MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)
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Transcript of MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)
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8/9/2019 MELJUN CORTES - Operations Management 17th Lecture (PROJECTS-GANTT CHART)
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Operations Management
MELJUNELJUN
MELJUN CORTES,BSCS,ACS
Department of ICT
Faculty of Information
Technology
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
H
APTER
17
ProjectManagement
MELJUNELJUN
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Unique, one-time operations designed to accomplishUnique, one-time operations designed to accomplish
a specific set of objectives in a limited time frame.a specific set of objectives in a limited time frame.
Build A
A Done
Build B
B Done
Build C
C Done
Build D
Ship
JAN FEB MAR APR MAY JUN
On time!
ProjectsProjects
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Project ManagementProject Management
How is it different? Limited time frame
Narrow focus, specific objectives
Less bureaucratic Why is it used?
Special needs
Pressures for new or improves products orservices
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Project ManagementProject Management
What are the Key Metrics Time Cost
Performance objectives What are the Key Success Factors?
Top-down commitment
Having a capable project manager Having time to plan Careful tracking and control
Good communications
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Project ManagementProject Management
What are the Major Administrative Issues? Executive responsibilities
Project selection
Project manager selection Organizational structure
Organizational alternatives
Manage within functional unit Assign a coordinator
Use a matrix organization with a project leader
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Project ManagementProject Management
What are the tools? Work breakdown structure
Network diagram
Gantt charts Risk management
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Planning and SchedulingPlanning and Scheduling
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Locate new
facilities
Interview staff
Hire and train staff
Select and order
furniture
Remodel and installphones
Move in/startup
Gantt Chart
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Deciding which projects to implement Selecting a project manager
Selecting a project team
Planning and designing the project
Managing and controlling project resources
Deciding if and when a project should be
terminated
Key DecisionsKey Decisions
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Project ManagerProject Manager
Responsible for:
Work Quality
Human Resources TimeCommunications Costs
CO S
SCS CS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Temptation to understate costs Withhold information
Misleading status reports Falsifying records
Comprising workers safety
Approving substandard work
Ethical IssuesEthical Issues
MELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Project Life CycleProject Life Cycle
Concept
FeasibilityFeasibility
PlanningPlanning
ExecutionExecution
TerminationTermination
Ma
na
g
eme
nt
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Work Breakdown StructureWork Breakdown Structure
Project XProject X
Level 1
Level 2
Level 3
Level 4
Figure 17.2
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
PERT and CPMPERT and CPM
PERT: Program Evaluation andReview Technique
CPM: Critical Path Method
Graphically displays project activities
Estimates how long the project will take Indicates most critical activities
Show where delays will not affect project
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
The Network DiagramThe Network Diagram
Network (precedence) diagram Activity-on-arrow (AOA)
Activity-on-node (AON)
Activities
Events
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
The Network Diagram (contd)The Network Diagram (contd)
Path Sequence of activities that leads from the starting
node to the finishing node
Critical path
The longest path; determines expected project
duration
Critical activities
Activities on the critical path Slack
Allowable slippage for path; the difference the
length of path and the length of critical path
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Project Network Activity on ArrowProject Network Activity on Arrow
1
2
3
4
5 6
Locate
facilities
Orderfurniture
Furniture
setup
InterviewHire and
train
Remodel
Move
in
Figure 17.4
AOA
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Project Network Activity on NodeProject Network Activity on Node
1
2
3
5
6
Locate
facilities
Order
furniture
Furniture
setup
Interview
Remodel Movein
4
Hire andtrain
7S
Figure 17.4
AON
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Network ConventionsNetwork Conventions
a
b
c ab
c
a
b
c
d
a
b
c
Dummy
activity
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Time EstimatesTime Estimates
Deterministic Time estimates that are fairly certain
Probabilistic
Estimates of times that allow for variation
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Example 1Example 1
1
2
3
4
5 6
8 weeks
