Professional Documents
Culture Documents
Management
Operations Management
by
R. Dan Reid & Nada R. Sanders
4th Edition Wiley 2010
Wiley 2010
Learning Objectives
Wiley 2010
Wiley 2010
Project Management
Applications
What is a project?
Examples?
Network Planning
Techniques
Network Diagrams
Activity-on-Node (AON):
Wiley 2007
Activity
A
B
C
D
E
F
G
H
I
J
K
Description
Develop product specifications
Design manufacturing process
Source & purchase materials
Source & purchase tooling & equipment
Receive & install tooling & equipment
Receive materials
Pilot production run
Evaluate product design
Evaluate process performance
Write documentation report
Transition to manufacturing
Wiley 2010
Immediate Duration
Predecessor (weeks)
None
4
A
6
A
3
B
6
D
14
C
5
E&F
2
G
2
G
3
H&I
4
J
2
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Wiley 2010
Path duration
40
41
22
23
ES, EF Network
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LS, LF Network
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Calculating Slack
Activity
A
B
C
D
E
F
G
H
I
J
K
Late
Finish
4
10
25
16
30
30
32
35
35
39
41
Early
Finish
4
10
7
16
30
12
32
34
35
39
41
Slack
(weeks)
0
0
18
0
0
18
0
1
0
0
0
Activity
A
B
C
D
E
F
G
H
I
J
K
Revisiting Cables By Us
Using Probabilistic Time
Estimates
Optimistic Most likely Pessimistic
Description
time
2
3
2
4
12
2
2
2
2
2
2
Wiley 2010
time
4
7
3
7
16
5
2
3
3
4
2
time
6
10
5
9
20
8
2
4
5
6
2
Optimistic
time
2
3
2
4
12
2
2
2
2
2
2
Most likely
Pessimistic
time
time
4
6
7
10
3
5
7
9
16
20
5
8
2
2
3
4
3
5
4
6
2 Wiley 2007 2
Expected
time
4
6.83
3.17
6.83
16
5
2
3
3.17
4
2
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Expected duration
44.66
44.83
23.17
23.34
Adding ES and EF to
Network
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Adding LS and LF to
Network
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po
Optimistic
Most
Likely
Pessimisti
c
Variance
0.44
10
1.36
0.25
0.69
12
16
20
1.78
1.00
0.00
0.11
0.25
0.44
0.00
Wiley 2007
Activities on
Path
Path Variance
(weeks)
A,B,D,E,G,H,J,
k
4.82
A,B,D,E,G,I,J,K
4.96
A,C,F,G,H,J,K
2.24
A,C,F,G,I,J,K
2.38
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z
2
path standard time
P
4.82
Path
Number
Activities on
Path
Path
Variance
(weeks)
z-value
Probability
of
Completion
A,B,D,E,G,H,J,k
4.82
1.5216
0.9357
A,B,D,E,G,I,J,K
4.96
1.4215
0.9222
A,C,F,G,H,J,K
2.24
16.5898
1.000
A,C,F,G,I,J,K
2.38
15.9847
1.000
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Reducing Project
Completion Time
Different deadlines
Penalty clauses
Need to put resources on a new project
Promised completion dates
Reducing Project
Completion Time cont
Normal
Time
(wk)
Normal
Cost ($)
Crash
Time
Crash
Cost
($)
Max.
weeks of
reduction
Reduce
cost per
week
8,000
11,000
3,000
30,000
35,000
5,000
6,000
6,000
24,000
28,000
2,000
14
60,000
12
72,000
6,000
5,000
6,500
1500
6,000
6,000
4,000
4,000
4,000
5,000
1,000
4,000
6,400
1,200
5,000
5,000
Wiley 2007
Wiley 2010
Activity B
Activity C
Activity D
Activity E
Activity
B
Activity C
Activity
D
Activity
E
Wiley 2010
Project Buffer
Wiley 2007
Project Management
within OM: How it all fits
together
Project management techniques provide a
Wiley 2010
Project Management OM
Across the Organization
Chapter 16 Highlights
Chapter 16 Highlights
cont
Homework Hints