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Operations Management With TQM PDF Document 25 pages
Chapter 1 Operations
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Download now 1 of 165  Search document  Introduction To Production

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MODULE 1 Document 21 pages
Introduction to Production
CHAPTER 1 and Operations…
Joginder Grewal
Operations Management Concepts
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Chapter Outline
1 Learning Objectives
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2. TOPICS:
1.1 INTRODUCTION Production and Operations
1.2 HISTORICAL DEVELOPMENT Management
1.3 CONCEPT OF PRODUCTION
1.4 PRODUCTION SYSTEM Gaurav218
1.5 CLASSIFICATION PRODUCTION SYSTEM 100% (4)
1.6 PRODUCTION MANAGEMENT
1.7 OPERATIONS SYSTEM
1.8 OPERATIONS MANAGEMENT
1.9 OPERATIONS MANAGEMENT OBJECTIVES
Document 21 pages
1.10 THE STRATEGIC ROLES OF OPERATIONS
1.11 THE STRATEGIC PLANNING MK Introduction of
1.12 THE TREND: INFORMATION AND NON MANUFACTURING Operation Management
SYSTEMS
1.13 PRODUCTIVITY Prof. Manoj Kumar
1.14 FACTORS AFFECTING PRODUCTIVITY No ratings yet
1.15 SCOPE OF OPERATIONS MANAGEMENNT
3 Let’s Sum Up
Document 52 pages
Learning Objectives
Ibrahim Hussain Main
Define different operations management concepts Project
Discuss historical development and the importance to business and organizations,
Determine the effectiveness to the organization. SHOAIB MEMON
Explain the concept of production, system and management No ratings yet
Describe the different operations Management objectives and strategic roles in
operations.’
Explain the different information and non manufacturing systems
Determine the concept of productivity
Document 43 pages
Define the scope of operations management
1 Introduction To
Production and Operation…
1.1 Introduction JyotiGhanchi
Operation is that part of as organization, which is concerned with the No ratings yet
transformation of a range of inputs into the required output (services) having the
requisite quality level. Management is the process, which combines and transforms
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Production and Operation

Management
Rusdi Adam
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Unit 1 Operations
Management
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Operations Management:
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ar
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Om Chapter One
BETTY
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Research On POM
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various resources used in the operations subsystem of the organization into value added yza gunida
services in a controlled manner as per the OR
policies of the organization.
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The set of interrelated this page after an ad which are involved in
activities,
manufacturing certain products, is called as production management. If the same
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concept is extended to services management, then the corresponding set of management
activities is called as operations management.
7
What isDevelopment
1.2 Historical Scribd? Documents
The traditional view of manufacturing management began in eighteenth century Document 48 pages
when Adam Smith recognized the economic benefits of specialization of labor. He
recommended breaking of jobs down into subtasks and recognizes workers to An Introduction to
specialized tasks in which they would become highly skilled and efficient. In the early Production and Operation…
twentieth century, F.W. Taylor implemented Smith’s theories and developed scientific Esha Bafna
management. From then till 1930, many techniques were developed prevailing the
traditional view. No ratings yet
Production Management becomes the acceptable term from 1930s to 1950s. As
F.W. Taylor’s works become more widely known, managers developed techniques that
focused on economic efficiency in manufacturing. Workers were studied in great detail
to eliminate wasteful efforts and achieve greater efficiency. At the same time, Document 53 pages
psychologists, socialists and other social scientists began to study people and human
behavior in the working environment.
Production Management
With the 1970s emerge two distinct changes in our views. The most obvious of Report
these, reflected in the new name Operations Management was a shift in the service and threephasefault
manufacturing sectors of the economy. As service sector became more prominent, the
change from ‘production’ to ‘operations’ emphasized the broadening of our field to 60% (5)
service organizations.
Historical summary of operations management

Document 9 pages
Date Contr ibuti on Contr ibuto r
1776 Specialization o f labour in manufacturing Adam Smith Through Chemical or
1799 Interchangeable p arts, cost accounting Eli Whitney & others
1832 Division of labourby skill; assignment of jobsby Skill; basicsof Charles Babbage Mechanical Process To…
time study
1900 Scientificmanagement time study and work study Developed; Frederick W.Taylor Mohit Gupta
dividing planning and doing of work
1900
1901
Motion of study of jobs
Scheduling techniques foremployees, machines Jobsin
Frank B. Gilbreth
H enry L. Gantt
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manufacturing
1915 Economic lot sizes for inventory control F.W. Harris
1927 Human relations; the Hawthorne studies Elton Mayo
1931 Statistical inference applied to product quality: quality control W.A. Shewart
charts
1935 Statistical Sampling applied to quality control: inspection H.F.Dodge & H.G.Roming
Document 28 pages
sampling plans
1 94 0
1946
Op era ti ons re se arch a pp li ca ti on s i n w orl d w ar II
Digital Computer
P.M.Bl acke r & o th ers
John Mauchlly and J.P.Eckert
Unit 1 - Production
1947
1950
Linear Programming
Mathematical programming, on-linear and stochastic processes
G.B.Dantzig, Williams & others
A . C h ar n e s , W . W . C o o p er & o t he r s
Managment
V Raj
1951 Commercial digital computer: large-scale computations available Sperry Univac
1960 Organisational behaviour: continued study of people at work L.Cummings, L.Porter
1970 Integrating operations into overall strategy and policy Computer
applications to manufacturing, scheduling, and control, Material W.Skinner J.Orlicky & G. Wright No ratings yet
Requirement Planning (MRP)
1980 Quality and productivity applications from Japan: robotics, W.E. Deming & J.Juran
CAD-CAM
Document 72 pages
Manonmaniam Sundaranar
University: B.B.A. - Iii Year
Jeevanandam…
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Module 1: Introduction To
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OR
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Production function is ‘the partthis page
of an after an adwhich is concerned with the
organization,
transformation of a range of inputs into the required outputs (products) having the
requisite quality level’. Document 7 pages
Production is defined as ‘the step-by-step conversion of one form of material into
7 Check and Print
another form through chemical or mechanical process to create or enhance the utility
of the product to the user’ ann
Edwood Buffa defines production as ‘a process by which goods and services are No ratings yet
created’. Some examples of production are: manufacturing custom-made products like,
boilers with a specific capacity, constructing flats, some structural fabrication works
for selected customers, etc.,and manufacturing standardized products like, car, bus,
motor cycle, radio, television, etc.
1.4 Production System Document 7 pages
Nature, Scope, Importance

The production system is ‘that part of an organization, which produces products of
an organization. It is that activity whereby resources, flowing within a defined system, and History of Production…
are combined and transformed in a controlled manner to add value in accordance with Navya Dantuluri
the policies communicated by management’.
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Document 74 pages
Production and Operations

