Operation Management - Project Management

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Project Management

Lecture Note FiveFahmy Radhi


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Project Management


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Project Planning

Project Planning a statement of work thatwritten description of the goal setting,defining the project, and team

organization. Elements of Project Planning: Defines project objectives

Identify activities

Establish precedence relationships

Make time estimates

Determine project completion time

Compare project schedule objectives

Determine resources requirements to meet

objectives


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Project Organization

Project Organization anorganization formed to ensure thatproject receive the proper

management Project Manager project heading

that coordinates activities withother departments and reports

directly to top management withreasonability: To finish all activities in proper

sequence and on time

The project comes in within budget

The project meets its quality goals


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Project Organization

Chart


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Project Scheduling

Project Scheduling involves

sequencing and allocating time to all

project activities At this stage, managers decide how

long each activity will take and

compute how many people and

material will be needed at eachstage of production

Gantt Chart is one popular project

scheduling approach


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Gantt Charts

Gantt Charts planning charts used

to schedule resources and allocate

time


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Project Controlling

Project Controlling involves

close monitoring of resources,

cost, quality and budgets Control also means using a

feedback loop to revise the

project plan and having theability to shift resources to

where they are needed


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PERT AND CPM PERT (Program Evaluation and

Review Technique) a PM technique

that employs three time estimatesfor each activity

CPM (Critical Path Method) a PM

technique that uses only one time

factor per activity

There is a minor differences

between PERT and CPM so both of

them have been effectively mergedinto a sin le techni ue referred as


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The Framework ofPERT/CPM1. Define the project and prepare the work

breakdown structure

2. Develop the relationship among activities

and decide which activities mustpreceded and which must follow others

3. Draw the network connecting all of theactivities

4. Assign time and/or cost estimates to eachactivity

5. Compute the longest time path throughthe network. This is called the criticalpath

6. Use the network to help plan, schedule,


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Network Diagrams and

Approaches

Network Diagram - Diagram ofproject activities that shows

the sequential relationships bythe use arrows and nodes

Activity-on-Node a networkdiagram in which nodesdesignate activities

Activity-on-Arrow a networkdiagram in which arrows

designate activities


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General Hospital

Acvt Description Preds

A Build internal components -

B Modify roof and floor -

C Construct collection stack AD Pour concentrate and install

frame

A,B

E Build high-temperature burner C

F Install Pollution control system C

G Install air pollution device D,E

H Inspect and test F,G


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Activity-on-Node for GeneralHospital


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Activity-on-Arrow Earliest Start (ES) - the

earliest time activitycan start, assuming allpreceding activity startas early as possible

Earliest Finish (EF) -the earliest time theactivity can finish.EF = ES + t

Last Start (LS) - thelatest time the activitycan start and not delaythe project. LS = LF - t

Last Finish (LF) - thelast time the activity


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General Hospital

Acvt Description Preds Time

A Build internal components - 2

B Modify roof and floor - 3

C Construct collection stack A 2D Pour concentrate and install frame A,B 4

E Build high-temperature burner C 4

F Install Pollution control system C 3

G Install air pollution device D,E 5

H Inspect and test F,G 2

Total Time (weeks) 25


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Activity-on-Arrow for GeneralHospital


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Calculating Slack Time

and Identifying Critical

PathAct ES EF LS LF LS-ES CPA 0 2 0 2 0 CP

B 0 3 1 4 1 NCP

C 2 4 2 4 0 CPD 3 7 4 8 1 NCP

E 4 8 4 8 0 CP

F 4 7 10 13 6 NCP

G 8 13 8 13 0 CP

H 13 15 13 15 0 CP

Slack = LS ES or Slack = LF-EF


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Probabilistic TimeEstimates Optimistic time (a) - the length of

time required under optimumcondition

Pessimistic time (b) - the length oftime that will be required under theworst condition

Most likely time (m) - the mostprobable of time that will required

Expected time (te) - time estimatesthat are fairly certain.

te = (a + 4m + b)/6


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Crashing Crashing - Shortening activity

duration on critical path to

speed up the project Cost-Time Trade-Off of Crashing

decreasing the indirect cost:

facilities and equipment cost,supervision and personnel cost

increasing direct expenses


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Procedure for crashing

Obtain estimates of normal time (Nt) andcrash time (Ct), as well as normal cost (Nc)and crash cost (Cc)

compute incremental cost (Ic)IC = (Cc-Nc)/(Nt-Ct)

Cc = Crash Cost

Nc = Normal Cost

Nt = Normal Time

Ct = Crash Time

determine the lengths of critical path

determine total cost

modified crash program


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Critical Path and Slack

Time

for General Hospital

Operation Management - Project Management

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