Session6 Student

Session # 6
project Management
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Course: Operations Management - II Shounak Basak
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Programme: BM 18-20 Room no. 6, Library Building,
XLRI – Xavier School of Management,
Term III, 2019 Jamshedpur – 831001
Jamshed1
Phone: 0657 – 665 – 3424
Email: shounak@xlri.ac.in
Shounak Basak
PODS Area, XLRI – Xavier School of Management
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project management
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Shounak Basak
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project
Project is unique, one-time operation designed to accomplish a specific set of

objectives in a limited time frame
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Definition Planning Execution Termination
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• Goals • Schedules • Status reports • Train Customer
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• Specifications • Budgets • Changes • Transfer
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• Feasibility • Resources • quality documents
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• Tasks • Risks • Release resources
• • •
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Responsibilities Staffing Reassign staff
Level of effort
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• Teams • Lessons learned
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Decisions in project management
•Factors include budget, availability of knowledge, skill personnel, and cost-
Deciding which projects benefit analysis
•Other factors include availability of funds, regulatory environment, safety
to implement factors
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•Leads the team
Selection of project
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manager
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•Person’s knowledge and skill base
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•Experience of similar projects
Selection of project team
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•Decision on project performance goals
Planning and designing of
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•Timing of project
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•Resources and budget of the project
projects
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•Managing personnel
Managing and controlling •Using the budget and resources appropriately
•Designing changes and quality concerns
project resources
•Whether it is feasible to continue with the projects
Deciding when a project is •Assessing the sunk cost
to be terminated
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Characteristics of Project Organization
Different from
mainstream
activities
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No expertise
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currently
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available
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The product or
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service offered
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is large scale
High Degree
of
customization
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Project managers job
Desired sequence of
Work activities are carried
out
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Proper skilled
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Human
personnel are hired
resources
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and used properly
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Information
Communications dissemination is
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done
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Performance
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objectives are Quality
realized
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Time Schedule is met
Budget is not
Costs
overrun
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Project management triangle
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Quality
Performance objectivesShounak Basak
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Work break down structure
Project
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Work 1 Work 2 Work 3
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Work 1-1 Work 1-2 Work 1-3 Work 2-1 Work 2-2 Work 2-3 Work 3-1 Work 3-2
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Work 1-2-1 Work 1-2-2 Work 2-1-1 Work 2-1-2 Work 2-1-3 Work 3-1-1 Work 3-1-2 Work 3-2-1 Work 3-2-2
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Work breakdown structure is an organized methodology used to split
an overall project into non-overlapping components and identify
deliverables for each component
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Organization breakdown structure
CEO
VP Project VP VP
VP Logistics VP Finance
Engineering Manufacturing
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Project
Manager 1
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Project
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Manager 2
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Project
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Manager 3
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Project
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Manager 4
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Project
Manager 5
Organization breakdown structure identifies an appropriate organization structure to execute the

