to the automotive industry, but it could also be used in other industries. This article covers the basic principles of Lean Thinking in relation to Project Management. The overall purpose is to give an overview of Lean Thinking. This will include a description of the background of Lean Thinking, a description of non-value activities together with tools and techniques applied in Lean Thinking. Additionally some examples will be given in how to approach Lean Tools in [https://en.wikipedia.org/wiki/Project_management Project Management].
  
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'''The definition of [https://en.wikipedia.org/wiki/Project_management Project Management]''': Planning, organize, motivate and control the resources to achieve a specific goal of a temporary project and within the specific criteria.<ref>''The Definitive Guide to Project Management''. Nokes, Sebastian. 2nd Ed.n. London (Financial Times / Prentice Hall): 2007. ISBN 978-0-273-71097-4</ref>
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The main topics in this article are Lean Thinking and Project Management. The definitions of Lean Thinking and Project Management can be seen below:
  
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The article is a combination of these two definitions and provides a clear picture of why these two topics are linked and why this is an interesting topic.  
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'''[https://en.wikipedia.org/wiki/Lean_manufacturing Lean Thinking]''': Eliminate waste in order to maximize customer value with less resources.<ref>http://www.lean.org/WhatsLean/, accessed: 23-09-15</ref>.
  
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==  Background ==
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'''[https://en.wikipedia.org/wiki/Project_management Project Management]''': Plan, organize, motivate and control the resources to achieve a specific goal of a temporary project within the specific criteria.<ref>''The Definitive Guide to Project Management''. Nokes, Sebastian. 2nd Ed.n. London (Financial Times / Prentice Hall): 2007. ISBN 978-0-273-71097-4</ref>
  
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=== Introduction to Lean ===
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== Background ==
 
[[File:5-Lean-Principles-278x300.jpg‎|200px|thumb|right|Fig 1: Visualization of the five principles of Lean ]]
 
[[File:5-Lean-Principles-278x300.jpg‎|200px|thumb|right|Fig 1: Visualization of the five principles of Lean ]]
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Lean Thinking is the philosophy from the Japanese automotive industry and was introduced in the very late 1930’s as the [https://en.wikipedia.org/wiki/Toyota_Production_System Toyota Production System] (known as TPS). Lean is basically about creating value for the customer by eliminating waste.  An organization which has fully adopted the Lean philosophy understands what activities creates value for the customer and what is the customer willing to pay for. The target in every lean project is to reduce or minimize the waste, so there is zero waste and additionally reducing the variation in any of processes in the system. The philosophy really attracted companies, when the small local Japanese company became one of the leading automotive manufacturing companies in the world. The TPS system was in the beginning dedicated to the manufacturing industry, but during the past years has the philosophy been established as an overall optimization philosophy for all kind of business’.  
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=== Introduction to Lean ===
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The five principles of the philosophy are described below and an picture of the principles are shown in ''figure. 1''.<ref>''Lean Thinking''. By James P. Womack and Daniel T. Jones: 2003. 9780743249270</ref>
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 +
Lean Thinking is the philosophy from the Japanese automotive company Toyota, and was introduced in the late 1930’s as the [https://en.wikipedia.org/wiki/Toyota_Production_System Toyota Production System] (known as TPS). Lean is basically about creating value for the customer by eliminating waste.  An organization which has fully adopted the philosophy understands which activities create value for the customer and how much the customer is willing to pay for the product/service. The target in every lean project is to eliminate waste and reduce the variation in all of the processes in the value chain in order to create stability. The lean philosophy, in form of TPS, caught attention from other automotive manufacturing companies when the small Japanese automotive company Toyota became one of the leading automotive manufacturing companies in the world. In the beginning the TPS system was dedicated to the manufacturing industry, but over the past years the philosophy has been established as an overall optimization philosophy for all kind of businesses.
 +
 
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The Lean philosophy consists of five principles; Specify value, Integrate the value stream, Create flow by eliminating waste, Establish pull and Seek perfection (see description below and figure 1.) .
 +
<ref name="TBB1">''Lean Thinking''. By James P. Womack and Daniel T. Jones: 2003. ISBN 978-0743249270</ref>
  
 
{| class="wikitable"
 
{| class="wikitable"
 
|+Lean Principles
 
|+Lean Principles
 
|-
 
|-
−
!The Five Lean Principles <ref>http://leanmanufacturingtools.org/39/lean-thinking-lean-principles/ , accesed: 23-09-15 </ref>.
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!The Five Lean Principles <ref name="TBB1"></ref> <ref>http://leanmanufacturingtools.org/39/lean-thinking-lean-principles/ , accessed: 23-09-15 </ref>.
 
