DEMETERIO, JASMIN C.

BSBA FM IV-12

MODULE 3-4 ACTIVITY

OPERATION MANAGEMENT WITH TQM

MODULE 3 ACTIVITY
OPERATION MANAGEMENT

1. Cite at least 2 example situation in which project management is needed.

Let us first understand what project management entails. Project management is

defined as the use of skills, expertise, knowledge, methodologies, and processes to achieve
a project's goals. It is a collection of project management knowledge that includes planning,
managing, and evaluating projects. It is responsible for ensuring that the project is
completed. An example would be any project that must be completed on schedule with
adequate management to ensure that the quality does not suffer.

A specific example would be the construction of a new bridge. To get the project
completed in time most important point is selection of right contractor for executing the work,
pragmatic time schedule and efficient management of the contract. The management
should be adequately informed about the growth of activities in a bridge project in advance.
All the pros and cons of the likely problems in the foreseeable future must be examined.

Another example, would be a IT project like web development or software

development that require more than the typical project management tools and skills to
complete, since they are often very wide in scope.

2. Explain the purpose of project organization.

The purpose of a project organization is to assist the organization in achieving its
goals and objectives, as well as to assist individuals in completing their tasks effectively and
efficiently. A project organization assigns job tasks and responsibilities to workers and aids
management in coordinating and controlling operations. The process reduces disruptions,
overlaps, conflicts, uncertainty, and confusion among team members before a project even
begins, as well as leads to maximum productivity among team members involved in a
project. Creating and communicating a project organization is one tool to help connect
strategy and vision across those involved in the project.
 3. What are the 3 phases involved in management of a large project?

Planning, scheduling, and controlling are the three phases involved in the
management of large projects.
The Planning phase’s aims are to ensure that all essential activities are completed
in the right sequence and on schedule; that the project stays within budget; that the project
fulfills its quality goals; and that the personnel allocated to the project receive motivation
and guidance. During the Scheduling phase, all project tasks are assigned sequences and
time allotments. Monitoring/Controlling is the final phase of Project Management, in which
successive tasks in the project plan are completed on schedule so that the project can
progress toward completion.

ACTIVITY 3.1 PROJECT MANAGEMENT CASE STUDY

LAKES AUTOMOTIVE

Lakes Automotive is a Detroit-based tier-one supplier to the auto industry. Between 1995
and 1999, Lakes Automotive installed a project management methodology based on nine life-
cycle phases. All 60,000 employees worldwide accepted the methodology and used it.
Management was pleased with the results. Also, Lakes Automotive’s customer base was
pleased with the methodology and provided Lakes Automotive with quality award recognition
that everyone believed was attributed to how well the project management methodology was
executed. In February 2000, Lakes Automotive decided to offer additional products to its
customers. Lakes Automotive bought out another tier-one supplier, Pelex Automotive Products
(PAP). PAP also had a good project management reputation and also provided quality products.
Many of its products were similar to those provided by Lakes Automotive.
 Because the employees from both companies would be working together closely, a singular
project management methodology would be required that would be acceptable to both
companies. PAP had a good methodology based on five life-cycle phases. Both methodologies
had advantages and disadvantages, and both were well liked by their customers.

QUESTIONS:

1. How do companies combine methodologies?

The Lakes Automotive Company can combine its methodologies in different ways to get
the advantages of both the methodologies. Prior to that, a testing step should be conducted to
see whether this method is effective. To begin, they may do research on the most effective
approaches that will meet the company's goals, as well as choose which part of the process you
want to test. The second step is to analyze the methodologies of the two firms and determine
which should be considered. To minimize misunderstanding or objections from other workers,
the third step is to choose which employees will test the new system. They should be the ones
who can share their knowledge and favorably inspire others to try new method. Finally, is to
collect feedback from the teams, ranging from senior management to employees.

