010 ELEMENT PORTFOLIO OF APPLICATIONAL TASKS

SOLUTIONS & ANALYSES

 Table of Contents
Patch 1- Implementation of Lean...............................................................................................3

Introduction............................................................................................................................3

Context or circumstances supporting Lean implementation..................................................3

Benefits associated with the implementation of Lean project management techniques........4

Conclusion..............................................................................................................................5

Patch 2: Problem-solving report.................................................................................................6

Introduction............................................................................................................................6

Problems encountered.............................................................................................................6

Project management technique to address identified problems..............................................8

Strategies for avoiding problems in the future.....................................................................10

Conclusion............................................................................................................................10

References................................................................................................................................11

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Patch 1- Implementation of Lean

Introduction

Lean methodology is one such project management (PM) technique that emphasises the
optimisation of project resources, people, time, and effort while maximising values for the
project customer. Although this PM methodology can be applied to projects irrespective of
any industry, there are certain circumstances where the use of Lean is justifiable. This study
demonstrates such circumstances with a detailed focus on associated benefits.

Context or circumstances supporting Lean implementation

Handling a project is a complex task that requires project managers to apply the most suitable
technique according to the project's nature. There is no certain PM technique that can be
applied to every project randomly. Instead, the selection of the most optimal PM technique
should be conferred upon project clients’ requirements, project nature, and availability of
project resources. For example, Stern (2017) suggests project managers employ the agile PM
methodology for software development projects, as such projects are highly prone to change
by involving the project clients throughout their entire Project Life Cycle (PLC). In
accordance with the requirements of project clients, the entire agile team undertakes and
performs various changes to deliver the final project accordingly.
However, in the case of the Lean technique, this PM methodology should be applied to the
context, in which budget, time, and resources for developing the final project are early-
stipulated and limited by the project client. Studies by Mesa et al. (2019) and Bajjou and
Chafi (2020) claim that the lean PM technique allows project managers to handle a project
with the goal of minimising waste while maximising the client's value. This is typically done
by designing the project through optimization, tailoring of project activities, and
minimization of waste of time, materials, and efforts, while producing the final product with
the required value. The principles project managers need to follow while undertaking this PM
approach are value, flow, value stream, pull, and perfection (Solaimani and Sedighi, 2020).
Therefore, clients of AAA Associates should consider implementing the lean PM
methodology in projects that have a shorter life span with limited budget and resources. On
the other hand, Lean methodology should also be applied to projects from which the project
management organisations target to earn high profit. As application of this methodology will
help project managers to focus on cutting out activities that do not add value, this will lead to

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a significant reduction in the overall project budget (Bajjou and Chafi, 2020). Although the
lean technique can be applied to any project including software development, construction, or
manufacturing, it is specifically used in projects that emphasise waste reduction with the goal
of maximising agreed project value through continuous improvement.

Benefits associated with the implementation of Lean project management techniques

Application of the Lean PM technique will offer project managers a range of benefits that
lead to quality delivery of the end product. Some of the potential benefits are as follows:
Decreases in project cost
The cost of a project is associated with many aspects such as project activities, resources and
materials used, and project duration. As per the work by Babalola et al. (2019), lean
management greatly emphasises cost reduction by cutting costs within the entire project
operation as much as possible. Project managers and involved team members (e.g. designers)
design project activities in accordance with the requirements obtained from the project
sponsors or clients. This allows project managers to identify activities that do not match the
client's requirements or add value to the end product (Mesa et al. 2019). This is typically
known as the waste management approach of lean methodology.
Waste in a project is not only related to materials waste but also indicates the waste of time
and effort. Every project allocated to a project management firm has specific budget criteria
that must be met not only to make profits but also to avoid potential loss. Therefore, any
waste either in material or time directly or indirectly affects the project budget (Nicholas and
Steyn, 2020). However, lean principles such as identification of customer value, value
streaming, perfection, and continuous improvement allow project managers to detect cost-
related activities as well as activities that do not add value to the project as specified by the
project customer. As a result, project managers gain better control over the cost management
areas and become able to reduce project costs.
Enhancement of customer interaction
Client interaction and delivery of the project with full client satisfaction are two of the
potential benefits of lean methodology. Many project managers often fail to deliver the final
product according to client specifications, in terms of cost, time, and quality. For example,
approximately 69% of projects across the world were estimated to be over budgeted by 10%
of the agreed plan (Construction Industry News, 2020). On the other hand, almost ⅔ of
projects in the UK failed to meet the stipulated time by project clients (Wilson and Schouten,
2022). Although the reasons directly led to such failure were mentioned as poor budget or