!Description
 
!Description
 
|-
 
|-
 
|1. Specify Value
 
|1. Specify Value
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|Specify Value is about realizing that only small amount of the time you spend in the company that adds value to the customer. This is mainly about eliminating all the non-value activities, known as waste, and furthermore identify what activities which make for the specific product or service.  
+
|
 +
Specify Value is understanding that only a small fraction of the total time and effort adds value to the customer. This is mainly about identifying all the non-value activities and the activities which create value for the specific product or service.  
 
|-
 
|-
 
|2. Integrate the Value Stream
 
|2. Integrate the Value Stream
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|Value Stream Mapping is while all the activities of the product or service are identified from the very beginning of its lifecycle across all the processes. An overview of all the non-activities will be visualized in a Value Stream Mapping Model.
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|Value Stream Mapping is when all the activities of the product are identified from the very beginning of its lifecycle across all the processes. An overview of all the non-value activities will be visualized in a Value Stream Mapping Model.
 
|-
 
|-
 
|3. Create Flow by Eliminating Waste
 
|3. Create Flow by Eliminating Waste
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|Create Flow by Eliminating Waste ensures the flow of the product with only value added activities. While Lean Thinking is focusing by eliminating the waste, this principle can only be achieved if all the different waste has been eliminated.  
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|When The Value Stream has been mapped, it will be clear that many of the activities do not add value. In this step the non-value activities will be eliminated. Eliminating the non-value activities, will make sure that the product flows directly to the customer without any interruptions.  
 
|-
 
|-
 
|4. Establish Pull
 
|4. Establish Pull
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|This is a part of the "Just In Time", which is important to know. Just-in-time (JIT) concept is from 1950s, and is part of the "Toyota Production System" (TPS). JIT originally had much focus on the times for their supply, production and customers. The materials for the production should be available "just in time", exactly when the need for them to be a "pull" system. Understanding what customer wants, when the customer wants it will secure a low inventory.
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|This step is related to the concept of Just-in-time (JIT). At this point it is important to understand the demand of the customers and to create the production process in relation to their demand. The materials for the production should be available "just-in-time", so there is no need for an inventory.  
 
|-
 
|-
 
|5. Seek Perfection
 
|5. Seek Perfection
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|After achieving the first four principles continuous improvements must be a part of the philosophy. The aim must be zero waste although its impossible. To achieve the most "Lean" organization, involve every employee within your company which is a part of the value stream and implemented the mindset in all departments.
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|The principles described above have to be applied continuously in order to secure that all non-value activities become visible and eliminated. The goal is to eliminate waste completely although it is difficult to achieve. The most "Lean" organisation involve all of the employees and implement the lean mindset in all parts of the organisation.  
 
|}
 
|}
  
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An implementation of the '''''Lean Thinking''''' principles in any organization should create these overall goals listed below:
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Implementing the principles of Lean Thinking in organisations should result in: <ref>http://www.leanmanufacture.net/leangoals.aspx , accessed: 23-09-15 </ref>
  
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* - Improve quality
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* - Quality Improvement
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* - Eliminate Waste
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* - Elimination of Waste
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* - Reduce Lead time
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* - Reduced Lead time
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* - Reduce Total Cost
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* - Reduced Total Cost
  
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Additionally this should improve the '''customer satisfaction''' and this is the main driver of implementing Lean in any organization.
  
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If these principles are implemented in project management the structure becomes different. The definition of project management: Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives.
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=== Elimination of Waste ===
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Lean Thinking is used in Project Management because not only “production lines” can be “Lean” but also projects. Lean Thinking in Project Management is used to reduce the costs of the project, to make sure that project is finished within the estimated time and to make sure that the success criteria of the project is met.  Lean tools can easily be applied in Project Management with the purpose of eliminating waste (known as ''Muda'' in Japanese Terms). The different types of waste are described in the table below.  
  
