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OPSM 301 Operations Management

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Ko University OPSM 301 Operations Management Class 18: Project Management: Introduction and CPM Zeynep Aksin zaksin_at_ku.edu.tr – PowerPoint PPT presentation

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Title: OPSM 301 Operations Management


1
OPSM 301 Operations Management
Koç University
  • Class 18
  • Project Management
  • Introduction and CPM

Zeynep Aksin zaksin_at_ku.edu.tr
2
Announcements
  • New Module Project Management
  • Chapter 7
  • Next class on Tuesday December 14 will be in SOS
    180-quiz 3
  • Third group assignment will be about project
    scheduling, to be assigned next week.

3
Why project management?
  • Competition through new product development
  • Information-intensive products costly to
    produce, cheap to reproduce
  • Flatter organizations
  • Systems approach
  • Project approach

4
Project
  • A single product is obtained from the
    completion of a project
  • The differentiating characteristic of projects
    from processes is the intense uncertainty in
    projects
  • Two types of project
  • With absolute deadline olympic stadium
  • With relative deadline new product development
    project
  • Successful project management To finish on time
    without going over budget and without sacrificing
    from the scope of the project

5
Project Management
  • Examples
  • Construction
  • R D
  • Computer system implementation
  • Product development
  • Advertising campaign
  • Business Plan

6
Project Management
Resources
Scope
Budget
Schedule
7
Projects are Balancing Acts
Quality and Scope
Timing and Schedule
Budgeted Costs
Precedence Structure
Statistical Variation
Human Behavior
8
Some observations
  • Most projects
  • Either go over time
  • or over budget
  • or the promised content cannot be delivered
  • Littles law more projects in the system (WIP),
    longer completion times

9
Modern Project Management
  • The process of project management has two
    dimensions the science and the art of
    project management
  • Technical defining, planning and controlling
  • Socio-Cultural
  • stimulating teamwork and personal motivation
  • identifying and resolving problems
  • shaping customer expectations
  • sustaining political support of top management
  • monitoring subcontractors
  • negotiating with functional managers

10
Project Management Activities
11
Project Planning, Scheduling, and Controlling
12
Work Breakdown Structure
  • 1. Project
  • 2. Major tasks in the project
  • 3. Subtasks in the major tasks
  • 4. Activities (or work packages) to
    be completed

13
The Work Breakdown Structure
1. House
1.2 Heating System
1.3 Interior Design
1.1 Building/Structure
1.4 Garden/Parking
1.2.3 Fuel Tank
1.2.2 Furnace
1.2.1 Piping
1.2.4 Solar Panels
WP-FT1 WP-FT2 WP-FT3
WP-SP1 WP-SP4 WP-SP2 WP-SP5 WP-SP3
WP-P1 WP-P2 WP-P3
WP-F1 WP-F2
14
Project Scheduling and Controlling
  • Gantt chart
  • Critical Path Method (CPM)
  • Program Evaluation Review Technique (PERT)

15
PERT and CPM
  • Network techniques
  • Developed in 1950s
  • CPM by DuPont for chemical plants (1957)
  • PERT by Booz, Allen Hamilton with the U.S.
    Navy, for Polaris missile (1958)
  • Consider precedence relationships and
    interdependencies
  • Each uses a different estimate of activity times

16
Questions Which May Be Addressed by PERT CPM
  • Is the project on schedule, ahead of schedule, or
    behind schedule?
  • Is the project over or under cost budget?
  • Are there enough resources available to finish
    the project on time?
  • If the project must be finished in less than the
    scheduled amount of time, what is the way to
    accomplish this at least cost?

17
The Six Steps Common to PERT CPM
  1. Define the project and prepare the work breakdown
    structure,
  2. Develop relationships among the activities.
    (Decide which activities must precede and which
    must follow others.)
  3. Draw the network connecting all of the activities
  4. Assign time and/or cost estimates to each
    activity
  5. Compute the longest time path through the
    network. This is called the critical path
  6. Use the network to help plan, schedule, monitor,
    and control the project

18
Precedence Relations
Activity
Immediate Predecessor
Duration (days)
A
(Start)
4
B
A
3
C
A
5
D
B,C
2
19
Simple Project Network
Activity A precedes Activity B
B
D
A
C
precedence relations as arcs
20
Critical Path Analysis
  • Provides activity information
  • Earliest (ES) latest (LS) start
  • Earliest (EF) latest (LF) finish
  • Slack (S) Allowable delay
  • Identifies critical path
  • Longest path in network
  • Shortest time project can be completed
  • Any delay on critical path activities delays
    project
  • Critical path activities have 0 slack

21
Earliest Start and Finish Steps
  • Begin at starting event and work forward
  • ES 0 for starting activities
  • ES is earliest start
  • EF ES Activity time
  • EF is earliest finish
  • ES Maximum EF of all predecessors for
    non-starting activities

22
Latest Start and Finish Steps
  • Begin at ending event and work backward
  • LF Maximum EF for ending activities
  • LF is latest finish EF is earliest finish
  • LS LF - Activity time
  • LS is latest start
  • LF Minimum LS of all successors for non-ending
    activities

23
Latest Start and Finish Steps
Latest Finish
24
Finding the Critical Path
B
Start at time t0
4
7
3
6
9
D
0
4
11
9
4
2
9
4
0
11
C
4
9
Activity Slack S LS-ES, or S LF-EF
9
4
5
25
Finding the Critical Path
Activity Slack S LS-ES, or S LF-EF
B
S2
4
7
3
S0
6
9
S0
D
0
4
11
9
4
2
9
4
0
11
C
4
9
Critical Path Path with zero activity slacks
4
S0
5
9
26
Yozgat Paper Manufacturing Activities
Activity Description Immediate Predecessors Time (weeks)
A Build internal components - 2
B Modify roof and floor - 3
C Construct collection stack A 2
D Pour concrete and install frame A, B 4
E Build high-temperature burner C 4
F Install pollution control system C 3
G Install air pollution device D, E 5
H Inspect and test F, G 2
27
AON Network for Yozgat Paper Manufacturing
28
Critical Path for Yozgat Paper Manufacturing
F
A
C
F
Start
H
B
D
G
29
AON Network for Yozgat Paper Manufacturing
Start
Slack0
30
Gantt Chart Earliest Start and Finish
Yozgat Paper Manufacturing
1 2 3 4 5 6 7 8 9 10 1112 13 1415
16
A Build internal components B Modify roof and
floor C Construct collection stack D Pour
concrete and install frame E Build
high-temperature burner F Install pollution
control system G Install air pollution device H
Inspect and test
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