A Guide to the Theory and Practice of Project Methodology and Agile Methods
Supports IPMA/PMIcertification and ISO
Bo Tonnquist
Bo Tonnquist
Sanoma Utbildning
Mailing address: Box 38013, 100 64 Stockholm, Sweden
Visiting address: Rosenlundsgatan 54, Stockholm, Sweden
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Publisher: Karin Sörensen
Editor/Project manager: Natalie Nordström
Graphic design: Jonas Olsson, Mobile Design
Translation: Linnéa Holmén, Calyptic
Project Management
ISBN 978-91-523-6629-5
Sixth Edition
First printing
Copyright
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Project management is a field that is always developing. Traditional methods and organizational forms are challenged by new work methods. My ambition is that the book Project Management will always feel up-to-date and useful, both as course literature and as a handbook. Therefore, it is important to me that it is updated with what is going on within research and practical applications.
Project Management covers most of what you and your organization need to know and master in order to successfully govern, manage and execute projects, whether you are in the private or the public sector. In this sixth edition, illustrations and models are updated with the latest real-life examples. The process from defining objectives and goals in the initiation until an optimized schedule is created in the planning phase is better described.
I am seeing many exciting things happening at the interface between project methodology and agile work methods. The trick is to interpret the conditions that are particular to your assignment and choose the method that is best suited for the circumstances. There is no method that will work in every project – in one case, a traditional approach is best, in another, an agile one. Tailoring is about choosing the development method based on the assignment's character and the operative abilities. Today, it is not enough to master the traditional project methodology. As a project manager, you also need to be familiar with agile methods and how they can be applied. In many projects, it is not a question of either or, but rather both one and the other.
Today, it could truly be claimed that project management has become a key competence that everyone must master in order to remain successful. You need to ensure that the right project is initiated and that whatever is being developed will create value for the client and purchaser. This means that routines and processes are needed to govern and optimize the entire project portfolio and programmes, in order to coordinate benefits. Performing an organizational project maturity analysis and establishing a project management office can be two steps toward more effective project operations.
Although there are often different opinions on the best way to organize and run projects, my conclusion is that there is now a generally shared view on project models. It does not make much difference which model you choose – they are all based on similar descriptions of processes, roles and steering documents. This is also the reason that the book Project Management has proven to be well suited for all industries and types of projects.
I hope that you will find the sixth edition of Project Management useful, whether as course literature, as a handbook in project management, or as support in operations development.
Bo Tonnquist Roslagen in
April 2024
A complete concept
Projektledning
Project Management is also available in Swedish: Projektledning together with a student learning guide and workbook Projektledning – Övningsbok.
sanomautbildning.se/project
On the website, materials have been gathered for those who want to use the books as course literature in courses and training. Most of the illustrations and figures, as well as the document templates from the books, are freely available for use as course materials.
Project model
The general project model in the book, ProjectBase, is currently used in many projects, both in Sweden and internationally. ProjectBase, which costs nothing to use, encompasses several downloadable document templates, which are available on the book’s website.
Projektledning
Projektledning från grunden
A simplified and shortened version of the book Project management, to be used in courses within higher vocational education. It is aimed at beginners who are managing their first project, and is available in Swedish only.
This book (available in Swedish only) describes how to organize and manage agile- and project-based organizations. It also covers what is necessary for performing an agile transformation, implementing portfolio and programme governance, and establishing a project management office.
Project – a temporary organization Flow-based operations
Time Flow efficiency
The project process Project levels Project model Roles
Portfolio management PMO
The agile manifesto Scrum Agile project management Cyclical process
Product Backlog
Sprint Backlog Burn rate
Project organization Roles and responsibilities
Self-organizing teams
The Scrum process Roles in Scrum Agile leadership
2
Define the project
Initiate the project
Business case
Preconditions
The wishes of the project owner
Background description Purpose and impact goals
Delimitations
Project goals
The project triangle
Project owner Supplier
Analyzing the assignment
Pre-study process
Rough plan
Process group
Mapping stakeholders
Scope – WBS Mind map
Selecting a solution
Use cases
User stories
Project phases Decision points/Gates
Sprints Synchronization Big room planning
Cost
Uncertainties
Planning poker
Quality User stories Story points
Plan preparatory work
Choice of method
Prioritization
Milestone plan
Business/operational
benefits
Benefits evaluation – PENG
Situational analysis SWOT analysis Decision-making model
Requirements management
Governing parameters
Product and project requirements
Agile requirements management
Chapter 6 Stakeholders and communication
Communication strategy Learning Project support
Handling stakeholders
Communication plan
Visual leadership Meeting techniques
Progress reporting
What does a meeting cost?
