Project Management

[Type the document subtitle]

Submitted by [Pick the date]

Contents
Contents...............................................................................................................................2 INTRODUCTION...............................................................................................................4 1.1)What is Project Management:................................................................................4 1.2)Tools and techniques of project Management:......................................................4 a)Project Idea generation and initiation:......................................................................4 b)Project planning and resources required: .................................................................4 c)Project related information.......................................................................................5 d)Project check and balance.........................................................................................5 e)Project completion and highlight success.................................................................5 2.0) Calculation for Question #1:.........................................................................................5 i) Current designed capacity:.......................................................................................5 ii) Current effective capacity:......................................................................................6 iii) Current Actual output:............................................................................................6 iv) Current Utilization:.................................................................................................6 v) Current Efficiency:..................................................................................................6 vi) Future designed capacity:.......................................................................................7 vii) Future Effective Capacity:.....................................................................................7 viii) Future Actual output:...........................................................................................8 ix) Future utilization:...................................................................................................8 x) Filter Efficiency:......................................................................................................8 3.1) What is capacity management:.....................................................................................8 3.2) Capacity Planning.................................................................................................9 3.3) Steps for Capacity Planning.................................................................................9 4.0) Importance of Capacity Decisions......................................................................10 4.1) Importance of Strategy Formulation for all Firms..............................................10 4.2) Key Decisions of Capacity Management...........................................................10 Question # 2:......................................................................................................................11 5.0) Manage Projects within Team Based Environment...........................................11 5.1) As a Leader Team Wants to Follow...................................................................11 5.2) Helping Members Decision and problem Solving ............................................11 5.3) Producing High Portfolio Teams........................................................................11 5.4) Windup Applying Your Learning....................................................................12 6.0) Critique and Understand the importance of operational strategy.......................12 6.1) How people misunderstand and interact with the Manager...............................12 6.2) Effective Communication So that People can understand..................................12 6.3) Dealing with Office Politics...............................................................................12 6.4) Encourage Good and Bad Performers................................................................13 6.5) Negotiation and Crisis Management..................................................................13 7.0) Global nature of Supply Chain...........................................................................13 7.1) Importance of Quality within supply chain in context with hospital case..........13 7.2) Supply Chain improvement service includes:....................................................14 2

7.3) Hospital Supply Chain Management System (HSCM)......................................14 7.4) Case study (Improvement of margins of supply chain) .....................................14 8.0) Roles and function of logistics within the supply chain.....................................15 9.0) Conclusion..................................................................................................................16 10.0) References:...............................................................................................................17

INTRODUCTION
1.1) What is Project Management:
Project management is a process to plan, organize, motivate and manage resources to attain particular goals. Basically the project is to work with a set of specified purpose and goal, purpose is to achieve profitable change. The primary tasks of all project managements is to cater all project targets while considering all the constraints. Primary tasks include quality, budget, time and control. (Jesper, 2001) The secondary task includes allocation of necessary inputs and join them to get predefined goals.

1.2) Tools and techniques of project Management:

In order to achieve targets of particular projects, there are five major tools and techniques:

a) Project Idea generation and initiation:

The concept of the project should be analyzed carefully to understand whether it would be feasible or beneficial for the organization or not. At this phase, think tank of the company will judge whether the project can be completed on realistic grounds or not.

b) Project planning and resources required:

During this phase project idea should be in writing, highlighting the work to be executed. During project planning team should identify the priorities, analyze the budget, make schedules and estimate what resources are needed.

c) Project related information

When team members, tasks and duties are allotted to every member by indicating their prime responsibilities, this will be the best time to introduce the important project related information. (Marsh, 2000)

d) Project check and balance

Managers of the specified projects have to check and control the activities of the project by comparing against the actual plan as resources are being used in the right direction. In this phase, managers have to adjust schedules or modify the project to keep on track.

e) Project completion and highlight success

When project activities have been completed and the customer has approved the quality of the work done, an evaluation is required by the managers to highlight project plus points and what they have learned from this project.

