Lean Project Management Principles

Lean Project Management Principles

“ Any Project worth doing
is worth doing fast and right”.

PMI Dade Dinner Meeting

Definitions of Lean
 Lean System: emphasizes the prevention of waste ( Mura) :
extra time, labor or material spend that does not add value to
the product or service.

 Lean Enterprise: foster a company culture where
employees constantly look to improve their skills levels
and production processes. Product and Services are driven
the right amounts, to the right location, at the right time
and in the right condition.


Lean Thinking
The goal of Lean Thinking is the creation of a
continuous stream which delivers customer
value with the least waste of resources within
the shortest possible time.


Definitions of Project
PMBOK: “A Project is temporary endeavor
undertaken to create a unique product, service
or result”

PMBOK: “Project Management is an application
of knowledge, skills tools and techniques to
project activities to meeting project
Requirements”


Lean Goals Project Goals
 Improve Quality  Complete on time
 Eliminate Waste  Complete on Budget
 Reduce Lead Time  Meet Performance
 Reduce Total Costs Requirements

More about Behaviors, More about Tools,
Change, Improvement Techniques, Methods,
Results


Lean Principles LPM Principles
 Specify Value  Eliminate Waste
 Identify the Value Stream  Empowerment, Respect,
 Flow Integrity
 Pull  Decide later, Deliver fast
 Perfection  Amplify Learning
 See the whole
 Risk Management


Principle 1: Eliminate Waste


Shift Mindset
CURRENT REQUIRED
THINKING THINKING

Material
Movement Waiting

M W
Over
Inventory Production

WASTE I TYPES O
OF
WASTE
T O
Over
Transport D Processing

Defects

WASTE NOT DEFINED S
REACT TO LARGE EXAMPLES Skills
REACTIVE IMPROVEMENT


The Baton Pass-Goal to Win the Race

Preparing a Building
Plan Team Work

Practice Avoid
for Perfection Rework


Project as a Value Stream
 Look at Project as a Processes
(chains) : a set of activities with inputs, processing and outputs
 Looks for sets of processes (work packages) as a value stream
 Look for weak links in a project’s chains exposes some of the
most wasteful practices in an organization.
 Eliminate Bottlenecks within teams, Build Strong routines


Value Stream Thinking

Problem Solving
Validate Root Causes
Current State Analysis

IdentifyWaste Solutions Actions
Plans


Lean Project Manager
Lean project managers prefer to review the way that work
elements pass between team members.

Lean project management differentiates itself from other
methodologies by emphasizing the opportunity to improve
“hand-offs”

Focus on Dependencies not on Deadlines


Strong WBS
 Eliminating waste
 Build strong Plans
 Build strong teams that understand their value
 Build a Strong WBS
 Responsibilities for deliverables and milestones
 Visibility for the Project Manager to see relations


Principle 2: Empowerment,
Respect, Integrity


Where to you Start?
 Customer Needs?
 Customer Requirements?
 Financial Performance?
 Customer Satisfaction?

Ahhhhh !
 Who is the Customer? –Who are my Stakeholders?


Responsibility
Matrix
 Roles
 Project Leader
 Task Manager
 Resource

 RASIC Chart
R= Responsible
A= Accountable
S= Support
I= Inform
C= Consult


Leading Projects
Manage things, Lead people - Stephen Covey

 Identify Project Stakeholders
 Needs of each Stakeholders
(in terms of product and process)
 Clear Plans, Goals, Targets, including Stakeholders
RASIC


Team Building
 Forming
 Storming
 Norming
 Performing
Leading toward the Goal

Initial State of Project Team Align the Team Towards the Goal

Empower your Team
EMPOWER (def.) give power or authority to;
to authorize; to enable; to delegate

 Functional managers empower team members to represent
functional discipline without approval for decisions or actions
 Self directed teams -describe what is required; let teams
determine how
 Requires more management planning & capable, trained
personnel
 Results in greater commitment and ownership


The Last Planner
 The person who will execute the planned work of the Project
 Make Last Planner indentify the work
 Increase commitment from the process owner
 Increase Empowerment, Decrease Centralized Delegating


The Last Planner Principle
 Plan in greater detail as you get closer to doing the work.
 Produce plans collaboratively with those who will do the
work.
 Reveal and remove constraints on planned tasks as a team.
 Make reliable promises.
 Learn from breakdowns.