 +
'''Description of waste''':
 
{| class="wikitable"
 
{| class="wikitable"
−
|+Types of Wastes
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|+Types of waste
 
|-
 
|-
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!Waste in Lean Thinking
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!Waste in Lean Thinking <ref>Toyota Production System, Ohno, Taiichi, 1988, Productivity Press ISBN 978-0915299140 </ref>
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!Waste in Lean Project Management
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!Waste in Lean Project Management <ref name="TBB2">http://projectmanagement.atwork-network.com/2012/03/16/lean-tools-and-techniques-for-project-management/ accessed: 23-09-2015</ref>
 
|-
 
|-
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| -
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| - '''Transportation''', every time a product is moved. Damaging of products, delays, etc.
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| - Status meetings, which are ineffective and too long to keep the participants interested.
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| - '''Status meetings''', which are ineffective and too long to keep the participants interested.
 
|-
 
|-
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| -
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| - '''Inventory''', raw material, work-in progress or finished goods, which is costly and does not create value to the customer.
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| - Too detailed plan. The schedule usually changes during a project period and it waste of time and a huge amount of rework.
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| - '''Too detailed plans'''. Usually the schedule changes during a project period, which makes it pointless with a too detailed plan as the plan may change many times.
 
|-
 
|-
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| -
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| - '''Waiting'''. If a process or product is not in progress.
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| - Collecting inoperable data, this will never be used.
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| - '''Collecting inoperable data''', which will never be used.
 
|-
 
|-
−
| -
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| - '''Over-processing'''. This occurs when more work is done than what is required by the customer.
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| - Push subproject and meetings, which ties up the team members and only satisfying the stakeholder but increasing the duration of the project.
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| - '''Push sub project and meetings''', which ties up the team members and only satisfies the stakeholder but increases the duration of the project.
 
|-
 
|-
−
| -
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| - '''Over-production'''. Producing more than the total demand of the product from the consumer.
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| - Documentation which is never used.
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| - '''Documentation''' which is never used.
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|-
 +
| - '''Defects'''. Creates extra cost and extra labor from the producer.
 +
|-
 +
| - '''Motion'''. Equipment/people moving more than required.
 
|}
 
|}
  
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=== From Lean to Lean Project Management ===
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The 7 different types of  waste in Lean Thinking are related to the production. In Lean Project Management some similar types of waste can be found such as; Waiting, Over Processing and Defective Processes, as these are related to the planning and management of the project.
  
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The 8 different relates mainly to the production, not specific, there are some similar kind of waste in project management. Waiting, over processing and defective process are in any business where an implementation of the lean philosophy takes place. The creation of something the customer does not value is a waste. Waste in project management might be:
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As a Project Manager it is crucial to classify all processes. When all processes have been classified, the Project Manager has to identify which processes create value and which does not. Once all non-value activities have been identified, the manager must go to a detailed classification by using the table listed above. That helps to find out what kind of waste is the biggest bottleneck and at that point it is possible to make a project plan which systematically eliminates the bottlenecks/waste.
  
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* - Status meetings, which are ineffective and too long to keep the participants interested
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==  Lean Tools in Project Management ==
  
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* - Too detailed plan. The schedule usually changes during a project period and it waste of time and a huge amount of rework.
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This section covers The Lean Tools that can be applied in [http://apppm.man.dtu.dk/index.php/Lean_Project_Management Lean Project Management]. These tools, which are described below, help to reduce the waste and the variation of the processes. Furthermore these tools can help to identify potential improvement of processes and assist to a better understanding of the products life cycle. Not every "Lean" tool is applicable in Project Management, but some of them are amd those are listed below. <ref name="TBB5">Leading and Managing The Lean Management Process, Fliedner, Gene, 2011, Business Expert Press, New York, ISBN 978-1606492482</ref>
  
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* - Collecting inoperable data, this will never be used.
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==== Value Stream Mapping ====
 +
[[File:VSM.jpg‎|300px|thumb|right|Fig 2: Detailed Map of Value Stream.]]
  
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* - Push subproject and meetings, which ties up the team members and only satisfying the stakeholder but increasing the duration of the project.
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Visual Management in Project Management provides a lot of information quickly. Furthermore it's easier to remember information when it's presented visually. Value Stream Mapping (VSM) is a visual technique to map the current processes. VSM gives a current state view of the processes and gather information as; cycle times, inventory levels, down times, material flows and information flows. This technique can be used in different levels, such as the entire supply chain or a production area. The tool maps all the non-valued activities as well as all the valued activities. The target is to achieve a future state sceneria by using other lean tools. Figure 2 shows a very detailed plan of a Value Stream. The Map informs many different common VSM symbols, which are used to portray material and information flow.  <ref name="TBB5"></ref>
−
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* - Documentation which is never used
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 +
==== Kaizen ====
 +
While Value Stream Mapping gives an overview of the current activities, [https://en.wikipedia.org/wiki/Kaizen Kaizen Events] are useful for conducting the improvements of the activities. Kaizen events are generally a short-term project, which takes place in a period of 3 - 5 days. The objective is to improve a minor process and the scope is limited. Workers, which are closest to the current process, are key players in these projects. New strategies, techniques and equipment are not introduced in these events, but are introduced in [https://en.wikipedia.org/wiki/Kaikaku Kaikaku] Events, where the scope is larger and the more radical changes are made. <ref name="TBB5"></ref>
  
