Lean Office applied to ICT Project Management: Autoparts ... - IPASJ

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processes, based on the PMBOK (Project Management Body of Knowledge) practices into Latin ... Pedro Domingos Antoniolli, Carlos Roberto Camello Lima, Ana Rita ..... 9th Principle: search developing leaders who understand the work and its .... Management Book of Knowledge), now on its fifth edition (PMBOK, 2013).

IPASJ International Journal of Management (IIJM) Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: [email protected] ISSN 2321-645X

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Lean Office applied to ICT Project Management: Autoparts Company Case Study Pedro Domingos Antoniolli, Carlos Roberto Camello Lima, Ana Rita Tiradentes Terra Argoud, João Batista de Camargo Junior Pedro Domingos Antoniolli UNIMEP, Brazil Carlos Roberto Camello Lima UNIMEP, Brazil Ana Rita Tiradentes Terra Argoud UNIMEP, Brazil João Batista de Camargo Junior UNIMEP, Brazil

ABSTRACT As result of Globalization, enterprises should act properly on very aggressive and competitive markets. To achieve this goal, not only product development cycles should be decreased, but also new added value services and products must be created, which, in turn, are delivered as a result of successful projects. Besides, ongoing processes have to be continuously reviewed, in order to eliminate losses of efficiency and/or effectiveness. Lean Thinking principles are indicated to achieve better processes performance, through reduction of delays, waste, inventory levels, over processing and over production, also improving information quality, essential for competitiveness (WOMACK and JONES, 2003). Yet, as a result of markets globalization, new levels of competitiveness are in place, marked by quick and deep changes in cultural, social, economic and technological basis, forcing organizations to find more effective ways to respond to these requirements. In this sense, projects become foundation to implement new goods and services, being important to conclude them successfully. Festa and Assumpção (2012) argue that projects that involve ICT (Information and Communication Technology) applied to logistics businesses result in "changes in processes with improved asset utilization, yielding higher productivity and quality / consistency in operations, reducing waste and delivery times". Additionally, Hartman and Ashrafi (2002) point out that ICT is one of the fastest growing sectors in emerging countries. Thus, it is mandatory that projects be concluded within predefined conditions of time, cost, quality and scope (PMBOK, 2013). Besides, project management has been consolidated into companies due to its high potential value they provide, allowing that project results are delivered on time, budget, scope and quality, which is especially important for ICT projects, for which innovation is usually present. For such, the correct resource allocation, and effective application of project management techniques and methodologies improve success chances. This work presents a case study of project management processes, based on the PMBOK (Project Management Body of Knowledge) practices into Latin America Information Technology initiatives of an Autoparts Company. Additionally, this paper presents the relationship among these practices with Lean Office elements, which causes positive impacts.

Keywords: Information Technology, Lean Office, PMBOK, Project Management

1. INTRODUCTION Market globalization raised new sharpened competition level, based on rapid technologic, economic, commercial and cultural challenges, directing companies to answer quickly and precisely to these threats, to keep sustainable on these markets. Douglas and Craig (1989) and Yip (1989) state that globalization in business context can be understood as “the development of internationalization strategies of companies". Hilletofth et al. (2009), on the other hand, argue that because of competitiveness increase, enterprises are forced to offer greater variety of customized products, with increasingly smaller life cycles, thus achieving better value for the enterprise resources usage. Abdulmalek et al. (2007) define value as equivalent to something that the consumer is willing to pay for a product or service. For Hansen and Mowen (2001), competitive advantage can be defined as "the creation of a better value to the customer by an equal or lower cost, than that offered by competitors". As response to this increased competitiveness, enterprises generally give two kinds of answers to this increased competition: operational efficiency, which represents optimized management of scarce resources; and small and continuous improvements of its business processes. Lima, Garbuio and Costa (2009) say that continuous improvement has been frequently linked to Total Quality concept, and it can also be applied to other circumstances. Caffyn (1999)

