Module 4 Project Management

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Module 4 - Project Management
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Course Framework

• 1. Cost
• - Design Selection
• 2. Quality
• - TQM
• - SQC
• 3. Speed
• - Project Management
• - Supply Chain

• 4. Flexibility
• - Inventory
• - Location
• - Forecasting
• - Aggregate Planning

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Learning Objectives

• Understand project management background
• Understand basic project management analysis
• Understand basic crashing analysis

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1. Project Management

• What is a project?
• Any endeavor with objectives
• With multiple activities
• With defined precedent relationships
• With a specific time period for completion
• Examples?
• A major event like a wedding
• Any construction project
• Designing a political campaign

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Network Planning Techniques

• Program Evaluation Review Technique (PERT)
• Developed to manage the Polaris missile project
• Critical Path Method (CPM)
• Developed to coordinate maintenance projects in
  the chemical industry

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Both PERT and CPM

• Graphically display the precedence relationships
  sequence of activities
• Estimate the projects duration
• Identify critical activities that cannot be
  delayed without delaying the project
• Estimate the amount of slack associated with
  non-critical activities

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Network Diagrams

• Activity-on-Node (AON)
• Uses nodes to represent the activity
• Uses arrows to represent precedence relationships

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Network Diagrams

• Activity-on-Node (AON)
• Uses nodes to represent the activity
• Uses arrows to represent precedence relationships

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Network Diagrams

• Activity-on-Node (AON)
• Uses nodes to represent the activity
• Uses arrows to represent precedence relationships

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Network Diagrams

• Activity-on-Node (AON)
• Uses nodes to represent the activity
• Uses arrows to represent precedence relationships

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2. Project Analysis

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Project Network
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Forward Pass

• Early Start The earliest an activity can start
  being worked on
• Early Finish Early Start Activity Time
• Result is project completion time.

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Project Network
12/20
20/32
32/36
0/12
12/16
24/28
20/24
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Backwards Pass

• Late Finish Latest an activity can be completed
  and still have project completed on time
• Late Start Late Finish Activity Time
• Needed for finding critical path and slack values.

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Project Network
20/32 20/32
12/20 12/20
32/36 32/36
0/12 0/12
12/16 16/20
24/28 28/32
20/24 24/28
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Slack

• Slack Amount of time an activity can be delayed
  without delaying completion time of project.
• Slack Late Finish Early Finish
• Slack of activities on critical path 0

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Project Network
Critical Path A, B, D, G Time 36 weeks
12/20 12/20 0
20/32 20/32 0
32/36 32/36 0
0/12 0/12 0
24/28 28/32 4
12/16 16/20 4
20/24 24/28 4
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3. Project Crashing

• Crashing
• reducing project time by expending additional
  resources
• Crash time
• amount of time an activity is reduced
• Crash cost
• cost of reducing activity time
• Goal
• reduce project duration at minimum cost

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Crashing Example
Critical Path A, B, D, G Time 36 weeks Cost
75,000
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Crashing Example
Critical Path A, B, D, G Time 36 weeks Cost
75,000
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Crashing Procedures

• Basic idea Shortening/crashing times of
  activities on critical path will immediately
  shorten completion time.
• Shorten activity time of low-cost activity on the
  critical path.

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Basic Approach
Critical Path A, B, D, G Time 36 weeks
Reduce Activity A Lowest cost on CP
A. Cost 75,000
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Basic Approach
B. Comp. time 35 weeks Cost 75,400
Reduce Activity A Lowest cost on CP