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The goals of project management are to reduce the cost of the project or complete the project on budget. Furthermore the project must be completed on the estimated time and meet the performance requirements as agreed before the project began. To meet these expectations and requirements, the most efficient way to achieve this is by using tools, techniques and methods.
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==== The Gemba Walk ====
 +
[https://en.wikipedia.org/wiki/Gemba Gemba Walk] is a powerful tool, where the Lean Manager physically visits the production floor. The manager goes to the production and walks through the entire value stream. There are a number of reasons why this is a great tool, for instance; The Lean Manager is not familiar with the process and have another view of the process. Furthermore, when the Lean Manager visits the production floor it gives a positive motivation impact on the employee and who feels valued by the attention from the manager. By using Gemba Walk avoid you PowerPoint presentations and get in more direct touch with the problems. <ref name="TBB5"></ref>
  
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== Lean Tools in Project Management ==
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==== System Optimization ====
 +
[[File:PokaYoke.jpg‎|200px|thumb|right|Fig 3: Example of Poka Yoke.]]
 +
This tool is a part of the Value Stream Mapping. Optimization is not only important on a particular workstation of a specific area, but affects the entire value stream. Therefore it is important to identify how an improvement on one workstation will affect other workstations. The goal is to create improvements without affecting other areas by integrating the change to the rest of the value stream. <ref name="TBB5"></ref>
  
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This section covers Lean Tools that can be applied in Lean Project Management. These tools which is described, helps to reduce the waste and the variation of the processes. Furthermore these tools can help to identify potential improvement of processes and assist to a better understand in the company of the products life cycle.  
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==== Poka-Yoke ====
 +
[https://en.wikipedia.org/wiki/Poka-yoke Poka-Yoke] is a Japanese tool, which helps the workers to avoid mistakes. Poka-Yoke makes sure that a machine cannot work before the right instructions are being followed. For instance,  plugging a battery into headphones. The headphones do not allow the process to begin before the battery is placed correctly. This forces the user to pay attention to the instructions and use the product in the right way. A wrong setup of the product will not make any harm to the product, but will only prevent the user from using it. Another example is shown in figure 3, where the image shows how it is only possible to plug in the power outlet in one way. <ref> http://www.lsvgroup.com/site/index.php/da/viden-om-1/vaerktojer/147-poka-yoke-1, accessed: 26-09-15</ref>. <ref name="TBB5"></ref>
  
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=== Value Stream Mapping ===  
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=== Summary ===
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The lean philosophy must be applied in the entire organization. Identifying the current flow and create a current state of the flow of the specific product. What processes are the bottlenecks and how can the company eliminating the non-value added activities? While analysing the current state and project manager must aim for a target in the future. For instance, if it takes twenty days to produce a pen, aim for a target which is ten days. This is the future state, and is the target the company must achieve after implementing this lean tool.
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The explanation and the description of the applicable Lean Tools for Project Management listed above give an idea of how to approach these tools. These can be used as analytical methods as well as planning- and problem-solving approaches. <ref name="TBB5"></ref>
  
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=== Kaizen ===
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The following factors in Lean Tools can be applied in Project Management:
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This is a method in lean, which involves the employees who are closets to the process.  The employees are responsible for the kaizen event and by improving the process. The closets employees are key players because these people know most about the event they are involved within. The goal of this event is to improve the process, by eliminating the waste and create standardization. The kaizen events are mainly without consultants, because the kaizen manager forces the employees to come up with new initiatives. An A3 tool is the most common tools for this.
+
  
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=== The Gemba Walk ===
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# Lean Tools give an understanding of the current processes and help to a better understanding of improvements. In order to understand this, it is required to make a current state of the processes.
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Gemba Walk is a lean tool, where you physically go through the production, and avoid PowerPoint presentations and graphs which exactly fits the project manager or leader imagination. The manager goes to the production and walks through the entire value stream. The manager frequently identifies improvements of the processes and involves the employees which are responsible for the process. This have a positive motivation effect on the employer and the worker might feel value, because the manager is “on hand” rather than sending an invite on outlook and all the potential improvements suggestion are forgotten.
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# Lean practices can be applied in any kind of business and project. It only depends on the creativity of the workers and the project managers creativity.
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=== System optimization ===
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This mythology is a part of the Value Stream Mapping. Optimization is not only on a particular workstation of specific area, but considering the entire value stream, and identify what improvements will affects other workstation and which will not. The goal is to create improvements without affect any other areas.
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+
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=== Poka Yoke ===
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Poka Yoke or Error-handling is a Japanese tool, which allows the workers not to make any mistakes in the production. An example could be to put a battery into headphones. The “Poka Yoke” is that the headphones do not work if the battery does not have the correct orientation. Therefore the consumer of the headphones cannot listen to music before the battery orientation is proper. This could be the same for a machine, which does not have the proper inputs. The machine will not start, before the worker has completed the right configuration. When the worker has made an error, simple use this tool and creates an improvement plan, thus the error will not occur again.
+
  
