Evaluating the application of lean principles to improve project performance at Eskom KZNOU.
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Date
2015
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Abstract
Eskom’s financial sustainability is at risk which makes their project delivery model all the
more important. At present there are numerous challenges and problems facing Eskom,
especially with project performance at the KwaZulu-Natal (KZN) Operating Unit. The
leading yardstick for success of any project is to deliver the project within cost and time
parameters. Lean project management is a new management practice that has been
successfully implemented in many companies and industries with remarkable success. The
purpose of this study is to evaluate the applicability of lean principles with the aim of
increasing the likelihood of project success within the ambit of project management
principles. This study investigates the applicability of implementing lean principles
effectively in the project environment of Eskom. Firstly, the study examines the current
understanding of project management as executed in Eskom. Secondly, the research assessed
the appreciation of lean principles through a survey that was conducted at the company. The
research revealed that 83% of the respondents were not aware of lean technologies; however
94% of them agreed that lean principles can be used to improve project delivery and
performance. The survey presented some of the lean tools that have been used effectively in
the execution of projects, which include continuous improvement, reduction in variability,
work standardisation, housekeeping and being customer centered. The research highlighted
that some of the lean principles are not being fully implemented; and they need to be
improved in order to increase project performance. Simultaneously, some of the lean
principles are being implemented within the current project management processes; however
the principles need to be reviewed and improved upon. In light of the challenging times in
which Eskom finds itself, it would be prudent to consider implementing lean principles
within the project management environment. It is recommended that Eskom review their
current project management principles to include lean principles in the execution of projects.
The application of lean principles would definitely assist in eliminating wasteful processes in
the project activities and will contribute in projects being completed on time and within
budget.
Description
Master of Business Administration. University of KwaZulu-Natal, Westville 2015.
Keywords
Eskom (Firm), Project management., Organizational learning., Theses--Business administration., Project performance., Lean principles., Eskom (Firm)--KwaZulu-Natal Operating Unit.