How Does Project Management Fit With Lean And Six Sigma?

[Suresh Jayaram]

Project Management is the application of a set of principles, methods, tools, and practices that enable the project manager to plan, organize and deliver projects with acceptable quality on time and on budget. Project Management is typically undertaken for medium to large projects where this is a substantial risk of project failure such as cost over-runs, delays, poor deliverables etc.

Project Management (PM) works with a known set of resources and plans for the activities required to deliver the project. The biggest issues in PM are identification of the right activity durations due to resource constraints, managing risks, getting the resources to execute per plan, communication of issues and project progress, and generally managing expectations of all key stakeholders.

PM can benefit from application of Lean by stabilizing and standardizing the processes used to complete activities, elimination of NVA activities, deploying pull type systems to manage work-in-process inventory, making progress visual, and making the work flow through the company to reduce overall lead time for project completion.

PM can benefit from application of Six Sigma by launching Six Sigma projects to identify root causes of why projects are not being delivered on time and fixing these problems. PM can benefit from the rigours of Six Sigma in the area of establishing baselines, appropriate project metrics that include leading and lagging indicators, using tools to come up with the best solution, putting controls in place to sustain solution etc.

The above was a very brief write-up and I am sure there are several other issues not mentioned above. What are your thoughts on this topic?

[MANIK SANADI]

I think use of better estimate techniques can help to arrive at good approximations in activity duration etc... Ultimately every project is unique in itself. I totally agree that six sigma can greatly help in fixing root causes of overshooting the schedules, efforts & budgets.

[Vishwadeep Khatri]

This post has been promoted to an article

[Sarang Bhusari1314164370]

Dear All,

 

Can anyone throw light on what  BOOT projects are all about?

B - Build

O- Own

O- Operate

T- Transfer

I have a rough idea about this topic.

 

Can any one share on this topic in detail?

Also let me know, that how SIX SIGMA will play its role in BOOT projects.

 

Looking forward to a favorable response from everyone.

Regards,

SARANG

[Marcus Sorensen]

Dear Sarang,

 

The concept of BOOT involves an arrangement by which a private developer builds an infrastructure facility using limited or non-recourse financing in return for the right to operate the facility and charge users a fee in order to generate a commercially acceptable rate of return (15% or more) on investment. The private developer owns and operates the project for a specified amount of time, usually 25 to 30 years, after which ownership is transferred to the government without compensation.

In the "build" phase, Lean will make good sense as Lean is about reducing waste which means that the "build" phase will be reduced by using Lean.

 

Regards,

Marcus Sorensen

[Sarang Bhusari1314164370]

Dear Marcus,

 

Thanks a lot for your precious feedback. It has clarified the basics of BOOT.

• Could you throw some light on BOOT with respect to Power Plant Projects?
• What can be the initial risks involved in such projects?
• What can be various ways to mitigate these risks?

 

Looking forward to a favorable response.

 

Regards,

SARANG

[Marcus Sorensen]

Dear Sarang,

 

If you are planning to manage such a project, some issues must be addressed:

1. The project must make profits prior to the transfer.
2. Companies who build well do not necessarily operate well, so check their track records on both fronts.
3. Ownership will matter depending on the strategy in terms of upkeep; historical track records would be a good guide.

 

Some alternatives to BOOT could maybe be interessed for you in order to mitigate the risks:

• BRT: Build, Rent, Transfer
• BOT: Build, Operate, Transfer
• BTO: Build, Transfer, Operate
• DBOT: Design, Build, Operate, Transfer
• BOOST: Build, Own, Operate, Subsidize, Transfer
• FBOOT: Finance, Build, Own, Operate, Transfer

For inspiration, try www-pub.iaea.org/MTCD/publications/PDF/te_1555_web.pdf

 

Regards

Marcus Sorensen

[prashanthverma.l]

Dear All ,

I am a Green belt certified & wanna pursue Black Belt certification.

Can any one help me out guiding which books to be reffered for BB certification.

 

[Abhishek Mishra]

Dear Prashanth

If you are already a Green Belt and are willing to ursue a Black Belt, you may pursue this Program from Benchmark Six Sigma (BSS). Carried across 10 cities in India, Black Belt Certification from BSS (like all its programs) is Exemplar Global (Previously RABQSA). The training structure and course material is such that you will not require any additional books and will still have a sound understanding of practical aspects of Six Sigma methodologies. For more details, you may call at our toll free number which is:

1800-102-3003

Warm regards

AbhishekM