tasks listed under each work package
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Cost breakdown structure
WBS 1-1 CBS 1-1
WBS 1-2-1 CBS 1-2-1
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WBS 1-2-2 CBS 1-2-2
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WBS 2-1-1 CBS 2-1-1
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WBS 2-1-2 CBS 2-1-2
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WBS 2-1-3 CBS 2-1-3
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R of
WBS 2-2
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WBS 2-3 CBS 2-3
Cost breakdown structure is a methodology that links the individual elements in a WBS to a
dimension of cost
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Work breakdown structure example
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Technique for project management
Developing a
network •
representation of
the project
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Analyzing
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•
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project networks
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Addressing time
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and resource
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•
constraint in
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Handling
uncertainty in
project
completion
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Network representation
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definitions
Network diagram is the diagram of project activities that shows
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sequential relationships by use of arrows
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Activity-on-arrow is the network diagram convention in which arrows
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designate activities
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Activity-on-node is the network diagram convention in which nodes
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designate activities
Activities are the project steps that consume time and resources
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Activity on arrow diagram
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Move in
1 5 6
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3 Pa
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Activity on node diagram
Order
Furniture
furniture
setup
Locate
2
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facilities
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1 Move in
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Remodel
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7
5
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S
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Hire and
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3
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train
Interview 4
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Network representation problem
Problem # 6.1
Consider yourself to be a trainee under a project manager who has hired you to assist in carrying out a large project. As you are a
novice in project management, your boss has taken up the responsibility of teaching you project management from scratch. Your boss
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is carrying out a major renovation in the house and intends you to study the same as case of project management.
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Gorachand Bhuyan is a local carpenter in the Sakchi locality of Jamshedpur. He has been entrusted with the task of carrying out the
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renovation work. After talking to Mr. Bhuyan, you have compiled the following notes:
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• Firstly, a plan has to be prepared on what needs to be done (Work – A)
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• Based on the plan, the foundation on the flooring has to be carried out (Work – B)
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• Electrical wirings have to be disconnected wherever necessary (Work – C)
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• Woodworking has to be completed in the workshop (Work – D)
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• Rewiring has to be done (Work – E)
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• Plastering on the floors and walls have to be done (Work – F)
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• Woodwork has to be laid on the plastered floors (Work – G)
• Electrical fittings needs to be fit on the furnished floors/walls (Work – H)
• Polishing and finishing needs to be done (Work – I)
• Client needs to inspect the quality of work (Work – J)
Fill up the following table based on your assessment of the problem.
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Activity precedence table
Activity Predecessor Activity
A -
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C A
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D A
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E C
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F B
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G D, F Pa
H G, E
I H
J I
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Problem # 6.2
Based on the precedence diagram that you have constructed in problem 1, draw a network diagram with activities
represented on arc
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B F
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Start A D G H I J End
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C
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Problem # 6.3
Based on the precedence diagram that you have constructed in problem 1, draw a network diagram with activities
represented on node
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Activity on Arc diagram
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F
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B
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D G H I J
A
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1 2 4 6 7 8 9
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R of
C
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E
Pa
5
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Example:
Draw the activity on node network and activity on arc network for the following precedence diagram
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Activity Predecessor Activity
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A -
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B A
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C B
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D B
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E C, D Pa
F D
G E
H F
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C E
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G
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Start A B End
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M X
R of
H
O rt
Pa
D F
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Activity on Arc diagram
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A B C E G
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1 2 3 4 6 8
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R of
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D
Pa H
F
5 3
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definitions
Path is a sequence of activities that leads from starting node to the
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finishing node
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Critical path is the longest path that determines the expected project
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duration
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Critical activities are the activities that lie on the critical path
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Slack is the allowable slippage for a path
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Critical path problem
Problem # 6.4
Consider the precedence diagram that you got in problem 1 and additionally take into account the duration of the tasks
as follows:
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Activity Duration of activity days
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A 3
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B 6
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C 2
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D 8
