Applying the 5S principles to Project Portfolio Management(PPM)Project Portfolio Management (PPM) is the centralized management of processes,methods, and technologies used by project managers and project management offices (PMOs)to analyze and collectively manage a group of current or proposed projects based onnumerous key characteristics. The objectives of PPM are to determine the optimal resourcemix for delivery and to schedule activities to best achieve an organization’s operational andfinancial goals ― while honouring constraints imposed by customers, strategic objectives, orexternal real-world factors. (Source: Wikipedia)

PPM is gaining a lot of importance in the project management sphere and is a key trend towatch out for in 2014. (Read Blog: Celoxis’ top 5 project management trends for 2014).

5S is a Japanese workplace organization methodology based on five Japanese words: Seiri,Seiton, Seiso, Seiketsu, and Shitsuke. This methodology is widely used by companies toimprove efficiency and effectiveness of the organization through certain principles thatemployees need to follow in the workplace. These principles are predominantly used byproduction and manufacturing industries worldwide.

5S and PPM, being unique and powerful concepts in their own right, also have a lot ofsimilarities in terms of management accountability, standardization aspects and the need forcontinuous improvement. In this blog I aim to demonstrate how applying 5S methodologycan add value to PPM.

Let’s start by understanding 5S better:

1. Seiri – It means Sort. Sort out & separate that which is needed & not needed in the area.2. Seiton – It means Straighten or Simplify. It is all about order & organization. Arrange

items that are needed so that they are ready & easy to use. Clearly identify locations forall items so that anyone can find them & return them once the task is completed.

3. Seiso – It means Shine. Clean the workplace & equipment on a regular basis in order tomaintain standards & identify defects.

4. Seiketsu – It means Standardize. Revisit the first three of the 5S on a frequent basis andconfirm the condition of the Gemba (shop floor in manufacturing) using standard

procedures.5. Shitsuke – It means Sustain. Keep to the rules to maintain the standard & continue to

improve every day.

Source: (nz.kaizen.com)

Now, let’s see how we can effectively imbibe these principles into our PPM methodologies andstrategies:

Seiri – In 5S, Seiri denotes sorting and selecting projects with scope that support and alignwith organizational goals and gains. This is not just about prioritizing the projects toimplement, but also purging your methodologies of sub-optimal or dated processes andactivities. At the Gemba, Seiri focuses on asking operators to take responsibility for thehousekeeping of their work areas. Likewise when applied to PPM, Seiri should focus onensuring that individual project managers take responsibility for their own projects andidentify requirements.

Seiton – The key aspects for any project are its budget, resources and swift decision making.An absence of any or all of these and your project could end up in doldrums. Setting up robustprocesses and properly designating individuals or groups responsible for each facet are anabsolute must. The whole PPM framework will be futile if the individuals who are at theforefront of all action (i.e. the project managers) don’t have processes or structure to workwith and deliver. It is therefore crucial that processes and structure are already in place beforecommencing work on a project.

Seiso – Seiso is often the most misconstrued of the 5S principles. It does not literally implyhaving a clean workstation that is dust-free. The underlying meaning of this principle is fine-tuning and maintenance. When applied to the PPM domain, Seiso would mean incorporationof automated software tools that help managers monitor projects closely and enable them totake timely & corrective actions. It also implies continuous evaluation of projects againstorganization goals and contribution to ROI. Organizations need to invest in developing aknowledge repository to keep resources abreast, share “lessons learned” from projects,thereby leveraging shared wisdom from past successes and failures.

Seiketsu – PMI defines project as a temporary and unique (i.e. non-routine operation)endeavour. But with PPM the scope being enterprise-wide, it becomes crucial to establish a

strong governance model and standards around project prioritization, resource management,change management, finance management and risk management. The success of your PPMframework will solely depend on whether all the established metrics and processes are beingadhered to. An organization therefore needs to have a strong monitoring and reportingframework for every single step in the project lifecycle.

Shitsuke – The credibility of management in an organization is determined by results andresults only. To stay credible, they are required to prove that results are sustainable over aperiod of time. With people, processes and priorities constantly changing, the managementneeds to show discipline, practice continuous learning and adapt to evolving businessenvironment to stay on top of the game. The PPM framework therefore should be flexibleenough to either go with the tide or swim against it.

In my mind the 5S methodology doesn’t just complement PPM, it enhances and adds value toan organization’s ability to deliver well to its customers. Have any views on the topic? Wouldappreciate your comments.

References: Kaizen Improvement Whitepaper, nz.kaizen.com, Wikipedia, PMI.org

About Me

Currently, I head the Customer & Product Experience team at Celoxis. My interests lie inProduct Management, Business Analysis, Innovation Management, Customer Insights,Research and Experience through Design Thinking pedagogy and application of BusinessDesign.