2. How do you get employees to change work habits that have proven to be successful?
Lakes Automotive used a nine-life-cycle-phase project management methodology,
whereas Pelex Automotive Products used a five-life-cycle-phase project management
methodology. The project management methodologies of both companies have proven to be
successful. To change work habits that have proven to be successful, we have to introduce the
changes slowly. If we tell the employees about pros and cons of the methodologies that have
proven to be successful so the employees can get change work habits. The pros of this change
would be less confusing because the employee have necessary knowledge about the new
methodology. The methodology will also aid in the company's productivity improvement.
Employees may change their work habits for the company's advantage if they are trained and
well informed about why changes are being made. I believe that as long as it helps with their
productivity and it’s beneficial for them, employees can change their work habits for the benefits
of company.
3. What influence should a customer have in redesigning a methodology that has proven
to be successful?
The customer had a lot of influence in redesigning a methodology that has proven to
be successful because the company’s major objective is to satisfy the customers. Customers
play an essential role in generating revenue for a business. We all know that a company's
primary focus is on the satisfaction and experience of its customers. In this way, we should
consider the customer's feedback, review or opinion before redesigning, regardless of
whether they like it or not. What they appreciate about the existing methodology and what
they don't like about the existing methodology.
Additionally, an increase in the number of customers, an increase in word-of-mouth
recommendations, and an increase in favorable reviews may all assist a company decide
whether or not the new process is successful. Customers can also have an effect on how a
combined technique is adjusted if it has been proven to be successful.

4. What if the customers want the existing methodologies left intact?

If, the customers want to leave intact the existing methodologies, the company should
examine all of the decisions that were made in the existing methodologies. Then a proper review
of these methods should be done and then some decisions should be made to remove the
pitfalls of the methodology. If the customers of both companies, Lakes Automotive and Pelex
Automotive Products, desire to implement the existing methodology, the board must agree on
a standard methodology to satisfy both parties. Therefore, the combination of methodologies
becomes a vital option.

5. What if the customers are unhappy with the new combined methodology?
If the customers are unhappy with the new combined technology, Luke Automotive and
Pelex Automotive Products management must listen and determine which part of the
methodology they are unhappy with. Once that is determined, the management can determine
whether the company's methods' features and benefits are sufficient to meet their wants and
needs. If necessary, inform the management to examine or revisit the methodologies in order
to ensure that the majority of customers are satisfied and that service continues to improve. And
explain the benefits of the new methodology to consumers, as well as customer’s suggestions
and opinions into the existing one.
MODULE 4 ACTIVITY

1. What are some questions that can be answered by PERT and CPM?

PERT (Program Evaluation and Review Technique) and CPM (Critical Path
Measurement) are two methods of estimating timing for a project. PERT is defined as “a
project management technique that employs three time estimates for each activity”. While,
CPM is defined as “a project management technique that uses only one time factor per
activity”. The fundamental goal of both systems is to assist managers in scheduling,
monitoring, and controlling big and complicated projects. These methods answer a variety
of questions for operations managers.

Below are a few of the questions that can be answered by PERT and CPM:

• When will the project be finished?

• What are the project's essential activities or tasks?

• What are the actions that are not critical?

• Is the project on time, behind time, or ahead of time?

• Do you have adequate resources to complete the job on time?

• What is the likelihood that the project will be finished by a certain date?

• Is the amount spent equal to, less than, or more than the budgeted amount?

• If the project must be completed in a shorter period of time, what is the most cost-
effective approach to do so?

Answering questions, such as the ones listed above, is paramount to ensure the on-
time completion of projects. Having a set project completion date is the primary driver in
productivity.

2. What is the significance of Critical Path?

The significance of Critical Path is used to identify the most important tasks and
ensure your project doesn't fall behind schedule. It's designed to assist each of these
behind-schedule projects get back on track by estimating job length.