6 weeks
3 weeks
4 weeks 9 weeks
11 weeks
1 week
Locate
facil
ities
Orde
r
furnit
ureFurnitu
re
setup
Interview
Hirean
dtra
in
Remodel Move
in
DeterministicDeterministic
time estimatestime estimates
Figure 17.5
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Example 1 SolutionExample 1 Solution
P a t h L e n g t h( w e e k s )
S l a c k
1 - 2 - 3 - 4 - 5 - 61 - 2 - 5 - 61 - 3 - 5 - 6
1 82 01 4
206
Critical PathCritical Path
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MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Network activities ES: early start EF: early finish
LS: late start LF: late finish
Used to determine Expected project duration Slack time Critical path
Computing AlgorithmComputing Algorithm
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Probabilistic Time EstimatesProbabilistic Time Estimates
Optimistic time Time required under optimal conditions
Pessimistic time
Time required under worst conditions
Most likely time
Most probable length of time that will be
required
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Probabilistic EstimatesProbabilistic Estimates
Activity
start
Optimistic
time
Most likely
time (mode)
Pessimistic
time
to tptm te
Figure 17.8
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Expected TimeExpected Time
te =to + 4tm +tp
6
te = expected time
to = optimistic time
tm = most likely timetp = pessimistic time
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
VarianceVariance
2 =(tp to)
2
36
2 = varianceto = optimistic time
tp = pessimistic time
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Example 5Example 5
1-3-4
a
3-4-5d
3-5-7e
5-7-9f
2-4-6b
4-6-8h
2-3-6g
3-4-6
i
2-3-5c
Optimistictime Most likelytime Pessimistictime
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Path ProbabilitiesPath Probabilities
Z =Specified time Path mean
Path standard deviation
Z indicates how many standard deviationsof the path distribution the specified tine
is beyond the expected path duration.
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
17
Weeks
Weeks
Weeks
Weeks
10.0
16.0
13.5
1.00
1.00
a-b-c
d-e-f
g-h-i
Example 6Example 6
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACS, , , ,
Time-cost Trade-offs: CrashingTime-cost Trade-offs: Crashing
Crash shortening activity duration Procedure for crashing
Crash the project one period at a time
Only an activity on the critical path
Crash the least expensive activity
Multiple critical paths: find the sum of crashing
the least expensive activity on each critical path
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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, , , ,, , , ,
Time-Cost Trade-Offs: CrashingTime-Cost Trade-Offs: Crashing
Total
cost
Total
cost
ShortenShorten
ShortenShorten
Cumulative
cost of
crashing
Cumulative
cost ofcrashing
Expected indirect costsExpected indirect costs
Optimum
CRASHCRASH
Figure 17.11
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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, , , ,, , , ,
6a
4d
5c
10b
9e
2f
Example 7Example 7
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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, , , ,, , , ,
Advantages of PERTAdvantages of PERT
Forces managers to organize Provides graphic display of activities
Identifies
Critical activities
Slack activities1
2
3
4
5 6
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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, , , ,
Limitations of PERTLimitations of PERT
Important activities may be omitted Precedence relationships may not be correct
Estimates may include
a fudge factor
May focus solely
on critical path 1
2
3
4
5 6
142 weeks
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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Computer aided design (CAD) Groupware (Lotus Notes)
Project management software
CA Super Project Harvard Total Manager
MS Project
Sure Track Project Manager Time Line
Technology for Managing ProjectsTechnology for Managing Projects
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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Imposes a methodology Provides logical planning structure
Enhances team communication
Flag constraint violations
Automatic report formats
Multiple levels of reports Enables what-if scenarios
Generates various chart types
Advantages of PM SoftwareAdvantages of PM Software
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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Risk: occurrence of events that haveundesirable consequences
Delays
Increased costs
Inability to meet specifications
Project termination
Project Risk ManagementProject Risk Management
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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Identify potential risks Analyze and assess risks
Work to minimize occurrence of risk
Establish contingency plans
Risk ManagementRisk Management
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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SummarySummary
Projects are a unique set of activities Projects go through life cycles
PERT and CPM are two common techniques
Network diagrams
Project management software available