OPSM 301 Operations Management
description
Transcript of OPSM 301 Operations Management
OPSM 301 Operations Management
Class 8:
Project Management:
Introduction and CPM
Koç University
Zeynep [email protected]
New module: outline
Chapter 3 from textbook: will skip parts on AOA networks
Two sessions on theory Two sessions applications and Microsoft
Project MS Project available in SOS Z15
computer lab
Why project management?
Competition through new product development
Information-intensive products: costly to produce, cheap to reproduce
Flatter organizations Systems approach Project approach
Project
A single “product” is obtained from the completion of a project
The differentiating characteristic of projects from processes is the intense uncertainty in projects
Two types of project– With absolute deadline: olympic stadium
– With relative deadline : new product development project
Successful project management: To finish on time without going over budget and without sacrificing from the scope of the project
Project Management
Examples– Construction– R & D– Computer system implementation– Product development– Advertising campaign– Business Plan
Project Life Cycle:A Facility Construction Example
Feasibility: project formulation, feasibility studies, strategy design etc. A go/no-go decision is made at the end of this phase
Planning and design: base design, cost and schedule, contract terms, and detailed planning
Production: manufacturing, installation and testing. The facility is substantially completed at the end of this phase
Turnover and start-up: final testing and maintenance. The facility is in full operation at the end of this phase
Some observations
Most projects – Either go over time– or over budget– or the promised content cannot be delivered
Little’s law: more projects in the system (WIP), longer completion times
Modern Project Management
The process of project management has two dimensions: the “science” and the “art” of project management– Technical: defining, planning and controlling– Socio-Cultural:
• stimulating teamwork and personal motivation• identifying and resolving problems• shaping customer expectations• sustaining political support of top management• monitoring subcontractors• negotiating with functional managers
Structuring Projects:Pure Project
The project manager has full authority over the project.
Team members report to one boss.
Shortened communication lines.
Team pride, motivation, and commitment are high.
Duplication of resources.
Organizational goals and policies are ignored.
Lack of technology transfer.
Team members have no functional area "home."
Advantages
Disadvantages
Structuring Projects Functional Project
President
Research andDevelopment
Engineering Manufacturing
ProjectA
ProjectB
ProjectC
ProjectA
ProjectB
ProjectC
ProjectA
ProjectB
ProjectC
Structuring Projects Functional Project
A team member can work on several projects.
Technical expertise is maintained within the functional area.
The functional area is a “home” after the project is completed.
Critical mass of specialized knowledge.
Aspects of the project that are not directly related to the functional area not done well enough.
Motivation of team members is often weak.
Needs of the client are secondary and are responded to slowly.
Advantages
Disadvantages
Structuring Projects Matrix Project: Organization Structure
President
Research andDevelopment
Engineering Manufacturing Marketing
ManagerProject A
ManagerProject BManagerProject C
Structuring Projects Matrix
Enhanced interfunctional communications.
Pinpointed responsibility.
Duplication of resources is minimized.
Functional “home” for team members.
Policies of the parent organization are followed.
Too many bosses.
Depends on project manager’s negotiating skills.
Potential for suboptimization.
Advantages
Disadvantages
Work Breakdown Structure
1. Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Activities (or work packages)
to be completed
The Work Breakdown Structure
1. House
1.2 Heating System
WP-F1WP-F2
WP-P1WP-P2WP-P3
1.2.3 Fuel Tank
1.2.2 Furnace
1.2.1 Piping
1.3 Interior Design
1.1 Building/Structure
1.4 Garden/Parking
1.2.4 Solar Panels
WP-FT1WP-FT2WP-FT3
WP-SP1 WP-SP4 WP-SP2 WP-SP5WP-SP3
Developing Project Network
1
2 4
5
6
7
3
8
9
10
110
Rules:
• Draw networks from left to right
• Each activity has a unique identification number
• An activity’s identification number should be larger than that of the activities’ preceding it
• Loops (cycles) are not allowed
• Conditional statement (e.g., if this happens then …) are not allowed
• If there are multiple start or finish activities, a common start or finish node is used
PERT/CPM Network Diagrams
Advantages– Allows visualization of task relationships– Facilitates calculation of critical path– Clarifies impact of decisions on downstream activities
Disadvantages– Complex, not easy to comprehend at a glance– Charts don’t readily depict durations, dates, and
progress
Gantt Charts
Advantages– Easy to understand– Easy to show progress and status– Easy to maintain– Most popular view to communicate project status to
client and/or senior management Disadvantages
– Can be superficial– Not always easy to visualize precedence relationships
JAN FEB MAR
1 8 15 22 29 5 12 19 26 5 12 19 26
Terminology
The early start (ES) time for an activity is equal to
the maximum early finish (EF) times of all of its
predecessor activities
– ES=max (EF) of predecessors
The early finish (EF) time for an activity is equal to
the early start (ES) time plus the expected activity
duration (ET) for the activity
EF=ES+ET
Terminology
The late finish (LF) time for an activity is equal to the minimum late start (LS) times of all of its successor activities– LF=min(LS) of successors
The late start (LS) time for an activity is equal to the late finish (LF) time minus the expected activity duration (ET) for the activity– LS=LF-ET
Total slack (TS) time of an activity:– TS = LS-ES=LF-EF
Latest Start and Finish Steps
Latest Finish
ES
LS
EF
LF
Earliest Finish
Latest Start
Earliest Start
Activity Nam
eActivity Duration
Finding the Critical Path
A D
C
B
4
3
5
20 4
4
4
7
9
9 11
119
9
9
6
4
40
Activity Slack:S = LS-ES, orS = LF-EF
Start attime t=0
ES
LS
EF
LF
Finding the Critical Path
A D
C
B
4
3
5
20 4
4
4
7
9
9 11
119
9
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4
40
S=0S=0
S=0
S=2
Critical Path: Path with zero activity slacks
Activity Slack:S = LS-ES, orS = LF-EF
Finding the Critical Path
1. Start from the left (start node). For node 0: ES=0,EF=02. For each activitity find Early Start (ES) by checking all immediate
predecessors Early Finish times. ES of activitiy=max(EF) of all predecessors.
EF of activity=ES+Activity time3. For the late start and late finish, start calculations from the end
node.4. For each activity find Late Finish(LF) by checking all immediate
successors of the activity:LF of activity=min(LS) of all successorsLS=LF-Activity time
5. Find Slack times for all activities, S=EF-ES=LF-LS6. All activities with S=0 are on the critical path (there can be more
than one critical paths)