Research on Lean Project Management:

Advantages & disadvantages of TPM & LPDS

Introduction
These days customers' requirements are very precise due to the rapid changes in
the society, environment and technology. In order to meet this global trend and to
deliver progressively sophisticated product sometimes the old project management
methods which revolve around time, cost and quality might not be sufficient. There
are many new production management concepts, but among them lean production
delivery system (LPDS) is a very successful method concerning the growth of project
management. This report is going to focus on the comparative assessment of the
advantages and disadvantages of current project management methods and lean
production delivery systems (LPDS).

Current project management methods

Project management can be referred to the application of knowledge, skills, tools,
and techniques to a broad range of actions or activities to achieve the project
objectives (Project Management Institute 2005). Traditional project management
(TPM) method is one of the main methods amongst the other current project
management methods. TPM technique can be defined as a step by step approach to
each of the projects five stages which are initiating, planning, execution, monitoring,
and completion of the project. Each particular stage is broken down and a stage
begins only when the pre-stage has been completed, usually in traditional projects a
present stage cannot cycle back to its previous stage (Wysocki 2003, p. 17). TPM
concept is very advantageous for the stakeholders as their opinion is crucial.

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Advantages of Traditional Project Management Method

Most of the advantages of traditional project management method mentioned here

meet the expectations of the stakeholders.

Budgeting and cost control

In traditional approach most projects are completed within budget because usually
the functional manager establish the budget on approval from the higher authority
and has the absolute control over it. He also has flexible manpower and a wide base
from which to work (Kerzne 2003, p. 93).

Suitable for mass production

Every activity is carried out within the functional groups. Each department leaded by
a head contents strong technical expertise. All projects can benefit from the latest
technology as they flow through the functional departments. Thus the system well
suited to mass production (Kerzne 2003, p. 92).

Communication
Communication channel is vertical and structured for both formal and informal
organisations. Organisations also have well defined levels of authority and
responsibility as each person reports to only one individual. (Kerzne 2009, p. 97).

Efficiency
The traditional project management method has been proven efficient to deliver the
desired product to the customer’s satisfaction for a long time. When a strategy in
project management method leads to success, it builds up a trust between the
organisation and the client, that strategy is then considered for future projects. It also
has a positive effect on the worker, they become more experienced and specialized
to perform complex activities and to accomplish more challenging projects (Kerzne
2009, p. 96).

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Disadvantages of Traditional Project Management Method

However, complication and sophisticated client expectations of the latest projects

reveal the flaws of traditional project management methods. In addition usually
project managers are expected to make a sense of balance between client
expectations and business interests and also to improve the end product, decrease
cost and duration of the project (Project Management Institute 2005). The
disadvantages of traditional project management method are listed below.

Absence of central authority

The major disadvantages are associated to the lack of a well-built central power for
the project. Conflict occurs between functional groups as they struggle for power.
High level executives have to get involved in daily routine when integrating a
complex activity. Decision making may become time-consuming (Kerzne 2003, p.
93).

No customer focal point

The response to customer's need become a slow and aggravating process in
traditional approach due to lack of customers' centre of attention. Communications
are channelled through higher management. Top level managers then pass on all
difficult issues to the functional manager (Kerzne 2003, p. 93).

Time management
Traditional projects require very large lead time so it has a tendency to fall behind
the timetable. Usually manager attends to those activities first which are beneficial
for them and their subordinates (Kerzne 2003, p. 93).

Good ideas are held back

In the traditional method the specialist constructors, who deliver the project are
involved in the project after the design is substantially complete so they miss the
opportunity to contribute their ideas in design phase (Matthews & Howell 2005, p.
47).

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Lack of coordination
In the traditional project management method the subcontractors involved in the
project work individually rather than as part of a team. As there is no formal attempt
to create any mutual commitment or expectations amongst them. (Matthews &
Howell 2005, p. 47).

Local optimisation
Each subcontractor try to optimise their performance due to lack of mutual
commitment and coordination, which drives them to defend themselves when
something goes wrong at the expense of both the clients and other subcontractors
(Matthews & Howell 2005, p. 47).

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Lean Production Delivery System (LPDS):

Lean management system is intended to deliver the preferred product to maximise
the valuable resources and minimise the waste resources. If any project follows lean
management system then it is said to be ‘lean’ projects (Ballard &Howell 2003, p.
119). Basically, lean system delivers what is required, in the exact amount and on
the exact time (Forbes & Ahmed 2011, p. 46).

