Production and Operations Management: Manufacturing and
Download
Report
Transcript Production and Operations Management: Manufacturing and
1
Chapter 3 part 1
Project Management
2
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
3
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
4
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
5
6
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
7
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
8
Project Management in
Action
Answer
C. About 3 hours
Work Breakdown Structure
Defines the hierarchy of project tasks,
subtasks, and work packages
Level Program
1
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
9
10
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
11
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
12
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.
13
Types of Critical Path
Methods
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
14
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
Provides activity information
– Earliest (ES) & latest (LS) start
– Earliest (EF) & latest (LF) finish
– Slack (S): Allowable delay
15
16
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
1
Develop a critical path diagram and determine
the duration of the critical path and slack times
for all activities.
17
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)
18
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
12
ABCEFG
15
D(2)
C(1)
Project
Duration
Critical
Path
F(5)
E(5)
G(1)
19
Determine ES and EF
Begin at starting event and work forward
Earliest Start (ES)
– For starting activities:
ES
=0
– For all others:
ES
= Maximum EF of all predecessors
Earliest Finish (EF)
– EF = ES + Activity time
20
Determine LS and LF
Begin at ending event and work backward
Latest Finish (LF)
– 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
21
Network Diagrams
ES
Earliest
Start
EF
Earliest
Finish
Activity
Name
Latest
Start
LS
Activity
Duration
LF
Latest
Finish
22
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)
23
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
24
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
25
26
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
27
Critical Path
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
28
29
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
30