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complements, considering continuous improvement as an incremental innovation process, which involves the enterprise as a whole. An important application of continuous improvement approach is given by Lean Thinking principles, which are focused on efficiency search, and on avoidance of activities that do not add value to the process, means that these activities become constraints for organizational performance. Souza and Carpinetti (2014) argue that enterprises competitiveness requires not only innovation, but also processes optimization and cost reduction initiatives, which represents operational improvements, resulting in high quality products to increasingly demanding markets. Taj and Morosan (2011) and Gurumurthy and Kodali (2011) complements, explaining that the approach to implement lean production gains importance as a mechanism for achieving organizational effectiveness. This happen due the fact that lean focus relies in the operational efficiency and effectiveness, reduction of non-value added activities, thus becoming crucial for enterprises. Thus, lean thinking can be understood as a generalization of Lean Production that, based on Rebelato et al. (2009), became important source of quality. This concept was initially applied to Toyota Corp, in the 1950s, by the engineer Taiichi Ohno. Piercy and Rich (2009) complement, explaining that both concepts and lean production techniques has been increasingly used in administrative processes, called lean office, or lean service. Womack and Jones (2003) stated that "the essential starting point for lean thinking is the value, that can be defined only by the final customer. And it is only meaningful when expressed in a specific product that meets customer needs, at a specific price and time". For Rother and Shook (2003), a value stream comprises all necessary and essential activity for which a product or service passes, and which result in a monetary benefit that outweighs this activity costs. The authors state that, when considering the prospect of the value stream, the context is broader, leveraging the whole process, not only individual tasks. Rudberg and Olhager (2003) extend the concept to the value network, which consists of facilities in which the usefulness of time, place and/or manner are added to the product in several stages, so that the perceived value by customer is greater. Thus, value creation comes from the set of activities performed in a particular case for which lean principles can be applied. Regarding constraints, to Womack and Jones (2003), there are seven classic inefficiency types: waiting, defects, transportation, movements, inventory, overproduction, and super processing. Additionally, the authors propose five principles that guide the implementation of lean principles: (1) define value from the customer perspective; (2) identify the value stream for each product family; (3) create a flow through the value adding activities; (4) extract value from subsequent activities; (5) eliminate waste and pursue perfection. As so important as the process, the management is also essential. In this sense, Lima, Pereira and Souza (2009) argue that management models include contemporary projects within the company. Thus, projects are, in various areas, essential to implement new goods and services. With the increasing competitiveness of industrial complexity, and the difficulties of business decisions, the pressures for successfully complete projects, and thus results, increase. In terms of innovation, Van Ark (2001) explain that the ICT diffusion in all economy areas constitutes a prerequisite for the technology potentially generate positive impacts into economic growth and productivity. This paper aims to relate the Lean Office principles present in PMBOK (Project Management Book of Knowledge) practices, and verify the results obtained by Project Management Office (PMO) implementation, at Autoparts industry.

2. METHODOLOGY AND JUSTIFICATION Marconi and Lakatos (2002) argue that a problem must be clearly and objectively defined. Thus, the problem being investigated in this article is described by the question: “Which Lean Office principles are addressed in the PMBOK project management practices of a Project Office (PMO) in an Autopartss industry?” Based on this context, basic assumptions include:  Performance of ICT projects might be positively influenced by the use of lean thinking techniques and processes;  PMO is responsible to share good practices in order to improve project management activities;  Lean thinking has been proved, based on the reviewed literature, important component to processes improvement; Sila and Menezes (2000) argue that a research can be classified under four dimensions: nature, approach, objectives and technical procedures. These authors indicate that, with respect to its nature, a research can be considered basic or applied. This article is classified as an applied research because it focuses theoretically in discussing the concepts and applications of lean thinking on ICT project management, based on the PMBOK. With regard to how to approach the problem, Silva and Menezes (2000) explain that research can be classified as quantitative or qualitative. This article is classified as qualitative research due to the method of interpreting the data, being its main focus on the process and its meaning. Silva and Menezes (2000) argue that, in relation to the objectives, research can be classified as exploratory, descriptive or explanatory. This work is characterized as a descriptive survey because it involves the available literature review,