Continuous Improvement
 Look for Quick Wins
 Promote Positive Impact of Procedural changes
 Keep it small

Small = Small = Less Total = Less Team = Less
Projects Impacts Disaster Failure Punished PM


Principle 3: Decide Later, Deliver
Fast


Small Commitment
 Map out a series of interconnected projects
 Smaller achievable projects
 More efficient Scheduling


Pipeline Management
 Manage the number of projects in the pipeline and their release to avoid
overloading resources and increasing work in process
 Focus resources on highest priority projects to finish sooner; don’t start
other projects until resources become available. Use DRUM
 Project start dates and completion dates should not be bunched together -a
steady flow (and constant “new news” to the market) and not a log jam
 Use your Drum resources and build you Drum Schedule

Project 1
Project 2 Project 6
Project 3 Project 2 Project 4 Pj. 7
Project 4 Project 7 Project 1 Project 5
Project 5 Project 3 Project 6


Defer Decisions
Baseline Case Module 1 Design
Complete definition before
development begins. Product Mod. 2
Integration Build & test
Development of all modules Definition Design
starts immediately. Mod 3
Design

Alternative 1 M.1
Module 1 Design
Phased definition. Definition Def
& development of modules System M.2 Mod. 2
deferred to allow flexibility Definition Def Design
for changes.
M.3 Mod 3
Def Design

Alternative 2 M.1
Module 1 Design
Phased definition. If one Def
module not on the critical System M.2 Mod. 2
path requires significant lead Definition Def Design
time to build, begin sooner
M.3 Mod 3
Build
Def Design


Deciding as Late as Possible
 Delivering as fast as possible
 Emphasis on Planning and Development phases
 Relay Race culture
 Eliminate waste: Inventory, Waiting and Defects
 Dynamic and Motivational Environment


Critical Chain Project Management (CCPM)
Traditional Project Management
 Task estimates are padded to
better insure meeting
schedule
 Tasks started late because of
other pressing demands
 Work fills available time
 By coordinating via start and
finish dates, effort spent
finishing early often wasted
 Lateness is always passed on -
can’t be made up without
reducing scope or increasing
resources

Critical Chain Project Management (CCPM) can significantly reduce the
development schedule


Principle 4: Amplify Learning


Educate your Team
 Plan for Training in the
WBS
 Specially on new and
mostly unique Projects
 Look for members on
waiting spaces
 Prepare your members for
future phases


Promote, Promote, Promote
 Promote the impact of
Professional Development
 Make promotion part of your plan
 Show successful experiences
 Go beyond long term effects to
create a productive workplace
 Look for quality idea generation
behavior


Synchronize Activities
 Collocation of development personnel
 Visual management tools to show status and performance
 Frequent, short coordination meetings
 Tools to share information


Rapidly Explore Activities
 While an emphasis on value and time with lean practices would
suggest not wasting time exploring alternatives when an
acceptable solution exists, this is not the case
 Greatest value when multiple alternatives can be rapidly explored
–this is the only way to move towards a more optimum solution
 Set-Based Design involves developing multiple sets of solutions in
parallel & relatively independently.
 As the design progresses, the sets of solutions are gradually
narrowed based on additional information from development,
testing, the customer, etc., and the best solution 'emerges'


Principle 5: See the Whole


Project Cycle
 See whole = Watch the Project Cycle Constantly
 Strong Project Chartering
 Move through Project Cycle many times
 Look for new opportunities
 Free team from unnecessary tasks (non-value Tasks)


Project Chartering
 Project: New Opportunity or Solve a Problem
 Start Lean Thinking
 No Project Charter , No Project
 “The Project Charter is the tool to get people aligned on
understanding the Project”, Leach, 2005
 “ The document that formally authorize the project” ,
PMBOK
 Get all stakeholders to agree on it
 Use your project Charter in project selection
 Make it visual and accessible


Elements of
Project Charter
 1-3 Pages / 1-3 hour
 Use a Project Mind
Mapping Software

 Vision
 Mission/Objectives
 Membership
 Organizational Linkage
 Boundaries
 Key Assumptions and
Constraints
 Team and Individual
Responsibilities
 Metrics
 Operating Guidelines
 Feasibility Studies


Portfolio Management
 Define a Selection Criteria
 Define project benefits and
 ROI impacts
 NPV
 Quantify the project impacts
 Payback
 Rank Projects
 IRR
 Cash Flow Analysis

Project 1
Project 2 Project 6
Project 3 Project 2 Project 4 Pj. 7
Project 4 Project 7 Project 1 Project 5
Project 5 Project 3 Project 6


The Project Delivery System
 Project Systems consist of
 People
 Processes
 Products/Services
 Relationships
 The Goal : Define a PMO


Lean Project Management
Is about:
Building Lean Behaviors in your organizations

Thank You

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Lean Project Management Principles

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Lean Project Management Principles