Procurement
Communication
Request for proposal Offer Contract types
Purchaser competence
Directives Aligning goals
Pre-study report
Presentation technology
Learning styles Rhetoric and channels
Reports
Meetings
Project room
Project portal
Project diary
Chapter 7
The process model follows the structure in ISO 21500 Guidance on project management, PMI’s PMBOK Guide and IPMA’s ICB.
Time and resource planning
Managing planning
Planning methods
The planning chain
Planning agile projects
Agile release trains
Chapter 8 Staffing and resource acquisition
Staffing
The project management plan The negotiation process
Resource assessment
Resource needs
Resource conflicts
Logical network plan
Creating an activity plan
Schedule
The critical path
Sprints
Agile schedule
Schedule adjustments
Resource
Uncertainty assessment Lichtenberg's method PERT
economy
Management of risks and opportunities in projects Risk vs. uncertainty Project maturity Behavioural profiles
and practicing management
Chapter
Project follow-up
Change management
Performing agile projects
Values and attitudes The rules of the game Expectations
The Johari windows Feedback Delegation Motivation
The stress funnel Conflict management
Continuous follow-up
Milestone chart
Current date
Project boards
Burndown charts
Implementing changes
Reporting costs
The earned value method
Work remaining
Cash flow
Expected value
Risk treatment
Updating risk analysis
Responses
Changes
Reviewing planning
Quality audit
Continuous improvement
The theory of constraints
Six sigma
Process model
Chapter 14
Implementation and hand-over
Coordination The result Implementation Hand-over
Stakeholders
Scope Deliveries Hand-over Maintenance
Organization and resources New project group Reference group
Closure and impact
Chapter 15 Closure and lessons learned
The closure phase Evaluating the project
Phasing out suppliers
Result follow-up
Analyze the collaboration Phase out the group Kick-out
Time Planning implementation
Cost Lifecycle budget
Uncertainties
Quality Assessing the result Test specification
Procurement
Time follow-up
Financial follow-up Actual cost
Chapter 16
Benefits realization
Impact realization
Chapter 17 A learning organization
Knowledge management The learning organization Kotter's eight steps
Stakeholder handling The four rooms of change Change climate
Impact measurement Change projects
Mentorship Trainee system Change manager
Social capital Mobilization Involvement
Success factors Think Drop
Impact realization
Quality audit Close the project Exit criteria
Terminating contracts
Evaluing the impact goal Reference measurement
Evaluating the chance of success
Securing the result
The process model follows the structure in ISO 21500 Guidance on project management, PMI’s PMBOK Guide and IPMA’s ICB.
Project operations
Chapter 18
Project maturity and PMO
The project ability of the organization Project operation Project management office (PMO)
Stakeholder management
Maturity analyzes Strategic governance
Chapter 19 Portfolio and programme management
Project, programme and portfolio Portfolio management Programme management
Chapter 20 Models and tools
Project models Development models Project tools
Chapter 21
Standards and certifications
International standards Certification of project managers Certification in agile methods
Optimizing the portfolio
The competence of the organization Different types of PMOs
Mind maps Project boards
ISO 21 500-series PMBOK Guide (PMI) ICB (IPMA)
Professional and responsible behaviour
Internal governance
Financial governance
Balanced scorecards
Risk management
Scorecards for the project Benchmarking OPM3, P3M3, SPI
Resource management
SPI analysis
Portfolio follow-up Selection and prioritization
Value maximization
Risk exposure
Quality governance
Implementing portfolio and project support
Positional maps PULSE meetings Status meetings
Planning tools Portfolio reporting
Estimation tools
Risk status
Shared methodology
Implementing project model Implementing project tools
Project portals
Document templates
Checklists
Cloud services
Method competence
Project complexity
Requirements and certification processes PMI, IPMA, Scrum
When more material is available on the book’s website, this symbol is used.