(Source: Lauri, 2000)

2.0) Calculation for Question #1:

i) Current designed capacity:

Design capacity is to get max. Output yield through optimum use of a process, operation, or facility is designed for. Designed capacity of guys hospital is 95%. 5

95% of 4500 beds=4275 beds

ii) Current effective capacity: Design capacity subtracts allowances such as worker time, maintenance & scrap (100-25) =75% of 4500 beds=3375 beds The current effective capacity on the basis of beds utilization is 3375 beds..

iii) Current Actual output: Rate of o/p actually achieved--cannot exceed effective capacity. Output depends upon different mixed activities in which hospital normally remains busy. As hospital engaged to perform different types of activities, Actual output is difficult to calculate. Hospital estimated current actual output on the basis of beds<3375.

iv) Current Utilization:

Actual output Utilization = ----------------------% Design capacity =3375*100 4275 The hospital is currently utilizing only 78.94%.

v) Current Efficiency:

Actual output 6

Efficiency = =

-------------------------Effective capacity 3375/3375

vi) Future designed capacity:

According to the future planning of the hospital, Future design capacity is increased up to (30% of 4500 beds) 5850 beds while the previous was 4500 beds.

vii) Future Effective Capacity: Determinants of Effective Capacity

Facilities Human resources Process parameters Product and service quality Operational factors Supply chain effectiveness External conditions

Future effective capacity could be around 4387.5 beds. It is calculated as under: 30% of 4500=1350 new beds 1350 new beds + 4500 existing beds= 5850 beds 75% of 5850= 4387.5 beds

viii) Future Actual output:

Future Actual output could also be 4387.5 beds.

ix) Future utilization:

Future beds utilization is also not certain as it depends upon the mix of activities. Estimated calculation is as follows: 30% of 4500=1350 new beds 1350 new beds + 4500 existing beds= 5850 beds 95% of 5850= 5557.5 beds

x) Filter Efficiency:

Management has decided to enhance future efficiency more up to 30% when new wing is fully established.

3.1) What is capacity management:

Capacity meaning is to get the maximum output rate of production. Capacity management is a way of developing output yield that is required as a facility: Strategic problems: How and when to use capital for extra instrument and facility. Capacity is generally purchased in chunks. Tactical problems: inventory status, workforce standards, and everyday use of instruments

3.2) Capacity Planning

Capacity is the top limit of the load that a functional unit can manage. The basic queries in capacity handling area: What kind of capacity is required? How much quantity is needed?
Capacity Used When is it needed? Best Operating Level

Capacity Utilization Rate =

Capacity is the property to receive, hold, manage or accommodate raw materials, finished goods and clients. (Glenn, 2001) Strategic capacity planning is a way for analyzing the complete capacity status of capital intensive resources, including facilities, instruments, and complete workforce size.

Capacity consumed is the rate of output get. The superb operational level is the capacity in which the process was designed.

3.3) Steps for Capacity Planning

1. Analysis of future capacity requirements 2. Examine existing capacity 3. To find alternatives 4. Establish financial analysis 5. Examine key qualitative issues 6. Chose at least one alternative 7. Try choosing alternatives 8. Evaluate results

4.0) Importance of Capacity Decisions

1. Major evaluation of starting costs 2. Manage competitive advantage 3. Affects progress of management 4. Impacts property to meet future demands 5. Globalization plus complexity 6. Impacts long range planning 7. Affects operating costs 8. Involves long-term planning

4.1) Importance of Strategy Formulation for all Firms

Should prepare capacity strategy for long-term demand Demand patterns should be in order Variability and Growth rate should be controlled All equipments and facilities should be up to mark The operating cost of running a business should be within budget Technological expenses should be budgeted for innovation Feasibility of capital and other inputs Direction and rate of technology changes should be monitored Trends of competitors should be analyzed

4.2) Key Decisions of Capacity Management

1. The amount of capacity required 2. Timing of alterations 3. Need to keep balance 4. Extent of range of facilities

10

Question # 2:
5.0) Manage Projects within Team Based Environment
The project is only successful when the project manager understands the value of team players. A successful manager is one who knows well that employee can make or break projects. Managers need to overcome environmental, social, economical, cultural and personal related red blocks linked with stakeholders. (Brennan, M. 1996)

5.1) As a Leader Team Wants to Follow

Differentiate between management and leadership Creating synergy by enabling collaboration (vs. Competition) Getting output without formal commitment

5.2) Helping Members Decision and problem Solving

Most important points of an effective decision making

Creating high-impact group decisions with optimal timing and producing effectiveness How to avoid the gossips of team members How to imagine and act during difficult and crucial times

5.3) Producing High Portfolio Teams

The attributes of a high performance vs multifunctional teams Identifying the virtual team's culture and cultivating productive How to define, manage, communicate and organize performance goals Sharing workload and harmonizing personality mix Creating global communications

