MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. W6 6.1 Operation Management Operation Management Planning, Scheduling and Control © Ana G. Méndez University System, All rights reserved.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 2 The Importance of Project Management Project Planning The Project Manager Work Breakdown Structure Project Scheduling Project Controlling

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 3 Project Management Techniques: PERT and CPM The Framework of PERT and CPM Network Diagrams and Approaches Activity-on-Node Example Activity-on-Arrow Example

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 4 Determining the Project Schedule Forward Pass Backward Pass Calculating Slack Time and Identifying the Critical Path(s) Variability in Activity Times Three Time Estimates in PERT Probability of Project Completion

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 5 Cost-Time Trade-Offs and Project Crashing A Critique of PERT and CPM Using Microsoft Project to Manage Projects Creating a Project Schedule Using MS Project Tracking Progress and Managing Costs Using MS Project

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 6 When you complete this presentation, you should be able to: 1.Create a work breakdown structure. 2.Draw AOA and AON networks. 3.Complete both forward and backward passes for a project. 4.Determine a critical path. 5.Calculate the variance of activity times. 6.Crash a project. 7.Use Microsoft Project software to create a project.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 7 What is a Project? A project is a temporary effort to create a unique product or service. Projects usually include constraints and risks regarding cost, schedule, or performance outcome. What is Project Management? Project management is a set of principles, practices, and techniques applied to lead project teams and control project schedule, cost, and performance risks to result in satisfied customers.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 8 Projects are unique Projects are temporary in nature and have a definite beginning and ending date. Projects are completed when the project goals are achieved or it is determined that the project is no longer viable. A successful project is one that meets or exceeds the expectations of your stakeholders. High labor skills

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 9 Building Construction Research Project

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved Planning Goal setting, defining the project, team organization. 2.Scheduling Relates people, money, and supplies to specific activities and activities to each other. 3.Controlling Monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 11  Controlling Monitor, compare, revise, actionMonitor, compare, revise, action  Scheduling Project activitiesProject activities Start & end timesStart & end times NetworkNetwork  Planning ObjectivesObjectives ResourcesResources Work break-down scheduleWork break-down schedule OrganizationOrganization

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 12 The Supplier Agreement Management process area addresses the need of the project to acquire those portions of work that are produced by suppliers. Planning begins with requirements that define the product and project (“What to Build”). The Project Monitoring and Control process area includes monitoring activities and taking corrective action.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 13 The project management process group refers specifically to the idea of a logically oriented grouping or arrangement of the numerous project management processes as per the concepts laid out in the PMBOK guide (Project Management Body of Knowledge).

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 14 The concept of the PMI (Project Management Institute) suggests that there are only five process groups. In order to create an effective Project Management system, each of these nine knowledge areas are used, which may include processes from each of the five process groups.

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 15 Before ProjectStart of ProjectDuring Project Timeline

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 16 BeforeStart of projectDuring projectTimelineproject

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 17 BeforeStart of projectDuring projectTimelineproject

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 18 Before ProjectStart of ProjectDuring Project Timeline

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 19 Establishing objectives Defining project Creating work breakdown structure Determining resources Forming organization

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 20 Identifying precedence relationships Sequencing activities Determining activity times & costs Estimating material & worker requirements Determining critical activities

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. 21 Monitoring: collecting, recording, and reporting information concerning project performance that project manger and others wish to know Controlling: uses data from monitoring activity to bring actual performance to planned performance

MANA 705 DL © Sistema Universitario Ana G. Méndez, All rights reserved. Dear Student: We have concluded the topic Planning, Scheduling, and Control. It is important to do the recommended readings pertaining to this workshop. ¡Go ahead! 22 End