Lean project management_20170607

Lean Project ManagementLean Project Management
Presentation to the BAPMN June 7, 2017
Developed in partnership with

Lean Project Management
Presentation Topics
• What Is Lean Project Management
– PMBOK
– Lean Concepts
– Critical Chain Project Management
• Eight Principles of LPM

Leading Effective Virtual Meetings
Presentation Topics
• What is Lean Project Management?

What Is Lean Project Management
(LPM) is “about simplifying
project leadership to satisfy
your stakeholders in the
shortest amount of time, while
minimizing stress on project
participants and waste.”
SOURCE: Leach, L. (2005) Lean
Project Management: Eight Principles
for Success. Boise Idaho: Advanced
Projects, Inc.

What Is Lean Project Management
LPM relies heavily on
the PMBOK framework.
LPM focuses on
“Value”, as defined in
Lean, and on delivering
that value as quickly as
possible, using Critical
Chain Project
Management, first
described by Dr. Eli
Goldratt in his book
“Critical Chain.”
LPM Overall Project Delivery Process
SOURCE: Leach (2005)
Project Management Process Groups
SOURCE: PMI (2013)

LPM: PMBOK
Lean Project Management focuses on the PMBOK
Knowledge areas that most affect delivering that
value quickly:
• Integration
• Scope
• Time
• Cost
• Risk

LPM: Lean Thinking
In the book “Lean Thinking”, Womack and Jones
coined the term “Lean”, following their analysis of the
Toyota Production System in “The Machine That
Changed the World.” They defined “Value” as the
elimination of waste from a process and outlined these
Five Principles:
1. Identify Value
2. Map the Value Stream
3. Create Flow
4. Establish Pull
5. Seek Perfection
Source: Womack (1996)

LPM: Lean Thinking
LPM seeks to deliver
project value as quickly
as possible, without
increasing cost, in order
to protect project ROI.
LPM identifies and
offers techniques to
eliminate the root
causes of waste in
project execution.
Eliminating waste is a
prime focus of Lean.
SOURCE: Womack, J. and Jones, D. (1996). Lean Thinking: Banish Waste And Create
Wealth in Your Corporation. New York: Simon and Schuster
Eight Deadly Wastes of Lean

LPM: Critical Chain
• Founded on “Theory of Constraints” (TOC)
• Resource-based, not task based
• Uses buffers to manage variation/uncertainty
• Monitor project health based on consumption of
project buffer relative to remaining work
SOURCE: Goldratt, E. (1997). Critical Chain. Great Barrington, MA: The North River
Press, Inc.

LPM: Critical Chain
Reasons for Project Delays in Traditional PM
• Not starting the task until the last moment – and
often finding issues that delay completion
(Student Syndrome)
• “Work expands to fill the time allotted for its
completion” (Parkinson’s Law)
• Finishing the required task early but using
remaining time to add additional features (Gold
Plating)
• Cherry picking tasks
SOURCE: Goldratt, E. (1997). Critical Chain. Great Barrington, MA: The North River
Press, Inc.

Eight Principles of LPM
The Eight Principles of Lean
Project Management are:
1. Project System
2. Leading People
3. Charter
4. Right Solution
5. Manage Variation
6. Manage Risks
7. Project Plan
8. Execute
SOURCE: Leach, L. (2005) Lean Project
Management: Eight Principles for Success. Boise
Idaho: Advanced Projects, Inc.

Eight Principles of LPM
The first two
principles form
the pillars of the
project delivery
system in LPM.
SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success.
Boise Idaho: Advanced Projects, Inc.
The last six principles outline the flow of the Project
Delivery Process, but in reality these principles
interact in both directions throughout the process.

Principle #1 – Project System
“Successful project delivery requires leading the
system, comprised of people, process, and product.”
(Leach, 2005)
Key Topics
• Project Management Methodology
• PMO
• Project Pipeline

Principle #2 – Leading People
“Leading all of the people with an interest in your
project, the project stakeholders, to endorse project
success.” (Leach, 2005)
Key Topics
• Stakeholder Register
• Roles and Responsibilities
• RACI Matrix
• Conflict Resolution

Evaporating Cloud
Stakeholder 2 must have C. In order to have C, they must have D’
Stakeholder 1 must have B. In order to have B, they must have D

Evaporating Cloud
Stakeholder 2 must have C. In order to have C, they must have D’
Stakeholder 1 must have B. In order to have B, they must have D
D and D’ are in conflict!

Evaporating Cloud
Each block is connected to another by an assumption. Insert this by
adding “because” – “In order to have B, I must have D because…”
Assumption

Evaporating Cloud
Each block is connected to another by an assumption. Insert this by
adding “because” – “In order to have B, I must have D because…”

Principle #3 – Project Charter
“Establishing a project Vision and gaining alignment
on a project charter enables your project team to
succeed.” (Leach, 2005)
Key Topics:
• Charter
• Business Case
• Issues and Actions Log

Elements of Project Charter
Project Vision: A mental Polaroid of the project result.
Project Purpose: Why are we doing it?
Project Team Membership: For preparation of the project plan,
including assigning the Project Leader.
Organizational linkage: What parts of the organization are involved
in the project, and whom do the key members report to?
Boundaries: What is in the project, what is out?
Key assumptions and constraints.
Team and individual responsibilities: For creating the Project Plan.
Measures of success: For the project.
Operating guidelines: For the project planning team.

