What is Lean Project Management?

Lean project management is a methodology focused on maximizing value while minimizing waste throughout the project lifecycle. The Lean approach focuses on efficiency. It’s about eliminating unnecessary elements—whether unnecessary steps, wasted resources, or downtime—and focusing on what adds the most value.

What is lean project management?

Inspired by the Toyota Production System (TPS) in the mid-20th century, lean principles were initially applied to manufacturing but have since spread to other industries, including project management. You can think of lean project management as a “less is more” approach to running projects.

This means fewer resources are used to generate more value by eliminating inefficiencies and continuously improving processes. Lean project management aims to streamline workflows and ensure that each task brings you closer to delivering exactly what your customer needs, without the extra baggage that weighs you down.

5 principles of lean project management

Lean project management is based on five core principles that help teams deliver value without clutter.

Specify value

The first rule is to answer the question: “What am I really offering my customer?”

Understanding the real value you deliver to customers, whether external or internal, requires delving into what they really care about and what they’re willing to pay for. For project teams, this means aligning their efforts with customer priorities and making sure that every task directly contributes to the end goal.

For example, in software projects, this could mean focusing on features that solve critical user pain points, rather than adding unnecessary or ineffective features. Another example would be a sales project that focuses on iterating on a specific aspect of the sign-up process that affects the target demographic.

Map the value stream

Once you have identified value, it is time to plan the entire process from start to finish. In lean methodology, this is called the value stream.

Value stream mapping isn’t just about writing out tasks, it’s about identifying every step that adds value and eliminating waste wherever possible. A common tool used for this purpose is a kanban board, which is quite popular in agile project management software.

A kanban board visually represents the flow of work and helps teams see where bottlenecks or delays may occur. This step encourages transparency into operations and allows teams to refine processes as the project evolves.

For those managing more structured processes, such as waterfall project management, value stream mapping can help identify areas where delays or inefficiencies frequently occur.

Create a flow

Flow is the heart of lean project management. Once waste is identified and eliminated, a strict sequence must be established, creating a process in which tasks flow smoothly from one stage to the next without unnecessary delays.

Some project teams use a Gantt chart to visualize flow and better see how the steps in a project relate to each other. This type of tool is especially useful for projects with a lot of task dependencies.

One way to ensure flow is to address bottlenecks. Where does work tend to pile up or slow down? For example, a team might find that too many approvals or handoffs between departments are causing delays and rework the process to avoid these pain points. Or it might discover that the workload is unbalanced among team members and adjust to more evenly distribute tasks.

SEE: Learn more about Gantt charts and how they can be used in Lean project management.

Establishing a pull

The fourth principle of lean project management is based on the concept of just-in-time production. Rather than pushing work through a pipeline, lean emphasizes a “pull” system, in which tasks are initiated only when there is a demand for them.

This prevents the team from overproducing or wasting resources on features or tasks that may not be needed. In project management, the pull system ensures that resources and time are allocated efficiently, focusing only on what adds value at that moment.

Strive for perfection

Lean project management isn’t just about getting things done—it’s about continually improving how things are done. As a result, this principle promotes a culture of continuous reflection and improvement.

After the successful completion of any project, and even during it, teams should ask themselves what worked well, what didn’t, and how they can improve in the future. It’s about striving for perfection through small, incremental changes, often called kaizen, that help teams stay agile and productive.

Benefits of Lean Project Management

Increased efficiency and reduced waste are the primary goals of lean methodology, but there are also some additional benefits to consider. Here are some of the most important benefits of lean project management.

• Increased efficiency: By focusing on eliminating waste and streamlining processes, lean helps teams work more efficiently. Tasks get done faster, bottlenecks are reduced, and unnecessary steps are eliminated, leading to smoother project execution.
• Cost reduction: Lean aims to identify and eliminate wasteful activities, which directly reduces costs. Teams avoid overproduction, unnecessary resource utilization, and delays that can add financial burden to projects.
• Greater customer satisfaction: Because lean focuses on identifying and delivering what customers truly value, the end result is a product or service that meets their exact needs. This leads to better customer satisfaction and can also foster stronger customer relationships.
• Improved adaptability: Lean promotes continuous reflection and improvement, making it easier to adapt to new information, changes in scope, or unexpected challenges. The methodology encourages teams to remain flexible, adjusting plans and processes as needed.
• Shorter delivery time: By focusing on creating smooth flow and eliminating delays, Lean can shorten project schedules without sacrificing quality. This is especially beneficial in industries where time to market is critical.

Should your organization use Lean Project Management?

If your company often struggles with resource constraints, tight deadlines, or changing project requirements, you should consider Lean project management as a structured way to prioritize what is most important and eliminate what is not.

In addition, Lean’s ability to quickly adapt to change allows organizations to pivot efficiently without adding significant overhead or delays. By focusing on what adds value to the customer and continually improving processes, companies can remain agile and competitive in their markets.

For companies in industries such as manufacturing, software development, healthcare, and construction, where waste and inefficiency have a huge impact on the bottom line, lean project management will prove especially useful.

Whether your goal is to reduce costs, shorten order fulfillment times, or simply increase employee engagement and productivity, Lean is a proven way to achieve these goals.

For comprehensive project management tools that can enhance your Lean practices, check out this list of the best project management software in 2024.

Frequently Asked Questions (FAQ)

What is the difference between lean and agile?

Lean and Agile project management methods share some common features, such as an emphasis on flexibility and continuous improvement, but they differ in their focus and implementation.

• Lean primarily focuses on eliminating waste and optimizing processes to increase efficiency, while agile focuses on adaptability and quickly delivering working project increments.
• Agile is a more iterative approach, with short cycles of development, review and adaptation, while lean is about creating value-oriented and waste-free flow.
• Lean methodology often influences agile methods, but agile methodology places more emphasis on frequent product deliveries and feedback loops.

Is Scrum a lean or agile method?

Scrum is primarily an agile methodology. It focuses on delivering work in short cycles or sprints, where teams regularly reassess and adjust based on feedback. However, some elements of scrum align with lean principles, such as minimizing waste and focusing on continuous improvement. However, the core of scrum is built around agile values ​​and principles.

Is kanban agile or lean?

Kanban has its roots in lean manufacturing, but is now widely used in agile environments. Kanban focuses on optimizing workflow and reducing bottlenecks, which is a core lean concept. However, it is now often used in agile teams to visualize work and manage flow, making it compatible with both methodologies. Therefore, although kanban comes from lean thinking, its flexibility makes it useful in agile practices.