LEAN PROJECT MANAGEMENT

• Lean Management & Principles

• Lean vs Non Lean Process

• Identify & Eliminate Waste

• Lean Methodologies & Tools:

✓ 5S

✓ Kaizen

✓ Jidoka ▪ Vaibhav Khokhar

▪ Nehal Ahmad
▪ Shelja Goyal
✓ Kanban / Poka Yoke ▪ Rohit Tanwar
 LEAN PROJECT MANAGEMENT

➢ Lean project management is the application of lean manufacturing principles to the practice of project management.

Fundamentals of Lean Project Management: Key Benefits:

▪ Lean Project Management requires to look at your project as a value stream

▪ Reduced lead times
▪ It is focused on value delivery from the customers perspective, cutting down project waste to optimize
▪ Lower inventory—and therefore
efficiency and continuously improving the project process to increase customer satisfaction
lower storage costs
▪ Contrary to traditional project management, Lean does not distinguish between project phases. The
▪ Decreased overall costs
focus is on following the five core principles of Lean management cyclically.
▪ Improved productivity and
▪ Eliminating project waste and creating a pull system is central to increasing the efficiency of your
efficiency
projects.
▪ Greater quality
▪ One of Lean project management's main goals is to create a stable workflow - to make the project
delivery uninterrupted and by that predictable.
▪ Higher customer satisfaction
▪
▪ Choosing and combining different Lean Management tools like a PDCA cycle, Kanban board, and
Gemba checklist will support the transition from traditional to Lean project management
 Lean management and principles

➢ Lean project management focuses on delivering value to the consumer while minimizing waste

➢ According to the Project Management : “To be Lean is to provide what is needed, when it is

needed, with the minimum amount of materials, equipment, labour, and space.”

➢ The five lean principles are :

• Define value: Uncover what the customer wants

• Map value stream: Identify the exact set of activities that will help achieve customer value

• Create Flow: Develop a flow for the set of activities, ensure that the process runs smoothly without

interruptions. Workers at each level should identify and eliminate waste

• Establish pull: Rather than pushing products to consumer and increasing inventory, establish a pull-

based system to align production whenever demand materializes

• Pursue perfection: The company should be a learning organization and always find ways to get a

little better each day

 Lean vs Non-Lean thinking

Decision variable Traditional management Lean management

Cost Focus is on low unit costs Focus on low system costs
Capacity Focus on utilising full capacity Focus on developing and utilising
necessary capacity
Inventory Keep high inventory Key minimum inventory
Cycle Time Long cycle times Focus on short cycle time
Batch size Large batch sizes Small batch sizes
• Lean, similar to Six Sigma is a process improvement that is
solely based on the fundamental goal of waste elimination
and flow maximization.
Necessary waste – non-value-adding, but
necessary to get things done in a quality
manner.
Eg: testing, planning, reporting, etc.

Pure waste – non-value-adding and

unnecessary.
Doesn’t bring value, can be removed
immediately
Eg: Any form of waiting
Toyota’s view is that the main method of lean is not the tools, but the reduction of
three types of waste

muda (“non-value-adding work”)

mura(“unevenness”)

muri (“overburden”)
LEAN METHODOLOGIES
 Kaizen: “ Create a culture of continuous improvement that gradually increases quality, efficiency, and profitability”

Change Good Principles of Kaizen: Kaizen in Project Management:

▪ Identify Opportunity: Aim for small but consistent execution

▪ Analyse the process

▪ Develop an Optimal Solution

▪ Implement the Solution

▪ Study the results

▪ Standardize the Solution

▪ Leverage Digital Tools

▪ Plan for the future

Key Benefits: Deming Cycle

▪ Encourages Grassroot Thinking ▪ Enhances Creativity

▪ Avoids Information Silos ▪ Improves Teamworking

▪ Boosts Workplace Productivity

 Jidoka: “ Quality at Source - Radical implementation suggests stopping the production line until root cause of defect is identified ”
Autonomation

When the defect is found Own Station Next Station End of Line Final Inspection End User

Economic Impact

Manifestation of Impact ▪ Very Minor • Minor Delay • Rework • Significant Rework • Warranty Cost
• Rescheduling • Delay in Delivery • Admin Cost
• Additional Inspection • Reputation Loss
• Loss of Market Share

Key Benefits:
Principle of Jidoka:

▪ Higher Quality

▪ Worker Respect

▪ Higher Productivity
 Kanban: Kanban is a simple framework that does not require specific set up or procedures and is typically easy for teams to get
started with or overlay on top of existing workflows
Visual Sign

Core Principles: Advantages:

▪ Increase flexibility: With no set phase

▪ Visualize the workflow: To effectively manage the work with Kanban, you need to be durations, Kanban is a fluid model where
able to visualize it. With an up-to-date, real-time Kanban board, you can quickly priorities are re-evaluated when new details
visualize the work and mitigate issues early on. arise.

▪ Limit work in progress (WIP): Work in progress limits (WIP limits) determine the ▪ Reduce waste: Kanban focuses on reducing
amount of work the team can accomplish for each phase and workflow being tracked waste by ensuring that teams don’t spend
on the board. Kanban focuses on reducing WIP to increase speed and throughput. time doing unnecessary work.
▪ Manage and enhance the flow: The movement of work or flow of work across the ▪ Easy to get started: The visual nature of
Kanban board must be monitored and improved upon. To do this, it’s necessary to Kanban makes it intuitive and easy to
measure and track performance metrics, like number of items in process and number understand, so teams don’t have to learn a
of items completed, to calculate average completion rate and total cycle time. whole new methodology.

▪ Make workflows explicit: To increase the efficiency of your workflows, you must ▪ Improve flow: Kanban focuses on the just-in-
ensure that your entire team is aware of the processes and procedures. Regularly time approach of value and delivering work
review steps within the workflow to ensure they are as efficient as possible. on a regular cadence.
▪ Continuously improve: Once your team is up and running on the Kanban system, they ▪ Minimize cycle time: In Kanban, the entire
should be able to identify issues and provide feedback on the process to ensure team is focused on reducing bottlenecks to
maximum throughput. ensure that work moves quickly through the
process.
Thank You