Management Used in…
Sarah Real Rodriguez
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1.5 Classification of production System

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Production systems can be classified as Job-shop, Batch, Mass and Continuous
production systems. Omct 1
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Production N Operations
Introduction
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CBMEC 1 BSOA Lesson 1

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Production and Operation
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Job-Shop Production
OR
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Job-shop production are characterized after an ad one or few quantity of
by manufacturing
products designed and produced as per the specification of customers within prefixed
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time and cost.
Document 107 pages
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 High variety of products and low volume. Unit I: Introduction:
 What is Scribd?
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general purpose machines and facilities.
Definition, Objectives,…
 Highly skilled operators
 Large inventory of materials, tools, parts. chirag
 Detailed planning for sequencing the requirements of each product. No ratings yet
Advantages
1. Because of general purpose machines and facilities variety of products can be
produced.
Document 107 pages
2. Operators will become more skilled and competent, as each job gives them learning
opportunities. Introduction: Definition,
3. Full potential of operators can be utilized. Objectives, Scope and
4. Opportunity exists for Creative methods and innovative ideas.
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Batch Production No ratings yet
It is characterized by the manufacture of limited number of products produced at

regular intervals and stocked awaiting sales.
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 Shorter production runs.
 Plant and machinery are flexible. Production and Total
 Plant and machinery set up is used for the production of item in a batch. Quality Management
 Manufacturing lead-time and cost are lower ..
Falguni Mathews
Advantages No ratings yet
1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
Document 177 pages
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators. Production Planning &
Control
Mass Production
Tuyen Nguyen
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Manufacture of discrete parts or assemblies using a continuous process are called
Mass Production. This production system is justified by very large volume of
production.
Document 68 pages
 Standardization of product and process sequence.
 Machines having higher production capacities and output rates. Operations Management:
 Large volume of products. Department of Logistics a…
 Shorter cycle time of production.
 Lower in process inventory. assefa hora
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Chapter 1 - Introduction To
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 Perfectly balanced production lines.
 Flow of materials, components andORparts is continuous. ADL 14 - Production and
 Production planningUnlock this page
and control after an ad
is easy. Operation Management…
 Material handling can be completely automatic
apandey_43
Advantages
7 No ratings yet
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
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5. Manufacturing cost per unit is low.
Module 1 Introduction To
Continuous Production Production and Operation…
Production facilities are arranged as per the sequence of production operations Jupiter Whiteside
from the first operations to the finished product. The items are made to flow through No ratings yet
the sequence of operations through material handling devices such as conveyors,
transfer devices, etc.
 Dedicated plant and equipment with zero flexibility.
 Material handling is fully automated.
Document 19 pages
 Process follows a predetermined sequence of operations.
 Component materials cannot be readily identified with final product. 2015 Om
 Planning and scheduling is a routine action. Nasr Mohammed
Advantages No ratings yet

1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
Document 48 pages
1.6 Production Management
Unit 1 1. What Is Operation
Production management is ‘a process of planning, organizing, directing and Management? Discuss Abo…
controlling the activities of the production function. It combines and transforms various
resources used in the production subsystem of the organization into value added product Sudheer Naidu
in a controlled manner as per the policies of the organization’. No ratings yet
E.S.Buffa defines production management as follows:
‘Production management deals with decision-making related to production

Document 17 pages
processes so that the resulting goods or services are produced according to
specifications, in the amount and by the schedule demanded and out of minimum cost’. Unit 1 Introduction (POM)
Pari
Objectives of production Management
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1. Right Quality
2. Right Quantity
3. Right Time
4. Right Manufacturing Cost
1.7 Operations System
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Introduction of Production
Planning and Controlling I…
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Operations system converts inputs in OR
order to provide outputs, which are required
by a customer. Unlock this page after an ad No ratings yet
It converts physical resources into outputs, the function of which is to satisfy
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customer wants.
(a) Manufacturing Operations
7
(b) Service Operations Document 111 pages
Everett E. Adam & Ronald J. Ebert defines as ‘An operating system is the part of Om Unit 1
an organization that produces the organization’s physical goods and services’. Akanksha Jha
Ray Wild defines operations system as ‘a configuration of resources combined for No ratings yet
the provision of goods or services’.
A departmental store's has an input like land upon which the building is located,
labor as a stock clerk, capital in the form of building, equipment and merchandise,
management skills in the form of the stores manager. Output will be serviced customer
with desired merchandise. Random fluctuations will be from external or internal
sources, monitored through a feedback system. Document 16 pages
POM-3.3-Operations
Management and Strategy
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Yesh
mehadi delile
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Operations system for department stores
A Framework of Managing Operations
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M.Venkateswara Rao 2…
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Prepared By: Mr. Alipio John

Planning W. Alcantara, MDA 19
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History of Operation
Managt
Vaibhav Kannav
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The activity that establishes a course of action and guide future decision-making.
OR
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Organizing Unlock this page after an ad Production & Operations
They determine the activities required to achieve the goals and assign authority and
responsibility for carrying them out. Management (OM)
7 mayan_treasure9625
Controlling
The activities that assure the actual performance in accordance with planned No ratings yet
performance.
1.8 Operations Management Document 20 pages
Joseph G .Monks defines Operations Management as the process whereby BBA501 B1849 SLM Unit 01
resources, flowing within a defined system, are combined and transformed by a Safa Shafiq
controlled manner to add value in accordance with policies communicated by No ratings yet
management.
The definition of the operations Management contains following keywords:
Resources
Resources are the human, material and capital inputs to the production process. Document 7 pages
Human resources are the key assets of an organization.
1production & Operations
Systems\ Intro 1
Systems are the arrangement of components designed to achieve objectives Riya
according to the plan. The business systems are subsystem of large social systems.
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Transformation and Value Adding Activities
The objective of combining resources under controlled conditions is to transform
them into goods and services having a higher value than the original inputs. The
transformation process applied will be in the form of technology to the inputs Document 51 pages
Schematic model for operations/production system

Lec - 1 Introduction
Ibn Al-Mutawkel
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An Overview of Production
Planning and Control:…
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1,9 Operations Management Objectives
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Unit 1 - Introduction To
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1 AT72.02.POM Introduction
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1. CUSTOME R SE RVI CE OR
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The first objective of operating systems is to utilize resources for the satisfaction
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of customer wants. Therefore, customer service is a key objective of operations
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management. The operating system must provide something to a specification, which
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can satisfy the customer in terms of cost and timing. Thus, providing the ‘right thing at Operations Management -
Whatatis the
a right price Scribd?
right time’ Documents
can satisfy primary objective.
with Problems and…
Rahul Basu
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Principal Principal customer wants
function Primary considerations Other considerations
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Maintenance and
Manufacture Goods of a given, requested Cost, i.e. purchase price or cost of obtaining Operational Reliability: 2…
or acceptable specification goods. Timing, i.e. delivery delay from order or
Donald H. Nyman
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request to receipt of goods.
Transport Management of a given, Cost, i.e. cost of movements. Timing, i.e. From Everand
requested or acceptable 1. Duration or time to move.

