Project Management. Maintenance and Reliability

1. Project Management. Maintenance and Reliability 14 Aug 2001

2. Introduction • What – Project Management • Where – Where the success or failure of a project will have major consequences for the company • Why – At some point every company takes on large and complicated projects – opening a new store, building a plant, developing a product

3. Project Management • What is at stake? • Large projects, outside of normal production • Cost overruns • Late completion – penalties • Early completion – bonuses

4.  Project Planning • Project organization • Project manager

5. Project Planning • Planning Task • Work Breakdown Structure • Determines gross requirements for people, supplies and equipment

6. Work Breakdown Structure • Level • 1 Project • 2 Major tasks • 3 Subtasks • 4 Activities

7. Example • Level • 1 Open a new Retail Outlet • 2 Select Location • 2 Refurbish Location • 3 Signage • 4 Install new sign • 3 Displays • 4 Install racks • 4 Install Mannequins

8. Project Scheduling • Sequence project activities • Allotting time

9. Gantt Chart

10. Project Controlling • Monitor resources, costs, quality, and budgets • Use feedback to revise project plan

11. PERT and CPM • Program Evaluation and Review Technique • Critical Path Method • Schedule, monitor and control large projects

12. PERT and CPM Framework • Define project • Develop relationships among activities • Draw network connecting activities • Assign time / cost estimates to each activity • Compute longest time path through network – the critical path • Use network to plan, schedule, monitor, control project

13. Difference Between PERT and CPM • CPM – one estimate of time • PERT three estimates with probabilities

14. Project: Obtain a college degree (B.S.) Receive diploma Register Attend class, study etc. 1 2 4 Years Activity (Arrow) Event (Node) Event (Node) PERT Symbols

15. 2 A 1 3 B A & B can occur concurrently PERT Symbols

16. A must be done before C & D can begin 2 D A C 1 4 3 B PERT Symbols

17. 2 D A C 1 4 3 B E B & C must be done before E can begin PERT Symbols

18. Activity Time Estimates • Optimistic Time (a) • Most Likely Time (m) • Pessimistic Time (b) • Beta distribution • Expected Time t = (a + 4m + b) / 6 • Variance v = [(b – a)/6]2

19. Critical Path Analysis • ES – Earliest Start Time • LS – Latest Start Time • EF – Earliest Finish • LF – Latest Finish • S – Slack Time – LS – ES • Critical Path – Group of activities in the project that have a slack time of zero • T – total project completion time • V – total variance of activities on the critical path

20. Project Crashing • Crashing – shorten activity time by adding resources • Can be expensive – may be less expensive than cost penalties

21. PERT Advantages • Useful at several stages, especially scheduling and control • Not mathematically complex • Graphical display show relationships • Critical path pinpoints activities to closely monitor • Documents who is responsible for each activity • Applicable to a wide range of industries • Monitors schedules and costs

22. PERT Limitations • Project activities clearly defined, independent, stable in their relationships • Precedence relationships must be specified in advance • Time estimates are subjective • Danger of too much emphasis on critical path

23. Maintenance and Reliability

24. Introduction • What – maintain capability of system while controlling costs • Where – Where results of failure can be disruptive, wasteful, and expensive in dollars and lives • Why – breakdown – idle facilities – loss of customers

25. Definitions • Maintenance – all activities involved in keeping a system in working order • Reliability – Probability that a machine function or part will function properly for a specified period of time under stated conditions

26. Improving Individual Components • If one component fails, entire system could fail • Reliability is the probability of not failing • Assuming the reliability of each component does not depend on the reliability of other components, • Rs = R1 x R2 x R3 x … x Rn

27. Product Failure Rate • - FR(%) = Number Failures / Number units tested x 100% • FR(N) = Number of failures / Operating time • MTBF = 1 / FR(N)

28. Providing Redundancy • Back up components with additional components • Rs = R1 + [R2 x (1 – R1)]

29. Maintenance • Preventative Maintenance – Routine inspections, servicing, and keeping facilities in good repair to prevent failure • Breakdown Maintenance – Equipment fails and must be repaired

30. Implementing Preventative Maintenance • Maintenance is costly – so when to maintain? • Infant Mortality – high initial failure rate • Once past the Infant Mortality phase, determine MTBF • Requires maintenance and breakdown record-keeping • Difficult to determine full costs of breakdown

31. Increasing repair capabilities • Must decide where repairs are to be performed • Must decide who will perform repairs • Better to have employees perform as much as possible themselves

32. Total Productive Maintenance – TPM • Applies TQM concepts to maintenance • Employee involvement • Excellent maintenance records • Designing machines to be reliable, easy to operate, easy to maintain • Emphasizing total cost of ownership when purchasing machines • Developing preventative maintenance plans • Training workers to operate and maintain machines