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BA 333 Operations Management

BA 333 Operations Management. Project Management PERT/CPM Spring, 1998. Lecture Outline. Project Management Introduction Definition & Background Components event activity critical path PERT/CPM. Introduction to Project Management. Definition

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BA 333 Operations Management

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  1. BA 333Operations Management Project Management PERT/CPM Spring, 1998

  2. Lecture Outline • Project Management Introduction • Definition & Background • Components • event • activity • critical path • PERT/CPM

  3. Introduction to Project Management • Definition • to plan, implement, and control the management of large, one time projects • Used in Construction, Shipbuilding, Weapons Systems Development, etc. • Applies to uncertain technology projects • Applies to variable cost resource allocation • History of PERT/CPM - Navy/Booze Allen Hamilton Consultants

  4. Introduction to Project Scheduling

  5. Components of Project Control Systems • Predecessor was Gantt Charts • Horizontal Bar Charts - Time Lines • Tasks • Milestones • Flow Charts - Relationships Among All Tasks • Activities (tasks that take time and resources) • sequential vs. concurrent • Events (an accomplishment occurring at a specific point in time)

  6. Project Characteristics • Single unit • Many related activities • Difficult production planning & inventory control • General purpose equipment • High labor skills

  7. Examples of Projects

  8. Examples of Projects • Building construction  © 1995 Corel Corp.

  9. Examples of Projects • Building construction • New product introduction New! Improved! 19 · Nude Sandalfoot Medium to Tall (B) No nonsense Sheer to waist pantyhose © 1995 Corel Corp.

  10. Examples of Projects • Building construction • New product introduction • Training seminar © 1995 Corel Corp.

  11. Examples of Projects • Building construction • New product introduction • Training seminar • Research project © 1995 Corel Corp.

  12. Project Management Activities

  13. Project Management Activities

  14. Project Management Activities • Planning • Objectives • Resources • Work break-down sched. • Organization

  15. Project Management Activities • Planning • Objectives • Resources • Work break-down sched. • Organization • Scheduling • Project activities • Start & end times • Network

  16. Project Management Activities • Planning • Objectives • Resources • Work break-down sched. • Organization • Scheduling • Project activities • Start & end times • Network • Controlling • Monitor, compare, revise, action

  17. Project Planning

  18. Project Planning • Establishing objectives • Defining project • Creating work breakdown structure • Determining resources • Forming organization © 1995 Corel Corp.

  19. Project Organization • Often temporary structure • Uses specialists from entire company • Headed by project manager • Coordinates activities • Monitors schedule & costs • Permanent structure called ‘matrix organization’ Eng. Eng. Mkt. Acct. Mgr. © 1995 Corel Corp.

  20. Project Scheduling

  21. Project Scheduling • Sequencing activities • Identifying precedence relationships • Determining activity times & costs • Estimating material & worker requirements • Determining critical activities PERT J Test J M A Build M F Month Design J Activity © 1995 Corel Corp.

  22. Project Scheduling Techniques • Gantt chart • Critical Path Method (CPM) • Program Evaluation & Review Technique (PERT) © 1984-1994 T/Maker Co.

  23. Gantt Chart

  24. Gantt Chart

  25. PERT & CPM • Network techniques • Developed in 1950’s • CPM by DuPont for chemical plants • PERT by U.S. Navy for Polaris missile • Consider precedence relationships & interdependencies • Each uses a different estimate of activity times

  26. Questions Answered by PERT & CPM • Completion date? • On schedule? Within budget? • Probability of completing by ...? • Critical activities? • Enough resources available? • How can the project be finished early at the least cost?

  27. PERT & CPM Steps • Identify activities • Determine sequence • Create network • Determine activity times • Find critical path • Earliest & latest start times • Earliest & latest finish times • Slack

  28. Constructing Networks

  29. Graphical Representation of Events and Activities • Flow Charting - Uses Nodes and Arrows • Arrows • An arrow leads from tail to head directionally • Nodes • A node is represented by a circle Arrow Node

  30. 1 2 3 Activity On Node • Task is Represented by Node as the Completion of an Activity • Arrows Represent the Sequential Linkages Between Activities • For Example, Node 1 is Begin, Node 2 is Complete Task 1, Node 3 is Complete Task 2

  31. 1 2 Activity On Arrow • Task is Represented by an Arrow Bounded on Either End by a Node (Event) • Each Event is Identified by a Number • The Activity is Designated by the Leading Event Number and the Following Event Number - i.e. Activity 1 - 2

  32. 1 2 3 2 1 4 3 Designating Task Relationships • Sequential vs. Concurrent Activities Sequential Task Relationship Concurrent Task Relationships

  33. Designating “DUMMY” Activities • Represented by Dashed Arrows • Show Sequential Relationships Among Tasks, but Take No time or Resources 2 1 4 Dummy Activity 2-3 indicates that both Activities 1-2 and 2-3 must be Completed before beginning Activity 3-4 3

  34. Network Terms

  35. Network Terms Project: Obtain a college degree (B.S.)

  36. Network Terms Project: Obtain a college degree (B.S.) Register 1

  37. Network Terms Project: Obtain a college degree (B.S.) Register 1 Event (Node)

  38. Network Terms Project: Obtain a college degree (B.S.) Register Attend class, study etc. 1 4 Years Event (Node)

  39. Network Terms Project: Obtain a college degree (B.S.) Register Attend class, study etc. 1 4 Years Activity (Arrow) Event (Node)

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

  41. Activity Relationships

  42. Activity Relationships 1

  43. Activity Relationships 2 A 1 3 B A & B can occur concurrently

  44. Activity Relationships A must be done before C & D can begin 2 D A C 1 4 3 B

  45. Activity Relationships 2 D A C 1 4 3 B E B & C must be done before E can begin

  46. Dummy Activities • Activities are defined often by beginning & ending events • Example: Activity 2-3 • Every activity must have unique pair of beginning & ending events • Computer programs get confused • Dummy activities maintain precedence • Consume no time or resources

  47. Dummy Activities Example

  48. Dummy Activities Example 2-3 Incorrect 1-2 3-4 1 2 3 4 2-3

  49. Dummy Activities Example 2-3 Incorrect 1-2 3-4 1 2 3 4 2-3 Different activities; same designation

  50. Dummy Activities Example 2-3 Incorrect 1-2 3-4 1 2 3 4 2-3 Correct 1-2 2-4 4-5 4 1 2 5 3 2-3 3-4: Dummy activity

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