Project Management – a work form 1
A project is a work form with a strong focus on results. All projects are part of a larger context and can be seen as tools for delivering business goals and operational benefits.
Project methodology is a set of methods and tools described in a project model with defined project roles and governing documents.
Agile methods have gained much from Lean, including a focus on collaboration in self-organized teams, avoiding unnecessary work and visualizing progress with Kanban boards.
1. Governance
2. The project methodology
3. Agile methods
Creating the group Managing the team Phasing out the team
Chapter 1 Governance
Why are projects used so often within all types of operations and why do projects look the way they do? These are two basic questions strongly connected to the need to manage and govern companies and organizations in the most efficient way possible. Before we delve deeper into the field of projects and project management, it is therefore important to start with a short introduction on the purpose of organizing an operation and using governance models.
The purpose of the organization
Neither the company nor its organizational form have any value on their own – they serve to fulfil the demands of the customers in the most efficient way possible. The organization must constantly be reevaluated. Employees must never forget why the company exists.
An organization where goals are unclear and management is hazy can never be efficient, as these factors will lead to uncertainty that affects the employees’ ability to work efficiently.
Organizations can be compared to organisms that need a steady supply of energy to survive. It is vital that survival does not become the primary goal for an organization, ahead of the willingness to serve customers. The strategies chosen by the management to achieve visions and business goals must be reflected in the structure of the organization.
You could liken an organization to a formalized grouping coordinated to achieve common goals.
The organization is also a tool regulating the relationships between managers and employees. The purpose is to govern and coordinate both internal and external resources toward the strategic goals, in the most efficient way. This holds true regardless of whether the organization is a private company, public authority or an npo, Non-Profit Organization.
` Business operations are often described as a pyramid, with the overall goals (the vision and the business concept) at the top and the resources at the base. In between, we find strategies, organizational structures, and governance models.
General objectives and strategies
The general objectives govern the operations and how the organization should be designed. The objectives are usually expressed as a vision that describes the purpose of the operations and a business concept that more tangibly describes what you are doing, for whom and why. Both should be relevant in the longer term.
The vision
The vision describes the company’s or organization’s task – what you want to achieve. Or in other words: the purpose of the operations. The vision should be general, inspiring and challenging in order to serve as a guideline for everyone involved in the organization.
The business concept
It is in the business concept that you make operation’s main task more concrete. The business concept needs to be clearly worded and communicated to everyone in the operations, and externally, to the company’s target group. If you are aware of the goal of the company or organization you work for, it becomes easier to make decisions and focus on what is most important. You do not need to ask your manager about details – they are already clear.
A business concept consists of three parts:
1. The target group at which you are aiming.
2. The need within the target group that you want to meet.
3. The offer that meets that need.
Examples of visions and business concepts
Ikea: Our vision is to create a better everyday life for the many people. Our business concept is to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.
H&M: Our business concept is to offer fashion and quality at the best price, to everyone, and we do this in a sustainable way – today, tomorrow and in the future.
Ericsson: We are a tech company tasked with realising the full value that communication creates for our customers. Our strategy is based on tech leadership, product-driven solutions and global economies of scale and competence.
Strategies
Strategies usually describe the path to the business objectives. They are long-term and therefore need to be broken down into more tangible plans of action that govern day-to-day work. A plan of action can be described as a process, covering specific tasks in a workflow. Some processes are permanent and recurring, whereas others are temporary. The permanent ones are routines in day-to-day work, whereas the temporary ones are usually projects. The purpose of organizing an operation is to achieve increased efficiency. The objective is to optimize use of the resources available. The resources are always limited, regardless of the organization’s size.
