MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)

8/9/2019 MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)

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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,

MBA,MPA,BSCS,ACS

Operations Management

MELJUNELJUN

MELJUN CORTES,BSCS,ACS

Department of ICT

Faculty of Information

Technology


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MBA,MPA,BSCS,ACS

H

APTER

17

ProjectManagement

MELJUNELJUN


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MBA,MPA,BSCS,ACS

Unique, one-time operations designed to accomplishUnique, one-time operations designed to accomplish

a specific set of objectives in a limited time frame.a specific set of objectives in a limited time frame.

Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship

JAN FEB MAR APR MAY JUN

On time!

ProjectsProjects


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MBA,MPA,BSCS,ACS

Project ManagementProject Management

How is it different? Limited time frame

Narrow focus, specific objectives

Less bureaucratic Why is it used?

Special needs

Pressures for new or improves products orservices


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What are the Key Metrics Time Cost

Performance objectives What are the Key Success Factors?

Top-down commitment

Having a capable project manager Having time to plan Careful tracking and control

Good communications


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MBA,MPA,BSCS,ACS


What are the Major Administrative Issues? Executive responsibilities

Project selection

Project manager selection Organizational structure

Organizational alternatives

Manage within functional unit Assign a coordinator

Use a matrix organization with a project leader


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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS


What are the tools? Work breakdown structure

Network diagram

Gantt charts Risk management


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Planning and SchedulingPlanning and Scheduling

MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Locate new

facilities

Interview staff

Hire and train staff

Select and order

furniture

Remodel and installphones

Move in/startup

Gantt Chart


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Deciding which projects to implement Selecting a project manager

Selecting a project team

Planning and designing the project

Managing and controlling project resources

Deciding if and when a project should be

terminated

Key DecisionsKey Decisions


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Project ManagerProject Manager

Responsible for:

Work Quality

Human Resources TimeCommunications Costs

CO S

SCS CS


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Temptation to understate costs Withhold information

Misleading status reports Falsifying records

Comprising workers safety

Approving substandard work

Ethical IssuesEthical Issues

MELJUN CORTES

MBA MPA BSCS ACS


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Project Life CycleProject Life Cycle

Concept

FeasibilityFeasibility

PlanningPlanning

ExecutionExecution

TerminationTermination

Ma

na

g

eme

nt

MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES

MBA MPA BSCS ACS


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Work Breakdown StructureWork Breakdown Structure

Project XProject X

Level 1

Level 2

Level 3

Level 4

Figure 17.2


MBA MPA BSCS ACS


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PERT and CPMPERT and CPM

PERT: Program Evaluation andReview Technique

CPM: Critical Path Method

Graphically displays project activities

Estimates how long the project will take Indicates most critical activities

Show where delays will not affect project


MBA MPA BSCS ACS


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The Network DiagramThe Network Diagram

Network (precedence) diagram Activity-on-arrow (AOA)

Activity-on-node (AON)

Activities

Events


MBA MPA BSCS ACS


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The Network Diagram (contd)The Network Diagram (contd)

Path Sequence of activities that leads from the starting

node to the finishing node

Critical path

The longest path; determines expected project

duration

Critical activities

Activities on the critical path Slack

Allowable slippage for path; the difference the

length of path and the length of critical path


MBA MPA BSCS ACS


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Project Network Activity on ArrowProject Network Activity on Arrow

1

2

3

4

5 6

Locate

facilities

Orderfurniture

Furniture

setup

InterviewHire and

train

Remodel

Move

in

Figure 17.4

AOA


MBA MPA BSCS ACS


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Project Network Activity on NodeProject Network Activity on Node

1

2

3

5

6

Locate

facilities

Order

furniture

Furniture

setup

Interview

Remodel Movein

4

Hire andtrain

7S

Figure 17.4

AON


MBA MPA BSCS ACS


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Network ConventionsNetwork Conventions

a

b

c ab

c

a

b

c

d

a

b

c

Dummy

activity


MBA MPA BSCS ACS


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Time EstimatesTime Estimates

Deterministic Time estimates that are fairly certain

Probabilistic

Estimates of times that allow for variation


MBA MPA BSCS ACS


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Example 1Example 1

1

2

3

4

5 6

8 weeks

6 weeks

3 weeks

4 weeks 9 weeks

11 weeks

1 week

Locate

facil

ities

Orde

r

furnit

ureFurnitu

re

setup

Interview

Hirean

dtra

in

Remodel Move

in

DeterministicDeterministic

time estimatestime estimates

Figure 17.5


MBA MPA BSCS ACS


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Example 1 SolutionExample 1 Solution