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== Example of Value Stream Mapping ==
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== Consequences ==  
  
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== Discussion ==
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=== Advantages ===
 +
Applying Lean Tools in Project Management provides competitive advantages. Saving space on warehousing, reducing costs, improving efficiency, saving time,  responding faster to changes and eliminating waste are some of the major advantages by using the tools listed above. New production lines might be added while more space from the warehouse is available. In addition, the employees develop new skills and can respond quicker to changing demands from customers.
 +
<ref name="TBB3">http://smallbusiness.chron.com/advantages-amp-disadvantages-lean-production-46696.html accessed: 26-09-2015</ref>
 +
 
 +
=== Limitations ===
 +
 
 +
* '''Inefficiency'''
 +
Lean can be both misused and overused. Lean can often become a goal itself, although the value of the improvement just moves the bottleneck to another process. Lean must be a trade off between the value of the improvements and the resources in the current situation. Some companies believe that Lean tools can be applied in their organization from one day to another, but the companies forget to remember that Toyota has spent more than 50 years achieving a “Lean” Production, and Toyota has still room for improvements. <ref name="TBB3"></ref>
 +
 
 +
* '''Problem with Delivering the Right Product on the Right Time (Just In Time)'''
 +
[[File:Workload80.jpg‎|200px|thumb|right|Fig 4: Visualization of the workload balance. Source: Author's creation. ]]
 +
''"First stabilize then optimize"'' is a common proverb in Lean context. Unfortunately, some companies are optimizing and then stabilizing, which is wrong and might have major impacts on delivery times etc. For instance, if a company has uncertain delivery of raw materials, and does not have raw materials for production, then it interrupts the production flow and delayings all other processes. Therefore being aggressive with "Just in Time" might leave bottlenecks in the overall Value Stream. <ref name="TBB3"></ref>
 +
 
 +
* '''Employees Frustration'''
 +
Discouraging employees by using lean methods can be a problem. The managers may seek to squeeze the economy from the production and by that discourage the employees. Continuing improvements must be a part of the workflow, but not a strain on the workers and this can be challenging in a lean environment. In a lean environment the workload of the single worker must be around 80 % every day.  The last 20 % should be free of change and enhancement measures. These numbers were originally related to machine capacity but Toyota experienced that this method could be used on employees as well. Figure 4 shows how the development of the employees go, if the daily workload is not 100 %. <ref name="TBB3"></ref>
 +
 
 +
Organizations experience that implementing lean is not only about minimizing lead times and cutting cost etc.. It also involves changing company culture and convincing workers to adopt this philosophy. The companies often fail in creating a sustainable lean organization. <ref name="TBB4">http://www.leanmanufacture.net/leangoals.aspx accessed: 28-09-2015</ref>
  
 
== Additional Reading ==
 
== Additional Reading ==
  
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=== Books ===
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* Books
  
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- ''Lean Thinking''. By James P. Womack and Daniel T. Jones: 2003. 9780743249270 - One of the most famous books about Lean, especially the authors. Must read to get a detailed and overview of lean.
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- ''Lean Thinking''. By James P. Womack and Daniel T. Jones. 2003. ISBN 978-0743249270 - One of the most famous books about Lean. Must read to get a detailed and overview of lean.
  
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- ''Gemba Walk''. By James P. Womack. 978-1934109151 - Great examples from Womack. Womack gives som great examples from the real life. Particularly when he steps into the first company, and explains how he did the "Gemba Walk" and how badly the company performed (Page 48-75).
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- ''Gemba Walk''. By James P. Womack. ISBN 978-1934109151 - Great examples from Womack. Womack gives som great examples from the real life. Particularly when he steps into the first company, and explains how he did the "Gemba Walk" and how badly the company performed (Page 48-75). This book is available at The Technical University of Denmark's' library.
  
