Value stream maps are diagrams used in lean manufacturing which identify each step of the manufacturing process. They are used to determine the value stream, that is, the steps that result in the creation of value. Their purpose is to visualize the manufacturing process so that anything that is not necessary to create the product of value can be eliminated. This is … [Read more...]
The Terms of Reference (TOR) is a description of the technical work involved in a project, or part of a project. Specifically, it is used to specify the work required by an external consultant, contractor, or supplier. It is the technical part of the bidding documents. Typically, a project manager develops a Terms of Reference which is included within the bidding … [Read more...]
The definition of genius is taking the complex and making it simple. - Albert Einstein I have good news for you. If you are in the manufacturing business, you can become a genius today, right now. The shop floor can be a complex maze of raw materials moving in interlocking production lines, stations with varying cycle times, supply needs, and manpower … [Read more...]
All projects have stakeholders. As a minimum, the project sponsor who initiated the project is a stakeholder who expects a deliverable from the project. At first glance, the project's stakeholders might be obvious, for example a government regulatory agency, or an adjacent landowner that is affected by a construction project. But these main stakeholders are seldom … [Read more...]
A baseline is defined as a time-based standard against which performance is measured. A project baseline is a time-based plan as opposed to one, single target value. Projects will often have a single, target value that defines their success, but it is important to know if the project is in good health at any given intermediate project control point. The baseline … [Read more...]
Starting from a point of almost complete ruin after World War II, the Toyota Motor Company rose to become the largest car maker in the world in the mid-2000's. This resulted in many inquiries into the source of their success. Starting in 1988, the engineers and architects of Toyota's success began to open up. As a result, the Toyota Production System (TPS) has evolved … [Read more...]
Lean manufacturing transformed the manufacturing world during the 2000's. Invented in Japan, where there are neither natural resources nor excess space for production, manufacturing needed to be lean, mean, and efficient to provide value. In turn, the success of japanese manufacturing resulted in an explosion of interest from around the world. The Toyota Production … [Read more...]
Lean Project Management is the application of lean concepts to project management methodologies. Lean is a method used in the manufacturing industry which results in significant increases in product quality and production efficiency. Project management, on the other hand, seeks to produce one single product or service (or just a few) while satisfying stakeholders and … [Read more...]
The Project Management Body of Knowledge (PMBOK) divides projects into five phases. Although the term 'phase' implies that they are carried out in chronological order, in practice they can be performed out of order. For example, when project changes occur the project manager would proceed back to the planning phase. For this reason they used to be called process … [Read more...]
Discounted cash flow is a project investment valuation method whereby future cash flows are discounted by a rate that accounts for the time value of money. It is used to make decisions between various available projects, or to determine the economic feasibility of a project. For example, when a business is expecting revenue of $250,000 next year, the current value of … [Read more...]
