Project Management (Contents) A.PROJECT MANAGEMENT (19 Lectures) a.1Project conception and appraisal ( 5 lectures) Concept of a project, historical perspective, various issues: Time, cost, Quality, Project Identification and Screening: Various methods and frameworks, Factors for project appraisal, Criteria for project selection, Financial measures, some examples a.2Project Planning ( 4 lectures) Project representation, network concepts, Consistency and Redundancy in Project Networks, Activity on arc representation, concept of scheduling, Critical Path Method, Basic Scheduling with A-O-A, Activity on node representation, Basic Scheduling with A-O-N Networks a.3Project crashing and Resource considerations ( 5 lectures ) Probabilistic Scheduling: Uncertainty and probabilistic considerations in project, PERT, Three-estimate approach, Project Scheduling with Probabilistic Activity Times, Heuristic approach for Linear Time-Cost Tradeoffs in Projects, Resource Profiles and leveling, Limited Resource Allocation a.4Project Implementation:( 5 lectures ) Considerations in implementation, Project Monitoring and Control with PERT / Cost, Behavioral and human issues, Team Building, Desirable attributes of project leader, computers in project management, Project Completion, Review

Production Management (Contents) b.1 Strategic decisions in production management (5 lectures ) Concept of a production system, historical perspectives on production system, a generalized model of production system, Concept of a life cycle, various stages in life cycle, implications for managerial decision making vis-à-vis life cycle, Financial Evaluation Of Production Related Decisions: Typical Performance Measures of a Production System, Criteria such as net present value, rate of return, Financial Evaluation of Capital Decisions, concept of a decision tree, evaluation of risk b.2Product and process selection ( 4 lectures ) Designing Products and Services: Factors for New product/service introduction, product mix decisions using linear programming approach, stochastic product mix decisions b.3Facility Location and Layout ( 4 lectures ) Considerations in Plant Location, various models for location (gravity etc.), Process Layouts, Product Layouts, comparison of process and product layout, concept of Assembly Line Balancing, heuristic approaches for assembly line balancing (rank position weight etc.), Cellular Layouts b.4Production planning over the short Term Horizon ( 4 lectures ) Demand Forecasting, various methods for forecasting (qualitative and quantitative), Aggregate Production Planning (APP), models for APP b.5Tactical decisions and review (5 lectures ) Inventory: necessity, and costs involved, deterministic inventory models, Dependant demand systems, Material Requirements Planning, Scheduling of Job Shops, various heuristics for scheduling, course review

Project and Production Management Project Conception and Appraisal Project Management: An Overview Project Identification and Screening Project Appraisal: Part I Project Appraisal: Part II Project Selection

Project Management Project Planning Project Representation Consistency and Redundancy in Project Networks Basic Scheduling with A-O-A Networks Basic Scheduling with A-O-N Networks

Project Management Project Crashing and Resources Project Scheduling with Probabilistic Activity Times Linear Time-Cost Tradeoffs in Projects: A Heuristic Approach Resource Profiles and leveling Project crashing with multiple objectives Limited Resource Allocation

Project Management Project Implementation Project Monitoring and Control with PERT / Cost Team Building and Leadership in Projects Organizational and behavioral issues Computers in project management Project Completion and Review

Project & Production Management Project Conception and Appraisal Project Management: An Overview Project Identification and Screening Project Appraisal: Part I Project Appraisal: Part II Project Selection Project Planning Project Representation Consistency and Redundancy in Project Networks Basic Scheduling with A-O-A Networks Basic Scheduling with A-O-N Networks Project Crashing and Resources Project Scheduling with Probabilistic Activity Times Linear Time-Cost Tradeoffs in Projects: A Heuristic Approach Resource Profiles and leveling Project crashing with multiple objectives Limited Resource Allocation Project Implementation Project Monitoring and Control with PERT / Cost Team Building and Leadership in Projects Organizational and behavioral issues Computers in project management Project Completion and Review