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E 4
F 7
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G 5
H 3
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I 2
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J 1
M X
R of
Identify different paths in the network and their respective length
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Identify the critical path Pa
What is the expected length of the project
What is the amount of slack time for each path
Your boss suggests Gorachand to half the times for laying the foundation and plastering by allocating more labour.
Why do you think such a suggestion was given.
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Path diagram
• Project length is 27 days
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3
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F
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B 7
6
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D G H I J
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1 2 4 6 7 8 9
8 5 3 2 1
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3
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2
R of
C 4
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Pa E
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Path Length (weeks) Slack
1-2-3-4-6-7-8-9 3+6+7+5+3+2+1=27* 27-27=0
1-2-4-6-7-8-9 3+8+5+3+2+1=22 27-22=5
1-2-5-6-7-8-9 3+2+4+3+2+1=15 27-15=12
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Path diagram - 2
• Project length is 21.5 days
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3
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B 3.5
3
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D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
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3
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2
R of
C 4
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Pa E
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1-2-3-4-6-7-8-9 3+6+7+5+3+2+1=21.5* 22-21.5=0.5
1-2-4-6-7-8-9 3+8+5+3+2+1=22 22-22=0
1-2-5-6-7-8-9 3+2+4+3+2+1=15 22-15=7
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PERt - cpm
PERT is program evaluation and review technique (probabilistic
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methodology)
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CPM is critical path method (deterministic methodology)
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CPM – Algorithm
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Forward Pass
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Late Start Late Finish
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Early Start time Early Finish For each path, start from the left side of
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S 1
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the diagram and work towards the right
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side
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For each beginning activity: ES=0
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EF = ES + t For the following activity ES=EF of
R of
preceding activity
LS = LF – t
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Pa
For multiple preceding activities,
following activity ES=max{EF1, EF2, …}
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Critical path - algorithm
Order 4
furniture
2 6weeks
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Move in
1 5 6
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1 week
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R of
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Order 4
furniture
2 6weeks
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Move in
1 5 6
BM RI
1 week
-II L
M X
R of
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Order 4
furniture
2 6weeks
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Move in
1 5 6
BM RI
1 week
-II L
M X
R of
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Order 4
furniture
2 6weeks
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Move in
1 5 6
BM RI
1 week
-II L
M X
R of
O rt
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Order 4
furniture
2 6weeks
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Move in
1 5 6
BM RI
1 week
-II L
M X
R of
O rt
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Order 4
furniture
2 6weeks
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M
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
R of
O rt
Pa
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Order 4
furniture
2 6weeks
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M
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Move in
1 5 6
BM RI
1 week
-II L
M X
R of
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Order 4
furniture
2 6weeks
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Move in
1 5 6
BM RI
1 week
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M X
R of
19 20
O rt
Pa
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CPM – Algorithm
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Backward Pass
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Late Start Late Finish For each path, start from the right side of
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Early Start time Early Finish
the diagram and work towards the left
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S 1
-2 urs
side
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For all ending activity: LF=max{EFi}
BM RI
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For the preceding activity LF=LS of
M X
EF = ES + t
R of
following activity
LS = LF – t
O rt
Pa
For multiple following activities,
Slack = LS – ES
preceding activity LF=min{LS1, LS2, …}
of following activity
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Order 4
furniture
2 6weeks
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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M
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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M
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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M
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Order 4
furniture
2 6weeks
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M
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18 Co
Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
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Activity Slack
Order 4
furniture Order 2
2 6weeks Hire 6
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Setup 2
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Move in 0
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Move in
1 5 6
BM RI
1 week
-II L
M X
19 20
R of
19 20
O rt
Pa
Activity Slack
Locate 0
3 Interview 6
Remodel 0
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Critical path problem
Problem # 6.5
Based on the precedence diagram of problem 1 and activity durations of Problem 4, calculate the early start, early finish,
late start and late finish of all activities. Use the activity on arc diagram to investigate the project duration.
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Path diagram
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6 3 9 16
M
3 9
9 16
3 9
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F
-2 urs
B 7 21 24 24 26 26 27
16 21 24 26 27
18 Co
8 16 21 24 26
3 16 21 I J
A D11 G H
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
0 3
0 C 4
3
O rt
17 21
15 17
Pa E 5
3
5 9
5
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Path diagram
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6 3 9 16
M
3 9
9 16
3 9
0 e
F
-2 urs
B 7 21 24 24 26 26 27
16 21 24 26 27
18 Co
8 16 21 24 26
3 16 21 I J
A D11 G H
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
0 3
0 C 4
3
O rt
17 21
15 17
Pa E 5
3
5 9
5
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Slack times
Activity Slack time
A 0
B 0
C 12
D 5
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E 12
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F 0
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G 0
M
H 0
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I 0
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J 0
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BM RI
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M X
R of
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Pa
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Probabilistic time estimates
Optimistic time estimates is the length of time required under optimum