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specification 2. Wait or delay from requesting to its
 4/5 (1)
commencement.
Supply Goods of a given, requested or Cost, i.e. purchase price or cost of obtaining
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acceptable specification goods. Timing, i.e. delivery delay from order or Practical Guide To
Production Planning &…
request to receipt of goods.
Kerwin Mathew
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Service Treatment of a given, requested Cost, i.e. cost of movements. Timing, i.e.
or acceptable specification 1. Duration or time required for treatment.

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The High Performance HMI

2. Wait or delay from requesting treatment to its
Handbook: A…
commencement. Bill Hollifield
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Production Engineering:
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Another major objective of operating systems is to utilize resources for7 the
satisfaction of customer wants effectively. Customer service must be provided with the
achievement of effective operations through efficient use of resources. Inefficient use
of resources or inadequate customer service leads to commercial failure of an operating
system. From Everand
Practical Batch Process

Management
Mike Barker
The customer service objective The resource utilizations objective
 1/5 (1)
Document 7 pages
i.e. to provide agreed/adequate levels of customer i.e. to achieve adequate levels of resource PMLS 1 Topic 11 Trans
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service (and hence customer satisfaction) by providing utilizations (or productivity) e.g. to achieve
goods or services with the right specification, at the right agreed levels of utilizations of materials, Document 32 pages
PMTP1 Notes
Kae Abegail Garcia
cost and at the right time. machines and labour. No ratings yet
1.10 Strategic Role of Operations

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(a) A STR ATE GI C PE RSPE CTI VE PMLS 1 Topic 8.11 Trans
Overall organizational strategy must be developed:
 Quality (product performance).
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 Cost efficiency (low product price). 100% (1)
 Dependability (reliable, timely delivery of orders to customers).
 Flexibility (responding rapidly with new products or changes in volume).
(b) OPERATI ONS OBJECTI VE S

Product/service characteristics.
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PMLS 1 Topic 9 Trans

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Process characteristics.
OR No ratings yet
Product/service quality.
Efficiency Unlock this page after an ad
Effective employee relations and cost control of labor.
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Cost control of material.
Cost control in facility utilization.
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Customer service (schedule) Document 4 pages
What Producing
is Scribd? quantities
Documents
to meet expected demand.
Meeting the required delivery date for goods or services. Analyzing the Impact of
Adaptability for future survival. Economic Systems and…
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(c) OPERATI ONS ALTER NATI VE S AND TRADEOF FS
The operations sub-goals can be attained through the decisions that are made in the No ratings yet
various operations areas. Once a decision is made, it leads to many choices.
Where should facilities be located?
How large should they be?
What degree of automation should be used? Document 2 pages
How skilled must labor be to operate the automated equipment?
Will the product be produced on site? Ged 104 Essay Trix
How do these decisions impact quality, efficiency, schedule (customer Kae Abegail Garcia
service), and adaptability? No ratings yet
Are we prepared for changes in product or service, or do these decisions lock
in our operations?
1.11 The Strategic Planning
Strategic Planning for Production and Operations Document 4 pages

In the production or operations function, strategic planning is the broad, overall
planning that precedes the more detailed operational planning. Executives who head Xmas
the production and operations function are actively involved in strategic planning, Kae Abegail Garcia
developing plans that are consistent with the firm’s overall strategies as well as such No ratings yet
functions as marketing, finance accounting and engineering. Production and operations
strategic plans are the basis for (1) operational planning of facilities (design) and (2)
operational planning for the use of these facilities.
Strategic Planning—Forced Choice Model

One of many planning models that have been used in strategic planning is a forced Document 2 pages
choice model, shown in figure. In-group sessions or individually, analysts assess
environmental considerations together with the organization’s current
Accounting Activity 6
production/operations position, thus forcing management to develop strategic options Kae Abegail Garcia
for operations. No ratings yet
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Accounting Activity
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Module - Worksheet
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Chapter 8 and 10
A forced choice model of strategic planning for operations
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Strategic Planning Approaches for Production/Operations No ratings yet
There are many approaches to strategic planning. The key point is that operations
strategies must be consistent with the overall strategies of the firm. Operations typically
utilize the overall corporate approach to strategic planning, with special modifications
and a focus upon operations issues and opportunities. One general approach to strategic
planning is a forced choice model given by Adam and Ebert.
Document 2 pages
A Strategic Planning Operations Model A 35 e 052 CB 728

One feature of this approach that is crucial to competitiveness is market-based view Kae Abegail Garcia
of strategic planning. It suggests that any strategic business unit of a company operates
in the context of its corporate resources, the general and competitive industry No ratings yet
environment, and the specific corporate goals of the company. In any area in which the
company chooses to compete is a set of specific market-based criteria for success.
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College of Business and

Public Administration:…
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CC 1 Ad 69 D 942 BD 4521
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1.12 The Trend: Information and Non Manufacturing Systems
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Manufacturing is characterized page after
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outputs
outputs at overtime.
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Following characteristics can be considered for distinguishing Manufacturing
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Operations with Service Operations: Librarian CV by Slidesgo
 What is Scribd?
Tangible/Intangible Documents
nature of output
Ahmad Zaroq
 Production and consumption
 Nature of work (job) No ratings yet
 Degree of customer contact
 Customer participation in conversion
 Measurement of performance
 Quality of output
 Inventory accumulated
Document 25 pages
1.13 Productivity Find The Treasure

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Productivity is defined in terms of utilization of resources, like material and labor.
In simple terms, productivity is the ratio of output to input. Kae Abegail Garcia
Productivity can be improved by No ratings yet
(a) controlling inputs
(b) improving process so that the same input yields higher output, and
(c) by improvement of technology.
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Modern Dynamic Concept of Productivity
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Sts Script: Course Ko.)

