Advanced Operations Management

Project Management

 Regular work vs. Projects

Time Stakes Expertise

A project is a series of related jobs that give a unique and major output within a set timeframe:
planning, organizing, securing, managing, leading, and controlling resources Constraints: Scope, Time and Budget

Business as usual:
repetitive, permanent, or semi-permanent functional activities to produce products or services

 Stages of project development

Initiation Planning or development Production or execution Monitoring and controlling Closing

Mapping Projects (product vs. process changes)

Derivative Breakthrough Platform Research and Development Alliances and Partnerships

 Pure Project
Self-contained team working full time on the project +ves: Authority of manager, reporting to one boss, short lines of communication, motivation/ commitment is higher -ves: resource duplication, Organizational goals are ignored, job insecurity after project

Functional Project:
Housing the project within a functional division +ves: share resources, technical expertise maintained within function, specialists can advance upwards, synergies -ves: aspects of project not related to the function are shortchanged, Motivation is weak, Client needs are secondary

Matrix Project:
PM controls tasks and Functional manager controls resources +ves: interfunctional communication is enhanced, less duplication of resources, functional home remains after project completion, Policies of organization are followed -ves: 2 bosses, PM need strong negotiation skills, suboptimization of other projects

 Project Milestones WBS:

Levels 1: Program 2: Projects 3: Task 4: Subtask 5: Work Package 6: Activities

 CPM with Single Time Estimate

Identify Activities Activity sequencing and network construction Determine the critical path

CPM/ PERT with Three Time Estimates

Activity Activity Designation Design A Build equipment B Evaluate equipment C Test prototype D Write report E Write methods report F Write final report G

Time Estimates 10 22 28 4 4 10 4 6 14 1 2 3 1 5 9 7 8 9 2 2 2

Expected Time 21 5 7 2 5 8 2

Variance 9 1 2.78 0.11 1.78 0.11 0

 Resource Management Tracking progress Cautions on CPM:

Activities have a clear beginning and end point Sequences can be specified and networked Critical path focus

 Measuring Productivity
Top Managements perspective Factory/ operations perspective

John is building a new restaurant. In order to complete the project, the required activities, along with their estimates, are given below:
Time Estimated(Weeks)
2 1 3 2 1 2 3 1 3 4 4 6 3 3 4 8 2 5 7 9 9 5 9 5 10 3 7

Activity
A B C D E F G H I

Immediate Predecessor
A A B, C B C, D E F, E G, H

a) b) c) d)

Calculate the expected time and variance for each activity Draw the critical path diagram and show the critical path. What is the probability that the project will be completed in 26 weeks? Are there any other paths that can interfere with completing this project on time?