conditions
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at
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Pessimistic time estimates is the length of time required under worst
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conditions
18 Co
BM RI
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M X
Most likely time estimates is the most probable amount of time required
R of
O rt
Pa
Optimistic time estimate: to

Pessimistic time estimate: tp
Most likely time estimate: tm
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Probabilistic time estimates
Expected time of an activity:
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(𝑡𝑜 +4𝑡𝑚 + 𝑡𝑝 )
at
𝑡𝑒 =
M
6
0 e
-2 urs
18 Co
Expected duration of all activities in a path:
BM RI
-II L
M X
𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑝𝑎𝑡ℎ 𝑡𝑖𝑚𝑒 = 𝑡𝑒𝑖 ∀𝑖 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑖𝑒𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑝𝑎𝑡ℎ
R of
O rt
Pa 𝑖
The path with the longest expected duration is the critical path
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Probabilistic duration problem
Problem # 6.8
Consider that the activity durations provided by Gorachand were not strictly fixed and were contingent upon various
underlying factors as labour availability on each day, complications of the work and other unknown factors. However,
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you were able to get optimistic, pessimistic and most likely estimate of duration for each activity. Assuming a beta
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distribution of the durations, calculate the expected duration of each of the path based on the simplified version of
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calculating the expected time of an activity. Use the data from the following table:
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-2 urs
Activity Optimistic estimate of Most likely estimate Pessimistic estimate of
18 Co
duration of activity days of duration of activity duration of activity
days days
BM RI
-II L
A 3 4 5
M X
R of
B 6 7 8
O rt
C 2 5 Pa 14
D 8 10 15
E 4 8 9
F 7 8 9
G 5 9 10
H 3 11 16
I 2 3 7
J 1 2 3
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Probabilistic duration solution
Activity Optimistic estimate of duration of Most likely estimate of Pessimistic estimate of Expected time of activity
activity days duration of activity days duration of activity days
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A 3 4 5 4
M
B 6 7 8 7
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C 2 5 14 6
-2 urs
D 8 10 15 10.5
18 Co
E 4 8 9 7.5
BM RI
F 7 8 9 8
-II L
G 5 9 10 8.5
M X
H 3 11 16 10.5
R of
I 2 3 7 3.5
O rt
J 1 2
Pa 3 2
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Path diagram
• Most likely project length is 43.5 days
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er
at
3
M
0 e
F
-2 urs
B 8
7
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
10.5 8.5 10.5 3.5 2
-II L
4
M X
6
R of
C 7.5
O rt
PaE
5
Path Length (days)
1-2-3-4-6-7-8-9 4+7+8+8.5+10.5+3.5+2=43.5*
1-2-4-6-7-8-9 4+10.5+8.5+10.5+3.5+2=39
1-2-5-6-7-8-9 4+6+7.5+10.5+3.5+2=33.5
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Path diagram
• Most likely project length is 43.5 days
l
ia
er
at
3
M
0 e
F
-2 urs
B 8
7
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D G H I J
A
BM RI
1 2 4 6 7 8 9
10.5 8.5 10.5 3.5 2
-II L
4
M X
6
R of
C 7.5
O rt
PaE
5
Path Length (days)
1-2-3-4-6-7-8-9 4+7+8+8.5+10.5+3.5+2=43.5*
1-2-4-6-7-8-9 4+10.5+8.5+10.5+3.5+2=39
1-2-5-6-7-8-9 4+6+7.5+10.5+3.5+2=33.5
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probabilistic time estimates … Variance
Variance of an activity duration:
l
ia
2
𝑡𝑝 − 𝑡𝑜
er
2
𝜎 =
at
36
M
0 e
-2 urs
Variance of the path:
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BM RI
-II L
2
𝜎𝑝𝑎𝑡ℎ = 𝜎𝑖2 ∀𝑖 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑖𝑒𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑝𝑎𝑡ℎ
M X
R of
𝑖
O rt
Pa
The path with the highest variance is the most uncertain part of the project
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Problem # 6.8 … contd
Compute the variance of each activity
Compute the variance of each path
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at
M
0 e
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days days
BM RI
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A 3 4 5
M X
R of
B 6 7 8
O rt
C 2 5 Pa 14
D 8 10 15
E 4 8 9
F 7 8 9
G 5 9 10
H 3 11 16
I 2 3 7
J 1 2 3
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Activity Optimistic estimate of duration of Most likely estimate of Pessimistic estimate of Variance of activity
activity days duration of activity days duration of activity days
l
ia
er
at
A 3 4 5 1/9
M
B 6 7 8 1/9
0 e
C 2 5 14 4
-2 urs
D 8 10 15 49/36
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E 4 8 9 25/36
BM RI
F 7 8 9 1/9
-II L
G 5 9 10 25/36
M X
H 3 11 16 169/36
R of
I 2 3 7 25/36
O rt
J 1 2
Pa 3 1/9
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Path diagram
• Variance is highest for the shortest path

