Transcript Production and Operations Management: Manufacturing and

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Chapter 3 part 1
Project Management
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Why is Project Management
Important?

Why do I need to know this stuff?
– Relevant across functional areas

How is this going to help me now?
– Valuable to recruiters

How is this going to help me later?
– Vital to success as a manager
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Project Management
Defined


Project is a series of related jobs usually
directed toward some major output and
requiring a significant period of time to
perform
Project Management are the
management activities of planning,
directing, and controlling resources
(people, equipment, material) to meet the
technical, cost, and time constraints of a
project
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Project Management
Defined

All projects require:
– Time
– Money
– Resources
– To achieve the goal, three factors must be satisfied:



Performance: Completion of all stated activities
Scheduling: On-time
Cost: Within budget
Project Management
Activities
Planning
 Objectives
 Resources
 Work breakdown schedule
 Organization
Directing
 Project
activities
 Start & end
times
 Network
Controlling
 Monitor, compare,
revise, action
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Project Structure and Organization
A pure project is where a selfcontained team works full-time on
the project
A functional project is housed
within a functional division
A matrix project spans functional
areas
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Project Management in
Action
Question??
What is the current world record for shortest
amount of time to build a 3 bedroom
house?
A. About 1.5 days
B. About 4 hours
C. About 3 hours
D. About 1 hour
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Project Management in
Action
Answer
C. About 3 hours
Work Breakdown Structure
Defines the hierarchy of project tasks,
subtasks, and work packages
Level Program
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2
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
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Gantt Chart
Vertical Axis:
Always Activities
or Jobs
Horizontal bars used to denote length
of time for each activity or job.
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Time
Horizontal Axis: Always Time
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Network-Planning Models



A project is made up of a sequence of
activities that form a network representing a
project
The path taking longest time through this
network of activities is called the “critical
path”
The critical path provides a wide range of
scheduling information useful in managing a
project
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Prerequisites for Critical
Path Methodology
A project must have:

well-defined jobs or tasks whose
completion marks the end of the project;

independent jobs or tasks;

and tasks that follow a given sequence.
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Types of Critical Path
Methods
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CPM with a Single Time Estimate
– Used when activity times are known with certainty
– Used to determine timing estimates for the project, each
activity in the project, and slack time for activities
CPM with Three Activity Time Estimates (PERT)
– Used when activity times are uncertain
– Used to obtain the same information as the Single Time
Estimate model and probability information
Time-Cost Models
– Used when cost trade-off information is a major
consideration in planning
– Used to determine the least cost in reducing total
project time
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Steps in the CPM with Single
Time Estimate
1. Activity Identification
 2. Activity Sequencing and Network
Construction
 3. Determine the critical path

– From the critical path all of the project
and activity timing information can be
obtained
Critical Path Analysis

Identifies critical path
– Longest path in network
– Shortest time project can be completed
– Any delay on critical path activities delays
project
– Critical path activities have 0 slack
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Provides activity information
– Earliest (ES) & latest (LS) start
– Earliest (EF) & latest (LF) finish
– Slack (S): Allowable delay
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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. Time (Weeks)
A
None
2
B
A
1
C
B
1
D
C
2
E
C
5
F
D, E
5
G
F
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Develop a critical path diagram and determine
the duration of the critical path and slack times
for all activities.
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First draw the network
Act.
Imed. Pred. Time
A
None
2
B
A
1
C
B
1
D
C
2
E
C
5
F
D,E
5
G
F
1
A(2)
B(1)
D(2)
C(1)
F(5)
E(5)
G(1)
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Determine path lengths
Act.
Imed. Pred. Time
A
None
2
B
A
1
C
B
1
D
C
2
E
C
5
F
D,E
5
G
F
1
A(2)
B(1)
ABCDFG
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ABCEFG
15
D(2)
C(1)
Project
Duration
Critical
Path
F(5)
E(5)
G(1)
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Determine ES and EF
Begin at starting event and work forward
 Earliest Start (ES)
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– For starting activities:
 ES
=0
– For all others:
 ES

= Maximum EF of all predecessors
Earliest Finish (EF)
– EF = ES + Activity time
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Determine LS and LF
Begin at ending event and work backward
 Latest Finish (LF)
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– For ending activities
 LF
= Maximum EF
– For non-ending activities
 LF

= Minimum LS (latest start) of all successors
Latest Start (LS)
– LS = LF - Activity time
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Network Diagrams
ES
Earliest
Start
EF
Earliest
Finish
Activity
Name
Latest
Start
LS
Activity
Duration
LF
Latest
Finish
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Determine early starts and early finish
times
ES=4
EF=6
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
A(2)
B(1)
C(1)
Hint: Start with ES=0
and go forward in the
network from A to G.
D(2)
ES=4
EF=9
E(5)
ES=9
EF=14
ES=14
EF=15
F(5)
G(1)
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Determine late
starts and late
finish times
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
ES=4
EF=6
D(2)
LS=7
LF=9
ES=4
EF=9
E(5)
LS=4
LF=9
Hint: Start with LF=15
or the total time of the
project and go
backward in the
network from G to A.
ES=9
ES=14
EF=14 EF=15
F(5)
G(1)
LS=9
LF=14
LS=14
LF=15
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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
Example Network #2
F
A
2
B
3
3
C
2
E
4
D
4
H
2
G
5
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Critical Path

Four paths in the network:
– Path 1: A – C – F – G: 9 weeks
– Path 2: A – C – E – G – H: 15 weeks
– Path 3: A – D – G – H: 13 weeks
– Path 4: B – D – G – H: 14 weeks

Path 2 is critical
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Critical Path

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
Slack = LS – ES or LF - EF
A, C, E, G, and H are on the critical path and so they
have 0 slack
B is on path 4, so its slack is 15–14 = 1
D is on paths 3 and 4, so its slack is 15 – Min (13,14)
=1
F is on path 1, so its slack is 15 – 9 = 6
An activity can be delayed by its slack and not delay
the project completion
Case Competition
Example Activity List
Activity
Description
Immediate
Predecessors
Duration
A
Read Case
-
60
B
Discuss & Identify Strategy
A
70
C
Order Pizza
B
40
D
Prepare Powerpoints
C
60
E
Write report
C
150
F
Practice run
D
60
G
Give Presentation and Turn
in Report
E,F
40
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Case Competition
Network Diagram
Slides
Practice
D
Read
A
60
Discuss
Pizza
B
60
60
C
70
F
40
Write
E
ABCDFG 330
150
ABCEG
Project Duration
360
Critical Path
Present
G
40
Discussion
Case competition example
 What is the duration of the project (4a)?
– 6 hours (60+70+40+150+40)

Fancy Animation (4b)?
– Yes, does not delay project

Additional time for writing report (4c)?
– No, will delay the project

Will shortening practice run reduce the
project duration (4d)?
– No, not on critical path
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