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1.14 Factors Affecting Productivity

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 Capital/labor ratio
 Scarcity of some resources STS - Chapter 4 Summary
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 Innovations and technology
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 Regulatory effects
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Batangasstate University:
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 Bargaining power
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 Location of facilities.
 Plant layouts and Material Handling
 Product Design.
 Process Design.
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 Production and Planning Control.
 Quality Control Chapter 11: Risk
 Materials Management.
Management
 Maintenance Management.
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Basic-Accounting - Part 6
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Let’s Sum Up
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Operation is that part of as organization, which is concerned with the
transformation of a range of inputs into the required output (services) having the
requisite quality level.
Management is the process, which combines and transforms various resources used
in the operations subsystem of the organization into value added services in a controlled
Document 46 pages
manner as per the policies of the organization.
Production function is ‘the part of an organization, which is concerned with the Basic Accounting JBD P5
transformation of a range of inputs into the required outputs (products) having the Frances Mikayla Enriquez
requisite quality level’.
Production is defined as ‘the step-by-step conversion of one form of material into No ratings yet
another form through chemical or mechanical process to create or enhance the utility
of the product to the user’.
The production system is ‘that part of an organization, which produces products of
an organization. It is that activity whereby resources, flowing within a defined system,
Document 36 pages
Basic Accounting Tutorial

P3 ESS
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are combined and transformed in a controlled manner to add value in accordance with
OR No ratings yet
the policies communicated by management.
Production management Unlock
is ‘a this pageofafter
process an ad organizing, directing and
planning,
controlling the activities of the production function. It combines and transforms various
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resources used in the production subsystem of the organization into value added product
in a controlled manner as per the policies of the organization’.
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Joseph G. Monks defines Operations Management as the process whereby Document 31 pages
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controlled manner to add value in accordance with policies communicated by Operations Research
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Chapter Outline
3. TOPICS:
2.1 INTRODUCTION Document 78 pages
2.2 MANAGEMENT AS A SCIENCE M3S11: Games, Risks and
2.3 CHARACTERISCTICS OF DECISION MAKING
2.4 FRAMEWORK OF DECISION MAKING Decisions
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2.5.2 RISKS AND UNCERTAINTY METHODS
2.5.3 EXTREME UNCERTAINTY METHODS
2.5.4 DECISION -MAKING UNDER UNCERTAINTY
2.5.5 DECISION -MAKING UNDER RISKS
2.6 DECISION SUPPORT SYSTEM Document 37 pages
2.7 ECONOMIC MODELS (BREAK EVEN ANALYSIS Decision Analysis

2.8 STATISTICAL MODELS
2.9 DECISION TREE
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3 Let’s Sum Up
Learning Objectives;
Discuss the different concepts of decision-making in operations.

Explain management of science. Document 36 pages
Define the different characteristics of decisions. Decision Theory

Identify the framework for decision making and its methodology
thea gabriella
Explain the different economic models and ways on how to solve.
Define what is decision tree and its importance to operations management decision No ratings yet
making.
4. Introduction
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Thousand of business decisions are made everyday. Not all the decisions will Adversarial Search
make or break the organization. But each one adds a measure of success or failure to DUDEKULA VIDYASAGAR
the operations. Hence decision-making essentially involves choosing a particular
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course of action, after considering the possible alternatives. This chapter examines
management as a science and the characteristics of decisions. The use of economic
and statistical models is discussed along with decision trees.
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5. Management as a Science
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Management scientistsUnlock thiseducation,
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can improve a person’s ability to make decisions. Scientific decisionEN-making rests
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empirical data and analysis of the data in a way that repeatable results will be 7
obtained. Pac-Man Game
Thus management as a science is characterized by Implementation Using Ja…
1. Organized principle of knowledge. Uthkarsh Badhri
2. Use of empirical data.
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3. Systematic analysis of data.
4. Repeatable results.
6. Characteristics of decisions-making
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Operations decision range from simple judgments to complex analyses, which Artificial Intelligence
also involves judgment. Judgment typically incorporates basic knowledge, BhuvaneshAngelsAngels
experience, and common sense. They enable to blend objectives and sub-objective
data to arrive at a choice. No ratings yet
The appropriateness of a given type of analysis depends on:
a. The significant or long lasting decisions,
b. The time availability and the cost of analysis, and
c. The degree of complexity of the decision.
The significant or long lasting decisions deserve more considerations than Document 27 pages
routine ones. Plant investment, which is a long-range decision, may deserve more
Decision Analysis: Slides 8a:
thorough analysis. The time availability and the cost of analysis also influence the
amount of analysis. The degree of complexity of the decision increases when many Introduction
variables are involved, variables are highly independent and the data describing the skywalker_handsome
variables are uncertain. No ratings yet
Business decision-makers have always had to work with incomplete and
uncertain data. Figure on the right depicts the information environment of decisions.
In some situations a decision-maker has complete information about the decision
variables; at the other extremes, no information is available. Operations
Document 142 pages
management decisions are made all along this continuum.
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7. Framework of Decision-Making
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An analytical and scientific framework for decision implies the following systematic
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steps
 Defining the problem. shower
 Establish the decision criteria. No ratings yet
 Formulation of a model.
 Generating alternatives .
 Evaluation of the alternatives.
 Implementation and monitoring.
Document 8 pages
DEFINING THE PROBLEM
Defining the problem enables to identify the relevant variables and the cause of Mathematics Statistics PDF
the problem. Careful definition of the problem is crucial. Finding the root cause of a Sanket Salvi
problem needs some questioning and detective work. If a problem defined is too No ratings yet
narrow, relevant variable may be omitted. If it is broader, many tangible aspects may
be included which leads to the complex relationships.
ESTABLISH THE DECISION CRITERIA

Establish the decision criterion is important because the criterion reflects the
goals and purpose of the work efforts. For many years profits served as a convenient Document 3 pages
and accepted goal for many organizations based on economic theory. Nowadays Operations Management
organization will have multiple goals such as employee welfare, high productivity,
Homework 37 PDF
stability, market share, growth, industrial leadership and other social objectives.
Ferdinand Mangaoang
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Formulation of a model lies at the heart of the scientific decision-making
process. Model describes the essence of a problem or relationship by abstracting
relevant variables from the real world situation. Models are used to simplify or
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Modeling a decision situation this page afterboth
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collecting the relevant data to use in the model. Mathematical andEN statistical models
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are most useful models for understanding the complex business of the problem.
Mathematical models can incorporate factor that cannot readily be visualized. With 7
the aid of computers and simulation techniques, these quantitative models Document 29 pages
reflexible. CH12 Decision Analysis
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GENERATING ALTERNATIVES No ratings yet
Alternatives are generated by varying the values of the parameters.
Mathematical and statistical models are particularly suitable for generating
alternatives because they can be easily modified. The model builder can experiment
with a model by substituting different values for controllable and uncontrollable
variable. Document 2 pages
EVALUATION OF THE ALTERNATIVES

Regret Matrix - Payoff
Evaluation of the alternatives is relatively objective in an analytical decision Tables
process because the criteria for evaluating the alternatives have been precisely Inah Salcedo
defined. The best alternative is the one that most closely satisfies the criteria. Some
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models like LPP model automatically seek out a maximizing or minimizing solution. In
problems various heuristic and statistical techniques can be used to suggest the best
course of action.
IMPLEMENTATION AND MONITORING
Implementation and monitoring are essential for completing the managerial
action. The best course of action or the solution to a problem determined through a
model is implemented in the business world. Other managers have to be convinced
of the merit of the solution. Then the follow-up procedures are required to ensure
about appropriate action taken. This includes an analysis and evaluation of the
solution along with the recommendations for changes or adjustments.
8. Decision Methodology
The kind and amount of information available helps to determine which

analytical methods are most appropriate for modeling a given decision.

