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Lean Project Management

Assessment of project risk management processes

Written by N. Alcaraz Bosca

Paper category

Master Thesis

Subject

Business Administration>Management

Year

2012

Abstract

Master Thesis: Lean Project Management Projects are regarded as temporary production systems. These systems are regarded as "lean" projects when they are organized to maximize value and minimize waste. There are many differences between traditional projects and lean projects. The main differences between these two systems are their goals, the organization of the phases, the relationships between the phases, and the participants in each phase. (Ballard and Howell, 2003) Lean project management constitutes another perspective of traditional production, in which production is more important than design, and projects are regarded as a secondary production method. From a new perspective, production and design are considered to be an important part of production. In order to design and make things for the first time, there must be a project. Therefore, the project constitutes the basic form of the production system. (Ballard and Howell, 2003) Although lean project management has not been widely used, there are some examples of how this approach can be successfully implemented. In a recent study conducted at BBC Worldwide, Middleton and Joyce (2012) explained how to apply lean principles to software project management to improve software performance and thereby improve project results. This approach uses tools such as visual management, team-based problem solving, smaller batch sizes, and statistical process control to enhance software development. In addition, the delivery of projects focused on creating value for customers enables them to reduce technical and market risks. 3.1 The need to redefine project management The critical chain project management technology and traditional methods explained in the previous section, PERT and CPM, are forms of project management integrated in the knowledge system of the Project Management Institute (PMI). As cited by Howell and Koskela (2000), PMI defines project management as “applying knowledge, skills, tools, and techniques to project activities to meet or exceed the needs and expectations of project stakeholders. To meet or exceed the needs of stakeholders And expectations always involve balancing competing demands in the following aspects:-scope, time, cost, and quality-stakeholders with different needs and expectations-determined needs and expectations." At the same time, according to Packendorff (1995), a project is defined as "A set of related tasks that define a start and end date. They use some limited resources to achieve a specific purpose. In addition, it is considered a unique, once-in-a-lifetime task with a scheduled delivery date, subject to one or Multiple performance goals, composed of many independent activities". 3.2 The new theoretical basis of project management As mentioned earlier, imperfect assumptions and theoretical imperfections of project management are the main reasons for project failure. The main theoretical issues are related to the understanding of the project and the understanding of management. According to PMBOK, a project has two different processes; a product-oriented process (project theory) and a project management process (management theory). Although there is no clear theory, it can be divided into the aforementioned project theory and management theory to show the essential foundation of project management. These theories are shown in Table 1. (Koskela and Howell, 2001; 2002a; b) Regarding project theory, it is said that project management involves managing work by breaking it down into smaller activities or tasks, as it is called in PMBOK. These activities or tasks are independent, they constitute the analysis unit of the project management process, such as scope, time and cost management. In addition, the dependencies between tasks are simple and sequential. To ensure that activities meet schedule and budget goals, management and control are centralized. In this theory, the uncertainty of tasks and requirements is considered low. (Koskela and Howell, 2002a; b) Comparing this project management theory with the production management theory, it can be seen that the former's theory lies in the transformation theory. During most of the 20th century, the production transformation model has been used in manufacturing. In this model, a project is considered as a transformation from input to output, and managed through different principles, which indicates that the overall transformation of a project can be broken down into sub-transformations or smaller transformations and tasks. At the same time, these principles show that optimizing each task individually can optimize project results. Therefore, improving tasks can improve project performance. (Howelland Koskela, 2000) However, some authors claim that the project theory with shifted views should be strengthened and new theories need to be introduced because there are two main problems with this theory. On the one hand, it does not recognize that there are other activities in production besides transformation; on the other hand, it does not recognize that transformation does not confer product value, but that the customer’s needs are consistent with the value of the product. In addition, production theory is older than project management. Read Less