Structure, processes and culture
Research within Organizational Theory focuses on three main topics: structure, processes and culture. The structure of an organization encompasses visible components such as functions, positions, hierarchies, titles and ranks, while the processes deal with actions and events. The culture of an organization relates to values, norms, language, symbols, leadership and motivation.
The processes constitute the vital functions of the organization, while the structure and culture determine how members of the organization work, collaborate and obstruct one another; how the system is built up or broken down and how decision levels and areas of responsibility are allocated.
Modern organizational theory has been increasingly focused on the company’s processes, as they originate in the business concept of the company. A process is a chain of linked activities, both inside and outside the company, which create added value that the customer is willing to pay for. Each activity in the chain has a supplier and a customer. The purpose of identifying the business’s processes is to eliminate unnecessary work that does not benefit a customer. The organization must be designed based on the needs of the processes.
There are many reasons why companies are organized the way they are. Usually, there is a historic explanation. Have you ever reflected on why your company is organized the way it is? The goal of organizing an operation is to achieve increased efficiency through optimized use of the resources that are available. The resources are always limited, whatever the size of the organization. The purpose of the organization is to create a structure for division of labour, responsibility and authority.
Organizational structures
Common organizational forms:
• Functional hierarchical
• Matrix organization
• Project-based
• Network-based
• Value stream-based
Functional hierarchical
A functional hierarchical organization is organized based on specialist functions, such as research and development, marketing and sales, manufacturing and logistics, and support function such as it and hr . The higher up in the organization, the more power and authority. Decisions and communication are usually top-down. It is clear who has a mandate and who reports to whom.
During the growth of industrialism in the 1900s, the functional hierarchical organization was dominant. The weakness of the hierarchical organization is that it is inflexible, making it hard to adapt to changes in external circumstances.
` The assembly line is a example of operations organized in functional hierarchical manner.
Project-based
In a project-based organization, the projects are separated from the line organization. The line often has a service function in relation to the projects. There is seldom a risk that project members with vital competence are stuck doing work tasks on the line. However, there is often competition between the projects. Prioritization and coordination between the projects and resources occurs through high-level resource planning and portfolio steering.
Construction companies are good examples of project-based businesses in which client value is created in the projects. Most of their employees are always working in projects, which are often large-scale, with several companies collaborating. The task of the line is primarily to support the projects with administrative services. Consultancy firms, which provide project managers and resources, also often have project-based organization.
` The reconstruction of Slussen in Stockholm is a large, complex project, where Skanska is the main contractor, with overall responsibility for delivery to the purchaser, the City of Stockholm.
Matrix
The matrix organization is between the project-oriented organization and the hierarchical one. Workers are employed within functions on the line, while projects are run as cross-functional processes across lines. The matrix organization is the most common organizational form in Sweden, especially among large companies with a wide range of products that are sold in many countries.
` The telecom company Ericsson is one of many examples of companies with a matrix organization divided into markets/continents and product divisions. Ericsson is also a good example of a company that works with a flow-based structure in development and operations.
The weakness of this organizational form is that if often requires sharing resources and means that there are dual decision pathways, which requires managers and project managers to be very clear on their prioritizations.
` The projects' share in operations.
Weak matrix
In the case of a matrix organization where the hierarchical decision pathways are dominant, we can talk about a weak matrix. Here, a relatively small share of employees are working in projects. Most have a job on the line, where the majority of the work in the organization is performed. As a result, line managers make the majority of the decisions, even those related to projects. The project manager has a low status in this kind of organization.
Strong matrix
With an organizational structure where more people work in projects, the project manager’s possibility to make decisions regarding the project increases. In a strong matrix, line managers make only high-level decisions on goals, frameworks, and resources. The finer details are left to the project managers. Most of the work is performed in projects.
Network-based
An alternative to creating your own organization with all the competence needed is to establish a collaborative network with partners and suppliers that have complementary technical competence or market knowledge that your organization lacks. The resources do not need to be in the same geographical location in order to collaborate. Nowadays, the concept of the geographically distributed operation, with people collaborating online, is well-known.