P a t h L e n g t h( w e e k s )

S l a c k

1 - 2 - 3 - 4 - 5 - 61 - 2 - 5 - 61 - 3 - 5 - 6

1 82 01 4

206

Critical PathCritical Path


MBA MPA BSCS ACS


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Network activities ES: early start EF: early finish

LS: late start LF: late finish

Used to determine Expected project duration Slack time Critical path

Computing AlgorithmComputing Algorithm


MBA MPA BSCS ACS


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Probabilistic Time EstimatesProbabilistic Time Estimates

Optimistic time Time required under optimal conditions

Pessimistic time

Time required under worst conditions

Most likely time

Most probable length of time that will be

required


MBA MPA BSCS ACS


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Probabilistic EstimatesProbabilistic Estimates

Activity

start

Optimistic

time

Most likely

time (mode)

Pessimistic

time

to tptm te

Figure 17.8


MBA MPA BSCS ACS


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Expected TimeExpected Time

te =to + 4tm +tp

6

te = expected time

to = optimistic time

tm = most likely timetp = pessimistic time

MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES,

MBA,MPA,BSCS,ACS


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VarianceVariance

2 =(tp to)

2

36

2 = varianceto = optimistic time

tp = pessimistic time


MBA,MPA,BSCS,ACS


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Example 5Example 5

1-3-4

a

3-4-5d

3-5-7e

5-7-9f

2-4-6b

4-6-8h

2-3-6g

3-4-6

i

2-3-5c

Optimistictime Most likelytime Pessimistictime


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Path ProbabilitiesPath Probabilities

Z =Specified time Path mean

Path standard deviation

Z indicates how many standard deviationsof the path distribution the specified tine

is beyond the expected path duration.


MBA,MPA,BSCS,ACS


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17

Weeks

Weeks

Weeks

Weeks

10.0

16.0

13.5

1.00

1.00

a-b-c

d-e-f

g-h-i

Example 6Example 6


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MELJUN CORTES,MBA,MPA,BSCS,ACS, , , ,

Time-cost Trade-offs: CrashingTime-cost Trade-offs: Crashing

Crash shortening activity duration Procedure for crashing

Crash the project one period at a time

Only an activity on the critical path

Crash the least expensive activity

Multiple critical paths: find the sum of crashing

the least expensive activity on each critical path


MBA,MPA,BSCS,ACS


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, , , ,, , , ,

Time-Cost Trade-Offs: CrashingTime-Cost Trade-Offs: Crashing

Total

cost

Total

cost

ShortenShorten

ShortenShorten

Cumulative

cost of

crashing

Cumulative

cost ofcrashing

Expected indirect costsExpected indirect costs

Optimum

CRASHCRASH

Figure 17.11


MBA,MPA,BSCS,ACS


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, , , ,, , , ,

6a

4d

5c

10b

9e

2f

Example 7Example 7


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, , , ,, , , ,

Advantages of PERTAdvantages of PERT

Forces managers to organize Provides graphic display of activities

Identifies

Critical activities

Slack activities1

2

3

4

5 6


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, , , ,

Limitations of PERTLimitations of PERT

Important activities may be omitted Precedence relationships may not be correct

Estimates may include

a fudge factor

May focus solely

on critical path 1

2

3

4

5 6

142 weeks


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Computer aided design (CAD) Groupware (Lotus Notes)

Project management software

CA Super Project Harvard Total Manager

MS Project

Sure Track Project Manager Time Line

Technology for Managing ProjectsTechnology for Managing Projects


MBA,MPA,BSCS,ACS


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Imposes a methodology Provides logical planning structure

Enhances team communication

Flag constraint violations

Automatic report formats

Multiple levels of reports Enables what-if scenarios

Generates various chart types

Advantages of PM SoftwareAdvantages of PM Software


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Risk: occurrence of events that haveundesirable consequences

Delays

Increased costs

Inability to meet specifications

Project termination

Project Risk ManagementProject Risk Management


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Identify potential risks Analyze and assess risks

Work to minimize occurrence of risk

Establish contingency plans

Risk ManagementRisk Management


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SummarySummary

Projects are a unique set of activities Projects go through life cycles

PERT and CPM are two common techniques

Network diagrams

Project management software available

MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)

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