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and proposition of lean thinking principles to support ICT projects management. Talking about technical procedures, Silva and Menezes (2000) indicate that a research can be categorized as: bibliographic, documentary, experimental, survey, case study, research, ex-post-facto, action research or participatory research. This research is based on concepts and techniques described in the literature, and these techniques application in an ICT project, within an auto parts manufacturing company, being therefore classified as bibliographic. Additionally, the characteristic of the application of these concepts in a particular case falls into the procedures of case study. The choice of case study is contingent and convergent with the nature of the problem, and the current state of knowledge. The following considerations justify the chosen method:  This study focus in the lean thinking principles applied to ICT projects management, specifically on PMO (Project Management Office) establishment, being the available literature on this topic scarce;  The knowledge level lies on development early research stages. Thus, case study proves to be the most appropriate approach for the proposed research. As suggested by McCutcheon and Meredith (1993), Yin (1989) and Eisenhardt (1989), this approach is typical in the early stages of the development of theory, where events or phenomena, have little or no cataloged knowledge;  There are not yet published a precise idea of which lean thinking principles, techniques and variables that contribute to improve potential success of ICT projects. Thus, these elements should be clarified during the research process, with continuous comparisons between the evidence of the case and the literature. As a result, the problem detailing will be refined during the study (EISENHART, 1989);  Research of the lean thinking application to ICT projects requires the researcher to place the events in a chronology, to determine causal connections. By doing this, the case study becomes the initial basis for such causal references (YIN, 1989). Thus, this article aims to corroborate the relevance of the concepts presented in the literature and in the industry about the PMBOK, to improve projects success on ICT projects, supported by lean thinking principles.

3. LEAN OFFICE Lean Office is considered an application of lean manufacturing, where is their source, and maintain its principles, minimizing and, where possible, eliminate losses / inefficiencies in business processes. To Womack and Jones (2003), the main sources of losses are:  Over processing: that includes greater use of effort to a service / process / information that required, for what customers are not willing to pay;  Transport and movement: Are unnecessary movements of people, materials or resources, throughout the process;  Stocks: Although stocks are used as protection mechanisms against variability of the process, to Lean any stock above what is necessary for customer service should be avoided, because it is translated in cost and additional processing;  Wait Times: The expression here considers all delays or times when a material / service have to wait to be processed. It can also be categorized as expected delays in processing slower than the standard;  Defects: Defects are considered all aspects of the product or service that does not conform to customer needs internal or external to the process. This category includes missing information, non-compliance of terms and conditions that result in additional work;  Over Production: Production above what is required for immediate use. The over production may be result of a lack of priority setting, or visibility of customer demand. Overproduction has another downside, which is the use of resources for priority processing elements, and consequent lack of focus, which cause unavailability of these resources to essential activities. For Lareau (2002) losses in administrative processes (Lean Office) are classified into:  Lack of goals alignment: This includes the time spent by poorly defined goals and the effort required to fix any problems / produce effective results;  Over-allocation: employee effort to complete a task inappropriate / not required;  Waiting: Time lost by waiting for information on meetings, for signatures / approvals, and returns of phone calls;  Movements: Time and effort employed in unnecessary movements;  Reprocessing: Results of a work conducted inefficiently;  Excessive control: Every activity and effort used to control and monitor, but did not produce improvements in performance;  Variability: This includes the use of resources used to compensate or correct results that vary beyond the expected;  Lack of Standardization: Requires additional energy used in a job, because this was not done the best possible way, by all those responsible;

