The application of lean production to
project management
Experts in most industries focus on performance
improvement to achieve competitive advantage. Performance
can be quantified against value, i.e. meeting the customer's
needs. Any organisation's performance is driven by two key
components: performing more effectively, and performing
more efficiently. Effectiveness refers to maximising value
of the output, while efficiency refers to minimising or
eliminating non value-adding items in production. Hence
performance is explained in terms of achieving value effectively
and efficiently.
Lean production is an approach that centers
on attaining value efficiently. Its adoption and implementation
in industries such as the automotive industry, has brought
about substantial performance improvement. Such improvement
has been possible through the introduction of tools such
as supply chain analysis and management.
Peter W.G. Morris, a professor in engineering
project management, coined the term management of projects.
It reflects a broad approach rather than the limited range
of elements inherent in traditional project management.
In this approach, the management of time, cost and quality
factors are dealt with a more holistic approach that involves
a wider perspective such as taking into consideration environmental
factors. This approach is considered to focus more on attaining
value, thereby improving performance, effectively.
Management of Projects', which exclusively
focuses on the management of time, cost and quality cannot
guarantee total satisfaction of customer's needs. Project
management performance with respect to this dimension can
be enhanced by improving project management's ability to
meet a customer's needs. Lean project management is the
right approach to address this dimension.
Lean project management offers a harmonising
approach to existing project management practice and has
been developed by combining two approaches: management of
projects and lean production. The project management's focus
on meeting customer needs effectively and lean production's
emphasis on satisfying customer needs efficiently are implemented
in lean project management to enhance project management
performance.
The union of lean production with project
management to establish lean project management is examined
and justified at the methodological level.
Figure 1: Generation of the Lean Project Management Methodology.
