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Lean Project Management Principles

          “ Any Project worth doing
       is worth doing fast and right”.




            PMI Dade Dinner Meeting
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
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
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
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
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
Principle 1: Eliminate Waste




       PMI Dade Dinner Meeting
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
The Baton Pass-Goal to Win the Race

  Preparing a                               Building
  Plan                                           Team Work




 Practice                                      Avoid
 for Perfection                               Rework




                  PMI Dade Dinner Meeting
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
Value Stream Thinking



                                    Problem Solving
     Validate                        Root Causes
   Current State                        Analysis




                    IdentifyWaste                     Solutions Actions
                                                            Plans




                   PMI Dade Dinner Meeting
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



                PMI Dade Dinner Meeting
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
Principle 2: Empowerment,
     Respect, Integrity




      PMI Dade Dinner Meeting
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
Responsibility
Matrix
 Roles
   Project Leader
   Task Manager
   Resource


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


                     PMI Dade Dinner Meeting
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
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
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
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
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
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
Principle 3: Decide Later, Deliver
               Fast




          PMI Dade Dinner Meeting
Small Commitment
 Map out a series of interconnected projects
 Smaller achievable projects
 More efficient Scheduling




                  PMI Dade Dinner Meeting
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
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
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
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
Principle 4: Amplify Learning




        PMI Dade Dinner Meeting
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
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
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
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'


                   PMI Dade Dinner Meeting
Principle 5: See the Whole




       PMI Dade Dinner Meeting
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
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
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


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




                      PMI Dade Dinner Meeting
Lean Project Management
                 Is about:
Building Lean Behaviors in your organizations

                   Thank You

                        Q&A




             PMI Dade Dinner Meeting

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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 Pass-Goal 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 “hand-offs” 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  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' 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  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 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