MGS4700 Operations Management - Georgia State …dscgpz/mgs4700/chap9.pdfProject Management MGS4700...

Project Management

MGS4700 Operations Management

Lecture 7

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Lecture Outline

Project PlanningProject SchedulingProject ControlCPM/PERTProbabilistic Activity TimesProject Crashing and Time-Cost Trade-off

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3

What Is A Project?

A unique, one-time operational activity

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Characteristics of A Project

Non-repetitiveRequires the completion of a large number of interrelated activitiesPrecedence constraints Resources, such as time and/or money, are limited

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Project Team

Project teams are typically cross-functional, consisting of people from various functional areasMatrix organization refers to a team approach to special projects

Acct.Eng. Op.

Mkt.

Mgr.

President

Research andDevelopment Engineering Manufacturing Marketing

ManagerProject A

ManagerProject B

ManagerProject C

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Project Management Process

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Project Management Process (cont.)

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Project Management Process (cont.)

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Project Planning Elements

ObjectiveScopeContract requirementsSchedulesResourcesPersonnelControlRisk and problem analysis

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Project Scope

Scope statementa document that provides an understanding, justification, and expected result of a project

Statement of workwritten description of objectives of a project

Work breakdown structurebreaks down a project into components, subcomponents, activities, and tasks

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Work Breakdown Structure

Project X

Task3Task1 Task2

Level 1

Level 2

Level 3

Level 4

subtasks activities

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Work Breakdown Structure for Computer Order Processing System Project

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Project Scheduling

StepsDefine activitiesSequence activitiesEstimate timeDevelop schedule

TechniquesGantt chartCPMPERTMicrosoft Project

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Gantt Chart

Graph or bar chart with a bar for each project activity that shows passage of timeGood for simple project schedulingDisadvantage:

Precedence relationships of activities are not easily discernibleCan not tell which activities are critical and which are not

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| | | | |Activity

Design house and obtain financing

Lay foundation

Order and receive materials

Build house

Select paint

Select carpet

Finish work

0 2 4 6 8 10Month

Month1 3 5 7 9

Example of Gantt Chart

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Project Control

Time managementCost managementQuality managementPerformance management

Earned Value Analysis: a standard procedure for numerically measuring a project’s progress, forecasting its completion date and cost and measuring schedule and budget variation

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Critical Path Scheduling Method

CPM/PERT

Critical Path Method (CPM)DuPont & Remington-Rand (1956)Deterministic task times (single activity time estimate)

Project Evaluation and Review Technique (PERT)US Navy, Booz, Allen & Hamilton (1958)Probabilistic task times (multiple task time estimates)

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Project Network

Activity-on-node (AON)nodes represent activities, and arrows show precedence relationships

1 32

Arrow

Node

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AON Network for House Building Project

13

22

43

31 5

1

61

71Start

Design house and obtain financing

Order and receive materials Select paint

Select carpet

Lay foundations Build house

Finish work

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Legend Activity numberActivity time

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AON Network

Marketing Survey

A marketing firm is planning a survey project with the following information

ActivityActivity

PredecessorTime Estimate

(days)

abcdef

--aa

b, cc

d, e

335432

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Marketing Survey Example

AON Network

Start a3

Determine survey

objectivesc5

Design Questionnaire

e3

Select Audience

b3

Select and Hire personnel

d4

Train Personnel

f2

Personnel Assignments

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CPM/PERT Terminology

PathA connected sequence of activities leading from the starting event to the ending event

Critical PathThe longest path which determines the project duration (shortest time to complete the project)

Critical ActivitiesAll of the activities that make up the critical path

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Earliest Start (ES)The earliest time that an activity can begin after all preceding activities have been completed

Earliest Finish (EF)EF = ES + activity time

Latest Finish (LF)The latest time that an activity can finish without changing the project completion time

Latest Start (LS)LS = LF - activity time


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Slack: the amount of time that a task can be delayed without delaying the project completion date. Compute an activity’s slack time

slack = LS - ES = LF – EFWhat is the slack time for a critical activity?

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Start

Marketing Survey Example

Identifying Critical Path

Critical pathLongest path through a networkMinimum project completion time

Path 1: a-b-d-fduration = 3 + 3 + 4 + 2 = 12 days

Path 2: a-c-d-fduration = 3 + 5 + 4 + 2 = 14 days

Path 3: a-c-e-fduration = 3 + 5 + 3 + 2 = 13 days

a3

b3

d4

c5

e3

f2

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Typical Questions Addressed by CPM/PERT

When will the project be completed? How likely can the project be completed by due date?Which tasks are most critical to ensure timely completion of the project?Which tasks can be delayed if necessary without delaying the whole project?

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Critical Path Scheduling with Single Time Estimate

Forward Pass: for each activity, compute early times (ES and EF). Backward Pass: compute late times (LF and LS) backward. Slack Times: for each activity, compute slack time = LS - ES or LF - EF.Critical Path: = path with zero-slack-time activities

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Node Configuration

a 0 3

3 0 3

Activity number

Activity time

Earliest start

Latest start

Earliest finish

Latest finish

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Forward Pass

Example

a 0 3

3

b 3 6

3

c 3 8

5

d 8 124

e 8 11

3

f 12 14

2

Start

Determine survey

objectives


Select Audience


Train Personnel


taskES EF

time LS LF

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a 0 3

3 0 3

b 3 6

3 5 8

c 3 8

5 3 8

d 8 124 8 12

e 8 11

3 9 12

f 12 14

2 12 14

Start

Determine survey

objectives


Select Audience


Train Personnel


Backward Pass

Exampletask

ES EF

time LS LF

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a 0 3

3 0 3

b 3 6

3 5 8

c 3 8

5 3 8

d 8 124 8 12

e 8 11

3 9 12

f 12 14

2 12 14

Start

Slack Times

Example

Slack=0

Slack=2

Slack=0

Slack=0

Slack=0

Slack=1

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* Critical Path

014141212*f1111289e0121288*d08833*c26835b03300*a

Slack SEFLFESLSActivity

Identify Critical Path

Example Summary

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In-Class Exercise(Problems 9-4, 9-5, p.394)

ActivityActivity

PredecessorTime Estimate (days)

1234567

----122

3, 45, 6

71065432

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1. Construct project network

In-Class ExerciseActivity

ActivityPredecessor

Time Estimate

(days)

1234567

----122

3, 45, 6

71065432

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2. List all paths, compute their lengths, and identify the critical path

3. For each activity, calculate ES, EF, LS, LF and Slack.

In-Class Exercise(Problems 9-4, 9-5, p394)

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MGS4700 Operations Management - Georgia State …dscgpz/mgs4700/chap9.pdfProject Management MGS4700...

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