3. What is the use of Gantt Charts in Project Management?

For project planning and scheduling, Gantt charts are important tool. They assist
you with determining how long a project should take, determining the resources required,
and planning the order in which activities will be completed. When there is a big team and
 numerous stakeholders involved, this might help keep projects on schedule. As it's in a bar
chart format it is possible to check on progress with a quick glance. You can easily see:
- a visual display of the whole project,
- timelines and deadlines of all tasks,
- relationships and dependencies between the various activities,
- project phases

Project management solutions that integrate Gantt charts give managers visibility into
team workloads, as well as current and future availability, which allows for more accurate
scheduling.

4. How variance of the total project computed in PERT?

Project Estimated Time are used to calculate individual project variance in creating
PERT. Considering PERT deals with an uncertain time period, it will involve finding
Optimistic Time, Most Likely Time and Pessimistic Time. Considering we are now working
with 3 time period to arrive at estimated time. We need to know what the variance of the
time period. Variance is the difference between optimistic and pessimistic time from the
mean time period, and divided by 6, take the square root of expected project duration. These
can then be used to compute an overall project variance, add up the variances of the
activities under critical Path. So, this is the total variation in project completion time that can
reasonably be expected (with a normal distribution) in PERT.

5. Describe the meaning of slack and how it can be determined.

Slack is the length of time a job can lapse before colliding with another task. An
activity's slack can be computed as the difference between its latest and earliest start time,
or as the gap between its latest and earliest completion time. A project can easily be delayed
if the spare time is not known.

MODULE 4 APPLICATION

1. Mayor Isko Moreno has decided to run for Presidency on the upcoming election on May
2022. He views his 8 month campaign for office as a major project and wishes to create a
work breakdown structure (WBS) to help control the detailed scheduling. So far he has
developed the following activity below. Help Mr. Moreno by providing details where the
blank lines appear. Are there any other major (level 2) activities to create? If so add an ID
No. 1.6 and insert them.
Answer:

Level Level ID No. Activity

1 1.0 Develop political campaign
2 1.1 Fund-raising plan
3 1.1.1 Set initials goals for fundraising
3 1.1.2 Set strategy including identifying sources and solicitation
3 1.1.3 Raise the necessary funds
2 1.2 Develop a position on major issues
3 1.2.1 Designate the voter’s concern
3 1.2.2 Examine competitor’s in voting record
3 1.2.3 Establish the possible positions issues
2 1.3 Staffing for campaign
3 1.3.1 Hire campaign manager and political advisor
3 1.3.2 Get volunteers
3 1.3.3 Hired staff
3 1.3.4 Hire media consultants for advertising
2 1.4 Paperwork compliance for candidacy
3 1.4.1 Identify filing deadlines
3 1.4.2 File for candidacy
2 1.5 Ethical plan/issues
3 1.51 Train staff for audit planning
 2. Grace Poe is developing a program in leadership training for middle-level managers.
Grace has listed a number of activities that must be completed before a training
program of this nature could be conducted. The activities, immediate predecessors,
and times appear in the accompanying table.

ACTIVIT IMMEDIATE TIME

Y PREDECCESSORS (DAYS)
A - 2

B - 5

C - 1

D B 10

E A,D 3

F C 6

G E,F 8

1. Develop an AON network for this problem

A 0 2
2 13 15

B 0 5 D 5 15 E 15 18
START 5 0 5 10 5 15 3 15 18
G 18 26
8 18 26 FINISH
C 0 1 F 1 7
1 11 12 6 12 18

2. What is the critical path?

The critical path for the leadership training program development project are B-D-E-G,
where:
B=0–0=0
D=5–5=0
E = 15 – 15 = 0
G = 18 – 18 = 0

3. What is the total project completion time?

The project length for the leadership training program development project is 26 days.
4. What is the slack time for each individual activity?

Slack time for each of the activities:

Slack = LS - ES or LF – EF

A = 13 – 0 = 13 days
B=0–0=0
C = 11 – 0 = 11 days
D=5–5=0
E = 15 – 15 = 0
F = 12 – 1 = 11 days
G = 18 – 18 = 0

Noted: Slack will be always 0 days for the activities on the critical path, hence the slack
for activities for B-D-E-G are 0.