This illustrates some useful quantitative methods that are classified according to
OR
the amount of certainty that exists with respect to the decision variables and
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possible outcomes. These analytical page after
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formulating models, which help to reach operational decisions.
7
The degree of certainty is classified as complete certainty, risk and uncertainty
and extreme uncertainty.
2.5.1Complete Certainty methods

Under complete certainty conditions, all relevant information about the decision
variables and outcomes is known or assumed to be known. Following are some of
the methods used:
Algebra:
This basic mathematical logic is very useful for both certainty and
uncertainty analysis. With valid assumptions, algebra provides deterministic
solutions such as break-even analysis and benefit cost analysis.
Calculus:
The branch of mathematics provides a useful tool for determining optimal
value where functions such as inventory costs, are to be maximized or
minimized.
Mathematical programming:
Programming techniques have found extensive applications in making a
product mix decisions; minimizing transportation costs, planning and scheduling
production and other areas.
(All information) (Some information) (No information)
Algebra: Statistical analysis: Game theory
Break-even z Objective and subjective probabilities Flip coin
Benefit/cost z Estimation and tests of hypothesis
Calculus z Bayesian statistics
Mathematical programming: z Decision theory
Linear z Correlation and regression
Non-linear z Analysis of variance
Integer z Non-parametric methods
Dynamic Queuing theory
Goal Simulation

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Heuristic methods

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Network analysis techniques:
7
Decision trees
PERT and CPM
Utility theory
Quantitative methods as a function of degree of certainty
2.5.2 Risks and uncertainty Methods

In risk and uncertainty situations, information about the decision variables or
the outcomes is probabilistic. Following are some of the useful approaches:
Statistical analysis:
Objective and subjective probabilities with the use of probability and probability
distribution, Estimation and tests of hypothesis, Bayesian statistics, Decision theory,
Correlation and regression technique for forecasting demand and Analysis of
variance are some of the techniques used for decision-making.
Queuing theory:

The analysis of queues in terms of waiting-time length and mean waiting time is
OR
useful in analyzing service systems, maintenance activities, and shop floor control
activities. Unlock this page after an ad
Simulation:
Simulation duplicates the essence of an activity. Computer simulations are
valuable tools for the analysis of investment outcomes, production processes,
scheduling and maintenance activities.
Heuristic methods:
Heuristic methods involve set of rules, which facilitate solutions of scheduling,
layout and distribution problems when applied in a consistent manner.
Network analysis techniques:

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helpful in identifying alternative course of action and controlling the project
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Utility theory:
Utility theory or preference theory allows decision-makers to incorporate their
own experience and values into a relatively formalized decision structure.
2.5.3 extreme Uncertainty Methods

Under extreme uncertainty, no information is available to assess the likelihood
of alternative outcomes.
Following are some of strategies to solve this :
1. Game theory:
Game theory helps decision-makers to choose course of action when
there is no information about what conditions will prevail.
2. Coin flip:
Flipping a coin is sometimes used in situation where the decision-
makers are wholly indifferent.
2.5.4 Decision-Making Under Uncertainty

No information is available on how likely the various states of nature are under
those conditions.
Four possible decision criteria are :
1. Maximin,
2. Maximax,
3. Laplace, and
4. Minimax regret.
Maximin:
Determine the worst possible pay-off for each alternative, and choose the
alternative that has the “best worst.” The Maximin approach is essentially a
pessimistic one because it takes into account only the worst possible outcome for
each alternative. The actual outcome may not be as bad as that, but this approach
establishes a “guaranteed minimum.
Maximax:

Determine the best possible pay-off, and choose the alternative with that pay-
OR
off. The Maximax approach is an optimistic, “go for it” strategy; it does not take into
account any pay-off other thanUnlock this page after an ad
the best
.
Minimax regret:
Determine the worst regret for each alternative, and choose the alternative 7with
the “best worst.” This approach seeks to minimize the difference between the pay -
off that is realized and the best pay-off for each state of nature.
Laplace:
Determine the average pay-off for each alternative, and choose the alternative
with the best average. The Laplace approach treats the states of nature as equally
likely.
2.5.5 Decision-Making Under Risks

Between the two extremes of certainty and uncertainty lies the case of risk: The
probability of occurrence for each state of nature is known. (Note that because the
states are mutually exclusive and collectively exhaustive, these probabilities must
add to 1.00.) A widely used approach under such circumstances is the expected
monetary value criterion.
The expected value is computed for each alternative, and the one with the
highest expected value is selected. The expected value is the sum of the pay-offs for
an alternative where each pay-off is weighted by the probability for the relevant
state of nature.
9. Decision Support System
Decision support system (DSS)

is computer-based systems designed to aid decision-makers of any stage of the
decision process in the development of alternatives and evaluation of possible
course of action. Their purpose is to provide the information and analytical support
that enables managers to better control and guide the decision process. Emphasis is
given for giving useful information and appropriate quantitative models that support
the manager’s skills. Thus, DSS are a logical extension of the managerial decision
processes. This helps the managers to learn better, how to apply data processing and

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10. Economic Models ( Break Even Analysis)
Break-even Analysis
One of the techniques to study the total cost, total revenue and output
relationship is known as Break - even Analysis. ‘A Break-even Analysis indicates at
what level of output, cost and revenue are in equilibrium’. In other words, it
determines the level of operations in an enterprise where the undertaking neither
gains a profit nor incurs a loss.
Break-even chart (BEC):

It is a graph showing the variation in total costs at different levels of output (cost
line) as well as the variation in the total revenues at various levels of output
Break-even point:
It is that point of activity (sales volume) where total revenues and total expenses
are equal. It is point of zero profit, i.e. stage of no profit and no loss. BEP can be used
to study the impact of variations in volume of sales and cost of production on profits.
Angle of incidence:
It is an angle at which total revenue line intersects total cost line. The
magnitude, of this angle indicates the level of profit. Larger the angle of incidence,
higher will be the profits per unit increase in sales and vice versa.
Margin of safety:
It is excess of budgeted or actual sales over the break-even sales volume i.e.
margin of safety = (actual sales minus sales at BEP)/actual sales. A high margin of
safety would mean that even with a lean period, where sales go down, the company
would not come in loss area. A small margin of safety means a small reduction in sale
would take company to cross BEP and come in red zone.