` Gig workers, who come in and take on temporary work, will increase in number. More and more people are becoming consultants and self-employed. This creates flexibility, as it means you can move from project to project and from client to client, but also creates uncertainty, as it takes a long time to become established and grow demand. The term “gig” comes from the music industry, where it is common to come in and play a small number of gigs.
Traditional decision pathways, forms of delegation, and decision processes do not work as well in such network structures, which are often loosely connected and largely based on trust and confidence between the network parties. Researchers liken such networks to organisms that must continually develop in order to survive and stay strong.
A network also needs structures and rules, otherwise it will disintegrate. Clear effect targets and ownership are more important than ever. Without clearly worded visions and goals, that are also clearly communicated, delegating work tasks and mandates becomes risky. Someone must take responsibility for the long-term goals. This cannot be expected of the people who manage individual projects, work in development teams, or are external suppliers. They are usually only involved in a small part of the process.
A good project manager has every possibility to succeed in a network, thanks to their ability to connect to and influence stakeholders.
Value stream-based
In a value stream-based organization, change management, development and maintenance are coordinated in value streams, which can be likened to processes. Self-governing teams with permanent members are organized in release trains, which can be likened to continuous flows, serving to develop and maintain products and systems.
Start-up companies often have better chances of organizing their operations in a flow-based way, as they are not weighed down by old structures, familiar work methods, and feelings of prestige among those who are used to having power. It is likely that we, in the future, will see organizational structures based on a combination of traditional steering at the top and flexible, agile work methods in the places where it is appropriate for each respective organization.
Spotify
At the digital music service Spotify, employees are organized into so-called tribes and alliances that continually develop the service, which is updated through scheduled releases.
A complete agile transformation means that you have replaced your traditional organization entirely with agile value streams. Today, few organizations have succeeded with this. The flow-based work method is usually limited to a part of the operations, often development and system maintenance.
SOURCE: PMI
Doing the right things – doing things right
(is the need met/problem resolved?)
` It is the responsibility of the management team to make the right choices – to choose and prioritize the projects that have the greatest benefit for the operations. Through portfolio management, projects are prioritized, and through programme management, they are coordinated. Then, it is the responsibility of the project managers to ensure that the projects are executed in the right way – applying the project methodology.
This book primarily deals with projects conducted by companies and organizations. For this reason, we will start with looking at how projects are connected to the governance and goals of the organization. Projects can be run externally for a client or internally within the own organization, using organizational resources or hired staff. There is no lower or upper limit for the size of a project, neither in regards to the number of people involved, nor in regards to the length of time spent on the project.
The management team can use projects to execute tasks of a temporary character. The project form makes it possible to gather resources from different parts of the organization and focus them on a specific goal.
By initiating, starting, and finishing projects, the management team can govern the operations toward business goals or initiate ventures in new directions. It is the responsibility of the management team to ensure that each individual project has realistic conditions for actually being executed. This requires clear goals, visible purchasers, access to resources, and support from the organization.
The project is a work method well-suited for realizing the contents of the different functional strategies, irrespective of if these relate to developing products, getting into new markets or changing the processes of the operations.
y Market and product – segmenting, positioning and choosing a range.
y Development and production – do it yourself or using external sources.
y Sales – how can the target group be reached, choice of sales channels.
y Organization and localization – how and where should operations be conducted.
y Recruitment and competence development – ensure that the operations have access to the right competence.
y IT support – develop and operate within the organization or outsource.
` Operations must be organized. It is impractical to have everyone do everything. The strategy to ensure that the overall goals are achieved can be broken down into functional strategies with different focal points.
The green shift in the energy and automotive sectors, digitalization of services and work processes, and ai at schools and universities are all examples of areas in which great challenges, but also opportunities, are created for organizations and companies. Another clear example is the Swedish Armed Forces’ shift from an organization adapted for nonalliance to now preparing to become part of nato.
These changes in objectives and strategies naturally have an impact on which projects need to be executed.
The project versus the line organization
The borders between projects and ordinary business are blurred in many organizations. This is mainly because the projects share resources with other operations.
It is common to be involved in several projects at once, or to divide one’s time between projects and ordinary work assignments. The employee who has a position on the line, but is also involved in a project, will in practice have two superiors. The line manager sets his/her salary and the project manager manages his/her tasks.
