2 – 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Project Management 2 For Operations Management, 9e by Krajewski/Ritzman/Malhotra © 2010 Pearson Education Workshop: #1

2 – 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Projects Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame. An interrelated set of activities that has a defined starting and ending points and that results in unique outcomes. Involves resources and allocation of resources.

2 – 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Projects  What are the Key Metrics? Time Budget Results / Performance Objectives

2 – 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Projects  What are the Key Success Factors?     

2 – 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Projects  What are the tools?  Work breakdown structure  Network diagram  Gantt charts  Risk management

2 – 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Projects MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Gantt Chart

2 – 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Important Decisions  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

2 – 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Project Life Cycle Definition and organization PlanningExecutionClose out StartFinish Resource requirements Time

2 – 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4

2 – 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. The Network Diagram  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

2 – 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Project Management Software  MS Project, many, many others  Desktop  Client-Server  Web

2 – 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Project Management Software  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

2 – 13 ComputerWeekly, July 2009 Project Management Software There are literally dozens of good project management software applications out there, with Microsoft Project being one of the most popular mid-range project management packages, and the likes of Primavera being popular at the higher end. Free and open source project tools are also available to download or use via a web browser. What does project management software do? At the most basic level, project management products will help your organization to manage projects from start to finish, and allow employees at different levels to have an input into the process. Project management software has been around for a number of years now and as a result, it does far more than just manage the projects themselves. Project applications can also carry out scheduling, cost control and budget management, resource allocation, collaboration, communication, quality management and documentation or administration. The aim with these is to handle all aspects and complexities of larger projects and help keep costs down.

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2 – 15 Lean Project Management Identify and eliminate waste Deliver more value Amplify learning Make decision at the right time Fast delivery Empower the team, respect, integrity Build integrity in See the whole Teams and networks of commitments Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

2 – 16 Lean Project Management Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

2 – 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Developing the Schedule Determine all paths and their estimated times Determine the critical path Determine ES and EF times (forward pass) Determine LS and LF times (backward pass) Late Finish (LF) The latest start time of the activity immediately following it The earliest of the following activities LS times

2 – 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Example, AON Method ActivityTimeImmediate Predecessor(s) A1none B4A C3A D7A E6B F2C,D G7E,F H9D I4G,H

2 – 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Project Management Workshop ActivityTimeImmediate Predecessor(s) A2none B4A C5A D2B E1B F8B,C G3D,E H5F I4F J7G,H,I Draw the network diagram. Determine the critical path for this project. How much slack is in activities G, H, and I.