OR
CALCULATION OF BEP
Relationship between costs and activity level (AL) is also assumed to be linear.
For every elemental cost, actual cost figures at different activity levels are plotted,
and by ‘least square analysis’ a ‘line of best fit’ is obtained. This would give a fixed
cost component and a variable cost component for the elemental cost.
This analysis is carried out for all elemental costs. The total cost function would
give total fixed cost and total variable cost for the company. The Break-even Point is
that volume where the fixed and variable costs are covered. But no profit exists.
Thus at BEP, the total revenues equal to the total costs.

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Profit volume ratio (PVR) is defined as the ratio between Contribution Margin and
Sales Revenue.
i.e.
Profit Volume Ratio (f) = Contribution ⋅ Margin /Sales. Revenue
Margin of safety (MOS)

is defined as the ratio between Operating Profit and Contribution Margin. It signifies
the fractional reduction in the current activity level required to reach the break-even
point.
Sales turnover (STO) is defined as ratio between Sales Revenue and the Capital
Employed. It represents the number of times capital employed is turned over to

reach the sales revenue level that is called Operating management performance
OR
[OMP].
IMPROVING OMP
A company interested in improving its OMP will have to improve its operating profit.
Following any of the strategies given below or a combination of them can do this:
(a) By reducing variable costs
(b) By reducing fixed costs
(c) By increasing sales price
(d) By increasing the activity level.
A) Reduction in variable costs will bring down BEP, increase PV ratio and increase
margin of safety.
To achieve a required Targeted Profit (Z), variable cost would have to be controlled
at
V=SR – (F+Z )
b) A reduction in fixed costs will bring down BEP and increase margin of safety. It will
have no effect on PV ratio. To achieve a required TP by controlling fixed cost alone,
the fixed cost would have to be controlled as
F=(SR – V) – Z

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c) An increase in selling price will bring BEP down, it will increase PV ratio and it will
also increase the margin of safety. To get the targeted profit level the increase
required in selling price is given by
b'= (F+Z ) xb
b-a
2.8 Statistical Models

Most business decisions are made with only limited or incomplete information.
Statistical theory can help to control error associated with the amount of data used
in the decision process. Decision makers utilize probabilities, which are the most
basic measures of uncertainty. Probabilities attach a quantitative value (between 0
and 1) to the occurrence of an event. Events are called independent if the
occurrence of one in no way affects any other one. Mutually exclusive events
automatically preclude each other, such as classifying an item as good or defective.
Following are the rules for applying probabilities.
There are three types of probabilities.
(a) Classical probabilities are based upon equally likely outcomes that can be
calculated prior to an event on the basis of mathematical logic.
(b) Empirical probabilities are based upon observed data and express the relative
frequency of an event in the long run.
(c) Subjective probabilities are based upon personal experience or judgment and are
sometimes used to analyze one-time occurrences.

11. Decision Tree
OR
A decision tree is a schematic representation of the alternatives available to a
Unlockconsequences.
decision maker and their possible this page after
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ad gets its name from the
tree like appearance of the diagram (see Figure 2.8 below). Although tree diagrams
can be used in place of a pay-off table, they are particularly useful for analyzing
situations that involve sequential decisions. 7
A decision tree is composed of a number of nodes that have branches
emanating from them (see Figure 2.8 below). Square nodes denote decision points,
and circular nodes denote chance events. Read the tree from left to right. Branches
leaving square nodes represent alternatives; branches leaving circular nodes
represent chance events (i.e., the possible states of nature).

A schematic representation of the available alternatives and their possible
consequences
Let’s Sum Up
Management scientists hold that, education, scientific training and experience

can improve a person’s ability to make decisions. Scientific decision -making rests
upon organized principles of knowledge and depends largely upon the collection of
empirical data and analysis of the data in a way that repeatable results will be
obtained.
The degree of certainty is classified as complete certainty, risk and uncertainty
and extreme uncertainty.
Scientific framework for decision implies the following systematic steps are :
Defining the problem, Establish the decision criteria, Formulation of a model,
Generating alternatives, Evaluation of the alternatives and Implementation and
monitoring.
‘A Break-even Analysis indicates at what level of output, cost and revenue are in
equilibrium’. In other words, it determines the level of operations in an enterprise
where the undertaking neither gains a profit nor incurs a loss.
A decision tree is a schematic representation of the alternatives available to a
decision maker and their possible consequences.

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Project Management
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Chapter Outline
12. TOPICS:
3.1 INTRODUCTION
3.2 PROJECT LIFE CYCLE
3.2.1 THE INITIATION PHASE
3.2.2 THE PLANNING PHASE
3.2.3 THE EXECUTION PHASE
3.2.4 THE TERMINATION PHASE
3.3 BEHAVIORAL AS[ECT OF PROJECT MANAGEMENT
3.3.1ORGANIZATION CULTURES INFLUENCE
3.3.2 PEOPLE CENTRIC PROJECT MANAGEMENT
3.3.3INSTRUMENTAL ELEMENTS FOR SUCCESSFUL
IMPLEMENTATION OF PEOPLE CENTRIC PROJECT MANAGEMENT (PCPM)
3.4 WORK BREAKDOWN STRUCTURE
3.4.1 RESOURCE BREAKDOWN STRUCTURE (rbs)
3.4.2 HOW TO CREATE A WORK BREAKDOWN STRUCTURE
3.5 PLANNING AND SCHEDULING WITH GANTT CHART
3.5.1 WHAT IS A GANTT CHART
3.6 PERT AND CPM
` 3.6.1 DEFINITION OF PERT
3.6.2 DEFINITION OF CPM
3.6.3 ADVANTAGES OF PERT
3.7 DETERMINISTIC AND PROBABILISTIC SCHEDULING
3.7.1 DETERMINISTIC SCHEDULING
3.7.2 PROBABILISTIC SCHEDULING
3.8 BUDGET CONTROL
3.8.1 PLANNING ISSUE
3.8.2 TOP-DOWN AND BOTTOM-UP SCHEDULING
3.8.3 ROLLING BUDGET
3.8.4 ACTUAL AND BUDGETED PERFORMANCE* (in thousands of
dollars) * Income taxes ignored.
3,9 RISK MANAGEMENT’
3.9.1 PROJECT RISK MANAGEMENT
3.10 PROJECT MANAGEMENT SOFTWARE
3.10.1 TYPES OF PROJECT MANAGEMENT SOFTWARE
3 Let’s Sum Up
Learning Objectives
Discuss the different concepts of project management and its life cycle.