(per expected time)
l
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er
at
3
M
0 e
F
-2 urs
B 1/9
1/9
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D G H I J
A
BM RI
1 2 4 6 7 8 9
49/36 25/36 169/36 25/36 1/9
-II L
1/9
M X
4
R of
C 25/36
O rt
Pa E
5
Path Variance
1-2-3-4-6-7-8-9 235/36=6.53
1-2-4-6-7-8-9 276/36=7.67
1-2-5-6-7-8-9 371/36=10.31
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probabilistic time estimates … project completion
Standard normal distribution value:
l
𝑠𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑡𝑖𝑚𝑒 − 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑝𝑎𝑡ℎ 𝑑𝑢𝑟𝑎𝑡𝑖𝑜𝑛
ia
𝑧=
er
𝑝𝑎𝑡ℎ 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
at
M
0 e
-2 urs
18 Co
BM RI
-II L
M X
R of
O rt
Pa
The probability of a project path completion is determined through this
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Problem # 6.8 … contd
What is the probability that the project will be completed within the same time with these uncertain numbers as was
found out in problem 4
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er
at
M
0 e
-2 urs
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days days
BM RI
-II L
A 3 4 5
M X
R of
B 6 7 8
O rt
C 2 5 Pa 14
D 8 10 15
E 4 8 9
F 7 8 9
G 5 9 10
H 3 11 16
I 2 3 7
J 1 2 3
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Path Length Variance Standard Z values Probability
(days) deviation
1-2-3-4-6-7-8-9 43.5* 235/36=6.5 2.55 Z=(27-43.5)/2.55=-6.47 <0.0002
l
ia
3
er
at
1-2-4-6-7-8-9 39 276/36=7.6 2.77 Z=(27-39)/2.77=-4.33 <0.0002
M
7
0 e
-2 urs
1-2-5-6-7-8-9 33.5 371/36=10. 3.21 Z=(27-33.5)/3.21=-2.02 0.0217
18 Co
31
BM RI
-II L
M X
R of
O rt
Pa
• It will (almost) never be completed in the specified time
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(days) deviation
1-2-3-4-6-7-8-9 43.5* 235/36=6.5 2.55 Z=(50-43.5)/2.55=2.55 0.9946
l
ia
3
er
at
1-2-4-6-7-8-9 39 276/36=7.6 2.77 Z=(50-39)/2.77=3.97 >0.9998
M
7
0 e
-2 urs
1-2-5-6-7-8-9 33.5 371/36=10. 3.21 Z=(27-33.5)/3.21=5.14 >0.9998
18 Co
31
BM RI
-II L
M X
Specified time is 50 days
R of
O rt
Pa
• It will (almost) always be completed in the specified

time
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Independent path probability calculation
l
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er
2-4-6
at
M
B 2-3-5
0 e
C
-2 urs
1-3-4
A
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3-4-5 3-5-7 5-7-9
BM RI
D
-II L
E F
M X
R of
2-3-6 3-4-6
O rt
G Pa I
4-6-8
H
What is the probability of completion of the project in 15 days