If the prioritization between tasks on the line and within the project is not clear, an employee can find him- or herself in a loyalty conundrum. It is the responsibility of management to ensure that line managers, project managers and those involved in projects know what is most important and thus where to place their focus. Unclear prioritization means that an employee must prioritize and spend time on what is most beneficial to him or her.
A successful project result depends on collaboration between the line and the project. Managers create benefits by developing individuals and processes. Project managers create benefits by delivering results and changes. In order to succeed, a project needs the involvement of the line managers, but they seldom want to let go of resources, as this creates more problems than benefits for them in the short term. Few reward systems promote collaboration across organizational boundaries. In far too many organizations, there is a built-in opposition between line managers and project managers. Line managers often see project managers as competitors, while project managers see line managers as
Management
Project manager
Line manager
Employee
obstacles. They do not see the mutual benefits and that they depend on one another in order for the operations to work. The management team can never swear off responsibility for ensuring functional collaboration within an organization.
The insight that projects need reasonable conditions for success has over the past few years reached even the highest levels within companies and organizations. It is a natural consequence of more work being carried out in the project form, increasing the need to handle projects and resources in an optimal way for the operations. Understanding project management is no longer important only among engineers and developers, but rather something that is necessary for everyone who works in an organization. Nowadays, every employee is expected to understand what a project is and how to work in a goal-oriented way in a temporary group.
The project organization
A project organization is the people, processes and systems needed to manage the projects, programmes and portfolios. Regardless of if the project organization makes up a large part of the operations, which is the case in many consultancy and construction companies, or a smaller part, as in many service companies and public authorities, it should be professionally managed.
Portfolio governance – coordination and prioritization of projects and programmes (several coordinated projects), with the goal of supporting strategic operative goals. Portfolio governance is central in both projectbased and agile flow-based organizations. An organization can have one or more portfolios tied to various strategic goals and business areas. The most common reason to create a portfolio is resource management, to prioritize investments and optimize resources usage.
Project organization
A project organization refers to the people, processes, and systems necessary to execute projects. The project organization exists in parallel with ordinary operations and is also a part thereof. Sometimes, the project organization is clearly delimited and defined, as in the project-oriented organization, but often the boundaries are diffuse, because the same resources are used in the projects as in other operations.
The project organization has a structure based on a series of levels:
Large project – time-limited venture divided into several projects.
Project – time-limited venture performed by a temporary group.
Portfolio – prioritization and coordination of projects and programmes to achieve strategic goals. Programme – coordination of projects to achieve client benefits.
There is a wide variety of so-called best practices and international standards that can be used as guidance in creating an effective project organization.
Programme governance – coordination of projects, assignments and activities to create values that would not have been achievable if they were managed individually. Programmes are more important than ever, as we are nowadays often using more than one work method in parallel, even within the same part of an organization. Portfolio and programme governance are described in Chapter 19.
Project governance – prioritization and steering of projects to ensure that the right projects are initiated and the impact goals are achieved.
Project management – organization and management of projects with the aim of ensuring that project goals are achieved.
Project governance and project management
We should distinguish between the terms project governance and project management. The first relates mainly to how a project should be governed and guided from a general operational perspective, while the latter relates to how the project should be organized and managed to achieve the desired result. This is also defined in two international standards, ISO 21505:2017 Governance of project, programme and portfolio management and ISO 21500:2012 Guidance on project management. Concepts and processes.
Project governance should be performed in the same way within a company or organization, regardless of what a project relates to, i.e., following a jointly determined project model. Project governance can be seen as a framework with the purpose of ensuring that each individual project leads to its effects goal, while also facilitating co-administration and coordination with other projects in the organization. Project governance describes the interface between the project and its surroundings.
Project management, for its part, has a lot in common with operational management, i.e., how to organize resources, plan activities, and follow up on results. What sets project management apart from other operational management is the temporary and unique character of a project. Projects are performed in temporary groups, are non-repetitive, and provide unique results. Project management should be allowed to be adaptable and flexible, in order that a choice of solution and method can be made based on the existing needs and conditions. Still, it must be integrated into the framework of project governance. Together, project governance and project management make up a whole, which should both guarantee results in individual projects, and ensure that the operations have routines and processes to coordinate and optimize their entire project portfolio.