11

5.4) Windup Applying Your Learning

Re-access challenges and their solutions Action plan

6.0) Critique and Understand the importance of operational strategy

To criticize someone is not always in a negative sense, it can be in a positive sense in order to produce an effective operation strategy. Following are the few points to understand:

6.1) How people misunderstand and interact with the Manager

For managing projects, managers should understand the following points:

Analyzing how the employee thinks, interact and respond to you How misunderstandings take place and how to bring people back on track Establishing perceptions, impressions and images How to create collaboration and trust

6.2) Effective Communication So that People can understand

Studying others so that communication could be more effective How to tackle different employees and handle situations Communicating with tact, diplomacy, and credibility Communicating with virtual members Cross-cultural contacts and communications

6.3) Dealing with Office Politics

Evaluating personal power base How to convince others Ethical behavior Need to tackle politics through this behavior Eliminating negative politics

12

6.4) Encourage Good and Bad Performers

Choosing the positive motivational paradigm, tools and techniques How to initiate enthusiasm and build teams Encourage poor performers for improvement in their job performance How to manage motivational issues

6.5) Negotiation and Crisis Management

Team negotiation tools How and when to organize negotiation"martial arts" Strategies for understanding conflict, resolving issues and producing productivity

7.0) Global nature of Supply Chain

Global supply chain, which starts with raw materials and move through planning, production, packaging, logistics, distribution and feedback management. Supply chain management is like a spider web. This network is so complicated and delicate, if it's one part is disturbed, it will hamper the all areas. Like a web, chin is invisible to the customer, difficult to view in front of external parties. (Greg, 2001)

7.1) Importance of Quality within supply chain in context with hospital case
Hospitals are facing challenges in escalating operational costs, new technologies and procedures, direct handling of consumer and defensive medicine practices. In response of all these crucial challenges, supply chain departments have to re-think that how they can improve their internal capabilities of the supply chain (Mehmet, 2010). Latest operations of supply chain strategies can positively influence physician satisfaction, clinical outcomes, satisfaction of patients and financial improvements. To achieve all this, management has to avoid traditional supply chain factors with latest one and proactively manage all processes.

13

7.2) Supply Chain improvement service includes:

o Infrastructure design and execution o Pharmacy consultancy o Children hospital management o Non labor cost reduction o Cost reduction of physician preference items o Improving skills of procurement and skill enhancing competency

7.3) Hospital Supply Chain Management System (HSCM)

The case study which is given by writer basically is the management in the hospital supply chain system. The writer wants to explain HSCM is a way of linking to efficiently integrate customer , transport, hospital services (including outdoor - patients, emergency, indoor-patient, lab., Radiology, stores and purchase, laundry and medicines /instruments) to meet Total Quality Management in health care services by maximum utilization of resources. (Lauri, 2000) The HSCM deals with the planning of materials/equipments, workforce e.g., Doctors, nurses and other supporting staff, to transform patient to a healthy person at a low cost, in the minimum possible time with complete satisfaction of the patient. As the case is explaining that the hospital is going to launch new wing that will increase capacity up to 30% more. But to utilize capacity up to 95% It is necessary that the departments related to materials, receiving, finance, and store-keeping work in tandem to process effectively the high volume of purchases, payments and receipt transactions that should take place on a regular basis.

7.4) Case study (Improvement of margins of supply chain)

A local children's hospital in the UK which has a large academic medical facility engaged the supply chain management team with a goal of $14 M in savings. (Lauri, 2000) Hospital targeted non-labor expenses for Medical surgeon, surgery, lab, pharmacy, Electrophysiology, Radiology and non clinical departments for that through proven technology, hospital supply chain management team lowered the inventory level by 14

greater than $ 2 M. The team also worked hard with doctors, material management team, nursing staff members and with admin departments to establish objective, strategies, goals and value added processes for the cost reduction. By doing all, overall margin was improved up to $14 M and implemented the same strategy for the whole departments of the hospital.

