1. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-1 Operations Management Project Management Chapter 3

2. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-2 Outline  GLOBAL COMPANY PROFILE: BECHTEL GROUP  THE IMPORTANCE OF PROJECT MANAGEMENT  PROJECT PLANNING  The Project Manager  Work Breakdown Structure  PROJECT SCHEDULING  PROJECT CONTROLLING

3. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-3 Outline - Continued  PROJECT MANAGEMENT TECHNIQUES: PERT AND CPM  The Framework of PERT and CPM  Network Diagrams and Approaches  Activity on Node Example  Determining the Project Schedule  Forward Pass  Backward Pass  Calculating Slack Time and Identifying the Critical Path(s)

4. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-4 Outline - Continued  Variability in Activity Times  Three Time Estimates in PERT  Probability of Project Completion  Cost-Time Tradeoffs and Project Crashing  A Critique of PERT and CPM

5. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-5 Learning Objectives When you complete this chapter, you should be able to : Identify or Define :  Work breakdown structure  Critical path  AOA and AON Networks  Forward and Backward Passes  Variability in Activity Times

6. PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 3-6 Learning Objectives - Continued When you complete this chapter, you should be able to : Describe or Explain:  The role of the project manager  Program evaluation and review technique (PERT)  Critical path method (CPM)  Crashing a project  The Use of MS Project