Strategy issues

in
PRODUCTION AND
OPERATIONS
MANAGEMENT
TOPICS

PROJECT MANAGEMENT
CAPACITY PLANNING

FACILITY LOCATION

FACILITY LAYOUT
DEMAND FORECASTING

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PROJECT
MANAGEMENT
is the management of the work to develop and
implement an innovation or change in an existing
operation. It encompasses planning the project and
controlling the project activities, subject to resource
and budget constraints, to keep the project on
schedule.
 PROJECT

is an organized and collective

effort to accomplish the specific
objective of initiating the
business activity.
 PROJECT PLAN

is a series of formal documents

that define the execution and
control stages of a project.
ELEMENTS OF A PROJECT PLAN

• OBJECTIVES

• a detailed statement of what the project is to accomplish and how it will achieve the company’s
goals and meet the strategic plan; and an estimate of when it needs to be completed, the cost and
the return.

2. Project scope
• a discussion of how to approach the project, the technological and resource feasibility, the major
tasks involved, and a preliminary schedule; includes a justification of the project and what
constitutes project success.
ELEMENTS OF A PROJECT PLAN

3. Contract requirements

• a general structure of managerial, reporting, and

performance responsibilities, including a detailed list
of staff, suppliers, subcontractors, managerial
requirements and agreements, reporting
requirements, and a projected organizational
structure.
ELEMENTS OF A PROJECT PLAN

4. Schedules

• a list of all major events, tasks, and subschedules, from which a master
schedule is developed.

5. Resources

• The overall project budget for all resource requirements and

procedures for budgetary control.
ELEMENTS OF A PROJECT PLAN

6. Personnel
• identification and recruitment of personnel required for the project
team, including special skills and training.

7. Control
• procedures for monitoring and evaluating progress and performance
including schedules and cost.

8. Risk and problem analysis

• anticipating and assessing uncertainties, problems and potential dif-
ficulties that might increase the risk of project delays and/or failure and
threaten project success.
 SCOPE STATEMENT
is a document that provides a common understanding of a project. It includes a
justification for the project that describes which factors created a need within
the company for the project
 WORK BREAKDOWN
STRUCTURE
IS A TOOL USED FOR PROJECT PLANNING. THE WBS ORGANIZES THE WORK TO BE
DONE ON A PROJECT. IT BREAKS DOWN A PROJECT INTO COMPONENTS,
SUBCOMPONENTS, ACTIVITIES, AND TASKS.
 ORGANIZATIONAL BREAKDOWN
STRUCTURE (OBS):

A CHART THAT SHOWS WHICH ORGANIZATIONAL UNITS ARE

RESPONSIBLE FOR WORK ITEMS.
RESPONSIBILITY ASSIGNMENT MATRIX
(RAM):

SHOWS WHO IS RESPONSIBLE FOR THE WORK IN A PROJECT.

 GANTT CHART

A GRAPH OR BAR CHART WITH A BAR FOR EACH PROJECT ACTIVITY

THAT SHOWS THE PASSAGE OF TIME.
Critical Path Method
CPM or the Critical Path Method is an algorithm
used in project management that is used to
schedule project activities.

The critical path - refers to the longest stretch of

the activities, and a measure dof them from start to
finish.
Critical Path Method Elements

Earliest Start Time (ES)

The initial stage in the project is when an activity can be
begun. You cannot make this decision without initially
understanding whether you have any task dependencies.

Latest Start Time (LS)

The very last second when a task can be started without
affecting the timeline for your project.
Critical Path Method Elements
Earliest Finish Time (EF)
The earliest a task can be finished is determined by its
duration and earliest start time.

Latest Finish Time (LF)

The latest that a task can be finished is calculated using its
duration and latest start time.

Float
The concept of "float" refers to how long an activity can be
postponed without affecting its task order or the project
timeline. The critical path tasks have no float since they
cannot be delayed.