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Lean Project Management Principles
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Ryder System, Inc.
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Published on Feb 19, 2010
Published in: Business
Lean Project Management Principles
1. Lean Project Management Principles “ Any Project worth doing is worth doing fast and right”. PMI Dade
Dinner Meeting
2. 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.
PMI Dade Dinner Meeting
3. 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. PMI Dade Dinner Meeting
4. 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” PMI Dade Dinner Meeting
5. 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 PMI Dade Dinner
Meeting
6. 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 PMI Dade Dinner Meeting
7. Principle 1: Eliminate Waste PMI Dade Dinner Meeting
8. 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 PMI Dade Dinner
Meeting
9. The Baton PassGoal to Win the Race Preparing a Building Plan Team Work Practice Avoid for
Perfection Rework PMI Dade Dinner Meeting
10. 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 PMI Dade Dinner Meeting
11. Value Stream Thinking Problem Solving Validate Root Causes Current State Analysis IdentifyWaste
Solutions Actions Plans PMI Dade Dinner Meeting
12. 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 “handoffs” Focus on Dependencies not on Deadlines PMI Dade
Dinner Meeting
13. 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 PMI Dade Dinner Meeting
14. Principle 2: Empowerment, Respect, Integrity PMI Dade Dinner Meeting
15. Where to you Start? Customer Needs? Customer Requirements? Financial Performance?
Customer Satisfaction? Ahhhhh ! Who is the Customer? –Who are my Stakeholders? PMI Dade Dinner
Meeting
16. Responsibility Matrix Roles Project Leader Task Manager Resource RASIC Chart R=
Responsible A= Accountable S= Support I= Inform C= Consult PMI Dade Dinner Meeting
17. 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 PMI Dade Dinner Meeting
18. Team Building Forming Storming Norming Performing Leading toward the Goal Initial State of
Project Team Align the Team Towards the Goal PMI Dade Dinner Meeting
19. 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
PMI Dade Dinner Meeting
20. 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 PMI Dade Dinner Meeting
21. 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. PMI Dade Dinner Meeting
22. 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 PMI Dade Dinner Meeting
23. Principle 3: Decide Later, Deliver Fast PMI Dade Dinner Meeting
24. Small Commitment Map out a series of interconnected projects Smaller achievable projects
More efficient Scheduling PMI Dade Dinner Meeting
25. 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 PMI Dade Dinner Meeting
26. 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 Integration Build & test 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 Integration Build & test path requires significant lead Definition Def
Design time to build, begin sooner M.3 Mod 3 Build Def Design PMI Dade Dinner Meeting
27. 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 PMI Dade Dinner Meeting
28. 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 PMI Dade Dinner
Meeting
29. Principle 4: Amplify Learning PMI Dade Dinner Meeting
30. 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 PMI Dade Dinner Meeting
31. 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 PMI Dade Dinner Meeting
32. Synchronize Activities Collocation of development personnel Visual management tools to show
status and performance Frequent, short coordination meetings Tools to share information PMI Dade
Dinner Meeting
33. 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 SetBased 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' PMI
Dade Dinner Meeting
34. Principle 5: See the Whole PMI Dade Dinner Meeting
35. 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) PMI Dade Dinner Meeting
36. 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 PMI Dade
Dinner Meeting
37. Elements of Project Charter 13 Pages / 13 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
PMI Dade Dinner Meeting
38. 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 PMI Dade Dinner Meeting
39. The Project Delivery System Project Systems consist of People Processes Products/Services
Relationships The Goal : Define a PMO PMI Dade Dinner Meeting
40. Lean Project Management Is about: Building Lean Behaviors in your organizations Thank You Q&A PMI
Dade Dinner Meeting
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