SOURCE: Leach,
L. (2005) Lean
Project
Management: Eight
Principles for
Success. Boise
Idaho: Advanced
Projects, Inc.
Sample Charter
Template

Principle #4 – Right Solution
“Successful projects must deploy the right solution to
the problem or opportunity that the project seeks to
exploit.” (Leach, 2005)
Deploying the wrong solution is the worst kind of
project waste!
Key Topics:
• Requirements Document
• Solution Design/Selection
• Critical/Creative Thinking

Principle #4 – Right Solution
SOURCE: http://mojecosie.blogspot.com/2014/07/two-great-classroom-posters-on-six.html.
De Bono’s Six Thinking Hats

Principle #5 – Manage Variation
“Variation and uncertainty are the ways of the world:
to prosper, your management must go with the flow.”
(Leach, 2005)
Common Cause vs. Special Cause
Key Topics
• Reasons for Variation
• Buffer Management
• Project Tracking

Management Approaches to Various Types of Uncertainty
SOURCE: Leach, L. (2005) Lean Project Management:
Eight Principles for Success. Boise Idaho: Advanced
Projects, Inc.

Critical Chain Method – The Problem
Task Duration Estimates are subject to variation – ex. -50% to +%100
A 50% confidence level in the estimate would result in less than 13%
probability of ending on schedule!
Therefore, “safety” is
added to the estimate
to give more margin
for error. However,
most of this margin is
wasted due to:
• Student Syndrome
• Parkinson’s Law
• Gold-Plating

Critical Chain Method – The Solution
Buffer is added equal
to 50% of the safety
removed (The theory
is, statistically half of
the tasks will end late
and half will end early,
averaging out.
Tasks are not date
driven – they depend
on the predecessor
task. Think of the
baton in a relay race.
Task Duration Estimates are reduced by 50% to eliminate safety at
the task level.

Buffer Management
Projects, Inc.
Project Buffer: A time buffer
at the end of a project
critical chain
Feeding Buffers: Time
buffers that connect non-
critical chains of tasks to
the critical chain
Resource Buffer: A
resource capacity buffer,
used in staggering the start
of project tasks
Cost Buffer: A dollar buffer
to comprise the total
estimated budget for a
project.
Critical Chain Network Diagram

Buffer Management
Green - doing fine, and
require no additional
management attention.
Yellow – team should
be creating buffer
recovery plans.
Red – team should be
implementing buffer
recovery plans.
% of Critical Chain Completed Compared to
% of Project Buffer Consumed

Principle #6 – Risk Management
“Project risk management develops actions to
reduce the probability and potential undesirable
consequences of identifiable (special-cause) risks to
your project.” (Leach, 2005)
Managing Uncertainty
Key Topics
• Risk Management
• Risk Register
• Risk Matrix
Projects, Inc.

Principle #6 – Risk Management
Management Approaches to Various Types of Uncertainty
Projects, Inc.

Principle #7 – Project Plan
“The Project Plan provides all project stakeholders the
road map for project success. All projects require
necessary and sufficient project execution
procedures, including at least project communication
and change control processes.” (Leach, 2005)
“Do not mistake a project schedule for a Project
Plan”!
• Communications Plan
• Change Control
• Task Network
Projects, Inc.

Comprehensive Project Plan

Grading the Project Plan

Principle #8 – Execution
“Relay racer task performance underlies the final
principle to Lean Project Management. Executing
Lean projects deploys the Lean principle of Pull to
cause projects to flow from start to finish with
minimal generation of waste.” (Leach, 2005)
“Tasks do not have due dates!”
• Task Execution
• Buffer Management
• Project Processes
Projects, Inc.

Questions?
Thank you

Resources
Goldratt, E. (1997). Critical Chain. Great Barrington, MA: The North
River Press, Inc.
Kendall, G. and Austin, K. (2013) Advanced Multi-Project
Management. Plantation, FL: J. Ross Publishing, Inc.
Leach, L. (2005) Lean Project Management: Eight Principles for
Success. Boise Idaho: Advanced Projects, Inc.
PMI (2013). A Guide to the Project Management Body of Knowledge,
5th edition. Newtown Square, PA: Project Management
Institute, Inc.
Womack, J. and Jones, D. (1996). Lean Thinking: Banish Waste And
Create Wealth in Your Corporation. New York: Simon and
Schuster.

Lean project management_20170607

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Lean project management_20170607

Similaire à Lean project management_20170607 (20)

Dernier

Dernier (20)

Lean project management_20170607