Transcript Production and Operations Management: Manufacturing and

PROJECT MANAGEMENT
Outline
What is project mean?
Examples of projects…
Project Planning and Control
Project Life Cycle
Gantt Chart
PERT/CPM
What is Project?
What is the different between normal
business activities and Project?
Project
Unique, one time operations design to
accomplish a specific set of objectives in a
limited time frame.
Examples of project…
1.
2.
3.
4.
5.
6.
7.
Building a house
Building a factory
Add assembly line in the factory
Merging to companies
Managing political campaign
Designing a new product
Soft ware development
Project Management
 Project
–
Lengthy network of activities needed to complete a
major output.
 Project
–
Management
Planning, execution, and controlling resources to
needed to complete the project.
Project Life Cycle
 Definition


Why we need to start new project
Feasibility Analysis (Cost, Benefit , risk of under taking a project)
 Planning

Details of the work, estimates time, Human resource and cost
 Execution

During which a project itself is done
 Termination

During which closer is achieved
Project Planning, Controlling and Scheduling
Project Planning:
» 1. Setting goals.
» 2. Defining the project.
» 3. Tying needs into timed project activities.
» 4. Organizing the team.
Before Project
Project Planning, Controlling and Scheduling
 Project
Scheduling:
» 1. Tying resources to specific activities.
» 2. Relating activities to each other.
» 3. Updating and revising on regular basis.
Project Planning, Controlling and Scheduling
 Project
Controlling:
» 1. Monitoring resources, costs, quality and budgets.
» 2. Revising and changing plans.
» 3. Shifting resources to meet demands.
During Project
Work Breakdown Structure
Level
1
2
Program
Project 1
Project 2
Task 1.1
Task 1.2
3
Subtask 1.1.1
4
Work Package 1.1.1.1
Subtask 1.1.2
Work Package 1.1.1.2
Project Control: Gantt Chart
 The
Gantt chart is a popular tool for planning and
scheduling simple project.
 It
enables a manager to initially schedule project
activities and then to monitor progress over time
by comparing planned progress to actual progress
Project Control: Gantt Chart
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
a
b
a
c
b
d
c
d
d
Time
PERT and CPM
 PERT
(program evaluation and review
technique)
»
»
U.S. Navy Special Projects Office (1958)
Polaris missile project
 CPM
»
»
(critical path method)
J. E. Kelly of Remington-Rand and M. R. Walker of Du
Pont (1957)
Scheduling maintenance shutdowns of chemical processing
plants
Questions answered by PERT/CPM
1. When will the entire project be completed?
2. What are the critical activities or tasks in the
3.
4.
project, that is, the ones that will delay the entire
project if they are late?
Which are the non-critical activities, that is, the
ones that can run late without delaying the
entire project’s completion?
What is the probability that the project will be
completed by a specific date?
Questions answered by PERT/CPM
5. At any particular date, is the project on schedule, behind
schedule, or ahead of schedule?
6. On any given date, is the money spent equal to, less than,
or greater than the budgeted amount?
7. Are there enough resources available to finish the
project on time?
8. If the project is to be finished in a shorter amount of
time, what is the best way to accomplish this at the least
cost?
To Find Critical Path ???
To find the critical path, need to determine the
following quantities for each activity in the network:
1. Earliest start time (ES): the earliest time an activity
can begin without violation of immediate predecessor
requirements.
2. Earliest finish time (EF): the earliest time at which
an activity can end.
3. Latest start time (LS): the latest time an activity can
begin without delaying the entire project.
4. Latest finish time (LF): the latest time an activity can
end without delaying the entire project.
CPM with Single Time Estimate
Consider the following consulting project:
Activity
Assess customer's needs
Write and submit proposal
Obtain approval
Develop service vision and goals
Train employees
Quality improvement pilot groups
Write assessment report
Designation Immed. Pred.
A
None
B
A
C
B
D
C
E
C
F
D, E
G
F
Time (Weeks)
2
1
1
2
5
5
1
Develop a critical path diagram and determine the
duration of the critical path and slack times for all
activities
When I can start depends on when
predecessors finish.
D, 2
A, 2
B, 1
C, 1
F, 5
E, 5
G, 1
Don’t delay the project
ES=4
EF=6
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
A, 2
B, 1
C, 1
LS=0
LF=2
LS=2
LF=3
LS=3
LF=4
D, 2
LS=7
LF=9
ES=4
EF=9
E, 5
LS=4
LF=9
ES=9
EF=14
ES=14
EF=15
F, 5
G, 1
LS=9
LF=14
LS=14
LF=15
Critical Path & Slack
ES=4
EF=6
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
A, 2
B, 1
C, 1
LS=0
LF=2
LS=2
LF=3
LS=3
LF=4
D, 2
LS=7
LF=9
ES=4
EF=9
E, 5
LS=4
LF=9
Slack=(7-4)=(9-6)= 3 Wks
ES=9
EF=14
ES=14
EF=15
F, 5
G, 1
LS=9
LF=14
LS=14
LF=15
Duration = 15 weeks
CPM with Three Activity Time Estimates
Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A
None
3
6
15
B
None
2
4
14
C
A
6
12
30
D
A
2
5
8
E
C
5
11
17
F
D
3
6
15
G
B
3
9
27
H
E,F
1
4
7
I
G,H
4
19
28
Expected Times
Task
A
B
C
D
E
F
G
H
I
Immediate Expected
Predecesors
Time
None
7
None
5.333
A
14
A
5
C
11
D
7
B
11
E,F
4
G,H
18
Opt. Time + 4(Most Likely Time) + Pess. Time
Expected Time =
6
PERT/ CPM
 CPM
uses two sets of time and cost estimates for
activities:
» A normal time and cost and
» A crash time and cost
 The normal cost is an estimate of cost to complete
an activity in normal time.
 The crash time is the shortest possible activity
time.
 Crash cost is the cost of completing the activity on
a crash or deadline basis.
Project Crashing with PERT/CPM: Four Steps
1. Find the normal critical path and identify
the critical activities.
2. Compute the crash cost per week (or other
time period) for all activities in the network.
This process uses the following formula:
crash cost/time period =
crash cost – normal cost
normal time – crash time
Project Crashing with PERT/CPM: Four Steps
3. Select the activity on the critical path with the smallest crash
cost per week.
Crash this activity to the maximum extent possible or to the
point at which your desired deadline has been reached
4. Check to be sure that the critical path you were crashing is still
critical.
– Often, a reduction in activity time along the critical path
causes a non-critical path or paths to become critical.
»
»
If the critical path is still the longest path through the network, return
to step 3.
If not, find the new critical path and return to step 2.
Subproject
 For extremely large projects, an activity may be
made of several smaller sub-activities.
 Each activity might be viewed as a smaller project
or a subproject of the original project.
 The person in charge of the activity might wish to
create a PERT/CPM chart for managing this
subproject.
 Many software packages have the ability to
include several levels of subprojects