Determine the behavioral aspect of project management.
Explain the different work breakdownOR and how to create its components.
Describe the importanceUnlock this
and uses of page
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proper scheduling.
Differentiate PERT to CPM and its importance to operations.
Determine other project management ways and risk management to operations.
Define the different project management software.
7
3.1 INTRODUCTION
Project management, then, is the application of knowledge, skills, tools, and

techniques to project activities to meet the project requirements.
Project management brings a unique focus shaped by the goals, resources and
schedule of each project. The value of that focus is proved by the rapid, worldwide
growth of project management:
A, As a recognized and strategic organizational competence
B. As a subject for training and education
C. As a career path
3.2 PROJECT LIFE CYCLE
A project life cycle is the sequence of phases that a project goes through from its
initiation to its closure. The number and sequence of the cycle are determined by the
management and various other factors like needs of the organization involved in the
project, the nature of the project, and its area of application. The phases have a definite
start, end, and control point and are constrained by time. The project life cycle can be
defined and modified as per the needs and aspects of the organization.
3.2.1 THE INITIATION PHASE

The initiation phase aims to define and authorize the project. The project
manager takes the given information and creates a Project Charter. The Project
Charter authorizes the project and documents the primary requirements for the
project. It
Project’s purpose, vision, and mission
Measurable objectives and success criteria
Elaborated project description, conditions, and risks

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Name and authority of the project sponsor
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3.2.2 THE PLANNING Unlock this page after an ad
PHASE
The purpose of this phase is to lay down a detailed strategy of how the project
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has to be performed and how to make it a success.
Project Planning consists of two parts:
7
1. Strategic Planning
What 2.is Scribd?
ImplementationDocuments
Planning
In strategic planning, the overall approach to the project is developed. In
implementation planning, the ways to apply those decisions are sought.
3.2.3 THE EXECUTION PHASE

In this phase, the decisions and activities defined during the planning phase
are implemented. During this phase, the project manager has to supervise the
project and prevent any errors from taking place. This process is also termed
as monitoring and controlling. After satisfaction from the customer, sponsor, and
stakeholder’s end, he takes the process to the next step.
3.2.4 THE TERMINATION PHASE

This is the last phase of any project, and it marks the official closure of the
project.
The generic life cycle structure commonly exhibits the following characteristics:
 At the start, cost and staffing levels are low and reach a peak when the work is in
progress. It again starts to drop rapidly as the project begins to halt.
 The typical cost and staffing curve does not apply to all projects. Considerable
expenses are required to secure essential resources early in its life cycle.
 Risk and uncertainty are at their peak at the beginning of the project. These
factors drop over the lifecycle of the project as decisions are reached, and
deliverables are accepted.
 The ability to affect the final product of the project without impacting the cost
drastically is highest at the start of the project and decreases as the project advances
towards completion.
3.3 BEHAVIORAL AS[ECT OF PROJECT MANAGEMENT

OR
The behavioral aspects of project management consist of many different areas that
a project manager must master.Unlock this page after
The organizational an adis one area that can take time
culture
to master for many project managers. The culture of an organization can be the success
or the failure of a project. Management must share common beliefs and values and be
willing to stand by them at the most critical times.
7
To build and manage a successful project team the project manager must be skilled
in many areas. The project manager has to be able to select team members that will fit
in with the team, manage meetings skillfully, establish a team identity and vision,
establish ways of rewarding the team as well as individuals, manage conflicts within
and outside the team, and be able to rejuvenate the team over long projects.
3.3.1ORGANIZATION CULTURES INFLUENCE

Organizational culture research has identified ten primary characteristics that
lead to successful or unsuccessful teams within an organization. These
characteristics will in turn affect the selection, sponsorship, prioritization, and
ultimate success of all projects in an organization (Gray, Larson, 2011).
1. Member Identity
2. Team Emphasis
3. Management focus
4. Unit integration
5. Control
6. Risk tolerance
7. Reward criteria
8. Conflict tolerance
3.3.2 PEOPLE CENTRIC PROJECT MANAGEMENT

People centric project management emphasizes that project management
should be based on Experience, Dynamics, Human Psychology rather than solely
on Processes. Wise project managers focus on learning and understanding how
people function in an organization – both as individuals – and as a team. It is
important to figure out during project initiation how people in the performing
organization behave and adapt.
The aspect of projects that gives project managers sleepless nights is people
behavior – especially factors emerging from them – such as push-back, resistance
to change, acceptance, trust etc. There are several real life scenarios project
managers encounter – that emanate from these aspects. Project managers are
encouraged to implement people centric management techniques that will
eventually will help them implement processes as well as manage behavioral
aspects of people successfully.

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3.3.3INSTRUMENTAL ELEMENTS FOR SUCCESSFUL

IMPLEMENTATION OF PEOPLE CENTRIC PROJECT MANAGEMENT
(PCPM)
1. UNDERSTAND CULTURE – PEOPLE VS PROCESSES

Culture is something that comes with people as a baggage along with them. It is
imperative that a project manager understand and interpret what the culture of the
performing organization is. This becomes increasingly challenging with virtual global
teams. When a team member responds swiftly “It is impossible for us to carry out this
work” without analyzing the work assigned – it is likely that employees are striving
within an organizational culture that is not supportive of their efforts!
Study: People will likely not understand this concept at the outset – since PCPM
focuses on how people function and how they apply project management to be people
centric. Managing triple constraints (Scope, Time and Cost) is the objective of healthy
project management.
Analyze: How you go about implementing PCPM varies from one organization to
another. It needs to be a part of the organizational strategy. Organizations would be
project based – where large parts of the workforce is involved in multiple projects.
Analyzing how the organization is structured helps the project manager make some of
the most important people related decisions in an effective manner.
Adjust or Adapt?: Most project managers tend to enforce processes without

understanding the culture and capabilities of the project team and stakeholders. In
PCPM – focus should be on adjusting processes to fit the culture and behavioral

responses rather than trying to adapt human nature to follow processes. Adjust the role
and processes for people – do not enforce OR
processes on people.
Propose Changes: Create a governance committee or steering committee that is
part of the leadership team. Ensure that the PMO, Senior Management are on board and
devise a strategy on how you will move from rational to behavior centric project
7
management.
Gain Buy-In: The challenge for most project managers is to work with senior
management and the team in tandem, to gain buy-in and decide on adjusting or
adapting. Adjusting or adapting does not happen overnight.
Implement (Kaizen): PCPM will not happen overnight but will require a cultural
transformation. PMs should quickly identify strengths and weaknesses of team
members and encourage people to identify their strengths and work with their strengths.
Some people will have competitive strengths and it is important to leverage their
competitive skills.
Introspect: It is essential that project managers introspect how PCPM is being