8.0) Roles and function of logistics within the supply chain

The supply chain department is managed and delivering goods to the final consumer in the most effective way. The supply chain department should be strongly integrated with logistic departments in the effective delivery of goods and services. Logistics management is the part of supply chain management (SCM) that plan, organize and control the efficient, effective , forward and reverse movement and storage of goods from the point of origin to the point of consumption in order to cater consumer requirements. Logistics involve getting in right product in the right way, in the right quantity and right quality, in the right place at the right time, for the right client for the right cost. Below schematic diagram indicating the whole process with reference of logistic:

(Source: Webber, 2000)

15

9.0) Conclusion
It is all depend upon Project manager that how he plans, organize, motivate and manage resources to attain particular goals. Practically speaking, the project is to work with a set of specified purpose and goal to achieve profitable change. Tools which are required for effective project management are like idea generation, planning, project related information, resources required, check & control system and successful project completion. The case which is given by writer explaining the current design capacity, current effective capacity, current output, current utilization, future design capacity, future effective capacity, future utilization and future efficiency. Writer design effective capacity is only 75% while hospital management wants to increase it up to 95%. Also they were establishing their new wing that will also increase capacity up to 30% more. Supply Chain Management is not only a buzzword, it is an idea, strategy and approach that is proving its value in hospital management globally. Hospitals which implemented SCM successfully have recorded a 40% inventory reduction, 30% increase in on-time delivery, inventory returns have been doubled. Most important points for hospital is to be converted into a bond through which strong relationships could be established and retained. The multifaceted technologies are at the forefront of fresh logistic upgradation. Transports will act as warehouses and order status will be visible along the entire supply chain. A completely computerized inventory will allow the hospital to move the SCM at the speed of thought.

16

10.0) References:
Baadsgaard, Jesper (2001). Byggeproduktion og materiale-logistik optimeres via interaktive styringsvrktjer. Logistik Horisont, Vol. 27, No. 6 Ballard, G. and Howell, G. (1998). Shielding production: essential step in production control. Journal of Construction Engineering and Management 124 (1)pp. 11-17. Ballard, Glenn (1999). Can Pull Techniques be Used in Design Management? Concurrent Engineering in Construction: Challenges for the New Millennium. CIB Publication 236. VTT, Espoo. Pp. 149-160. Chua, David & Glenn (2001). National University of Singapore, pp. 185- 198. Edward R. Marsh (2000). "The Harmonogram of Karol Adamiecki". In: The Academy of Management Journal. Vol. 18, No. 2 (Jun., 1975), p. 358 Gokhan, & Nuri Mehmet; (December 2010). "Development of a Simultaneous Design for Supply Chain Process for the Optimization of the Product Design and Supply Chain Configuration Problem.". Engineering Management Journal 22 (4): pp. 2030 Howell, Greg & Lauri. (2000). Reforming project management: the role of lean construction. 8th Annual Conference of the International Group for Lean Construction IGLC-8). Brighton,pp. 17 - 19. James P. Lewis (2000). The project manager's desk reference: a comprehensive guide to project planning, scheduling, evaluation, and systems. p.185 Johnston, R.B. and Brennan, M. (1996). Planning or Organizing: the Implications of Theories of Activity for Management of Operations. Omega, Int. J. Mgmt. Sc., Vol. 24, No. 4, pp. 367-384. Koskela, Lauri & Greg (2001). Reforming project management: The role of planning, execution and controlling. - Proceedings of the 9th International Group for Lean Construction Conference. Kent Ridge Crescent, Singapore, pp. 6 - 8.

17

Koskela, Lauri (1999). Management of production in construction: a theoretical view. 7th Conference of the International Group for Lean Construction, IGLC-7. pp. 241 - 252. McGinnis M, Stark E & OLeesky K. (2001)Supply and Conquer. Health and Finance Manager, vol ;59(3):pp. 82-6. Murray MF.(2000), Improving access to speciality care. Jt Comn Journal Qual Patient Saf ; vol. 33(3):pp. 125-35. Oliver, R.K.,& Webber, M.D., (2000), Supply-chain management: logistics catches up with strategy, Outlook, Booz, Allen and Hamilton Inc. Reprinted 1992, in Logistics: The Strategic Issues, ed. M Christopher, Chapman Hall, London, pp. 63-75 Project Management Institute (2000). A Guide to the Project Management Body of Knowledge. Newton Square. P. 216 Schwaber, Ken and Beedle, Mike (2002). Agile Software Development with Scrum. Prentice Hall, Upper Saddle River. P. 158. Shewhart, Walter A. and Edwards (1998). Statistical Method from the Viewpoint of Quality Control. The Graduate School, The Department of Agriculture,Washingto n. P.155. Teston, Jim (1998). Evaluating the Benefits of Lean Construction on Productivity . A Thesis Presented to the Graduate School of Clemson University. P. 97 . Winograd, T. and Flores, F. (1999). Understanding Computers and Cognition: A New Foundation for Design. Ablex, Norwood. P.207.

18