Project Management What are businesses trying to achieve by using Operations Management? (done on AS) EFFICIENCY

Critical Path Analysis  Trying to plan the most efficient way to completing a sequence of jobs.  E.g. a building project. What jobs could be done whilst the walls are being built?

Define a “Project”  A specific and temporary activity  A starting and ending date  Clear goals  Defined responsibilities  A Budget What organisational structure is best suited to a project situation?  MATRIX Structure PROJECT MANAGEMENT: Using modern management techniques to carry out the project

What are the 4 major elements to be managed in a project?  Resources – people, equipment, materials  Time – each activity will take different durations  Money – budget and profit  Scope – scale of the project and specific objectives set

Key elements of Project Management are:  Project Definition – clear objectives for all  Division of project tasks – it needs to be manageable  Control – specific stages or timelines – is the project being done according to timetable  Clear and defined roles for team members  Control – quality and risks

Poor project management will result in:  Increased costs  Penalty payments to customers  Bad PR  Loss of future business Reasons for project failure? Poor Management Poor planning Poor communication Lack of customer involvement Complacent management Lack of skills from team members Lack of funding/resources

So, how do you get it right? Planning Operations... All resources need to be planned for efficiently in terms of time needed, quantity required and staffing to ensure particular elements of a job are done on time... You want to avoid idle staff (costs) and machinery (maintenance) Stocks left lying around could take up space and become damaged Project Management is about keeping your assets busy!

Feature of CPA  NODES– represent a point in time.  They are split into 3:  Number of the node  Earliest start time (EST)  Latest finish time (LFT)

Features of CPA ctd.  Activities – tasks that take place, they consume time. They link the nodes.  Duration – the length of time that it takes to complete an activity  Prerequisite – the task or tasks that need to be completed before another task maybe completed.  Dummies – Tasks that do not consume time but are shown in a network to demonstrate the true sequence of events. EST – the earliest time each activity can begin, taking into account the preceding activities LFT – the latest an activity can finish without delaying the whole project

Node Node number A B Activity A: prerequisite of B EST of B Duration of activity B LFT of B

Constructing a network Diagram ActivityPrerequisite (s) A- B- CA DB & C EA FE GF & D HB & C IG & H JI The activities are for building a house in 42 days... Each activity is a key part of the construction Activities cannot be completed until another task has been completed Sometimes, 2 tasks rely on the previous one...

Constructing a network Diagram ActivityPrerequisite (s)Duration (days) A-8 B-6 CA12 DB & C6 EA14 FE10 GF & D3 HB & C14 IG & H3 JI4 Now to calculate the EST and the LFT How do you find the Critical Path? Now to calculate the EST and the LFT

To recap... The Critical Path – the path along which there is no spare time – the EST and the LFT are equal EST - Where 2 activities come from 1 node, the HIGHEST number is chosen LFT – Where 2 activities go to one node, the LOWEST number is chosen

Floaters !!! There will be some “Float” time available for the non critical activities. TOTAL FLOAT – the amount an activity can be delayed without delaying the WHOLE project LFT – duration – EST Eg – D: – 20 = 6 total float days FREE FLOAT – the length of time an activity can be delayed without delaying the start of the FOLLOWING activity EST (next activity) – duration – EST (this activity) Eg – B: 20 – 6 – 0 = 14 free float days (B can be delay for 14 days without delaying D or H)

Your turn ActivityPrerequisite (s)Duration A-4 BA6 CA7 DB12 EC9 FD & E3 GA16 HG & F3

So, what are the advantages to CPA ???  Can estimate accurate delivery times (particularly if customers expect a certain date!)  Operations Manager – EST - he can order resources as and when needed (JIT, cashflow)  LFT – Ops Manager can identify if on schedule – are we on time to complete?  Identifying the Critical Path – no floats are available so need to ensure tasks done on time  If Critical Path is not on schedule, Ops Manager can see which other activities can be shortened or accelerated  Identifying where resources can be used in other parts of the project – if one activity is delayed resulting in another one being shortened, labour could be used from elsewhere (other floaters!)  Easy to do on a computer!  Forces managers to use a sequential method of planning BUT REMEMBER – projects can still fail even if the best management tool is used

Evaluating the CAP...