You are on page 1of 7

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.

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 2
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 customers 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).

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 3
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).

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 4
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).
Research on Lean Project Management: Advantages & disadvantages of
TPM & LPDS 5
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.

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 6
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.

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 7
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.
Research on Lean Project Management: Advantages & disadvantages of
TPM & LPDS 8
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).

Research on Lean Project Management: Advantages & disadvantages of


TPM & LPDS 9
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.
Research on Lean Project Management: Advantages & disadvantages of
TPM & LPDS 10
References

Ballard, G 2008,
The Lean Project Delivery System: An Update
, Lean Construction Journal, 1-19. Ballard, G & Howell, GA 2003,
Lean Project Management
, Building Research & Information Journal, 31(2), 119-133. Cusumano, MA
1994,
The Limits of "Lean"
, Sloan Management Review, 35(4), 27-32. Eynon, J 2013, The Design
Manager's Handbook, John Wiley & Sons, Oxford. Retrieved September 8,
2014, from UTS library database. Forbes, LH & Ahmed, SM 2011,
Modern Construction: Lean Project Delivery and Integrated Practices
, CRC Press, Taylor & Francis Group, USA. Kerzne, H 2003,
Project Management: A Systems Approach to Planning, Scheduling, and
Controlling
, 8th edn, John Wiley & Sons, Hoboken, New Jersey.
Kerzne, H 2009,
Project Management: A Systems Approach to Planning, Scheduling, and
Controlling
, 10th edn, John Wiley & Sons, Hoboken, New Jersey. Mossman, A, Ballard,
G & Pasquire, C 2010,
Lean Project Delivery: Innovation in integrated design & delivery
, Draft for Architectural Engineering and Design Management, Special
issue on Integrated Design & Development Systems, 1-28.
Matthews, O & Howell, GA 2005,
Integrated project delivery: An example of relational contracting
, Lean Construction Journal, 2 (1), 46-61. Project Management Institute
2005,
A guide to the project management Body Of Knowledge (PMBOK Guide)
, 3rd edn, Four Campus boulevard, Newtown Square, PA 19073

3299, USA. Smith, RE, Mossman, A & Stephen, E 2011,


Editorial: Lean and Integrated Project Delivery
, Special Issue on Lean Construction Journal, 1-16. Wysocki, RK 2003,
Effective Project Management: Traditional, Adaptive, Extreme
, 3rd edn, Wiley Publishing, Indianapolis, Indiana.

You might also like