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Lean project management_20170607

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Lean project management_20170607

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Overview of the elements of Lean Project Management, as well as an examination of the eight principles as outlined by Lawrence P. Leach in his book "Lean Project Management: Eight Principles for Success."

Presented to Bangor Area Project Managers Network on June 7, 2017

Overview of the elements of Lean Project Management, as well as an examination of the eight principles as outlined by Lawrence P. Leach in his book "Lean Project Management: Eight Principles for Success."

Presented to Bangor Area Project Managers Network on June 7, 2017

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Lean project management_20170607

  1. 1. Lean Project ManagementLean Project Management Presentation to the BAPMN June 7, 2017 Developed in partnership with
  2. 2. Lean Project Management Presentation Topics • What Is Lean Project Management – PMBOK – Lean Concepts – Critical Chain Project Management • Eight Principles of LPM
  3. 3. Leading Effective Virtual Meetings Presentation Topics • What is Lean Project Management?
  4. 4. What Is Lean Project Management 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.
  5. 5. 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)
  6. 6. LPM: PMBOK Lean Project Management focuses on the PMBOK Knowledge areas that most affect delivering that value quickly: • Integration • Scope • Time • Cost • Risk
  7. 7. 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)
  8. 8. 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
  9. 9. 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.
  10. 10. 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.
  11. 11. 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.
  12. 12. 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.
  13. 13. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  14. 14. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  15. 15. Principle #2 – Leading People Evaporating Cloud SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. 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
  16. 16. Principle #2 – Leading People Evaporating Cloud SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. 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!
  17. 17. Principle #2 – Leading People Evaporating Cloud SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. 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
  18. 18. Principle #2 – Leading People Evaporating Cloud SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. Each block is connected to another by an assumption. Insert this by adding “because” – “In order to have B, I must have D because…”
  19. 19. Principle #2 – Leading People Evaporating Cloud SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. Each block is connected to another by an assumption. Insert this by adding “because” – “In order to have B, I must have D because…”
  20. 20. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  21. 21. Principle #3 – Project Charter SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. 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.
  22. 22. Principle #3 – Project Charter SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. Sample Charter Template
  23. 23. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  24. 24. Principle #4 – Right Solution SOURCE: http://mojecosie.blogspot.com/2014/07/two-great-classroom-posters-on-six.html. De Bono’s Six Thinking Hats
  25. 25. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  26. 26. Principle #5 – Manage Variation Management Approaches to Various Types of Uncertainty SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  27. 27. Principle #5 – Manage Variation 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
  28. 28. Principle #5 – Manage Variation 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.
  29. 29. Principle #5 – Manage Variation Buffer Management SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced 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
  30. 30. Principle #5 – Manage Variation Buffer Management SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. 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
  31. 31. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  32. 32. Principle #6 – Risk Management Management Approaches to Various Types of Uncertainty SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  33. 33. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  34. 34. Principle #7 – Project Plan SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. Comprehensive Project Plan
  35. 35. Principle #7 – Project Plan SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc. Grading the Project Plan
  36. 36. 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 SOURCE: Leach, L. (2005) Lean Project Management: Eight Principles for Success. Boise Idaho: Advanced Projects, Inc.
  37. 37. Lean Project Management Questions? Thank you
  38. 38. 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.

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