Project Management Using the Lean Systems Project Management Methodology in the Versace Project - Case Study Example

? Systems Project Management Approach Table of Contents Table of Contents 2 Organizational Situation 3 Figure 3 - Flow of Work - Versace 6 Systems Project Management Approach 7 Check Phase of Lean Project management 10 Findings from undertaking the check phase 10 Thinking that shapes the current system 11 Recommendations 12 References 15 Introduction This report is about project management using the lean systems project management methodology. Project management deals with controlling, motivating organizing and planning resources so as to achieve the organizations objectives (Meredith, 2010). Projects are normally temporary with an outlined beginning and end. A project is also done to meet unique goals and objectives or to bring some meaningful change within the organization (Steyn, 2001). It happens separate from business as usual and the management of projects is normally separate. Project management therefore requires the managers and their teams to develop distinct technical skills and management strategies (Project management institute, 2000). Some of the main challenges include scope, time, quality and budget. While other ones that can come in secondary include optimizing the allocation of necessary inputs and integrates them to meet the objectives (Wheeler, 2000). Organizational Situation The project in question is called Versace. It involves 9 Customer requests. The project is for a global brand management company which has customers located all over the world. Flow of work in the company is illustrated in Figure 3. Customer contacts Administrator by email or phone requesting label design to be created. Then Administrator summarizes Customer request and then passes over to an Artist. After Artist created label design he then passes over the design to Quality Control Department who evaluates the label design and checks if Customer brief been followed. If Artist made a mistake then QD (Quality Department) sends label back to an Artist to get it amended and if label is correct then it is being transferred back to Administrator. Administrator then checks the design to make sure it is correct and if it is wrong she then sends it back to Artist and if it is correct then she adds costs and sends design over to Customer. After Customer received the design he then evaluates and checks if brief been followed. For this project as many other projects within the company Right First Time (RFT) is very low as customer majority of times adds additional request and workflow is being repeated as many times as customer sends additional changes. It is important to note that each project for each action has set timelines as per below Figure 1 however customer demands for designs to be delivered quicker then set deadlines. Figure 1 - Set Action Timelines 1st Action (A) 3 Days 2nd Action (B) 2 Days 3rd Action (C) 2 Days 4th Action (D) 2 Days 5th Action (E) 2 Days Figure 2 reflects actual times each action taken for specific number of label designs- Versace. Figure 2 Action Number of Labels Days taken to complete Right First Time % A 1 3 11.1% B 2 4 22.2% C 4 5 44.4% D 1 6 11.1% E 1 7 11.1% Figure 3 - Flow of Work - Versace Systems Project Management Approach The lean systems management approach was chosen due to the fact that lean system methodology regards to project management that all tasks need to serve the purpose of the customer as efficiently as possible (Atkinson, 2006). As outlined above all tasks for the project are in place to serve customer request. Critical discussion on why lean system project management was used Versace project can be described as dynamic and unpredictable as customer requested for extra changes to be done and demanded for timelines to be reduced for actions B/C/D/E. This was not foreseen prior project starting (Leach, 2005). This therefore increased the duration of the project which affects interaction between activities and resources in ways that are not considered in the traditional methods of project management (Koskela, 2002). The reduction of time for the project actions therefore complicates the project. Also changes in design ordered by the customer leads to the increase of complexity in the technical aspect of the project (Howell, 2000). Traditional Project Management is another approach that can be used in project management however it was not chosen for Versace project due to changing dynamics in project management. In the past many scholars have seen the need to redefine the traditional project management approaches (Carbone, 2004). This is because it has failed to achieve project management goals mainly due to faulty theories. These traditional methods mainly dealt with uncertainty instead of reducing uncertainty in the project management (Perminova, 2008). There has therefore been a need for a project management approach that complement the transformation theory of projects as inputs and outputs as well creation of distribution value. Projects therefore need to be considered as value creation processes (Bertelson, 2004). Among most scholars and theories of production there has been an agreement that the approach that best suits the dynamic world of project today is lean system management approach (Koskel, 2001). This is because it deals with quick delivery of products as shown in Figure 2. Figure 1 provides insight in actual each action timelines and Figure 2 explains the scope of Versace