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=== Websites ===
+
* Websites
  
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- [http://www.brighthubpm.com/methods-strategies/12663-lean-management-principles-how-to-eliminate-waste/  Eliminiation of Waste] - Get a fast overview of Lean Thinking in Project Management.
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- [http://www.brighthubpm.com/methods-strategies/12663-lean-management-principles-how-to-eliminate-waste/  Elimination of Waste] - Get a fast overview of Lean Thinking in Project Management.
  
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- [https://www.youtube.com/watch?v=RxDw0Q_gVt0  Lean Principles] - If you are not into reading, then you can find some pretty good examples on youtube. This video might give powerful understanding of Lean.
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- [https://www.youtube.com/watch?v=RxDw0Q_gVt0  Lean Principles] - If you are not into reading, then you can find some pretty good examples on YouTube. This video might give powerful understanding of Lean.
  
 
== References ==
 
== References ==
 
<references/>
 
<references/>
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[[Category:Project Management]][[Category:Management]][[Category:Lean Management]][[Category:Visual tools‏‎]]

Latest revision as of 16:49, 18 December 2018

Developed by Thomas Børgesen Bachmann


The philosophy of Lean Thinking was originally applied in the automotive industry. Later it became clear that the philosophy was not only applicable in relation to the automotive industry, but it could also be used in other industries. This article covers the basic principles of Lean Thinking in relation to Project Management. The overall purpose is to give an overview of Lean Thinking. This will include a description of the background of Lean Thinking, a description of non-value activities together with tools and techniques applied in Lean Thinking. Additionally some examples will be given in how to approach Lean Tools in Project Management.

The main topics in this article are Lean Thinking and Project Management. The definitions of Lean Thinking and Project Management can be seen below:

Lean Thinking: Eliminate waste in order to maximize customer value with less resources.[1].

Project Management: Plan, organize, motivate and control the resources to achieve a specific goal of a temporary project within the specific criteria.[2]

Contents

[edit] Background

Fig 1: Visualization of the five principles of Lean

[edit] Introduction to Lean

Lean Thinking is the philosophy from the Japanese automotive company Toyota, and was introduced in the late 1930’s as the Toyota Production System (known as TPS). Lean is basically about creating value for the customer by eliminating waste. An organization which has fully adopted the philosophy understands which activities create value for the customer and how much the customer is willing to pay for the product/service. The target in every lean project is to eliminate waste and reduce the variation in all of the processes in the value chain in order to create stability. The lean philosophy, in form of TPS, caught attention from other automotive manufacturing companies when the small Japanese automotive company Toyota became one of the leading automotive manufacturing companies in the world. In the beginning the TPS system was dedicated to the manufacturing industry, but over the past years the philosophy has been established as an overall optimization philosophy for all kind of businesses.

The Lean philosophy consists of five principles; Specify value, Integrate the value stream, Create flow by eliminating waste, Establish pull and Seek perfection (see description below and figure 1.) . [3]

Lean Principles
The Five Lean Principles [3] [4]. Description
1. Specify Value

Specify Value is understanding that only a small fraction of the total time and effort adds value to the customer. This is mainly about identifying all the non-value activities and the activities which create value for the specific product or service.

2. Integrate the Value Stream Value Stream Mapping is when all the activities of the product are identified from the very beginning of its lifecycle across all the processes. An overview of all the non-value activities will be visualized in a Value Stream Mapping Model.
3. Create Flow by Eliminating Waste When The Value Stream has been mapped, it will be clear that many of the activities do not add value. In this step the non-value activities will be eliminated. Eliminating the non-value activities, will make sure that the product flows directly to the customer without any interruptions.
4. Establish Pull This step is related to the concept of Just-in-time (JIT). At this point it is important to understand the demand of the customers and to create the production process in relation to their demand. The materials for the production should be available "just-in-time", so there is no need for an inventory.
5. Seek Perfection The principles described above have to be applied continuously in order to secure that all non-value activities become visible and eliminated. The goal is to eliminate waste completely although it is difficult to achieve. The most "Lean" organisation involve all of the employees and implement the lean mindset in all parts of the organisation.

Implementing the principles of Lean Thinking in organisations should result in: [5]

  • - Quality Improvement
  • - Elimination of Waste
  • - Reduced Lead time
  • - Reduced Total Cost

Additionally this should improve the customer satisfaction and this is the main driver of implementing Lean in any organization.

[edit] Elimination of Waste

Lean Thinking is used in Project Management because not only “production lines” can be “Lean” but also projects. Lean Thinking in Project Management is used to reduce the costs of the project, to make sure that project is finished within the estimated time and to make sure that the success criteria of the project is met. Lean tools can easily be applied in Project Management with the purpose of eliminating waste (known as Muda in Japanese Terms). The different types of waste are described in the table below.