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schedule plan, lack of workers’ availability, and poor resource allocation, the indirect factor
was definitely a lack of client interaction and responsiveness of the project teams to adhering
to clients’ specifications. However, Lean methodology begins the project work with a
customer’s viewpoint in mind, and communication with project team members is facilitated.
Designing project activities, optimisation of unnecessary work, and waste reduction are
performed right in accordance with the client's requirements. This allows the project team to
finish project tasks and deliver according to the specified requirements.
Therefore, key benefits associated with the implementation of Lean in project management
are better control over project cost, waste management, quality improvement, client
interaction, and continuous improvement.

Conclusion

The lean methodology should be applied to projects that emphasise client requirements as a
key priority. Projects that have a limited lifespan with the stipulated budget are ideal for the
lean approach. In other words, project managers aiming to gain control over project costs
alongside maximising the value by enhancing client interaction should adopt Lean PM
Technique.

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Patch 2: Problem-solving report

Introduction

The task of project management is a complex area due to the combination of various
activities that a project manager has to perform. The inability to pay equal attention to each
activity may lead to witness project failure or delay in delivery. This study focuses on the
UK's PFI waste infrastructure projects to identify the issues encountered during the project
delivery phase. In light of those issues, the study suggests an appropriate project management
(PM) technique to tackle those issues.

Problems encountered

The fundamental objective of the three PFI waste projects, as set by the UK government, was
to respond to the EU’s target to reduce the amount of biodegradable municipal waste across
the EU’s member states (National Audit Office, 2014). With regard to this target, the UK
government split the target into four individual targets for its four countries (Wales, England,
Northern Ireland, and Scotland) and shouldered the responsibility of overseeing England’s
performance in diverting sufficient waste from landfills to the Department for Environment,
Food & Rural Affairs (DEFRA). A total of £1.7 billion was allocated as “Waste
Infrastructure Credit” to 28 Local authorities in England delivering one of the three PFI waste
projects. In order to proceed towards meeting the target, DEFRA established a “Waste
Infrastructure Delivery Programme” in July 2006 for encouraging and accelerating the waste
infrastructure development process of local authorities through active support, guidance, and
funding. On the other hand, the contracts to deliver the projects were given to three individual
parties: Surrey County Council (SCC), Norfolk County Council (NCC), and jointly
Herefordshire Council (HC) and Worcestershire County Council (WCC).
The report published by the National Audit Office provides a detailed description of the
procedures that these three authorities have undergone to run the project. A close review of
the procedures can lead to identifying two main problems that have been encountered during
the delivery of the project. These are as follows:
● Project delays
In the field of traditional project management, a project delay typically refers to an issue
related to the project team’s inability to fulfil time requirements as stipulated by the project
client, which can lead the project to become over budget. Researchers in the project

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management field accuse many aspects of being the reasons for project delays. For example,
a study by Al-Hazim et al. (2017) has pointed out that contractors’ financial problems, lack
of efficient machinery, poor project supervision, or lack of proper communication flow are
found to be the key reasons for delays in a project. However, in the case of the UK’s PFI
waste projects, the fundamental reasons for delays noticed in those three mentioned
contractors, as reported by the National Audit Office (2014), were problems in obtaining
planning permission, uncertainties over technologies, and opposition from local groups. In
the case of SCC, the council was found to experience extended problems regarding securing
planning permission from the “Surrey County Council’s Planning Committee”. This
committee rejected Surrey’s planning application for the Redhill site.
Later on, SCC made two new planning applications for plants at Trumps and Capel firms.
Although the council granted the planning consent for the Capel site, the application for the
Trumps site was not pursued (National Audit Office, 2014). On the other hand, the case with
delay in HC and WCC’s contract mainly lies in the late approval of the planning application
by the Secretary of State for Communities and Local Government (SSCLG). The desired data
for granting the planning permission was supposed to be in March 2011, however, SSCLG
granted the planning permission by July 2012, more than 1 year from the desired date. This
delay led Worcestershire and Herefordshire to experience problems in securing financing,
which was necessary for the construction of the energy-from-waste plant near Kidderminster.
In the case of Norfolk’s contract, this council signed “a 25-year residual waste treatment
contract” that was valued at £582 million (National Audit Office, 2014). As per the claim of
DEFRA, the planning application of Norfolk had some complex issues that needed to be
reviewed carefully. Due to the review, Norfolk witnessed extreme delays in securing
planning permission according to the desired planning date of 10 June 2013.
Apart from seeking planning permission, the document published by National Audit Office
(2014) exhibits the problem regarding uncertainties over waste technology to be used for
diverting sufficient waste from landfills as a cause of delays in these three contracts. The key
reason for determining the optimal waste reduction technology was mainly due to changing
waste patterns resulting from increased waste levels as well as ambiguity around project
planning. Moreover, a lack of support from local groups in seeking planning permissions can
also be considered a major cause for delays noticed in all of these three contracts.
 Budget or funding-related problem