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 Irregular Flow: Effort or resources applied to information or materials accumulated between the work centers, which causes waste due to irregular flow;  Lack of Focus: Occurs when the energy and attention of an employee are not focused on organizational critical objectives. According to Rebelato et al. (2009), initially processes should be mapped for identifying sources of inefficiency, and then taking actions to correct the lower performance. Additionally, setting performance targets helps to maintain current and increasing level of performance, informing where the company can reduce waste. Picchi (2002) highlight some Lean tools:  Value Stream Mapping or VSM: It is a fundamental tool to map the flow of materials and information. He supports the identification of essential activities (value added), and activities that consume resources, preferable to be eliminated;  Standardized Work: This includes the establishment of standardized procedures and documentation in order to improve the results achieved, and the possibility of using metrics to measure performance, thereby optimizing it when needed;  Pulled Systems: The administrative environment is crucial to understand the processes subsequent to an activity, so the service can flow properly, and the result is available in time and as expected, neither before nor after. Hunter and Westerman (2009) reported that alterations in processes require more than simply eliminating activities and / or redirect task flows. Authors state that it is important that entire organization be mobilized this direction, since behavior change and roles, through internal structures review, and establishing a system of recognition (or not based on monetary rewards), linked to reduction targets waste. For Souza and Carpinetti (2014), during processes evaluation, the transformation of the current state to the future comprises a continuous improvement process, which considers the existence of many Kaizen projects for elimination and / or reduction of all types of waste, that becomes a barrier to obtaining lean processes. According to the authors, a fundamental aspect of lean production implementation plan is to decide what types of waste should be prioritized. Imai (1986) defines Kaizen as "occasional or continuous improvement in social, family, and professional. In the workplace, Kaizen means continuous improvement in the participation of all, managers and other employees”. Newitt (1996) complements, explaining that Kaizen word is derived from two Japanese kanji, KAI = change, and ZEN = good (for the better). Suárez-Barraza and Miguel-Dávila (2011), by the other hand, indicate that the Kaizen is "a set of personal principles that make you grow as a person, and that assumes that your way of life - whether at work, social, or family - deserve to be constantly improved ". Oduoza (2008), on the other hand, adds that lean systems enable that best practices be incorporated into business processes, such as JIT (Just in Time), TQM (Total Quality Management), continuous improvement, resource planning and management of SCM - Supply Chain Management. According to Peters (2010), due the fact that the lean have their focus both on increasing the value of processes, and in the waste avoidance, it has become one of the most important approaches to improving business performance in recent decades. Ballard and Tommelein (2012) argue that lean is a management approach that had its origin in the automotive industry, started to be applied initially in other forms of repetitive manufacturing, and most recently in services processes and companies. Hines and Taylor (2000) define five steps to eliminate waste, serving as a set of actions to be taken in order to obtain lean processes:  Map, in the processes, activities undertaken and identify in these tasks, the degree of value added (for client and enterprise);  Search processes redesign, in their flow operations, eliminating interruptions, detours, delays and other non-value added activities;  Perform only activities that contribute to the addition value, based on the perception of the end user, without the use of additional efforts (overproduction);  Constantly evaluate the flow and removing new sources of inefficiencies, as far as they are discovered. Liker and Meyer (2007) define four (4) "Ps", representing lean principles:  Philosophy: It constitutes the basis for the long-term vision, in which managers perceive the organization as a means of adding value to stakeholders;  Process: These are the core elements of adding business value, which means, if adjusted they produce relevant results;  People and Partners: Represent the elements with which the Organization should keep long-term relationship and requiring ongoing development;  Problem solving (Troubleshooting): The search for the root cause of the problems, and the correct treatment of these problems lead to organizational learning;

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Based on the four (4) "Ps" of the lean, Liker (2006) proposes the following principles:  1st Principle: administrative decisions should be based on long-term philosophy, even if sometimes the financial goals have to be despised;  2nd Principle: should be established a continuous process flow so that problems can be identified;  3rd Principle: should be used "pulled" systems to avoid overproduction and over processing. The JIT and Kanban allow the reduction of inventories. In addition, the problems are visible and there are conditions to eliminate them at their source;  4th Principle: heijunka - The workload must be leveled;  5th Principle: the company culture must be molded / built / adapted to stop and solve problems as they arise, to obtain the desired quality the first time - jidoka;  6th Principle: standardization is the basis of continuous improvement, and training employees;  7th Principle: visual control must be applied, so that problems are apparent (not hidden);  8th Principle: reliable and fully tested technology that meets employees and processes must be used;  9th Principle: search developing leaders who understand the work and its subsystems, living the lean philosophy, and feel good in teaching others;  10th Principle: pursue the development of people and high-performance teams, and that follow the company philosophy and culture;  11th Principle: see and understand fully the situation and its implications (Gemba);  12th Principle: take decisions slowly, by consensus, and consider all options. However, implements them quickly. Other authors, however, consider that these principles are components of a enablers structure, which if applied correctly, have great influence for the company to create streams of lean business processes, maximizing value for customer and company. These enablers are techniques, practices, and methodologies that support lean principles (LEAN ENTERPRISE INSTITUTE, 2007; MARRAS, 2005; RIBEIRO and MEGUELATI, 2002; SIMÃO, 2003; SLACK et al., 2002; SODERQUIST and MOTWANI, 1999), and are compounded by: a) Just in Time (JIT): JIT comprises the supply of materials required for a process step at the time, quantity, and quality required. It assumes processes with low disturbance and high internal reliability, so it can avoid the usage of stocks, as protection mechanism. In addition, due to agility and less material handling, and also the use of smaller lots, JIT provides flexibility and shorter lead times; b) Kanban: this is a mechanism that authorizes and guides the production or output items in a pull production system. So, the consumer is the one who starts the production cycle, and the work is pulled to the extent necessary; c) Program leveling (heijunka): It applies in cases where there is a definite cycle, since it uses a balanced mix of the daily production schedules that are set for the production of each product. Thus, it is easier to monitor compliance with production orders avoiding, at the same time, excess inventory and increased costs / lead times; d) Setup Time Reduction: The time of set up is conceptually a waste because there is a temporary interruption in production. The smaller the setup time, greater is the flexibility and productivity of the system. One can reduce waste in activities like searching tools, and pre-preparation tasks; e) Involvement: the commitment of employees to enable them to feel part of the process to take on more responsibilities and more fully use their skills. They are trained and motivated to take on new responsibilities in carrying out their work; f) Visual management: mechanisms that are used to facilitate understanding of the operations statuses. The content and form vary, but the most common are the performance measures, indicator lights charts, control charts, checklists and visible improvement techniques, among others; g) Streaming: The purpose is to produce and move one item at a time throughout the process, that is, each step carries out only what is demanded by their "client", the next phase of the process. Assembly lines or work cells may be used; h)Poka-yoke: These are devices or systems foolproof, which means, implemented methods that prevent that employees make mistakes in the execution of their activities, such as choice of part, assembly, activity sequencing, etc; i) 5S: Which consist of organizational practices, housekeeping and discipline in the workplace. Are useful for the visual management and lean production (sense of use, organization, cleanliness, standardization, and selfdiscipline); j) Workforce multi skilled: is the working practice that considers the constant development of employees, that is, they can acquire skills and abilities to work in more than one process; k) Total Productive Maintenance (TPM): Includes the constant and effective maintenance of production facilities to ensure that the production process are available and with maximum effectiveness to accomplish their tasks; l) Value stream mapping (VSM): Process mapping that considers all stages of the flow, containing the information