Production Management Strategic Decisions in Production Management Introduction to Production Systems and a Generalized Model of Production Life cycle of a Production System and Major managerial Decisions Performance Measures of a Production System Financial Evaluation of Capital Decisions Decision Trees and evaluation of risk

Production Management Product and Process Selection Introducing New Products and Services I Introducing new products and services II Product Mix Decisions

Production Management Facility Location and Layout Plant Location Process Layouts Product Layouts and Assembly Line Balancing Cellular Layouts

Production Management Production Over the Medium Term Horizon Demand Forecasting: General considerations Models for forecasting Aggregate Production Planning I Aggregate Production Planning II

Production Management Tactical Decisions over the Short Term Horizon Inventory considerations and various factors Inventory modeling Material Requirements Planning` Scheduling of Job Shops Course summary and review

WHAT IS A PROJECT? PURPOSE An undertaking or venture to accomplish some objective or goal STRUCTURE A set of interrelated jobs whose accomplishment leads to the completion of the project COMPONENTS Jobs or activities consume time and resources and are governed by precedence relations

PROJECTS AS AGENTS OF CHANGE State A State B Alternative Projects (Paths)

FEATURES OF PROJECTS Well defined collection of jobs Generally non-repetitive, one time effort Jobs interrelated through precedence Jobs otherwise independent

PROJECT FEATURES (Continued) Jobs consume time and resources Coordination needed between individuals, groups & organisations Constant pressure of conformance to time/cost /performance goals

Mass production Batch Production Job Production Q Quantity to be Made P (No. of Products or “VARIETY”) Projects 1

LIFE CYCLE OF A PROJECT Selection of the project Project Planning Scope of work & network development Basic Scheduling Time Cost tradeoffs Resource Considerations in projects Project Implementation Project Completion and Audit

Motivation in Introducing New Products To satisfy need For profit

Contribution to New Product Ideas Sales and Marketing (close touch with customer) Top management (Active listener to visitor and customer feedback) Production department (limited to production ease and economics) Research and Development (prompted by new developments in materials & technology)

Generation of new product ideas Brain storming (preferably by interdisciplinary team) Team apprised of –Company objectives & long term goals –Current economic scenario –Preferred field of activity (expertise) –Approximate budget for new product Each one generates ideas which are recorded without criticism or evaluation

Evaluation of New Product Ideas The evaluation of the new product ideas could be done on a number of criteria –Likely demand and pattern of growth –Ease of raw material availability –Availability of Production technology –Competition and likely market share –Likely revenues and costs of operation –The product life cycle An example to illustrate this process is taken up next

An example of screening of ideas Idea/ factor DemandComp etition Ease of Raw Mtl Cost of processi ng Likely profit Score Computer peripherals Fast food Fashion clothing Soaps and detergents Each factor evaluated on a scale of 1(least desirable) – 10 (most desirable)

Undesirable outputs Economic/Social/Political Environment -dynamic -uncertain Transformation FEED BACK INPUT(S) OUTPUT(S) -Men -Machines -Materials -Money -Information -Energy Useful Goods or Services (Effluents, Fumes etc.)

Customer needs & desires Desires –Natural, as hunger, shelter, love and security – Generated by exposure to circumstances and temptations (as in advertisements on media, TV,neighbour) Needs –When a desire becomes strong enough and warrants fulfilment, it becomes a need. –Customer demand is based on real or artificially generated needs –Needs are constantly changing

MORTALITY OF IDEAS Screening Economic evaluation Development Testing Commercialization Number of ideas Time ? 3-24 months ?

Price Quality COMPETITION Reduced Customer lead times satisfaction NEW CHALLENGES IN PRODUCTION More producers Demanding customers Greater variety

PRODUCTION AS A PART OF THE SUPPLY CHAIN Transformation process Vendors Warehouses Retailers

Conclusions This course has focussed on the Life Cycle issues in Projects and Production Systems The Strategic, Operational and Tactical Issues in Projects and Production Systems have been discussed The approach has been on conceptual issues as well as modelling of key processes and decisions