OPRATIN management assignment ( uploaded all related chapters ) &

Operations Management in the Supply Chain Decisions and Cases Seventh Edition

Chapter 13

Project Planning and Scheduling

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Learning Objectives (1 of 2)

13.1 Explain the nature of tradeoffs among the three objectives of project management

13.2 Describe the four activities included in project management

13.3 Distinguish the advantages and disadvantages of a network over a Gantt chart for project scheduling

13.4 Calculate the ES,EF, LS, LF for an example network

13-3© McGraw-Hill Education.

Learning Objectives (2 of 2)

13.5 Explain the significance of the critical path and slack.

13.6 Calculate the cost of crashing a network by one or two days.

13.7 Contrast and compare the use of constant- time and CPM networks.

13-4© McGraw-Hill Education.

What is a Project?

• “A temporary endeavor undertaken to create a unique product/service/result.” - Project Mgmt Institute (PMI)

• Unique item or event; often a single unit.

• Begins and ends; not ongoing activity.

• Work often done on-site.

• Resources (materials, labor) are brought to the project.

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Examples of Projects

• Building construction

• Bridge construction

• Aircraft carrier

• R&D project

• Audit

• Equipment installation

• New product introduction

• Opening/closing a facility

• Making a movie

• Fund-raising campaign

• Ad campaign

• Software installation

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Objectives and Tradeoffs

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Project Management Activities & Decisions

• Control

– Planning

– Scheduling

– Closing

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Planning Activities & Decisions

• Identify the project customer

• Establish the end product/service

• Set project objectives

• Estimate total resources and time required

• Decide on the form of project organization

• Make key personnel appointments

• Define major tasks required

• Establish a budget

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Scheduling Activities & Decisions

• Develop a detailed work-breakdown structure

• Estimated time required for each task

• Sequence tasks in proper order

• Develop a start/stop time for each task

• Develop detailed budget for each task

• Assign tasks to people, subcontractors, etc.

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Control Activities and Decisions

• Monitor actual time, cost, and performance

• Compare planned to actual figures

• Determine whether corrective action is needed

• Evaluate alternative corrective actions

• Take appropriate corrective actions

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Closing Activities and Decisions

• Finish all work

• Close contracts

• Pay all accounts payable

• Turn the project over to the owners

• Reassign personnel and equipment

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PMI Body of Knowledge

• Integration

• Scope

• Time management

• Costs

• Quality management

• Human resources

• Communications

• Risk

• Procurement

Project Management Institute’s required areas of knowledge for certification as a Project Manager.

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Scheduling Methods

• Gantt Chart

– Bar charts

– Does not show interdependencies of activities

– Visual & easy to understand

• Network Method

– Graphs or networks

– Shows precedence relations

– More complex, difficult to understand, and costly than Gantt charts

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Gantt Chart Project Example (Figure 13.2)

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Constant-Time Networks

• Activity times assumed to be constant

• Activities represented by nodes

• Arrows show precedence relationships

• Notation used to calculate start and finish times:

– ES(a) = early start of activity A (constrained by predecessors)

– EF(a) = early finish of activity A (constrained by early start time)

– LS(a) = late start of activity A (constrained by late finish time)

– LF(a) = late finish of activity A (without delaying successors)

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Example: Write a Business Report (Table 13.4)

Activity Description Immediate

Predecessors Duration in Days

A Decide on topic None 1

B Collect data A 2

C Search the Internet A 3

D Write the report B and C 5

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Network Diagram: Write a Business Plan (Figure 13.3)

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Forward Pass: Write a Business Plan (Figure 13.4)

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Calculating ES, EF, LS, LF, Completion Time

• Forward Pass:

• ES (a) = 0 for the starting activities

• EF (a) = ES(a) + t(a)*

• ES (a) = Max [EF(all predecessors of a)]

• Project completion time = Max [EF(all ending activities)]

• Backward pass:

• LF (a) = Min [LS(all successors of a)]

• LS (a) = LF(a) - t(a)*

• * t(a) denotes the duration of activity a

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Forward and Backward Pass: Write a Business Plan (Figure 13.5)

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Critical Path

• Critical Path = longest path in the network

– All activities for which ES = LS and EF = LF

– Length of critical path is equal to the project completion time

– Any delay on critical path delays the project (unless ‘corrective actions’ are taken)

– Critical path in example (above) is A-C-D

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Slack

• Slack time is the time a path may be delayed without delaying the project.

• Paths not on the critical path have slack.

• Slack = LS - ES = LF - EF

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Precedence and Times for Opening a New Office (Table 13.5)

Activity Description Immediate

Predecessors Activity

Time Computed

Slack

1 Lease the site None 1 0

2 Hire the workers 1 5 0

3 Arrange the furnishings 1 1 1

4 Install the furnishings 3 2 1

5 Arrange for phones 1 1 3

6 Install the phones 4, 5 1 1

7 Move into the office 2, 6, 4 2 0

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Network: Open a New Office (Figure 13.6)

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Critical Path Method

• Critical Path Method (CPM)

• Developed to start-up/shutdown plants

• Activity times can be compressed by spending more $

• Requires single time estimate for each activity

• Looks at time/cost trade-offs

– Normal activity time

– Normal cost

– Crash time

– Crash cost

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Time-Cost Relationship in CPM (Fig. 13.8)

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Use of Project Management Concepts

• Scheduling is only part of a complete approach to project management

• Trade-off between sophistication and cost of methods

• Choice between constant-time, CPM or more advanced techniques

• Choice of project management software packages

– e.g., Microsoft Project

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Summary (1 of 2)

13.1 Explain the nature of tradeoffs among the three objectives of project management

13.2 Describe the four activities included in project management

13.3 Distinguish the advantages and disadvantages of a network over a Gantt chart for project scheduling

13.4 Calculate the ES,EF, LS, LF for an example network

13-29© McGraw-Hill Education.

Summary (2 of 2)

13.5 Explain the significance of the critical path and slack.

13.6 Calculate the cost of crashing a network by one or two days.

13.7 Contrast and compare the use of constant- time and CPM networks.

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

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End of Presentation