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needed to serve customers in the delivered period. They can be drawn at different times in order to reveal improvements opportunities; m)Empowerment: aims to give greater autonomy to employees to make decisions in times and places where they occur and are needed, which can prevent time losses on decisions process escalation to higher hierarchical levels. Empowerment also increases employees commitment. Panizzolo et al. (2012) and Jadhav et al. (2014) state that in the last ten years, even industrial companies located in emerging countries such as China and India, are working to transform their low cost and intensive labor production processes into high production value added, more flexible and productive, based on lean production systems. Stone (2012), on the other hand, explains that over the last decades, lean principles are applied beyond the boundaries of manufacturing, in processes such as performance enhancing mechanisms. Bhasin. (2012) complements, pointing lean as a business model that delivers superior performance for customers, employees, and stakeholders in general. For Chual et al. (2010), lean operations enable the company to reduce waste and optimize, in general, the activities of its value chain. Malmbrandt and Ahlstrom (2013) state that, although service companies search to adopt lean practices, research involving lean applications in services is still at an early stage. In this sense, preliminary studies of Bowen and Youngdahl (1998) relate the applicability of lean practices in service enterprises. Later were released conceptual studies with contributions to adapt lean practices, originally designed for manufacturing, into services (AHLSTROM, 2004). Balle and Regnier (2007), and Proudlove et al. (2008) also presented several cases of successfully adopted lean practices by service companies, especially in healthcare industry. However, rigorous and systematic empirical research is scarce (MALMBRANDT and AHLSTROM, 2013). Some authors, like Pilkington and Fitzgerald (2006), indicate that the reasons for this lack includes: lack of conceptual clarity, and definition of operational measures of attendance. Thus, lean principles are adherent to administrative procedures. Thus, for this paper scope, they are related to project management activities, given the importance they have on business, as a tool for empowering the delivery of new products and services.

4. PROJECT MANAGEMENT One project, according to Kerzner (2002), is a unique venture, which has identifiable goal, which consumes resources, and operates at pressures of deadlines, costs and quality. For PMBOK (20013) project is "a temporary endeavor undertaken to create a product, service or single result". Carton et al. (2007) argue that in practice, is the project management the agent of the changes, since "every change is a project" and that the translation of strategy inevitably results in projects. Authors state that project management support leaders to standardize processes and tasks, and ensure that available resources are effectively allocated. In this sense, project management principles application enables managers and leaders to establish and properly use metrics for achieving these projects success, measured by comparing the project value added with the cost it spends. Yet, according to Carton et al. (2007), project management is a recent management discipline, with little more than fifty years. During this period, successful and good practices and techniques have been included in the PMBOK (Project Management Book of Knowledge), now on its fifth edition (PMBOK, 2013). Carton et al. (2007) explain that the PMI (Project Management Institute), organization globally recognized, is the entity that consolidates such practices in the PMBOK. PMI has branches (chapters) worldwide, as well as thousands of associated professionals. A benchmarking survey conducted in 2007 by PMI (Project Management Institute) with 185 companies operating in the Brazilian market segments, found that 78% of organizations reported problems running their projects, 64% had problems of cost, 44% identified quality problems and 39% issues related to customer satisfaction. Additionally, about problems found, 66% of companies reported problems with not meeting deadlines, 64% had communication problems and 62% faced constant changes in scope (PMI, 2013). The PMBOK (2013) defines the basic cycle of project management composite of five processes groups, which are:  Initiation: Set of performed processes to define a new project, or new phase of an existing project;  Planning: Processes required to establish the scope of the project, refine goals, and set the course of action required to achieve the desired results;  Execution: Are the processes carried out iteratively to complete the work defined in the project management plan, to meet design specifications;  Monitoring and Control: Processes required to track, review, control progress and project performance, and to identify areas where a change of plan is required;  Closing: Consist of processes undertaken to complete all activities along the process groups, in order to formally conclude the project or phase.