The project – a temporary effort
The project is a suitable work method when there is a need to temporarily coordinate different parts of an operation or connect resources from different companies and organizations. The project manager is effectively allowed to ‘short-circuit’ the lines of decision-making and responsibility in the line organization, to create an optimal organization. There can be a strong focus on customer benefits through goal steering down to the level of the individual. The project organization is temporary, as is the project manager’s mandate as a leader. When the project is closed, the organization is dissolved.
The project is a work method that is appropriate for many different types of assignments. It is an effective way to realize visions and general strategic goals, but projects can also be performed by individuals to achieve personal goals.
Lean in projects
Just like the rest of the operations, projects should be performed in an effective way, making optimal use of resources. Applying ‘‘Lean thinking” in the project organization increases the chances of a sustainable work method.
Lean, which is the name for the Western world’s interpretation of the Toyota Production System, relates mainly to optimizing efficiency and minimizing waste. This requires that there is unused capacity in every step of a process, in case of the unexpected – unlike traditional resource efficiency, which involves maximal use of each resource. In the latter case, delays are a common result and may even lead to new needs, which must be managed through activities that are not value-creating. The ability to eliminate, reduce and manage variations determines how effective an organization can become. It is easier to achieve high flow efficiency if you produce similar products and the variations in customer demand are small.
Resource
Low-cost airline
Desirable, but hard to achieve. Requires complete knowledge about the clients and perfect resource flexibility.
` The efficiency matrix.
Lean can be described based on four levels:
• Values – how the organization should act
• Principles – how the organization should think
• Methods – what the organization should do
• Tools – what the organization should use
SOURCE: THIS IS LEAN
Toyota’s values are constant improvement, Kaizen, and respect for people and collaboration. It is important to study and analyze flows before making decisions and taking action. Within Toyota this is called Genchi Genbutsu which can be translated as ‘‘go and see.” Great weight is attached to executing analyzes before making decisions and instituting changes.
So-called Just-in-time ( jit) production and automation with a human touch, Jidoka, are principles that have governed Toyota’s choice of methods and tools. The well known ‘‘line,” which can be used by anyone to stop production, and Kanban boards, used to visualize workflows, are examples of tools used within the Toyota Production System.
Each organization must start with its overarching business goals and conditions when formulating its values, defining principles, describing methods and selecting tools. Some of the clearest examples of Lean seen in Swedish organizations nowadays are activity-based workplaces, selforganizing work groups and short stand-up meetings at whiteboards. So far, few have taken the step fully and made comprehensive changes to the entire organization.
Project Management: A Guide to the Theory and Practice of Project Methodology and Agile Methods
Project Management takes a holistic approach to the dynamic field of project management. Whether you are a seasoned professional or a student, this book provides essential insights for governing and managing projects across diverse industries and organizational contexts.
Key Features:
y Clear and Practical: The book presents project methodologies and management principles in a straightforward manner, making it suitable for use as course literature at colleges, universities and business schools.
y Strategic Portfolio Management: Learn how to select and prioritize project ideas at the strategic level, ensuring impactful outcomes.
y Adaptive Approaches: Traditional methods meet agile practices. Discover when to apply each approach for optimal project success.
y Updated Content: Our latest edition incorporates cutting-edge research and real-world insights, covering project operations, planning methods and portfolio management.
y Pedagogical Excellence: Named Best Course Literature in Business Administration, this book’s practicality and quality have stood the test of time.
Bo Tonnquist has written several books in project management that are currently used by universities, colleges and education providers. He has long operative experience of project management and business development, in Sweden and internationally. He is frequently engaged as a lecturer and consultant focused on work methods based on best practices in project methodology and agile methods. Further, he is also involved in analysis and development of corporate and organisational project maturity. He took part in developing the IPMA certification in Sweden and has been a member of IPMA’s Swedish certification board.
