1. Operations Management Project Management
Operations Management as a Competitive Weapon
Module 4:
Project Management

2. Operations Management
OM Course Framework
1. Cost
- Design & Selection
3. Dependability
- Project Management
- JIT
4. Flexibility
- Inventory
- Supply Chain
- Location
- Forecasting
- Aggregate Planning
2. Quality
- TQM
- SQC
This course deals with the
management of ‘processes.’
Applies to:
For-profit and non-profit organizations
Service and manufacturing organizations
Module: Project Management

3. Module: Project Management
Learning Objectives
At the end of the module, each student will be able to
Discuss some basic concepts,
Outline the project management life cycle,
Discuss network planning techniques,
Calculate basic project management values,
Understand other resource considerations
Module: Project Management

4. Module: Project Management
1. Definitions
Project:
An endeavor with specific objectives & multiple activities with defined precedence relationships, to be completed within a limited duration
Activities:
Specific tasks that must be completed & require resources
Precedence relationships:
A natural order between activities, where some tasks must be complete before others can begin
Module: Project Management

5. Operations Management
2. Project Life Cycle
Conception
Feasibility analysis or study
Planning
Execution
Termination
Conception
Identify the need for the project. business - launch a new product
Feasibility Analysis or Study
Evaluate expected costs, benefits, and risks of the project.
Planning
Analyze the work to be done and develop time estimates for completing each of the activities.
In business, planning consists of the activities needed to launch the new product
Execution
Carry out the activities that make up the project. In business, the execution of the project entails completing the product design, obtaining the materials and equipment needed, setting up the process, writing job instructions, and making the product.
Termination
End the project. After this date, resources can be used for different activities.
Module: Project Management

6. 3. Network Planning Techniques
Critical Path Method (CPM):
Developed to coordinate maintenance projects in the chemical industry
Program Evaluation & Review Technique (PERT):
Developed to manage the Polaris missile project
Module: Project Management

7. Module: Project Management
Both CPM & PERT
Graphically display the precedence relationships & sequence of activities
Estimate the project’s duration
Identify critical activities that cannot be delayed without delaying the project
Estimate the amount of slack associated with non-critical activities
Module: Project Management

8. Module: Project Management
Notation
Activity-on-Node (AON)
Uses nodes to represent the activity
Uses arrows to represent precedence relationships
Activity-on-Arrow (AOA)
Module: Project Management

9. Module: Project Management
AOA & AON Comparison
Module: Project Management

10. 4. Information System Project
Operations Management
4. Information System Project
Time Immediate
Activity (Weeks) Predecessor(s)
A. Select computer software
B. Install software
C. Install office network
D. Test software
E. Develop database
F. Train employees
G. Implement system A B
C,D
E,F 3 5 7 6 8 2
(Exhibit 17.1)
Module: Project Management

11. Activity-on-Node Network
Operations Management
Activity-on-Node Network
A. Select computer software
B. Install software
C. Install office network
D. Test software
E. Develop database
F. Train employees
G. Implement system 3 5 7 6 8 2 A B
C,D
E,F
Module: Project Management

12. The Critical Path Method
Early Start and Finish Times
EF = ES + activity duration
Late Start and Finish Times
LS = LF + activity duration
Module: Project Management

13. Early Start and Finish Times
Module: Project Management

14. Late Start and Finish Times
Module: Project Management

15. Module: Project Management
Slack
Slack = LF - EF or
Slack = LS - ES
Module: Project Management

16. Module: Project Management
Slack
Module: Project Management

17. 5. Other Resource Considerations
Operations Management
5. Other Resource Considerations
Crashing the Critical Path: Time/Cost Trade-Offs
Determining Which Activities to Crash
More Than One Critical Path
Module: Project Management