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An important aspect of the PMBOK (2013), adherent to Lean practices, is that during all project cycle phases, lessons learned can be recorded. These records are facts to be evaluated, avoided, solved, or applied for future projects. According to Kerzner (2006) "every time a company not register lessons learned, it may rapidly return from maturity to immaturity in project management. Knowledge is lost, and past mistakes are repeated". To manage properly the forty-two processes included on five groups in the project cycle, ten knowledge areas should be considered: integration, scope, time, cost, quality, communication, human resources, risk, purchasing, and stakeholders (PMBOK, 2013). Santos and Carvalho (2006) argue that project management includes a set of management procedures aimed at planning, organization, direction and control of the aspects involved in a project, to safely achieve predefined specified conditions and proposed objectives. The PMBOK (2013) offers nearly four hundred good market practices to support these procedures. Additionally, the PMBOK (2013) says it is important to measure the degree of maturity of the organization in project management, not only to identify improvement opportunities, but also to standardize project management practices. Neves et al. (2009) shows the five maturity levels, based on CMM (Capability Maturity Model) and OPM3 (Organizational Project Management Maturity Model).  Level 1 = Common Language: Process without standardization. Basic knowledge. Repetitions happen by accident, without formal process management;  Level 2 = Common Processes: There is managerial support. Common goals are established for the project management teams. Formal training occurs;  Level 3 = Singular Methodology in Place: Process control. Integrated project management and business processes. Advanced techniques exist;  Level 4 = Benchmarking: Process Improvement. Objectives and roles defined. Well-defined metrics. Participation of all stakeholders. Culture of risk management expertise and established project management stated;  Level 5 = Continuous Improvement: Proactive Prevention of defects. Implementing a strategy of continuous improvement. High level of performance on projects. Kerzner (2006) state that "the project management maturity is the development of systems and processes that are repetitive in nature, and guarantee a high probability that each is a success". ICT (Information and Communication Technology) projects normally involve any degree of innovation. Within this perspective, Henderson and Clark (1990) classify innovation into four groups: incremental, architectural, modular and radical. Authors consider that incremental innovations consolidate the enterprise competitive position. Radical innovation, otherwise, can generate real industry change, probably because there is an effectiveness decrease of current business skills, during the first moment. Additionally, Dey et al. (2007) argue that project delays not only add costs for any penalties imposed by customers, but also add costs from higher prices for goods and services, loss of company image / product, and incurred opportunity costs. Still concerning with innovation projects, Keegan and Turner (2002) argue that new approaches combining the existing theory on project management, with the innovation process management are required. Lau e Kong (2006), on the other hand, state that can be found five common constraints categories in projects: legal, economic, technical, environmental, and social. These restrictions may, in certain conditions, lead to risks to the project objectives. Thus, the pursuit of excellence in project management helps the company make viable products and processes, with higher added value and thereby increasing their competitiveness.