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(days) deviation
A-B-C 10 0.94 0.97 Z=(15-10)/0.97=5.15 >0.9998
l
ia
er
D-E-F 16 1.00 1.00 Z=(15-16)/1.00=-1.00 0.1587
at
G-H-I 13.5 1.14 1.07 Z=(15-13.5)/1.07=1.40 0.9192
M
0 e
-2 urs
18 Co
BM RI
See simulationbook.xlsx
-II L
M X
and simulation.xlsx
Specified time is 15 days
R of
O rt
Pa
• Project completion probability (assuming independent
paths) = 1.00 X 0.1587 X 0.9192 = 0.1459
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Project crashing
Crashing is shortening activity durations
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at
M
0 e
Procedure for Crashing:
-2 urs
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1. Crash the project one period at a time
BM RI
2. Crash the least expensive activity that is on critical path
-II L
M X
R of
3. When there are multiple critical paths, find the sum of least expensive
O rt
Pa
activity on each critical path. If critical paths share common activities, then
compare crashing the common activity with the sum for separate activities
4. Crashing is feasible until project savings are less in comparison to activity
crashing cost
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Problem # 6.9 (problem set 2)
Consider the problem 4 from problem set 1. The crashing cost and time for the activities re given below
The cost saving by crashing each day in the project is Rs. 600
l
ia
er
What should be the optimum crashing time
at
M
0 e
-2 urs
18 Co
Activity Normal Time Most Crash Time Cost for crashing per day
BM RI
-II L
M X
B 6 3 Rs. 200
R of
D 8 2 Rs. 400
O rt
E 4 2 Rs. 100
Pa
F 7 2 Rs. 300
G 5 3 Rs. 500
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70
Path diagram
l
ia
er
at
3
M
0 e
F
-2 urs
B 7
6
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
5
1-2-3-4-6-7-8-9 3+6+7+5+3+2+1=27* 27-27=0
1-2-4-6-7-8-9 3+8+5+3+2+1=22 27-22=5
1-2-5-6-7-8-9 3+2+4+3+2+1=15 27-15=12
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Path diagram
1-2-3-4-6-7-8-9 3+6+7+5+3+2+1=27* 27-27=0 • Project length is 27 days
1-2-4-6-7-8-9 3+8+5+3+2+1=22 27-22=5
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 27-15=12
ia
er
at
3
M
0 e
F
-2 urs
B 7
6
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
5 Activity Normal Time Most Crash Time Cost for crashing per day
B 6 3 Rs. 200
D 8 2 Rs. 400
E 4 2 Rs. 100
F 7 2 Rs. 300
G 5 3 Rs. 500
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72
Path diagram
Activity Crash Cost
1-2-3-4-6-7-8-9 3+5+7+5+3+2+1=26* 26-26=0
1-2-4-6-7-8-9 3+8+5+3+2+1=22 26-22=4 B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 26-15=11
ia
er
at
3
M
0 e
F
-2 urs
B 7
5
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
• Project length is 26 days E 4 2 Rs. 100
F 7 2 Rs. 300
G 5 3 Rs. 500
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73
Path diagram
Path Length (weeks) Slack Activity Crash Cost
1-2-3-4-6-7-8-9 3+4+7+5+3+2+1=25* 25-25=0
B 200
1-2-4-6-7-8-9 3+8+5+3+2+1=22 25-22=3
B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 25-15=10
ia
er
at
3
M
0 e
F
-2 urs
B 7
4
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
Shounak Basak
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74
Path diagram
1-2-3-4-6-7-8-9 3+3+7+5+3+2+1=24* 24-24=0
B 200
1-2-4-6-7-8-9 3+8+5+3+2+1=22 24-22=2
B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 24-15=9
ia
er
B 200
at
3
M
0 e
F
-2 urs
B 7
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
Shounak Basak
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75
Path diagram
1-2-3-4-6-7-8-9 3+3+6+5+3+2+1=23* 23-23=0
B 200
1-2-4-6-7-8-9 3+8+5+3+2+1=22 23-22=1
B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 23-15=8
ia
er
B 200
at
3 F 300
M
0 e
F
-2 urs
B 6
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
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76
Path diagram
1-2-3-4-6-7-8-9 3+3+5+5+3+2+1=22* 22-22=0
B 200
1-2-4-6-7-8-9 3+8+5+3+2+1=22 22-22=0
B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 22-15=7
ia
er
B 200
at
3 F 300
M
0 e
F F 300
-2 urs
B 5
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 5 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
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Path diagram
1-2-3-4-6-7-8-9 3+3+5+4+3+2+1=21* 21-21=0 B 200
1-2-4-6-7-8-9 3+8+4+3+2+1=21 21-21=0 B 200

B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 21-15=6
ia
er
F 300
at
3 F 300
M
G 500
0 e
F
-2 urs
B 5
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 4 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
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Path diagram
1-2-3-4-6-7-8-9 3+3+5+3+3+2+1=20* 20-20=0 B 200
1-2-4-6-7-8-9 3+8+3+3+2+1=20 20-20=0 B 200

B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 20-15=5
ia
er
F 300
at
3 F 300
M
G 500
0 e
F
-2 urs
B 5 G 500
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 3 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
D 8 2 Rs. 400
F 7 2 Rs. 300
G 5 3 Rs. 500
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79
Path diagram??
1-2-3-4-6-7-8-9 3+3+5+3+3+2+1=20* 20-20=0 B 200
1-2-4-6-7-8-9 3+8+3+3+2+1=20 20-20=0 B 200

