Lean Project Management Principles

“ Any Project worth doing

is worth doing fast and right”.

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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.

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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.

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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”

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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

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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

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Principle 1: Eliminate Waste

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 Shift Mindset
CURRENT REQUIRED
THINKING THINKING

Material
Movement Waiting

M W
Over
Inventory Production
O
WASTE
I TYPES
OF
WASTE
T O
Transport Over
D Processing

Defects

WASTE NOT DEFINED S

REACT TO LARGE EXAMPLES Skills
REACTIVE IMPROVEMENT

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The Baton Pass-Goal to Win the Race

Preparing Building
a Plan Team Work

Practice Avoid
for Perfection Rewor
k

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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

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Value Stream Thinking
Follow
Follow up
up
Current
Current
SIPOC
SIPOC Analysis
Analysis and
and
State
State Learning
Learning

Problem
Solving
Validate Root Causes
Current State Analysis

Future
Future
State
State
Identify Waste Solutions
Actions Plans

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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

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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

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Principle 2: Empowerment, Respect,
Integrity

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

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

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Responsibility
Matrix

Roles
Project Leader
Task Manager
Resource

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

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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

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

Align
Initial State of Project TeamPMI Dade Dinner the Team Towards the Goal
Meeting
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

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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

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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.

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

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

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Principle 3: Decide Later, Deliver
Fast

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

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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

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

Alternative 1 M.1
Module 1 Design
Phased definition. Def
Definition & System M.2 Mod. 2
Integration Build & test
development of modules Definition Def Design
deferred to allow
M.3 Mod 3
flexibility for changes.
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 Definition Def Design
lead time to build, begin
M.3 Mod 3
sooner Build
Def Design

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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

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 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

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Principle 4: Amplify Learning

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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

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 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

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

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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'

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Principle 5: See the Whole

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 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)

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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

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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

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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

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

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

Thank You

Q&A

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