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Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston 2010 16.1 Chapter 16 Project planning.

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Presentation on theme: "Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston 2010 16.1 Chapter 16 Project planning."— Presentation transcript:

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2 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Chapter 16 Project planning and control Photodisc. Keith Brofsky

3 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Design Planning and control Operations strategy Improvement Project planning and control The operation supplies… the delivery of the project on-time, on-specification and to budget. The market requires… specified time, quality and cost of a project

4 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Key operations questions In Chapter 16 – Project planning and control – Slack et al. identify the following key questions: What is a project? What makes project management successful? How are projects planned and controlled? What is project planning and why is it important? How can the techniques of network planning help project management?

5 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston IndividualGroupOrganizationMulti- organization Nation Multi-nation Complexity LowHigh Uncertainty Low High Novel writing Wedding Product development Oil, gas exploration Basic research Company audit Advertising campaign Antarctic expedition Oil Tanker Chemical plant Airport Car plants Airbus Channel tunnel Euro project Motorway Thames barrier Military campaign Complexity and uncertainty as project dimensions

6 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Understanding the project environment Stage 1 Project definition Stage 2 Project planning Stage 3 Technical execution Stage 4 Project control Stage 5 Stages in project management Changes Corrective action

7 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston The project Geo-social environment Geography National culture Geo-social environment Geography National culture Econo-political environment Economy Government Econo-political environment Economy Government Business environment Customers Competitors Suppliers/sub- contractors Business environment Customers Competitors Suppliers/sub- contractors Internal environment Company strategy Resources Other projects Internal environment Company strategy Resources Other projects The project environment consists of all the factors that can affect the project. The project environment

8 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston The stakeholder power – interest grid Stakeholder power Stakeholder interest Keep satisfied Manage closely Monitor Keep informed LowHigh Low High

9 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston How projects can be defined Project objectives Phase 1Phase 3Phase 4 Project strategy Milestones Project scope The project Phase 2

10 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Department 1 Department 2 Department 3 Matrix management structures often result in staff reporting to more than one project manager as well as their own department. Project A Project B Matrix management in projects Full-time equivalent resource Reporting relationship

11 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston How projects are planned Identify activities Estimate time and resources Identify relationships and dependencies Identify schedule constraints Fix the schedule.

12 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Quality TimeCost New aircraft project Music festival Fixed grant research project The three project objectives of quality, cost and time

13 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Identify the activities in the project Adjust as necessary Stages in the project planning process Estimate the times and resources for activities Identify the relationships and dependencies between the activities Identify time and resource schedule constraints Fix the schedule for time and resources

14 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Produce boiled egg Obtain egg cup Produce toast Obtain butter Obtain plates and cutlery Obtain tray Obtain egg Obtain water Obtain bread Work breakdown structure Arrange tray Produce buttered toast Produce boiled egg in egg cup Produce glass of orange drink Serve breakfast in bed Obtain juice Obtain glass

15 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Form and train user group Install systems Specify sales training Design initial screen interface Test interface in pilot area Modify interface Training Installation Testing Work breakdown structure for a project to design an information interface for a new sales knowledge management system in an insurance company. Work breakdown structure (Continued) Design information interface for new sales knowledge management system

16 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston ‘Making breakfast’ – do activities at earliest time Orange Tray Water Boil waterBoil egg Bed room Staff required BreadToast Butter Time (mins) Activities requiring operator time

17 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Water Bed room Staff required Orange Tray Boil water BreadToastBoil egg Butter Time (mins) Activities requiring operator time ‘Making breakfast’ – minimising staff requirements

18 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Water Bed room Staff required Orange Tray Boil water BreadToast Boil egg Butter Time (mins) Activities requiring operator time ‘Making breakfast’ – minimising staff requirements (Continued)

19 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston a) Form and train user group b) Install systems c) Specify sales training d) Design initial screen interface e) Test interface in pilot area f) Modify interface Activity Time (days) A Gantt chart for the project to design an information interface for a new sales knowledge management system in an insurance company. Gantt charts

20 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Prepare bedroom Paint bedroom Prepare kitchen Paint kitchen Remove furnitureReplace furniture Activities and network for a simple project. Network planning a Remove furnitureNone1 b Prepare bedrooma2 c Paint bedroomb3 d Prepare kitchena1 e Paint kitchend2 f Replace furniturec, e1 Activity Immediate predecessors Activity duration (in days)

21 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Network analysis for a simple decorating project a b d c e f a 1 1 Activity reference Activity duration Event number An event

22 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston a 1 b 2 d 1 c 3 e 2 f With earliest and latest event times Network analysis for a simple decorating project (Continued)

23 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston x y x y Activity on arrow – Using ‘dummy’ activities to clarify relationships. Network planning

24 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Activity on arrow – Using ‘dummy’ activities to describe a relationship that could not be expressed any other way. Network planning (Continued)

25 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Remove furniture Prepare kitchen Paint kitchen Prepare bedroom Paint bedroom Replace furniture Activity on node (AON) network for simple decorating project. Network planning (Continued)

26 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston A B D C F E J K I M L G H The network diagram for a motorway project. Network planning (Continued)

27 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Typical subjective probability distribution for an activity time estimate. Activity duration3 Optimistic time 5 Most likely time 6 Expected time 13 Pessimistic time Probability Probabilistic network planning

28 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston How projects are controlled Value of work completed Actual expenditure SV CV Planned expenditure ACWP:Actual cost of work performed BCWP:Budgeted cost of work performed BCWS:Budgeted cost of work scheduled SV:Schedule variance CV:Cost variance Actual expenditure ACWP BCWP BCWS Network planning

29 Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Integration Some of the elements integrated in enterprise project management systems Project portfolio analysis Multi project analysis Complex resource scheduling Real-time reporting Project modelling Scenario planning Forecasting Risk management Communi- cation Project portal Web-based collaboration Document management E mail notification Project planning Critical activity analysis Float calculation Work order management Project control Budgeting Cost management Earned value control Resource scheduling Resource levelling Resource availability Skills scheduling


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