project and number of days taken to complete each action. As per customer request for actions B/C/D/E timelines been reduced from 2 days to 1 day to meet customer demand. It therefore enables the processes to maximize on value and minimize on waste. Processes that are in place for Versace project as shown in Figure 3 are there to maximize on value and quality. With regards to waste actions that label designs go through as shown in Figure 2 are not seen as waste, they are seen as creative purpose as Customer was adding additional changes and not amending mistakes made however extra actions reduce RFT. Therefore the basis of lean systems management approach for Versace project fits with the need to deliver quickly and efficiently, complex, uncertain as well as unique project (Middleron, 2012). It is the method of choice in making sure the one day deadline for actions B/C/D/E is met in the production of the labels (Atkinson, 2006). Most researchers in recent years have concentrated on adapting lean principles of project management especially in the field of construction and other fields where production requires specification of the customer (Elliot, 2008). Lean project management approach is definitely better for complex methods compared to traditional approach. However for a project that is simple traditional project management approach is the best. The project managers need to assess the complexity of the projects from their very beginning. There is a need for the investigation for the risks in risk management which is basically the process for evaluating the process that will best suit the project that is established (Ballard, 2000). After assessing the risks that would occur in the project the project manager can hence assess the method to use either lean or the traditional approaches (Bertelsen, 2004) Lean production management can be defined as the key managerial values and attitudes needed to sustain continuous improvement in the long run (Atkinson, 2006). It is centered on continuous improvement which requires relentless elimination of waste as well as respect for people which requires engagement in long term relationships on the basis of continuous improvement and mutual trust (Cicimil, 2009). Lean production method of systems project management can be described by making a comparison with craft and mass production. Since it combines both their benefits but avoids their main disadvantages in order to produce the goods (Melton, 2005). This implies that the lean production is able to ensure avoidance of high costs of production as well as the rigidity of mass production (Chapman, 2003). Lean production certainly uses teams of multi-skilled employees at all levels of the business and also flexible and automated machines that allow producing goods in a high variety (Klementi, 2006). The major aim of the lean method of production is to produce high quality products in an efficient and economical way. This leads to less wasteful activities. Inventive measures need to be placed in so as to use less human effort, less inventory and less time to develop the new products and also less time to respond to customers demand (Klementi, 2006). The reasons for choosing this systems project management approach are that it clearly responds to the task at hand (Ballard, 2003). Lean project management is good because it improves customer satisfaction, has shorter through put times, saves on costs, continuous organization improvement and also ensures professionalism and quality improvement (Raz, 2003). Check Phase of Lean Project management At this phase of lean project management the manager needs to know what exactly entails the project. What should be investigated during the check phase is among other things the real purpose of the system. This should be viewed in both the organization’s perspective as well as the customer’s perspective. The nature of the customer demand should also be investigated, the managers should research whether demand is pull based or push based demand. The reality response time of the system and the overall achievement of the system should also clearly be stated. Knowing what the system is achieving beforehand will enable the goals of the project to be streamlined. The amount of time between the starting and completion of the tasks should also be investigated. The work flow of the company should be investigated. Question that needs to be asked include if the work flow allows feedback between the artists, quality department and the administration. Another factor in the work flow to be considered is its flexibility. The core system thinking and conditions that influence how the managers run the company should also be investigated. Findings from undertaking the check phase The findings have shown that the demand of the products is clearly pull based demand since the customer is the one who communicates their need of the product to the company. Customer’s request for products and hence pulls them through the demand channel. The flow is not flexible enough to provide feedback loops that would lead to better designing of the product. There doesn’t seem to be clear communication of the design the customer requires as extra rounds of changes being made to the designs. Therefore flexible feedback criteria should be used through automated feedbacks. There also seems to be a lack of right first time accuracy as extra round of changes were needed however this is not seen as waste but creative purpose as customer reevaluates the designs