Description of waste:

Types of waste
Waste in Lean Thinking [6] Waste in Lean Project Management [7]
- Transportation, every time a product is moved. Damaging of products, delays, etc. - Status meetings, which are ineffective and too long to keep the participants interested.
- Inventory, raw material, work-in progress or finished goods, which is costly and does not create value to the customer. - Too detailed plans. Usually the schedule changes during a project period, which makes it pointless with a too detailed plan as the plan may change many times.
- Waiting. If a process or product is not in progress. - Collecting inoperable data, which will never be used.
- Over-processing. This occurs when more work is done than what is required by the customer. - Push sub project and meetings, which ties up the team members and only satisfies the stakeholder but increases the duration of the project.
- Over-production. Producing more than the total demand of the product from the consumer. - Documentation which is never used.
- Defects. Creates extra cost and extra labor from the producer.
- Motion. Equipment/people moving more than required.

The 7 different types of waste in Lean Thinking are related to the production. In Lean Project Management some similar types of waste can be found such as; Waiting, Over Processing and Defective Processes, as these are related to the planning and management of the project.

As a Project Manager it is crucial to classify all processes. When all processes have been classified, the Project Manager has to identify which processes create value and which does not. Once all non-value activities have been identified, the manager must go to a detailed classification by using the table listed above. That helps to find out what kind of waste is the biggest bottleneck and at that point it is possible to make a project plan which systematically eliminates the bottlenecks/waste.

[edit] Lean Tools in Project Management

This section covers The Lean Tools that can be applied in Lean Project Management. These tools, which are described below, help to reduce the waste and the variation of the processes. Furthermore these tools can help to identify potential improvement of processes and assist to a better understanding of the products life cycle. Not every "Lean" tool is applicable in Project Management, but some of them are amd those are listed below. [8]

[edit] Value Stream Mapping

Fig 2: Detailed Map of Value Stream.

Visual Management in Project Management provides a lot of information quickly. Furthermore it's easier to remember information when it's presented visually. Value Stream Mapping (VSM) is a visual technique to map the current processes. VSM gives a current state view of the processes and gather information as; cycle times, inventory levels, down times, material flows and information flows. This technique can be used in different levels, such as the entire supply chain or a production area. The tool maps all the non-valued activities as well as all the valued activities. The target is to achieve a future state sceneria by using other lean tools. Figure 2 shows a very detailed plan of a Value Stream. The Map informs many different common VSM symbols, which are used to portray material and information flow. [8]

[edit] Kaizen

While Value Stream Mapping gives an overview of the current activities, Kaizen Events are useful for conducting the improvements of the activities. Kaizen events are generally a short-term project, which takes place in a period of 3 - 5 days. The objective is to improve a minor process and the scope is limited. Workers, which are closest to the current process, are key players in these projects. New strategies, techniques and equipment are not introduced in these events, but are introduced in Kaikaku Events, where the scope is larger and the more radical changes are made. [8]

[edit] The Gemba Walk

Gemba Walk is a powerful tool, where the Lean Manager physically visits the production floor. The manager goes to the production and walks through the entire value stream. There are a number of reasons why this is a great tool, for instance; The Lean Manager is not familiar with the process and have another view of the process. Furthermore, when the Lean Manager visits the production floor it gives a positive motivation impact on the employee and who feels valued by the attention from the manager. By using Gemba Walk avoid you PowerPoint presentations and get in more direct touch with the problems. [8]

[edit] System Optimization

Fig 3: Example of Poka Yoke.

This tool is a part of the Value Stream Mapping. Optimization is not only important on a particular workstation of a specific area, but affects the entire value stream. Therefore it is important to identify how an improvement on one workstation will affect other workstations. The goal is to create improvements without affecting other areas by integrating the change to the rest of the value stream. [8]

[edit] Poka-Yoke

Poka-Yoke is a Japanese tool, which helps the workers to avoid mistakes. Poka-Yoke makes sure that a machine cannot work before the right instructions are being followed. For instance, plugging a battery into headphones. The headphones do not allow the process to begin before the battery is placed correctly. This forces the user to pay attention to the instructions and use the product in the right way. A wrong setup of the product will not make any harm to the product, but will only prevent the user from using it. Another example is shown in figure 3, where the image shows how it is only possible to plug in the power outlet in one way. [9]. [8]

[edit] Summary

The explanation and the description of the applicable Lean Tools for Project Management listed above give an idea of how to approach these tools. These can be used as analytical methods as well as planning- and problem-solving approaches. [8]

The following factors in Lean Tools can be applied in Project Management:

  1. Lean Tools give an understanding of the current processes and help to a better understanding of improvements. In order to understand this, it is required to make a current state of the processes.
  2. Lean practices can be applied in any kind of business and project. It only depends on the creativity of the workers and the project managers creativity.