The lean product management system was initially defined by Eiji Toyoda, the
Japanese automobile manufacturer of ‘TOYOTA’. After visiting Ford auto
manufacturing plants in US in 1950, he decided to extent Toyota's impact globally by
achieving high quality, low cost and flexible output. In order to achieve those goals
he thought of how to maximise the value resources with reduction of the waste,
which was called toyota production system (TPS). The basic principles of lean
production came from the TPS (Smith, Mossman & Emmitt 2011, p. 3). The LPDS
has emerged in 2000 from hypothetical and realistic investigation and is continuously
improving through experimentation. Recently the experimentation has concentrated
on the right definition and the right design phase of the projects while implementing
the theory and methodology that are derived from the TPS (Ballard 2008, p. 1).

A few lean tools and techniques are: Kaizen, Five-step plan (5S), Kanban, First run
studies, Poka-yoke, Value stream mapping (VSM) etc (Forbes & Ahmed 2011, p.
116). There are five lean principles mentioned by Womack and Jones (cited in
Forbes & Ahmed 2011, p. 61), value: chosen by customers, value stream: mapping
all necessary activities for each product or service, flow: try to flow the value creating
steps, pull: keeping up with the demand and perfection: strive for perfection through
continuous improvement.

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Advantages of Lean Production Delivery System (LPDS)

The application of lean techniques can derive many benefits such as reduce costs,
reduce delays, reduce uncertainty, reduce waste, proficient facilities, high user
satisfaction etc (Forbes & Ahmed 2011, p. 57). The advantages of the Lean Product
Delivery System are as follows.

Structured process
LPDS apply a structured process which involves work breakdown structure. Usually
the work is allocated to all the participant of the phases which helps to reduce the
time and also the cost of the project (Mossman, Ballard & Pasquire 2010, p. 10).

Single integrated team

In the lean product delivery system, all members are treated equally as part of a
single integrated team which involve the owner, designer, contractor and all
other important player in order to achieve the project goals (Mossman, Ballard &
Pasquire, cited in Eynon 2013, p. 175).

Client satisfaction
In the lean product delivery system values are defined by client or client system
which contains the end-users, such as who are in charge of expense, the technical
consumers and their advisors (Mossman, Ballard & Pasquire, cited in Eynon 2013, p.
169). The project delivery team help customers decide what they want so that they
have a clear understanding of customer's requirements (Mossman, Ballard &
Pasquire 2010, p. 17). This technique is very efficient in achieving client satisfaction.

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

High production rate and quality product

Lean project delivery method is a very beneficial method; it not only assists in higher
production but also delivers desired end product with high quality attracting client
satisfaction. After the incorporation of the LPDS concept, results reveal its efficiency
and progress in every division. Following improvements are observed in the system
(Ballard & Howell 2003, p. 130).

 In the LPDS, the overall project duration and cost is less than what is
estimated in other methods.
 In the LPDS, the lead time is reduced and the unnecessary steps are
eliminated to accelerate the project process which helps to reduce the time.
 The LPDS involves just in time approach which assists to reduce the cost
because it has a goal to achieve zero inventories.
 LPDS encourage employee involvement and empowerment which change the
management philosophy of the organization and create a positive work
environment for the worker which contributes to boost production.

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Disadvantages of Lean Production Delivery System (LPDS)

Then again, LPDS is a new practice which depends on the observations and
weakness of previous process. Experienced and dedicated workers required to
accomplish the product due to the higher client requirements, complicated activities
and the significance of their opinion. Disadvantages of LPDS are listed below.

Require dedicated and experienced worker

Success of the project depends on the behaviour of all workers. Professional and
skilled workers are highly recommended. Lack of skilled workers can lead to low
quality end product (Mossman, Ballard & Pasquire 2010, p. 13).

Change in organisational structure

The application of LPDS becomes challenging in organisations with complex
organisational structure. For an organisation to follow LPDS, it has to adapt unified
project culture which enables the worker to become advocate of the project no
matter who pays them (Mossman, Ballard & Pasquire 2010, p. 14).

Supplier Management
LPDS has a high production rate and involve just in time concept , the inventory and
materials should be supplied accordingly and on right time but sometimes the
supplier cannot match up to the expectations which may affect the whole process
(Cusumano 1994, p. 30).

Change in original project

LPDS projects usually try to improve the specified requirements. Sometime this may
lead to different visions which could make deviance on aims and targets of the
original project (Mossman, Ballard & Pasquire 2010, p. 17).

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

Conclusion:
After a comparative analysis of the advantages and disadvantages of the current
project management methods and the lean production delivery system, it can be said
that both methods have some distinctive characteristics. Although other project
management methods have been successful for long time but the complexity and
high requirements of the recent projects are encouraging people more and more
towards the LPDS. LPDS is a new practice and is in an ongoing process of
development through right experimentations. If implemented properly the LPDS can
improve production by delivering high quality product which gives high customer
satisfaction and reduce the time and cost of the project by minimising waste.

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Research on Lean Project Management:
Advantages & disadvantages of TPM & LPDS

References

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