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OPIM 3801: Principles of Project Management

OPIM 3801: Principles of Project Management. Review for the first midterm Problem section outline. Learning Curves. I will give you the formula: T n = T 1 n log (learning rate, 2) You should be able to:

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OPIM 3801: Principles of Project Management

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  1. OPIM 3801:Principles of Project Management Review for the first midterm Problem section outline

  2. Learning Curves • I will give you the formula: Tn = T1nlog(learning rate, 2) • You should be able to: • Use the formula in Excel to compute the labor time for each unit if given the learning rate • Use Goal Seek (under Data -> What-If) to find the learning rate if total labor hours for a batch is given • Add up cost for labor, revenue for units, find breakeven point

  3. Critical Path and PERT • Find the critical path, ES, EF, LS, LF • Interpret an AOA or an AON network picture to get predecessors • Use the PERT template to: • Find a probability given a completion date • Find a completion date given a probability • Know Z = (X – mu) / sigma • And X = Z*sigma + mu • Or skip the Z using norm.dist& norm.inv

  4. Crashing • Starting with normal & crash, times and costs • Compute limit column • Compute Crash Cost/week (or day etc.) • Set up column for reductions and resulting times after reductions • Set up path times as totals of resulting times • Total crashing costs are the sum-product of crash/time with the reduction amounts

  5. Crashing (cont.) • With zero reductions longest path is the normal project duration. • Paste in the limit amounts (paste values) for reductions; longest path is now the shortest possible project duration • Set up solver to find cheapest way to get to a particular target. • Use binary variable when partial crashing is not allowed.

  6. Leveling • New tasks -> Auto-Scheduled • Format -> critical tasks and project summary task • List resources on resource sheet • Assign resources using checkbox, or right click the “assign resources” • Try “Level only in available slack” first for best possible solution, then without splits or changing individual assignments, then with

  7. Leveling (cont.) • Insert columns “total slack” or “free slack” to see those if needed • Insert column “leveling delay” to see delays due to leveling (in elapsed days = real days) • Use max % in the resource sheet to have generic workers (2000% = 20 workers, for example)

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