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Operations Management
Lesson 5Project Management
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What you will learn in this unit: Project Life Cycle Project Planning Tools The Roles of Project Managers Key Success Factors
What is a project?A project is a set of activities, which has a defined start point and a defined end state, that pursues a defined goal and that uses a defined set of resources.
Project management is the process of managing the activities within a project by planning the work, executing it and coordinating the contribution of the staff and organizations who have an interest in the project.
An AIDS information campaignDesigning an aircraftConstructing petronas twin towerInstalling a new information system
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Project Management Applications
What is a project? Any endeavor with objectives With multiple activities With defined precedent relationships With a specific time period for completion
Examples? A major event like a wedding Any construction project Designing a political campaign
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Five Project Life Cycle Phases
Conception: identify the need Feasibility analysis or study:
costs benefits, and risks Planning: who, how long, what to
do? Execution: doing the project Termination: ending the project
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Network Planning Techniques
Program Evaluation & Review Technique (PERT): Developed to manage the Polaris missile project Many tasks pushed the boundaries of science &
engineering (tasks’ duration = probabilistic)
Critical Path Method (CPM): Developed to coordinate maintenance projects in
the chemical industry A complex undertaking, but individual tasks are
routine (tasks’ duration = deterministic)
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Both PERT and CPM
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
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Some Network Definitions All activities on the critical path have zero slack Slack defines how long non-critical activities can
be delayed without delaying the project Slack = the activity’s late finish minus its early
finish (or its late start minus its early start) Earliest Start (ES) = the earliest finish of the
immediately preceding activity Earliest Finish (EF) = is the ES plus the activity time Latest Start (LS) and Latest Finish (LF) depend on
whether or not the activity is on the critical path
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Gantt Chart is used for project scheduling; it involves multiple dimensions in assisting for planning. It’s a simple and visual oriented
planning method.
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Breakfast in bed project Purpose – to make breakfast in bed End result – breakfast in bed of boiled
egg, toast & orange juice Success criteria – minimum staff
resources & time; high quality (egg freshly boiled, toast warm etc.)
Scope – project starts in kitchen at 6am and finishes in bedroom; needs one operator and normal equipment
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A work breakdown structure
O b ta inju ice
o b ta ing la ss
p ro d u ce g la sso f o ra n g e ju ice
O b ta ine gg
O b ta inw a te r
p ro d u ceb o iled e gg
o b ta ine g g cup
P ro du ce bo iled e ggin e gg cup
o b ta in b re ad
P ro d u ceto a st
o b ta inb u tte r
P ro du ce b u tte redto a st
O b ta in p la tesa n d cu tle ry
O b ta in tray
A rra n getra y
S e rve b re ak fa s t in b edT yp e tit le h e re
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Breakfast in bed project
Task ID Activity
Effort (Operatve mnutes)
Duration (Mins)
a Butter toast 1 1b Pour orange juice 1 1c Boil egg 0 4d Slice bread 1 1e Fill pan with water 1 1f Bring water to boil 0 3g Toast bread 0 2h Take tray to bedroom 1 1I Fetch tray etc 1 1
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Breakfast in bed project
Task ID Activity Predecessorsa Butter toast d,gb Pour orange juice -c Boil egg e,fd Slice bread -e Fill pan with water -f Bring water to boil eg Toast bread dh Take tray to bedroom a,b,c,d,e,f,g,II Fetch tray etc -
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Network diagrams
An Activitya
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Activity duration
Activity reference
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Network diagramsAn event
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Event number
Latest event timeEarliest event time
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Project Slack
If there is a difference between the earliest and latest event time this is known as the slack on that event
If the earliest and latest event time are equal, this event lies on the critical path
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Gantt ChartsActivities requiring operator time
1 2 3 4 5 6 7 8 9
Orange
Bread Butter
Water Bedroom
Tray
Operators required
4321
Toast
Boil eggBoil water
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Gantt ChartsActivities requiring operator time
1 2 3 4 5 6 7 8 9
Orange
Bread Butter
Water Bedroom
Tray
Operators required
4321
Boil water Boil egg
Toast
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Gantt ChartsActivities requiring operator time
1 2 3 4 5 6 7 8 9
Orange
Bread Butter
Water Bedroom
Tray
Operators required
4321
Toast
Boil water Boil egg
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Successful Project managementThe following factors are particularly important: Clearly defined goals Competent project manager Top-management support Competent project members Sufficient resource allocation Adequate communications channels Control mechanisms Feedback capabilities Responsiveness to client Trouble shooting mechanisms Project staff continuity