after each action. However this has led to the current crisis of labels required to get finished in one day for actions B/C/D/E instead of agreed 2 days. Thing that seem to be affecting the system is lack of a strong vision from customer for its demand as extra rounds could have been avoided. The current purpose of the Versace project is to make sure customer demand been followed through the whole work flow ensuring accuracy and meeting agreed timings. Thinking that shapes the current system Thinking that shape’s the current system is System thinking. This is the right thinking. It is characterized by top-down communication whereby there is feedback from the artists to the quality department and to the administration which makes the labels be designed easily and more flexible. The company has a learning approach on changes brought about by the client due to the number of times they have been told by the client to change the designs. It is also a norm for them to make many changes to the work according to the client. Contractual relationship with the customer as well as informal agreements that truly reflects what the client wants is considered by the managers. The company inherently does consider what matters and what the client really wants which might not be in the contract. Decision making is part of the work principles due to the number of changes that the company does. The company indeterminably uses the systems approach in the Versace project, because this allows their exceptional handiwork to be approved by the client even after the first completion. System thinking is a purpose driven approach towards clearing projects and general day to day running of the organization (Seddon, 2005). Its adaption requires the managers to have an outside in thinking. Customers are contacted several times for clarification this leads to there being harmony between the external demands of the client and the internal designs of the artists. Decisions that the quality department comes up with are mormally integrated as part and parcel with the work the artists do (Kerzner, 2003). Managers of the Project Versace will have to stipulate what really matters especially when it comes to the customers. Project Versace team members have to have flexibility and adaptive measures should be set in place so as to be able to integrate the changes from quality department and the customers as they come along. A learning approach that they normally use, is also essential for project Versace to be successful. Recommendations The company is at a critical point, due to the work required to be done on the labels. The ones that normally take three days to be done will require one day also the ones that normally require two days for completion require one day. This urgency towards completion of the work creates a highly volatile employee environment which can be demotivating to the employees especially the artists (Bannerman, 2008). The present management principles should be implemented so as to enable completion of the project. Lean project system management should also be implemented in full, which will reduce wastage of both the employee’s efforts as well as resources. Organizational goals can only be achieved if things are running like a well-oiled machine within the company (Ballard, 2012). An example for the Versace project is that the work flow chart recommended can be used so as to ensure required feedback is enabled between the administration and the artists as well as the artist and the quality department (Chapman, 2003). A useful tool that can be implemented is the kanban system used by Toyota a Japanese based car manufacturer. Kanban system is a lean scheduling system as well as a form of control of the logistics in production. When the kanban system is implemented the quality managers will be able to know when work is completed by an artist. It will also keep track of the materials used by the artists thus reducing waste and they will be able to complete the tasks in the Versace project on time (Smith, 2004). The customer can make a presentation even though it’s a drawn presentation so that the manager can know exactly what the customers design is. The specific purpose of the system should be determined it can be done by specifying the value of the product. Which is what the customer is willing to pay for the labels (Ballard, 2003). The implementation of the various principles in lean system thinking can increase efficiency in every each step of the design of the project. The work flow will increase efficiency if there is flexibility that the work can be canceled and taken back to the first stage so as to lead to better completion of the product thus increasing first time accuracy. The time required to finish the task also needs to be flexible and hence the order can be finished on time (Chapman, 2003). Executive Summary This is a report that seeks to establish the importance of lean management in systems project management. It enumerates how the process of lean management can be used in the Versace project. The company has been analyzed and it has been found to use systems approach. The workflow of the organization also is a flexible feedback system to create what the customer really wants. This flexibility and better use of the systems approach can be enhanced by using the lean system approach in systems thinking. The demand that mainly occurs in the company has also been established as pull based demand. 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