[edit] Consequences

[edit] Advantages

Applying Lean Tools in Project Management provides competitive advantages. Saving space on warehousing, reducing costs, improving efficiency, saving time, responding faster to changes and eliminating waste are some of the major advantages by using the tools listed above. New production lines might be added while more space from the warehouse is available. In addition, the employees develop new skills and can respond quicker to changing demands from customers. [10]

[edit] Limitations

  • Inefficiency

Lean can be both misused and overused. Lean can often become a goal itself, although the value of the improvement just moves the bottleneck to another process. Lean must be a trade off between the value of the improvements and the resources in the current situation. Some companies believe that Lean tools can be applied in their organization from one day to another, but the companies forget to remember that Toyota has spent more than 50 years achieving a “Lean” Production, and Toyota has still room for improvements. [10]

  • Problem with Delivering the Right Product on the Right Time (Just In Time)
Fig 4: Visualization of the workload balance. Source: Author's creation.

"First stabilize then optimize" is a common proverb in Lean context. Unfortunately, some companies are optimizing and then stabilizing, which is wrong and might have major impacts on delivery times etc. For instance, if a company has uncertain delivery of raw materials, and does not have raw materials for production, then it interrupts the production flow and delayings all other processes. Therefore being aggressive with "Just in Time" might leave bottlenecks in the overall Value Stream. [10]

  • Employees Frustration

Discouraging employees by using lean methods can be a problem. The managers may seek to squeeze the economy from the production and by that discourage the employees. Continuing improvements must be a part of the workflow, but not a strain on the workers and this can be challenging in a lean environment. In a lean environment the workload of the single worker must be around 80 % every day. The last 20 % should be free of change and enhancement measures. These numbers were originally related to machine capacity but Toyota experienced that this method could be used on employees as well. Figure 4 shows how the development of the employees go, if the daily workload is not 100 %. [10]

Organizations experience that implementing lean is not only about minimizing lead times and cutting cost etc.. It also involves changing company culture and convincing workers to adopt this philosophy. The companies often fail in creating a sustainable lean organization. [11]

[edit] Additional Reading

  • Books

- Lean Thinking. By James P. Womack and Daniel T. Jones. 2003. ISBN 978-0743249270 - One of the most famous books about Lean. Must read to get a detailed and overview of lean.

- Gemba Walk. By James P. Womack. ISBN 978-1934109151 - Great examples from Womack. Womack gives som great examples from the real life. Particularly when he steps into the first company, and explains how he did the "Gemba Walk" and how badly the company performed (Page 48-75). This book is available at The Technical University of Denmark's' library.

  • Websites

- Elimination of Waste - Get a fast overview of Lean Thinking in Project Management.

- Lean Principles - If you are not into reading, then you can find some pretty good examples on YouTube. This video might give powerful understanding of Lean.

[edit] References

  1. ↑ http://www.lean.org/WhatsLean/, accessed: 23-09-15
  2. ↑ The Definitive Guide to Project Management. Nokes, Sebastian. 2nd Ed.n. London (Financial Times / Prentice Hall): 2007. ISBN 978-0-273-71097-4
  3. ↑ 3.0 3.1 Lean Thinking. By James P. Womack and Daniel T. Jones: 2003. ISBN 978-0743249270
  4. ↑ http://leanmanufacturingtools.org/39/lean-thinking-lean-principles/ , accessed: 23-09-15
  5. ↑ http://www.leanmanufacture.net/leangoals.aspx , accessed: 23-09-15
  6. ↑ Toyota Production System, Ohno, Taiichi, 1988, Productivity Press ISBN 978-0915299140
  7. ↑ http://projectmanagement.atwork-network.com/2012/03/16/lean-tools-and-techniques-for-project-management/ accessed: 23-09-2015
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 8.6 Leading and Managing The Lean Management Process, Fliedner, Gene, 2011, Business Expert Press, New York, ISBN 978-1606492482
  9. ↑ http://www.lsvgroup.com/site/index.php/da/viden-om-1/vaerktojer/147-poka-yoke-1, accessed: 26-09-15
  10. ↑ 10.0 10.1 10.2 10.3 http://smallbusiness.chron.com/advantages-amp-disadvantages-lean-production-46696.html accessed: 26-09-2015
  11. ↑ http://www.leanmanufacture.net/leangoals.aspx accessed: 28-09-2015
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