Production and Operations Management: Manufacturing and Services

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Intro Project Management
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Project Management

• 1.Project series of related jobs usually
  directed toward some major output and requiring a
  significant period of time to perform
• 2.PM 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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Gantt Chart
Activity 1 Activity 2 Activity 3 Activity
4 Activity 5 Activity 6
Time
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Pure Project Advantages
Pure Project
A pure project is where a self-contained team
works full-time on the project

• 1. The project manager has full authority over
  the project
• 2. Team members report to one boss
• 3. Shortened communication lines
• 4. Team pride, motivation, and commitment are
  high

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Pure Project Disadvantages

• 1. Duplication of resources
• 2. Organizational goals and policies are ignored
• 3. Lack of technology transfer
• 4. Team members have no functional area "home"
  

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Functional Project
Example, Project B is in the functional area of
Research and Development.
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Functional Project Advantages

• 1. A team member can work on several projects
• 2. Technical expertise is maintained within
  the functio-nal area
• 3. The functional area is a home after the
  project is completed
• 4. Critical mass of specialized knowledge

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Functional Project Disadvantages

• 1. Aspects of the project that are not directly
  related to the functional area get short-changed
• 2. Motivation of team often weak
• 3. Responded to slowly

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Matrix Project Organization Structure
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Projects Matrix Advantages

• 1. Enhanced communications between functional
  areas
• 2. Pinpointed responsibility
• 3. Duplication of resources is minimized
• 4. Functional home for team members
• 5. Policies of the parent organization are
  followed

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Projects Matrix Disadvantages

• 1. Too many bosses
• 2. Depends on project managers negotiating
  skills
• 3. Potential for sub-optimization

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Work Breakdown Structure
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Network-Planning Models

• 1. A project is made up of a sequence of
  activities that form a network representing a
  project
• 2. The path taking longest time through this
  network of activities is called the critical
  path
• 3. The critical path provides a wide range of
  scheduling information useful in managing a
  project
• 4. Critical Path Method (CPM) helps to identify
  the critical path(s) in the project networks

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Prerequisites for Critical Path Methodology

• A project must have
• 1. well-defined jobs or tasks whose completion
  marks the end of the project
• 2. independent jobs or tasks
• 3. and tasks that follow a given sequence.

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Types of Critical Path Methods

• 1. CPM with a Single Time Estimate
• a. Used when activity times are known with
  certainty
• b. Used to determine timing estimates for the
  project, each activity in the project, and slack
  time for activities
• 2. CPM with Three Activity Time Estimates
• a. Used when activity times are uncertain
• b. Used to obtain the same information as the
  Single Time Estimate model and probability
  information
• 3. Time-Cost Models
• a. Used when cost trade-off information is a
  major consideration in planning
• b. 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

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CPM with Single Time Estimate
Consider the following consulting project
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
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Early starts and early finish times
ES4 EF6
D(2)
ES0 EF2
ES2 EF3
ES3 EF4
ES9 EF14
ES14 EF15
G(1)
A(2)
B(1)
C(1)
F(5)
ES4 EF9
E(5)
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Determine late starts and late finish times
ES4 EF6
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
C(1)
ES4 EF9
LS14 LF15
LS9 LF14
LS4 LF9
Hint Start with LF15 or the total time of the
project and go backward in the network from G to
A.
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Critical Path Slack
ES4 EF6
D(2)
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
C(1)
ES4 EF9
LS14 LF15
LS9 LF14
E(5)
LS4 LF9
Duration15 weeks
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Example
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Question

• A project starts with a written description of
  the objectives to be achieved, with a brief
  statement of the work to be done and a proposed
  schedule all contained in which of the following?
  
• SOW
• WBS
• Early Start Schedule
• Late Start Schedule
• None of the above

Answer a. SOW (or Statement of Work)
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Question

• Some activities in a project there may be
  some leeway from when an activity can start and
  when it must finish. What is this period of time
  called when using the Critical Path Method?
• Early start time
• Late start time
• Slack time
• All of the above
• None of the above

Answer c. Slack time
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Question

• How much slack time is permitted in the
  critical path activity times?
• Only one unit of time / activity
• No slack time is permitted
• As much as the maximum activity time in the
  network
• As much as is necessary to add up to the total
  time of the project
• None of the above

Answer b. No slack time is permitted (All
critical path activities must have zero slack
time, otherwise they would not be critical to the
project completion time.)
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Question

• When looking at the Time-Cost Trade Offs in the
  Minimum-Cost Scheduling time-cost model, we seek
  to reduce the total time of a project by doing
  what to the least-cost activity choices?
• Crashing them
• Adding slack time
• Subtracting slack time
• Adding project time
• None of the above

Answer a. Crashing them (We crash the
least-cost activity times to seek a reduced total
time for the entire project and we do it
step-wise as inexpensively as possible.)