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According to the report by the National Audit Office (2014), the initial fund provided by the
UK government for the project was £1.7 billion. In the contract, it was mentioned that the
DEFRA would be responsible to pay each of the grant payments up to 2013. However,
subsequently, DEFRA officially cancelled its funding support following the judgement of the
ministers. According to the judgement, the project would be sufficiently likely in meeting the
target of waste diversion from landfill by 2020 without any contribution from the Norfolk
project. This withdrawal of DEFRA’s fund allocation led the project to witness problems in
arranging funds necessary for the construction of plants in the mentioned sites. Moreover, the
inability to obtain planning permission was also a key aspect that led to the experience of
funding problems.
 Skills-related problem
As stated in the report by National Audit Office (2014) local authorities who were
accountable for delivering the projects did not have enough experience and skills to deliver
the complex PFI waste infrastructure. Such a lack of ability in handling complex projects
resulted in providing necessary support to the local councils in terms of arranging funds or
securing planning permission on time. Therefore, along with project delays and funding-
related issues, a lack of local authorities' project delivery skills can be considered a key issue
in the delivery of the UK’s PFI projects.

Project management technique to address identified problems

The above discussion makes it clear that the two main problems experienced during the
delivery of the project were mainly associated with project delays and budget-related
problems. Although this study has performed a detailed discussion above to justify these
issues integrating key information published in the National Audit Office’s report, the actual
problem that led to witness delays of frequent changes in project planning due to the inability
of those councils in obtaining planning permission from local authorities. From this point of
view, the appropriate PM technique that may allow dealing with such changing
circumstances in the project is definitely the agile methodology. As per the views of Ciric et
al. (2019), agile is one of the most suitable PM approaches for projects that are in need of
responding to project clients’ change requirements throughout the product developmental
phases. In fact, responding to change requirements through continuous interaction with the
client is a core principle of agile methodology.
However, the case of changes in the UK’s PFI waste projects is quite different from other
project cases in which changes are performed according to clients’ requirements. In the UK’s

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project, the changes in the planning procedures were coming due to the inability of those
councils in obtaining permission or lack of securing support from involved local groups
(National Audit Office, 2014). Apart from that, the key objective of the project, which was
developing the waste infrastructure by 2020, must be met at any cost in order to respond to
the EU-set target for biodegradable waste reduction from landfills. Considering such a time-
related concern, the application of the Lean PM technique will be the most optimal one for
delivering the project within its stipulated deadline. As per the comment of Babalola et al.
(2019), one of the key essences of the lean PM approach is minimising waste. Here, waste
not only refers to material waste but also to the waste of time and effort. Therefore, the
reduction of time and effort-related waste by early planning of the procedures could have
been a solution for the UK’s project.
Any lean project starts with defining the value of project clients and mapping the value
stream. A study by Noto and Cosenz (2020) has pointed out that value streaming allows the
lean project manager to identify activities that can add value as well as activities that do not
add value to the project. Such an approach of optimising project works in accordance with the
client's requirements allows project managers to gain control over time-related waste
management. In the case of the UK’s project, identifying activities that must be performed to
develop the individual plants at different locations as well as activities that may exceed the
stipulated time after obtaining planning approval from responsible authorities, could have
been possible using the lean PM thinking approach. In other words, the application of the
lean approach will allow an understanding of activities that must be performed (after gaining
planning permission) to deliver the project within the times in hand.
Moreover, the Lean approach is considered to be one of the suitable approaches to gaining
control over project costs. As the UK’s PFI projects have experienced funding-related
problems, the adoption of the lean approach can help in delivering the project within the
limited budget. As mentioned above, the lean approach addresses project managers to
perform value stream mapping to identify works that ensure project value. Therefore, by
identifying such activities in the project that can be accomplished with the budget in hand, the
lean PM technique can help to ease up the concern regarding funding-related issues.
Moreover, the study has found that local authorities who were responsible entities for the
project delivery were inexperienced. On the other hand, the Lean approach prioritises
building a team that has sufficient knowledge about the project tasks. Therefore, the adoption
of the lean approach can also help in eliminating this skill-related issue. Although the
discussion that has taken place in justifying the issues in the UK projects reflects a quite

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different nature of the identified issues, this study suggests the lean PM technique only to
help the project to be accomplished within the remaining time and budget.