5. CASE STUDY: THE AUTOPARTS INC The Autoparts Inc., as it is named in this paper, to preserve the identity of the enterprise, is one American Autoparts centenary industry, employing more than 60,000 direct workers. It has about thirty factories throughout the world. Autoparts Inc. main product has an annual production estimated at 150 million units. Latin America's seven strategic business units are located in Argentina, Chile, Brazil, Colombia, Venezuela, Peru, and Mexico. In Brazil, the Autoparts Ltd has been present since late 1930s, and currently has two plants, four sales subsidiaries, five automotive centers, and approximately 4.000 direct employees. It has a distribution network comprising 150 distributors and about 560 sales points. The PMO was required, once the Information and Communication Technology (ICT) area was responsible for maintaining running the infrastructure and systems, with about 3,500 active users, 22 servers, applications, more than 60 different applications, and monthly demand of, in average, four different ICT projects. Initially, in 2011, has hired a certified (PMP) project manager, to act inside Latin America ICT structure, reporting to the Global PMO, that was, at this time, on its beginning, start defining a small and customized PMBOK, to fit the company specificities.

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In the sequence, a project management maturity level assessment was done, with the participation of the sixteen project managers allocated on Latin America subsidiaries. Results showed that the ICT maturity level was 2, as ranked accordingly to Neves et al. (2009). Thus, Autoparts lacked standardized procedures for project management and this led, consequently, to projects implementation failures, not only to meet deadlines, but also to achieve established targets:  Only twenty five percent of the projects met the requirements of time, quality and scope, but costs were, on average, about 30% higher, mainly due to additional required time;  Fourty percent of the ICT projects were delivered out of time, and above the stipulated budget, mainly due to incorrect scope and re planning recurrent issues;  Thirty five percent of these projects were cancelled, or partially implemented. Project deliverables did not meet customer requirements. These facts corroborate the need of performance improvements, and effectiveness to complete ICT projects, which was adherent to the conditions reported by Lareau (2002), in which there is additional effort, re-work, excessive waiting times, and defects, among others. After the diagnosis, was proposed, and accepted by upper management, the establishment of a Latin America Project Management Office (PMO), with respective process-oriented organizational structure, and allocation of project leaders to attend the major functional business areas: manufacturing, finance, marketing, and logistics. According to PMBOK (2013), a PMO is an organizational entity, which is marked for various responsibilities, like projects coordination and management, ranging from the provision support functions of management, as methodology, to direct management of a project. PMO is a point of reference for project managers, and also the source of cultural change in project management (KERZNER 2002). Thus, the creation of a PMO within Autoparts Inc. aims for the dissemination, capacity building and establishment of best market practices with regard to project management. This fact, according to Crawford (2002), is directly associated with the minimization and avoidance of major project failures. Throughout 2012, the PMO team, along with an external advisory firm, held several training sessions for IT professionals. Were also implemented several procedures, software, forms and techniques, including risk management and communications. In analyzing the main causes of project failures, was identified that imprecise scope definition is one of the sources of inefficiencies, generating conflicting expectations by stakeholders, and execution of many and additional activities, without added value. As one of the first actions was to set up a formalized procedure for drawing up the scope of projects, using as basis the Project Charter, which according to the PMBOK (2013), is the initial document that formalizes the project start, and contains the key elements needed for a correct definition of the project. Additionally, project development process was formalized, considering the interactions between the different areas of design and IT stakeholders. For this analysis, Lean tool VSM (Value Stream Mapping) was selected, which allowed that non added value tasks were identified and removed. This fact alone has brought an average reduction of 15% in development time of projects. Metrics and performance results were generated, and a knowledge base of projects was created. This database records main difficulties and solutions found in the development cycle of projects. Lessons learned could be registered for subsequent projects. The communication process was improved. During the planning phase of the project was drawn up a spreadsheet for the identification and registration of all stakeholders, considering their main characteristics, expectations, levels of influence, form and frequency of communication. This document served as a basis to formalize the follow-up meetings of the project, as described in the PMBOK (2013). Besides, was implemented an approach called Stage & gates, which consists of gates reviews during the project cycle life, to fulfill two targets: validate all concluded tasks and deliverables; and to formally authorize the next phase. This was adherent of lean principle, to check all production steps as soon as possible, to avoid work on defective pieces, generating inefficiencies, and rework, as stated by Lareau (2002). Was also established a tool to help manage risks in projects, consisting of quality and quantity risk evaluations. This tool calculates, through statistical formulas, the evolution of risks as the project conditions change. Thus, the risks are managed appropriately, and contingency plans are developed for cases where risks can not be transferred, or avoided. In status meetings are presented main achievements and constraints of the project, which require specific actions and decisions. At the middle of 2012, implemented actions began to deliver results, and the index of completed projects within the requirements increased to about 70%.

