OPSM 301 Operations Management Class 26: Project Management: Introduction and CPM Koç University Zeynep Aksin zaksin@ku.edu.tr.
Post on 17-Dec-2015
225 Views
Preview:
Transcript
OPSM 301 Operations Management
Class 26:
Project Management:
Introduction and CPM
Koç University
Zeynep Aksinzaksin@ku.edu.tr
Announcements
Last Module: Project Management From readings in course pack Next class on Monday December 26 will
be in SOS 180
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
Projects are Balancing Acts
Precedence Structure
Statistical Variation
HumanBehavior
Quality andScope
Timing andSchedule
BudgetedCosts
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
10
Planning Objectives Resources Work break-
down schedule Organization
Scheduling Project
activities Start & end
times Network
Controlling Monitor, compare,
revise, action
Project Management Activities
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
14
Gantt chart Critical Path Method (CPM) Program Evaluation &
Review Technique (PERT)
Project Scheduling and Controlling
15
Network techniques Developed in 1950’s
– CPM by DuPont for chemical plants (1957)– PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
Consider precedence relationships and interdependencies
Each uses a different estimate of activity times
PERT and CPM
16
Is the project on schedule, ahead of schedule, or behind schedule?
Is the project over or under cost budget?
Are there enough resources available to finish the project on time?
If the project must be finished in less than the scheduled amount of time, what is the way to accomplish this at least cost?
Questions Which May Be Addressed by PERT & CPM
17
The Six Steps Common to PERT & CPM
1. Define the project and prepare the work breakdown structure,
2. Develop relationships among the activities. (Decide which activities must precede and which must follow others.)
3. Draw the network connecting all of the activities
4. Assign time and/or cost estimates to each activity
5. Compute the longest time path through the network. This is called the critical path
6. Use the network to help plan, schedule, monitor, and control the project
20
Provides activity information– Earliest (ES) & latest (LS) start– Earliest (EF) & latest (LF) finish– Slack (S): Allowable delay
Identifies critical path– Longest path in network– Shortest time project can be completed– Any delay on critical path activities delays
project– Critical path activities have 0 slack
Critical Path Analysis
21
Begin at starting event and work forward ES = 0 for starting activities
– ES is earliest start
EF = ES + Activity time– EF is earliest finish
ES = Maximum EF of all predecessors for non-starting activities
Earliest Start and Finish Steps
22
Begin at ending event and work backward
LF = Maximum EF for ending activities– LF is latest finish; EF is earliest finish
LS = LF - Activity time– LS is latest start
LF = Minimum LS of all successors for non-ending activities
Latest Start and Finish Steps
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
9
6
4
40
S=0S=0
S=0
S=2
Critical Path: Path with zero activity slacks
Activity Slack:S = LS-ES, orS = LF-EF
26
Yozgat Paper Manufacturing Activities
Activity Description Immediate Predecessors
Time
(weeks)
A Build internal components - 2
B Modify roof and floor - 3
C Construct collection stack A 2
D Pour concrete 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
29
AON Network for Yozgat Paper Manufacturing
Slack=0
Start
A
B
C
D
F
F
G
HH
1313
2
1515
HG
88
5
1313
HF
410
3
713
HC
22
2
44
HE
44
4
88
HD
34
4
78
HB
01
3
34
HA
00
2
22
H00
0
00
Slack=0 Slack=0
Slack=0
Slack=0
Slack=6
Slack=1Slack=1
Start
30
Gantt ChartEarliest Start and Finish
Yozgat Paper ManufacturingYozgat Paper Manufacturing
A Build internal components
B Modify roof and floor
C Construct collection stack
D Pour concrete and install frame
E Build high-temperature burner
F Install pollution control system
G Install air pollution device
H Inspect and test
1 2 3 4 5 6 7 8 9 10 1112 13 1415 16
top related