Lean consulting for Project Execution

Typical examples of the project industry are construction, IT application development, construction of infrastructure, telecommunications, and other networks, or in general the construction and / or production of a single product / facility according to a predefined design or specification.

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It is known that only <50% of projects in the world are completed on time, scope, and budget. The causes are different. There may be insufficient quality specifications, material delays, weather conditions, inefficiency of human resources and more. Numerous project management methods have been developed to increase the success rate. In practice, those that use some of the Lean methods correctly prove to be more successful.

 

 

In general, there are two approaches to project execution.

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1. Standard (Waterfall) model

2. Agile approach "Just In Time" - division of responsibilities

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1. Standard (Waterfall) model

The characteristic of this model is the development of a detailed specification, detailed time course and resource plan of the entire project before the start of the project. Very similar to MRP in production. The problem with this model is when there are problems caused by any of the above causes and consequently a change in the detailed plan. It takes a very long time to rearrange such a detailed plan, and so many times whenever a new problem arises.

This approach has a strict hierarchy where everything is decided by the project manager, who can easily become a bottleneck, regardless of experience and quality. As with production, this approach requires long, expensive, and administratively demanding preparation, which does not guarantee the result of the expected quality.

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2. Agile approach "Just In Time" - division of responsibilities

This approach assumes that the problems will be 90% predictable on a monthly, weekly, and daily basis and that there will always be unexpected situations. With this approach, a framework plan of activities with checkpoints and a framework plan of resources are initially developed. A detailed delivery plan is made only for the next month (forecast), and it is updated weekly or daily. The focus of the project team, and others who indirectly participate in the project (procurement, logistics,) is placed on a shorter period and a smaller project. In that way, the quality, and preparations for the next period increase. This model assumes that by completing the daily, weekly, and monthly plan on time and budget, the entire project will be completed in the same way.

To achieve dynamism and flexibility, this approach often has separate functions of Project Manager (project preparation and administration) and Operations Manager (operational management of monthly, weekly, and daily implementation).

The advantages of this approach

1. Faster project preparation and planning

2. Faster start of execution

3. Better anticipation of problems (recognition) and their prevention

4. Effective adaptation to the shortcomings of the specification

5. Compensation for delays and other shortcomings in the coming period by dynamic planning

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Our services

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Based on the analysis of the client's way of doing business, the market in which it operates and the size of the client, and growth potential, we offer 3 sets of services from which the client chooses what is acceptable for him:

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1. Improving an existing model (Standard or Just In Time) using Lean methods

Within the given existing frameworks, we will increase the ability to anticipate problems, reduce their impact on cost, delay, or quality. We will increase the compliance of everyone in the value chain and thus increase the efficiency of the execution of the entire project. Engagement is as needed when it is necessary to improve a business segment.

2. Transformation from Model 1 (Central) to Model 2 (“Just In Time”) according to Lean principles

The service includes organizational and process transformation of the project company and / or project management model from model 1 to model 2. The service includes the introduction of a new division of responsibilities, initial project preparation, monthly, weekly, and daily announcements, contingency management, employee education and motivation for a new model. Implementation is done on a Pilot Project (pilot example) for which the party performance. After accepting the results, the implementation is done for the whole organization. Our engagement is not permanent, but as needed and in accordance with the set monthly, weekly, or daily goals agreed with the client.

3. Introduction or adaptation of IT application for "Just In Time" model by introducing Lean processes

A special service is the adaptation of the existing IT systems of the client to model 2, ie the introduction of a new IT system. Our service is the development of specifications for necessary changes, application testing and introduction into production. We exceptionally offer the creation of an application in accordance with model 2 or the selection of one on the market that can be adapted to the needs of the client.