CSM80006

ENGINEERING
PROJECT
MANAGEMENT
PM History and Lean
Dr. Chai Chang Saar
cschai@swinburne.edu.my
E613

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Intended Learning Outcome
 Identify the benefits of lean and six sigma principle
for projects
 Examine the factors which affects lean and six sigma
principle in projects
 Develop a framework for lean and six sigma principle
in projects

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Background

 Establishes the quality of Australian qualifications.

 The AQF is the national policy for regulated

qualifications in the Australian education and
training system. It incorporates the quality assured
qualifications from each education and training
sector into a single comprehensive national
qualifications framework.

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Background

 Level 1 – Certificate I
 Level 2 – Certificate II
 Level 3 – Certificate III
 Level 4 – Certificate IV
 Level 5 – Diploma
 Level 6 – Advanced Diploma, Associate Degree
 Level 7 – Bachelor Degree
 Level 8 – Bachelor Honours Degree, Graduate Certificate, Graduate Diploma
 Level 9 – Masters Degree
 Level 10 – Doctoral Degree

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Background
Summary Graduates at this level will have specialised knowledge and
skills for research, and/or professional practice and/or further
learning
Knowledge Graduates at this level will have advanced and integrated
understanding of a complex body of knowledge in one or more
disciplines
Skills Graduates at this level will have expert, specialised cognitive
and technical skills in a body of knowledge or practice to
independently:
 analyse critically, reflect on and synthesise complex
information, problems, concepts and theories
 research and apply established theories to a body of
knowledge or practice
 interpret and transmit knowledge, skills and ideas to
specialist and non-specialist audiences
Application of Graduates at this level will apply knowledge and skills to
knowledge and skills demonstrate autonomy, expert judgement, adaptability and
responsibility as a practitioner or learner

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Ancient Project
Management

Ancient workers
(Google)

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Middle Ages Project Management

Residential Community
(Google)

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Industrial Revolution Project
Management

Factory Mass Production (1900s)

(Google)

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Industrial Revolution Project
Management

Resource Planning Customer's demand

Great Depression

Supply-Demand Ratio Inflexibility

Adapting to variations
Weakness in responding

Market Exploitation
Product Inspection - World War

(Google)

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Modern Project Management

(Google)

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Lean Production
Creating the most value for
the customer while minimizing
resources, time, energy and
effort. A lean approach to
work is about
 understanding what's really
going on at the place where
value is created
 improving the processes by
which products and services
are created and delivered
 developing & empowering
people through problem
solving and coaching
 developing leaders & an
effective management
system
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Lean Production
Eliminating Production Wastes ‘No Fat’

Fourprinciples (2016)
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Lean Production
LEAN Cake Baking  Rework / defects
 Waiting time
 Transport
 Space
 Inventory
 Movement
 Unused skills
 Overproduction

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Lean Production
Six Sigma
Quality

On-target Quality Within-target Quality

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Lean Production
Six Sigma Certified

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Lean Production
Six Sigma - Statistical Process Control (SPC)

DMAIC (Define-Measure-Analyze-Improve- Control) –is used to solve quality

problems of greater complexity and with unknown root causes (Schroeder et
al., 2008)

Six Sigma provides continuous

3.4PPM(parts per million) T + - 6(SD)
DULN004(Q) KP(JPS)5195/IPTS/1144
improvement a key to being successful in
business. This management philosophy
which uses some statistical and systematic
approaches will prevent defects. Provide
continuous improvement in a system as a
result of applying the loop of Six Sigma in
correct order and identifying relations
between inputs and outputs (Zeydan and
Toğa, 2012).
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Lean Production
Six Sigma - Statistical Process Control (SPC)

 Sigma (σ) is a letter which represents the variability and standard

deviation in the processes. On the other hand, Six Sigma identifies
how a deviation is shown from the perfect conditions.

 Applying Six Sigma tools in manufacturing processes provides

reduction of defect rate, cycle time, manufacturing costs and
improvement in quality and productivity.

 To achieve optimal production, a process mush not produce more

than 3.4 defect per million opportunities. To put this in perspective, if
you were a publisher and a misspelled word was considered a defect,
99% quality would mean that for every 300,00 words that were read
by the customers who purchased your books, 3,000 would still be
misspelled (Islam, 2006).
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Lean Production
Six Sigma - Statistical Process Control (SPC)

 Define - identifies the process or product that needs improvement,

 Measure - identifies and measures the characteristics of the process/product
that are critical to customer satisfaction.
 Analyze - evaluates the current operation of the process to determine the
potential sources of variation for critical performance parameters.
 Improved - process/product characteristics are designed and implemented and
cost/benefit analyses are carried out
 Control - the solutions are documented and monitored via statistical process
control methods (Dahlgaard and Dahlgaard-Park 2006; Schroeder et al. 2008).

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Lean Production
Historical Review: Production Quality

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Lean Production
Historical Review: Production Quality

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Lean Production
Historical Review: Production Quality

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Engineering Project Management

 Engineering
 The branch of science and technology concerned with the design,
building, and use of engines, machines, and structures.

 Project
 An individual or collaborative enterprise that is carefully planned to
achieve a particular aim

 Management
 The process of dealing with or controlling things or people

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Management Hierarchical Level

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Management Hierarchical Level
 Organisational
 Concerned with legal and business structure of a firm, the
various functional areas of management, and interaction
between head office and field managers performing these
management functions.

 Project project-level
 Relating to breakdown of the project for the purpose of time
and cost control, resource allocation for scheduling.

 Operations (and process)

 technological details of how construction is performed. Focuses
on work in the field.

 Task
 identifying and assignment of elemental portions of work to
field units and work crews.
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Management Hierarchical Level
Example: Glazing Sub-contractor in an Airport Construction

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Management Aspect
 Project Management
 An individual or collaborative enterprise that is carefully planned to
achieve a particular aim
 The process of dealing with or controlling things or people

 Project Performance

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 THANK YOU

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