Posted: April 30th, 2022

Lean Project Management Principles

Lean Project Management Principles
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Lean project management is an approach that aims to deliver value to customers by eliminating waste and improving efficiency in every phase of a project. It is based on the principles of lean manufacturing, which originated from the Toyota Production System (TPS) in Japan. Lean project management can be applied to any industry or domain, and it is compatible with other agile methodologies, such as Scrum and Kanban.

The following are the five principles of lean project management, along with some examples and tools that can help implement them.

1. Specify value from the standpoint of the end customer.

The first principle is to define what value means for the customer, and how the project can deliver it. Value is not only about the quality and functionality of the product, but also about the timeliness, cost, and satisfaction of the customer. To specify value, it is important to understand the customer’s needs, expectations, and preferences, and to align them with the project’s goals and objectives.

Some tools that can help specify value are:

– Voice of the customer (VOC): A technique that collects and analyzes feedback from customers to identify their requirements and desires.
– Value proposition canvas: A tool that helps define how the product solves the customer’s problems and delivers benefits.
– Kano model: A framework that categorizes customer needs into basic, performance, and delighters, and helps prioritize them.

2. Identify all the steps in the value stream, eliminating whenever possible those steps that do not create value.

The second principle is to map out the entire process of delivering value to the customer, from the initial idea to the final product. This is called the value stream, and it includes all the activities, resources, and information flows that are involved in creating and delivering value. The goal is to identify and eliminate any waste or non-value-added steps that do not contribute to customer value or are redundant, unnecessary, or inefficient.

Some tools that can help identify and eliminate waste are:

– Value stream mapping (VSM): A technique that visualizes the current state of the value stream and identifies opportunities for improvement.
– The 8 wastes of lean: A list of common types of waste that can be found in any process, such as defects, overproduction, waiting, inventory, motion, transportation, overprocessing, and skills.
– 5S: A method that organizes the workplace into a clean, orderly, and safe environment that reduces waste and increases efficiency.

3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

The third principle is to optimize the flow of value through the value stream by ensuring that each step is performed in a smooth, continuous, and uninterrupted manner. Flow means that there are no delays, bottlenecks, or interruptions between one step and another, and that each step is completed as soon as possible without compromising quality or customer satisfaction. Flow also means that work is done in small batches or increments that can be delivered quickly and frequently to the customer.

Some tools that can help create flow are:

– Kanban board: A visual tool that tracks the progress of work items through different stages of the value stream using cards and columns.
– Work-in-progress (WIP) limit: A rule that limits the number of work items that can be in each stage of the value stream at any given time, to prevent overloading and ensure flow.
– Theory of constraints (TOC): A management philosophy that focuses on identifying and removing the most critical constraint or bottleneck that limits the performance of a system.

4. As flow is introduced, let customers pull value from the next upstream activity.

The fourth principle is to adopt a pull system instead of a push system for managing work. A pull system means that work is initiated by customer demand rather than by forecast or schedule. In other words, work is pulled by downstream activities from upstream activities when it is needed rather than pushed by upstream activities when it is ready. This way, work is aligned with customer demand and avoids overproduction or underproduction.

Some tools that can help implement a pull system are:

– Pull signal: A mechanism that triggers work to be pulled from one stage to another when there is capacity available.
– Just-in-time (JIT): A production strategy that aims to produce only what is needed when it is needed with minimal inventory.
– Reorder point (ROP): A method that determines when to order more materials or supplies based on current inventory level and lead time.

5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, repeat this process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

The fifth principle is to pursue perfection by continuously monitoring, measuring, and improving the value stream. Perfection means that there is no waste or defect in the process, and that customer value is maximized and delivered with optimal efficiency and effectiveness. Perfection also means that the project team is constantly learning and innovating to find new ways to create and deliver value.

Some tools that can help pursue perfection are:

– Plan-do-check-act (PDCA) cycle: A four-step method that guides the continuous improvement of a process or product by planning, doing, checking, and acting on the results.
– Key performance indicators (KPIs): A set of metrics that measure the performance of a process or product against predefined goals and objectives.
– Kaizen: A Japanese term that means “change for the better” or “continuous improvement”, and refers to the culture and practice of making small and incremental improvements on a regular basis.

References
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– Liker, J. K. (2004). *The Toyota way: 14 management principles from the world’s greatest manufacturer*. New York: McGraw-Hill.
– Krafcik, J. F. (1988). Triumph of the lean production system. *Sloan Management Review*, 30(1), 41-52.
– Womack, J. P., Jones, D. T., & Roos, D. (1990). *The machine that changed the world: The story of lean production*. New York: Harper Perennial.

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