implemented. The introspection frequency will depend on several factors such as the
team size, stakeholder size, location of teams and stakeholders, senior management
demands etc.
2. ENGAGE TEAM MEMBERS
Engaging project team members is the foundation to project success. In PCPM, it

is extremely important that the groundwork be laid to engage team members and
stakeholders and finally sustain in the short and long term. Focus should be setting key
performance/productivity indicators for the performing team as a whole. The level of
engagement of team and stakeholders should be monitored and strategies be devised to
maximize the engagement levels of both at the same time. Performance, Productivity,
Efficiency and Efficacy must be maximized or at a minimum balanced.
2. IMPORTANCE OF EMOTIONS & MOTIVATION
Emotions have to do with hormones and neurotransmitters in the human body.

Emotions drive employee motivation positively or negatively. Oh boy! Isn’t it difficult
to psycho-physio-bio-logically scan a person’s mind and body to anticipate what the
Expressions, Feelings, Body Language, and Actions he or she may exhibit e.g. – they
are sometimes Happy, Sad, Angry, Excited, Tender, Scared etc. This has been a long
standing challenge for most people managers, especially project managers!
Feelings, Moods and Actions affect the manner in which team members and
stakeholders carry out their work on projects and so management of emotional aspects
is supreme for successful project management. A good project manager should not just
be a technical person but should be a rare breed of individual who should be able to
manage both the technical and emotional factors.

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7
4. IDENTFY BEHAVIORAL RISKS USING INTUITIVE MIND-READING
Behavior refers to the range of actions and mannerisms exhibited – in this case –
by people. Certain desired behavior is assumed by project managers when they stitch
and integrate several of the established project management processes. This assumption
is based on factors such as Culture, Attitudes, Emotions, Perceptions, Values, Ethics,
Authority, Rapport, Hypnosis, Mindset and Persuasion, among others.
On most occasions some of these assumptions don’t hold quite valid. When people
don’t behave like the way we originally assumed them to, their behavior seems
unpredictable to us. And, when people behavior becomes unpredictable – project
outcome is inevitably affected – either positively (success) or negatively (failure).
5. …AND LASTLY: COMMUNICATION, COMMUNICATION &

COMMUNICATION!
In PCPM, it must be the daily duty for project managers to maintain the line of
communication very open so that they keep catering to the basic needs to employees.
What needs to get communicated across and top things project managers need to
keep in mind while implementing PCPM?
 Understand and believe that project managers have the most impact in opening up
communication channels.
 Communicate what is expected of each team member
 Establish a clear sense of what each team member’s duty or role is.
 Provide recognition – this is actually part of communication!
 Empower team members’ with the right tools and techniques to do the job
 Keep your ears open to suggestions
 Have open conversations about every aspect that requires the PCPM
framework to be adjusted.
 Frequently talk to team members about their progress and provide feedback –
 Learn from people on how they think they connect to the mission of the project
team and compare that with how you think they connect.
 Communicate between the current state future state the gap and how is the
team member is doing.
 Make Action Plans for the longer term to ensure you are actively managing
the emotional and motivational aspects of ALL the people
 Gather feedback and inputs on how are people interact with each other on their
communication channel.

 Finally, it is the project managers duty to ensure that interactions on ALL
ORresults!
communication channels yield positive
3.4 WORK BREAKDOWN STRUCTURE

7
A work-breakdown structure (WBS)in project management and systems
engineering, is a deliverable-oriented breakdown of a project into smaller components.
A work breakdown structure is a key project deliverable that organizes the team's work
into manageable sections.
A work-breakdown structure element may be a product, data, service, or any
combination thereof. A WBS also provides the necessary framework for detailed cost
estimating and control along with providing guidance for schedule development and
control
A construction project WBS example

This is a three-tier WBS with each level denoted with numerical notation (such as
“1.1.2”). For each subsequent level, you’d add another decimal to the notation (such as
“1.1.2.1”).
Also note how the WBS is organized into broad deliverables and sub-deliverables,
all of which are nouns, not activities. Further, if you were to add up all the deliverables
together, you’d get the first level in the WBS, i.e. the 100% rule.
This is the key defining trait of a good WBS.

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3.4.1 RESOURCE BREAKDOWN STRUCTURE (rbs)
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A resource breakdownUnlock this page
structure after of
consists an both
ad the material and human
resources required to complete a deliverable.
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3.4.2 HOW TO CREATE A WORK BREAKDOWN STRUCTURE
The output of the WBS development process might seem simple: a short
document with a list of deliverables. To create it, however, you need a thorough
understanding of the project’s scope, your team’s capabilities, and your
stakeholders’ requirements.
1. Understand the Project’s Scope
2. Determine Major Deliverables

Once you have an understanding of the project scope, start the WBS development
process by figuring out the key deliverables.
3. Determine Work Packages

A work package, as you learned above, is a deliverable at the lowest level of a
WBS.
This is one of the most important parts of the WBS development process and one
that will require extensive input from your project team and stakeholders.
Your goal is to pick a major deliverable, then identify all the work necessary to
complete it. This work package must be:
Independent: The work package must be mutually exclusive and have no
dependence on other ongoing elements.
Definable: The work package should have a definite beginning and end, and should
be understood by all project participants.
Estimable: You should be able to estimate the work package's duration and
resource requirements.

Manageable: The package must represent a "meaningful unit of work", i.e. it must
accomplish something concrete, and can be ORassigned to an individual or team. It should
also be measurable. Unlock this page after an ad
Integratable : The package must integrate with other elements to create the parent
level. Adaptable: Ideally, the package must be able to accommodate changes in scope
as per the project's requirements.
7
4. Create a WBS Dictionary
The WBS dictionary is a document that outlines the definition and scope of each
element contained in the WBS. It is a supporting document meant to help incoming
project teams understand each work package better.
Here's an example of a more simplified WBS dictionary with element ID, name,
and description:
5. Use the Right WBS Format

There are several WBS formats you can follow. The simplest way to do this is to
create text-based hierarchical groupings. By convention, you use numbers and
decimal points to indicate the level of the element.
Visual tabular structure
flowchart
3.5 PLANNING AND SCHEDULING WITH GHANTT CHART
Nowadays it's possible to use modern Gantt chart planning to better manage your
project resources and control for unexpected situations. There's a reason why we still

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