operations management
Class 7: Project Management I
Instructor: Mani Lakshmanan
P300 Introduction to Operations Management
Outline
Projects and Project Management
Project definition
Project Planning
Duration estimate: Critical Path Methods (CPM)
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High
Variety
Flexibility
Cost
Low
Project
Job Shop
Batch
Continuous
Flow
Assembly Line
(Repetitive)
Low Volume High
Projects
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One-time or infrequently occurring set of activities that creates outputs within pre specified time and cost schedules.
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Project Management
The combination of planning, directing, and controlling resources in a project to meet technical objectives with budget and schedule constraints
Resources: people, equipment, information, material
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How Projects Succeed
A “successful” project meets the following objectives:
Completed within budget
Completed on time
Project
Deliverables
Scope/Quality
(Better)
Schedule
(Faster)
Budget
(Cheaper)
Deliverables meet the expectations of customers, project team members, and other stakeholders
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Stages in the Life of a Project
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Project Definition
Project objective statement
Scope and major deliverables
Schedule
Resource required
Organize
Organizing the project
Selecting a project manager
Organizing project teams
Establishing a project charter
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We will put a man on the moon and return him safely to earth by the end of the decade, at a cost of less than $10B.
Project Charter
http://office.microsoft.com/en-us/templates/results.aspx?qu=project+charter&ex=1#ai:TC001141418|
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Purpose
Customers, team, key stakeholders
Budget, high-level schedule, major deliverables
Stages in the Life of a Project
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Project Planning: 1. List Detailed Project Activities
Work Breakdown Structure (WBS)
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Project Planning: 2. Budgeting for Time and Cost
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Project Planning: 3. Detailed Scheduling Using the Critical Path Method (CPM)
CPM: display a project in graphic form in a way that identifies the activities that are most important and should receive focused attention
Key assumptions:
Tasks have well-defined start and end
Tasks are independent
Task sequence can be established
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Project Planning: 3. Detailed Scheduling Using CPM
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Task information
| Task | Task Label | Estimated Duration (days) | Immediate Predecessors |
| Start | A | 0 | None |
| Select system modules | B | 3 | A |
| Prepare data | C | 5 | A |
| Populate system data | D | 5 | C, I |
| Test system | E | 6 | D |
| Debug system | F | 4 | E |
| Pilot test | G | 3 | F,J,L |
| Hold “GO LIVE” meeting | H | 1 | G |
| Set system protocols | I | 3 | B |
| Prepare system documentation | J | 14 | B |
| Design training program | K | 2 | B |
| Hold training sessions | L | 1 | K |
Project Planning: 3. Detailed Scheduling Using CPM
Network diagram
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A
0
B
3
I
3
D
5
C
5
E
6
F
4
J
14
K
2
L
1
G
3
H
1
Project Planning: 3. Detailed Scheduling Using the Critical Path Method (CPM)
CPM: display a project in graphic form in a way that identifies the activities that are most important and should receive focused attention
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Activities that affect the duration (total time needed until completion) of a project.
Project Planning: 3. Detailed Scheduling Using CPM
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Task information
| Task | Task Label | Estimated Duration (Minutes) | Immediate Predecessors |
| Grinding Coffee Bean | A | 2 | None |
| Filling the Coffee Machine with ground coffee | B | 1 | A |
| Adding water to the machine | C | 1 | B |
| Brewing Coffee | D | 5 | C |
| Preparing the Cup and adding Creamer and Sugar | E | 3 | C |
| Pour coffee in the cup and mix the contents thoroughly | F | 2 | D, E |
| Drink the coffee | G | 5 | F |
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A, 2
B, 1
C, 1
D, 5
E, 3
F, 2
G, 5
Step 2: Forward Pass (Determine Early Start and Early Finish)
Step 3: Backward Pass (Determine Late Start and Late Finish)
Step 4: Locate Critical Path & Slack Jobs
Step 1: Draw the Network Diagram
Duration =?
Slack =?
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Step 2: Forward Pass (Determine Early Start and Early Finish)
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=7
ES=4
EF=9
?
A, 2
B, 1
C, 1
D, 5
E, 3
F, 2
G, 5
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When I can start depends on when my predecessors can finish
ES=9
EF=11
ES=11
EF=16
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=7
ES=4
EF=9
A, 2
B, 1
C, 1
D, 5
E, 3
F, 2
G, 5
Step 2: Forward Pass (Determine Early Start and Early Finish)
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Step 3: Backward Pass (Determine Late Start and Late Finish)
A, 2
B, 1
C, 1
D, 5
E, 3
F, 2
G, 5
LS=11
LF=16
?
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When I have to start determines latest time my predecessors can finish
A, 2
B, 1
C, 1
D, 5
E, 3
F, 2
G, 5
LS=11
LF=16
LS=9
LF=11
LS=6
LF=9
LS=4
LF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
Step 3: Backward Pass (Determine Late Start and Late Finish)
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Step 4: Locate Critical Path & Slack Jobs
ES=9
EF=11
ES=11
EF=16
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=7
ES=4
EF=9
A, 2
B, 1
C, 1
E, 3
D, 5
F, 2
G, 5
LS=11
LF=16
LS=9
LF=11
LS=6
LF=9
LS=4
LF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
Duration = 16 minutes
Slack=(6-4)=(9-7)= 2 Minutes
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Step 4: Locate Critical Path & Slack Jobs
A, 2
B, 1
C, 1
E, 3
D, 5
F, 2
G, 5
Duration = 16 minutes
Slack=(6-4)=(9-7)= 2 Minutes
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| 4 | 4 |
| 9 | 9 |
| 9 | 9 |
| 11 | 11 |
| 11 | 11 |
| 16 | 16 |
| 4 | 6 |
| 7 | 9 |
| 3 | 3 |
| 4 | 4 |
| 0 | 0 |
| 2 | 2 |
| 2 | 2 |
| 3 | 3 |
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Project Duration Estimation Summary
Step 1: Draw network diagram
Step 2: Forward pass
When I can start depends on when my predecessors can finish.
Step 3: Backward pass
When I have to start determines latest time my predecessors can finish.
Step 4: Locate Critical Path & Slack Jobs
Critical path activities:
Intuitively: Their duration cannot be increased without delaying the completion of the project
Graphically: ES=LS and EF=LF
Slack job:
Not on critical path
Slack time = LS-ES = LF-EF
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