B 200
l
1-2-5-6-7-8-9 3+2+4+3+2+1=15 20-15=6
ia
er
F 300
at
3 F 300
M
G 500
0 e
F
-2 urs
B 5 G 500
3
18 Co
D G H I J
A
BM RI
1 2 4 6 7 8 9
8 3 3 2 1
-II L
3
M X
2
R of
C 4
O rt
Pa E
B 6 3 Rs. 200
• Project length is 20 days D

E
8
4
2
2
Rs. 400
Rs. 100
• Rs. 2200 extra cost F 7 2 Rs. 300
G 5 3 Rs. 500
Shounak Basak
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80
References
Material for the Lecture has been sourced from: Selected References:
Russell, R. S., & Taylor-Iii, B. W. (2008). Operations management along the supply https://www.cellphones.ca/cell-phones/p/what-is-sim-card-10066/
chain. John Wiley & Sons. https://www.indiatvnews.com/news/india-indian-navy-aims-to-induct-first-indigenous-aircraft-
Stevenson, W. (2014). Operations management. McGraw-Hill Higher Education. carrier-by-2018-348222
l
ia
Chase, R. B., Jacobs, F. R., & Shankar, R. (2010). Operations and supply chain https://www.indiatvnews.com/science/news-isro-makes-history-as-its-mars-orbiter-mission-
er
management. Mcgraw Hill completes-four-years-465256
at
Mahadevan, B. (2015). Operations management: Theory and practice. Pearson https://www.financialexpress.com/infrastructure/railways/bogibeel-bridge-longest-rail-road-indian-
M
Education India railways-opening-date-facts-features/1162677/
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2010). Operations management: https://www.financialexpress.com/infrastructure/railways/indian-railways-creates-history-converts-
0 e
processes and supply chains. Upper Saddle River, New Jersey: Pearson diesel-loco-to-make-in-india-10000-hp-electric-locomotive/1086123/
-2 urs
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., & Shankar, R. (2008). Designing and
18 Co
managing the supply chain: concepts, strategies and case studies. Tata McGraw-Hill
Education
Chopra, S., & Meindl, P. (2007). Supply chain management. Strategy, planning &
BM RI
operation. In Das summa summarum des management (pp. 265-275). Gabler
-II L
Shah, J. (2009). Supply chain management: text and cases. Pearson Education India
M X
R of
O rt
Pa
Shounak Basak
07-02-2019
81

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Session # 6

Project is unique, one-time operation designed to accomplish a specific set of

Organization breakdown structure identifies an appropriate organization structure to execute the

WBS 1-2-1 CBS 1-2-1

WBS 2-3 CBS 2-3

Network diagram is the diagram of project activities that shows

Fill up the following table based on your assessment of the problem.

Path is a sequence of activities that leads from starting node to the

Slack is the allowable slippage for a path

• Project length is 27 days

• Project length is 21.5 days

PERT is program evaluation and review technique (probabilistic

• Project length is 27 days

• Project length is 27 days

Optimistic time estimates is the length of time required under optimum

Optimistic time estimate: to

Expected time of an activity:

• Most likely project length is 43.5 days

• Most likely project length is 43.5 days

Variance of an activity duration:

• Variance is highest for the shortest path

Standard normal distribution value:

The probability of a project path completion is determined through this

• It will (almost) never be completed in the specified time

• It will (almost) always be completed in the specified

What is the probability of completion of the project in 15 days

Crashing is shortening activity durations

• Project length is 27 days

1-2-3-4-6-7-8-9 3+3+5+4+3+2+1=21* 21-21=0 B 200

1-2-4-6-7-8-9 3+8+4+3+2+1=21 21-21=0 B 200

1-2-3-4-6-7-8-9 3+3+5+3+3+2+1=20* 20-20=0 B 200

1-2-4-6-7-8-9 3+8+3+3+2+1=20 20-20=0 B 200

1-2-3-4-6-7-8-9 3+3+5+3+3+2+1=20* 20-20=0 B 200

1-2-4-6-7-8-9 3+8+3+3+2+1=20 20-20=0 B 200

• Project length is 20 days D

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