Project Management: MBA Patricio F. Lewis Zúñiga
Project Management: MBA Patricio F. Lewis Zúñiga
1
Project Management
3
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
► Project Scheduling
► Project Controlling
Outline - Continued
Crashing
Outline - Continued
billion)
► Constructing a natural gas pipeline in Thailand ($700
million)
► Building 30 plants for iMotors.com, a company that
► Single unit
► Many related activities
► Difficult production planning and inventory
control
► General purpose equipment
► High labor skills
Examples of Projects
► Building Construction
► Research Project
Management of Projects
► Work break-
activities
► Start & end
down structure
► Organization
times
► Network
► Controlling
► Monitor, compare, revise, action
Project Planning, Scheduling, and
Controlling
Figure 3.1
Project Planning, Scheduling, and
Controlling
Figure 3.1
Project Planning, Scheduling, and
Controlling
Figure 3.1
Project Planning, Scheduling, and
Controlling
Figure 3.1
Project Planning, Scheduling, and
Time/cost estimates
Budgets
Controlling
Engineering diagrams
Cash flow charts
Material availability details
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Cash flow
Figure 3.1schedules
Project Planning
► Establishing objectives
► Defining project
► Creating work
breakdown structure
► Determining
resources
► Forming organization
President
Human Quality
Resources Marketing Finance Design Production
Mgt
Figure 3.2
Matrix Organization
Marketing Operations Engineering Finance
Project 1
Project 2
Project 3
Project 4
Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or “work packages”)
to be completed
Work Breakdown Structure
Develop Windows 8
Level 1 1.0
Operating System
Compatible with
Level 4 1.1.2.1
Windows 7
(Work packages)
Compatible with
1.1.2.2
Windows Vista
► Gantt chart
► Critical Path Method
(CPM)
► Program Evaluation and
Time
J F M A M J J A S
Design
Prototype
Test
Revise
Production
Service For a Delta Jet
Deplaning
Passengers
Baggage claim
Baggage Container offload
Pumping
Fueling Engine injection water
Cargo and mail Container offload
Main cabin door
Galley servicing Aft cabin door
Lavatory servicing Aft, center, forward
Drinking water Loading
First-class section
Cabin cleaning
Economy section
Cargo and mail Container/bulk loading
Galley/cabin check
Flight services
Receive passengers
Operating crew Aircraft check
Baggage Loading
Passengers Boarding
0 10 20 30 40
Time, Minutes
Figure 3.4
Project Controlling
► Close monitoring of
resources, costs,
quality, budgets
► Feedback enables
produce extensive
reports
► Variance reports
times
Six Steps PERT & CPM
C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D
B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and C
(f) are completed Dummy
A dummy activity C
C activity
is again
introduced in AOA
AON Example
Activity A
A (Build Internal Components)
Start
Activity B
Start B (Modify Roof and Floor)
Activity
Figure 3.5
AON Network for Milwaukee
Paper
Activity A Precedes Activity C
A C
Start
B D
F
A C
E
Start H
B D G
C
2 4
(Construct
Stack)
F
Co (Ins
nt al
ne ern
s)
nt tal
om d A
(Build Burner)
po Int ro l
ls)
C uil
H
(B
Dummy 7
E
1 6
Activity (Inspect/
Test)
Ro (M B G ll
of odi ta on
/F fy s i
lo
or (In llut ce)
i
)
3
D Po ev
5 D
(Pour Figure 3.8
Concrete/
Install Frame)
Determining the Project Schedule
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
Activity Duration
Forward Pass
EF = ES + Activity time
ES/EF Network for Milwaukee
Paper
ES EF = ES + Activity time
Start
0 0
0
ES/EF Network for Milwaukee
Paper
EF of A =
ES ES of A + 2
of A
A
Start 0 2
0 0
2
ES/EF Network for Milwaukee
Paper
A
0 2
2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3
3
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B
0 3
3
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
= Max (2, 3) D
0
3 7
B
0 3
3
4
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B D
0 3 3 7
3 4
ES/EF Network for Milwaukee
Paper
A C F
0 2 2 4 4 7
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.10
Backward Pass
LS = LF – Activity time
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
B LS = LF
D – Activity timeG
0 3 3 7 8 13
3 4 5 LF = EF
of Project
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
LS/LF Times for
Milwaukee
LF = Min(4,Paper
10)
A C F
0 2 2 4 4 7
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Computing Slack Time
Slack = LS – ES or Slack = LF – EF
Computing Slack Time
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
ES – EF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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
LS – LF Gantt Chart
for Milwaukee Paper
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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
Variability in Activity Times
Expected time:
t = (a + 4m + b)/6
Variance of times:
v = [(b – a)/6]2
Variability in Activity Times
t = (a + 4m + b)/6
Probability of
Variance
1 in 100 of
of times: Probability of
Probability
Activity
Time
MOST
OPTIMISTIC LIKELY PESSIMISTIC EXPECTED TIME VARIANCE
ACTIVITY a m b t = (a + 4m + b)/6 [(b – a)/6]2
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1.00
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
Probability of Project Completion
Figure 3.12
Standard deviation = 1.76 weeks
15 Weeks
(Expected Completion Time)
Probability of Project Completion
.5
due expected date .71904
Z.69146
= date .69497 .71566
− of completion /s p
.6 .72575 .72907 .74857 .75175
15 16 Time
Weeks Weeks
Figure 3.13
Determining Project Completion
Time
Probability
of 0.99
Probability
of 0.01
2.33 Standard Z
From Appendix I deviations
0 2.33
Figure 3.14
Variability of Completion Time for
Noncritical Paths
► Variability of times for activities on
noncritical paths must be considered when
finding the probability of finishing in a
specified time
► Variation in noncritical activity may cause
possible
Steps in Project Crashing
TABLE 3.5 Normal and Crash Data for Milwaukee Paper Manufacturing
$30,000 —
Normal
Normal —
Cost
| | |
1 2 3 Time (Weeks)
Figure 3.15
Crash Time Normal Time
Critical Path and Slack Times
for Milwaukee Paper
Figure 3.16
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
Start Slack = 0 Slack = 0 E Slack = 6 H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Program 3.1
Using Microsoft Project
Program 3.2
Using Microsoft Project
Pollution Project
Percentage Completed on
Aug. 12
ACTIVITY COMPLETED
A 100
B 100
C 100
D 10
E 20
F 20
G 0
H 0 Program 3.3
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