Strategies for avoiding problems in the future

Evaluation of the issues associated with the UK’s PFI project, this study finds the below
strategies as ideal to avoid the occurrence of such problems in the future:
● The planning application of Norfolk was granted lately as the application contained
complex issues that required careful review and consideration. With regard to this
issue, it is suggested to develop the planning application by including all the
necessary details that can clarify the entire project plan and procedures to the
approver. This may help to avoid experiencing such delays as witnessed by Norfolk.
● It was mentioned in the above analysis that local authorities who shouldered the
responsibility of delivering the PFI projects were not competent and capable enough
to deliver such a complex project. Therefore, it would be mandatory for every project
owner either to allocate projects to entities who have expertise in the field or to
develop a team of experts who can handle project tasks efficiently. This will reduce
the chances of failure that may result from the team's competency-related issues.

Conclusion

Project managers or contractors must seek early approval for their planning in order to avoid
such delays witnessed in the UK’s PPI waste infrastructure projects. Moreover, the
application of the right PM technique like the lean approach can help to deliver a project
within the given time and budget. The inability to choose and adopt the right PM
methodology may create a sense of disharmony as noticed in the UK’s project.

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References

Patch 1
Books
Nicholas, J. M., and Steyn, H. (2020). Project management for engineering, business and
technology. Abingdon, United Kingdom: Routledge.
Stern, T. V. (2017). Lean and agile project management: how to make any project better,
faster, and more cost effective. New York, United States” Productivity Press.
Journal articles
Babalola, O., Ibem, E. O., and Ezema, I. C. (2019). Implementation of lean practices in the
construction industry: A systematic review. Building and Environment, 148 (2), pp.34-43.
Bajjou, M. S., and Chafi, A. (2020). Identifying and managing critical waste factors for lean
construction projects. Engineering Management Journal, 32(1), pp.2-13.
Mesa, H. A., Molenaar, K. R., and Alarcón, L. F. (2019). Comparative analysis between
integrated project delivery and lean project delivery. International journal of project
management, 37(3), pp.395-409.
Solaimani, S., and Sedighi, M. (2020). Toward a holistic view on lean sustainable
construction: A literature review. Journal of Cleaner Production, 248(3), p.119213.
Newspaper article
Construction Industry News, (2020), The UK’s most over budget construction projects.
Construction Industry News. Available at: https://cinmagazine.co.uk/the-uks-most-over-
budget-construction-projects/ [Accessed: 1 November 2022]
Website
Wilson, R., and Schouten, C., (2022). Almost two thirds of projects were late in past 12
months. Architects’ Journal. Available at:
https://www.architectsjournal.co.uk/archive/almost-two-thirds-of-projects-were-late-in-past-
12-months [Accessed: 1 November 2022]

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Patch 2
Journal articles
Al-Hazim, N., Salem, Z. A., and Ahmad, H. (2017). Delay and cost overrun in infrastructure
projects in Jordan. Procedia Engineering, 182, pp.18-24.
Babalola, O., Ibem, E. O., and Ezema, I. C. (2019). Implementation of lean practices in the
construction industry: A systematic review. Building and Environment, 148 (2), pp.34-43.
Ciric, D., Lalic, B., Gracanin, D., Tasic, N., Delic, M., and Medic, N. (2019). Agile vs.
Traditional approach in project management: Strategies, challenges and reasons to introduce
agile. Procedia Manufacturing, 39, pp.1407-1414.
Noto, G., and Cosenz, F. (2020). Introducing a strategic perspective in lean thinking
applications through system dynamics modelling: the dynamic value stream map. Business
Process Management Journa. 27(1), pp.1463-7154.
Newspaper article
The Ecologist, (2014). PFI waste incinerator contracts burn more money than rubbish. The
Ecologist. Available at: https://theecologist.org/2014/sep/22/pfi-waste-incinerator-contracts-
burn-more-money-rubbish [Accessed: 1 November 2022]
Website
National Audit Office, (2014), Oversight of three PFI waste projects. Available at:
https://www.nao.org.uk/wp-content/uploads/2014/06/Oversight-of-three-PFI-waste-
projects.pdf [Accessed: 1 November 2022]

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