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Furthermore, with the implementation of the Project Charter scope improvements, the average time for completion of a project fell by more than 30%, and the budget for these projects decreased by 30%. The number of projects with re-planning tasks also fell below 25%, and yet for changes requested by customers after the signing of the Project Charter, and not for inaccuracy in the planning of the project scope. Due to project management procedures standardization, maturity level rose to 3, according to the classification of Neves et al. (2009) because there are unique and repeatable methodology, and establishment of project management best practices (PMBOK, 2013). Generally, in accordance with Lean principles described by Lareau (2002) and Womack and Jones (2003), practices implemented in the process decreased losses. Table I is an attempt to relate the phases of project management PMBOK (2013) with the main sources of loss described on Lean, submitted by Lareau (2002), and it is based on observation of developed projects within Autoparts Inc., from August, 2011 to June, 2012. This analysis requires, however, further investigation, considering each particular process within groups in the development cycle of projects. Table 1: Lean Opportunities on Project Management Cycle

6. FINAL CONSIDERATIONS This paper started with a literature search about Lean concepts and principles, as well as its applicability to business processes in order to reduce losses and therefore, increase effectiveness. In the sequence, were identified concepts and principles to be applied to ICT project management, which were consolidated into PMO (Project Management Office) roles and responsibilities. As stated by Womack and Jones (2003) and Rother and Shook (2003), the main objective of the implementation of lean practices is to eliminate inefficiencies. The contribution of lean principles to guide PMO tasks in order to improve projects success, generates added value in conducting projects, especially in avoiding rework, delays and defects, with impacts on cost, time and scope the project. In this sense, as argued by Prado (2004), project management is one of the viable ways that make projects possible to achieve results, and to deliver value to the enterprise, and to the customer. As presented by the case study of Project Management Office (PMO) implementation in an Autoparts industry, was possible to identify positive results on project management discipline inside the company. With the use of the PMBOK (2013) practices, as well as the application of Lean principles, significant results were obtained in project management, which enabled gains in productivity, assertiveness in delivering results, investments reduction and, therefore, increased competitiveness for Autoparts Inc. Thus, there is positive correlation between the practices and tools of the PMBOK (2009), with the Lean principles. Results, however, point to additional correlations between the practices of the PMBOK (2009) found in processes groups, with Lean techniques. This study, however, does not intend to close the subject, rather it is an empirical analysis, which requires further clarification, since it is a descriptive research within the field of project management, with application to a single case, and under specific conditions.

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AUTHORS Pedro Domingos Antoniolli: Doctor in Production Engineering, Post Graduate in Information Technology and an MBA in Business Management, Master in IT Management and Production Engineering, Bachelor in Business Administration. Acting in business Projects and Process. Teacher of Stricto Sensu, Professional Masters in Management UNIMEP, and MBA Project Management. Certified in Project Management (PMP and Scrum Master), ITIL and COBIT. Carlos Roberto Camello Lima: Lecturer of EESC - USP (2014). PhD in Mechanical Engineering from UNICAMP State University of Campinas (1996). Master in Mechanical Engineering from the same university (1993). Post doctorate in Engineering and Materials Science from SUNY - State University of New York, USA (1998-1999). Post PhD in Materials Science and Metallurgical Engineering at UB - University of Barcelona, Spain (2004-2005). Degree in Mechanical Engineering from UNESP - Universidade Estadual Paulista (1977) and Economics from the UFS Federal University of Sergipe (1984). Professor at UNIMEP - Methodist University of Piracicaba, where he has worked since 1994 as a researcher and mentor teacher. Member of ASM International, TSS - Thermal Spray Society, ABEPRO - Brazilian Association of Production Engineering, ABRAMAN - Brazilian Association of Maintenance. Ana Rita Tiradentes Terra Argoud: Production Engineer (1994) and Master in Production Engineering (2000) by UFSCar, and PhD (2007) in Mechanical Engineering from the EESC-USP, Manufacturing area. She iis permanent professor at the Graduate Program in Business Administration from the Methodist University of Piracicaba - UNIMEP. Areas of research interest: supply chain management, operations management, process integration, quality management, project management, innovation. Joao Batista de Camargo Junior: Doctor in Business Administration and Master in Business Administration from Methodist University of Piracicaba (Universidade Metodista de Piracicaba - UNIMEP). Currently is Assistant Professor of the Professional Master's Program in Business Administration from UNIMEP. Also acts as a business consultant in the areas of business organization, corporate governance, optimization of administrative processes, information technology, logistics processes and Supply Chain Management.

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