Bài giảng Operations Management for Competitive Advantage - Chapter 3 Project Management

Chapter 3Project ManagementDefinition of Project ManagementWork Breakdown StructureProject Control ChartsStructuring ProjectsCritical Path SchedulingOBJECTIVES Project is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a projectProject Management DefinedGantt ChartActivity 1Activity 2Activity 3Activity 4Activity 5Activity 6TimeVertical Axis: Always Activities or JobsHorizontal Axis: Always TimeHorizontal bars used to denote length of time for each activity or job.Structuring Projects Pure Project: AdvantagesPure ProjectA pure project is where a self-contained team works full-time on the projectThe project manager has full authority over the projectTeam members report to one bossShortened communication linesTeam pride, motivation, and commitment are high Structuring Projects Pure Project: DisadvantagesDuplication of resourcesOrganizational goals and policies are ignoredLack of technology transferTeam members have no functional area "home" Functional ProjectPresidentResearch andDevelopmentEngineeringManufacturingProjectAProjectBProjectCProjectDProjectEProjectFProjectGProjectHProjectIA functional project is housed within a functional divisionExample, Project “B” is in the functional area of Research and Development.Structuring Projects  Functional Project: AdvantagesA team member can work on several projectsTechnical expertise is maintained within the functional areaThe functional area is a “home” after the project is completedCritical mass of specialized knowledge Structuring Projects  Functional Project: DisadvantagesAspects of the project that are not directly related to the functional area get short-changedMotivation of team members is often weakNeeds of the client are secondary and are responded to slowly Matrix Project Organization StructurePresidentResearch andDevelopmentEngineeringManufacturingMarketingManagerProject AManagerProject BManagerProject CStructuring Projects  Matrix: AdvantagesEnhanced communications between functional areasPinpointed responsibilityDuplication of resources is minimizedFunctional “home” for team membersPolicies of the parent organization are followed Structuring Projects  Matrix: DisadvantagesToo many bossesDepends on project manager’s negotiating skillsPotential for sub-optimization Work Breakdown StructureProgramProject 1Project 2Task 1.1Subtask 1.1.1Work Package 1.1.1.1Level1234Task 1.2Subtask 1.1.2Work Package 1.1.1.2A work breakdown structure defines the hierarchy of project tasks, subtasks, and work packagesNetwork-Planning ModelsA project is made up of a sequence of activities that form a network representing a project The path taking longest time through this network of activities is called the “critical path” The critical path provides a wide range of scheduling information useful in managing a projectCritical Path Method (CPM) helps to identify the critical path(s) in the project networksPrerequisites for Critical Path MethodologyA project must have: well-defined jobs or tasks whose completion marks the end of the project; independent jobs or tasks; and tasks that follow a given sequence.Types of Critical Path MethodsCPM with a Single Time EstimateUsed when activity times are known with certaintyUsed to determine timing estimates for the project, each activity in the project, and slack time for activities CPM with Three Activity Time EstimatesUsed when activity times are uncertain Used to obtain the same information as the Single Time Estimate model and probability informationTime-Cost ModelsUsed when cost trade-off information is a major consideration in planningUsed to determine the least cost in reducing total project time Steps in the CPM with Single Time Estimate 1. Activity Identification2. Activity Sequencing and Network Construction3. Determine the critical pathFrom the critical path all of the project and activity timing information can be obtainedCPM with Single Time EstimateConsider the following consulting project:ActivityDesignationImmed. Pred.Time (Weeks)Assess customer's needsANone2Write and submit proposalBA1Obtain approvalCB1Develop service vision and goalsDC2Train employeesEC5Quality improvement pilot groupsFD, E 5Write assessment reportGF1Develop a critical path diagram and determine the duration of the critical path and slack times for all activities. First draw the networkA(2)B(1)C(1)D(2)E(5)F(5)G(1)A None 2B A 1C B 1D C 2E C 5F D,E 5G F 1Act. Imed. Pred. TimeDetermine early starts and early finish timesES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)Hint: Start with ES=0 and go forward in the network from A to G.Determine late starts and late finish timesES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)LS=14LF=15LS=9LF=14LS=4LF=9LS=7LF=9LS=3LF=4LS=2LF=3LS=0LF=2Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A.Critical Path & SlackES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)LS=14LF=15LS=9LF=14LS=4LF=9LS=7LF=9LS=3LF=4LS=2LF=3LS=0LF=2Duration=15 weeksSlack=(7-4)=(9-6)= 3 WksExample 2. CPM with Three Activity Time EstimatesExample 2. Expected Time CalculationsET(A)= 3+4(6)+15 6ET(A)=42/6=7Ex. 2. Expected Time CalculationsET(B)=32/6=5.333ET(B)= 2+4(4)+14 6Ex 2. Expected Time CalculationsET(C)= 6+4(12)+30 6ET(C)=84/6=14Example 2. NetworkA(7)B(5.333)C(14)D(5)E(11)F(7)H(4)G(11)I(18)Duration = 54 DaysExample 2. Probability ExerciseWhat is the probability of finishing this project in less than 53 days?p(t .312) = .378, or 37.8 % (1-NORMSDIST(.312)) Time-Cost ModelsBasic Assumption: Relationship between activity completion time and project costTime Cost Models: Determine the optimum point in time-cost tradeoffsActivity direct costsProject indirect costsActivity completion times CPM Assumptions/Limitations Project activities can be identified as entities (There is a clear beginning and ending point for each activity.) Project activity sequence relationships can be specified and networked Project control should focus on the critical pathThe activity times follow the beta distribution, with the variance of the project assumed to equal the sum of the variances along the critical pathProject control should focus on the critical pathEnd of Chapter 3