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PowerPoint presentation to accompany
Heizer, Render, Munson
Operations Management, Thirteenth Edition, Global Edition
Principles of Operations Management, Eleventh Edition
► Single unit
► Many related activities
► Difficult production planning and
inventory control
► General purpose equipment
► High labor skills
► Research Project
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3-3
Project Management Activities
► Planning
► Objectives ► Scheduling
► Resources ► Project
► Work break-
activities
► Start and end
down structure
► Organization
times
► Network
► Controlling
► Monitor, compare, revise, action
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3-4
Project Planning,
Scheduling, and Controlling
Figure 3.1
Figure 3.1
Figure 3.1
Figure 3.1
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Cash flow
Figure 3.1schedules
Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or “work packages”)
to be completed
Compatible with
Level 4 1.1.2.1
Windows 8
(Work packages)
Compatible with
1.1.2.2
Windows 7
► Gantt chart
► Critical Path Method (CPM)
Technique (PERT)
Time
J F M A M J J A S
Design
Prototype
Test
Revise
Production
C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D
B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and C
(f) are completed Dummy
A dummy activity C
C activity
is again
introduced in AOA
Activity A
A (Build Internal Components)
Start
Activity B
Start B (Modify Roof and Floor)
Activity
Figure 3.5
A C
Start
B D
F
A C
E
Start H
B D G
nt tal
C uil A
(Build Burner)
ro l
po Int
ls)
om d
H
(B
Dummy 7
E
1 6
Activity (Inspect/
Test)
Ro (M B
of odi G all
/ F fy nst tion )
lo (I llu ce
or i
) D Po ev
3 5 D
(Pour Figure 3.8
Concrete/
Install Frame)
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 36
Determining the Project Schedule
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
Activity Duration
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 40
Forward Pass
Begin at starting event and work forward
EF = ES + Activity time
ES EF = ES + Activity time
Start
0 0
2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3
3
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 45
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B
0 3
2 2
Start
0 0
= Max (2, 3) D
0
3 7
B
0 3
3
4
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 47
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B D
0 3 3 7
3 4
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.10
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 49
Backward Pass
Begin with the last event and work backwards
Latest Finish Time Rule:
► If an activity is an immediate predecessor for
just a single activity, its LF equals the LS of the
activity that immediately follows it
► If an activity is an immediate predecessor to
more than one activity, its LF is the minimum
of all LS values of all activities that
immediately follow it
LF = Min {LS of all immediate following activities}
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 50
Backward Pass
Begin with the last event and work backwards
Latest Start Time Rule:
► The latest start time (LS) of an activity is the
difference of its latest finish time (LF) and its
activity time
LS = LF – Activity time
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
B LS = LF
D – Activity timeG
0 3 3 7 8 13
3 4 5 LF = EF
of Project
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 52
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Slack = LS – ES or Slack = LF – EF
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-temperature
burner
F Install pollution control
system
G Install air pollution
device
H Inspect and test
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-temperature
burner
F Install pollution control
system
G Install air pollution
device
H Inspect and test
t = (a + 4m + b)/6
Probability of 1t in =
100 (a + 4m + b)/6
of < a occurring
Probability
Probability of 1 in 100
v = [(b
Variance of activity − a)/6]2 times:
completion of > b occurring
MOST
OPTIMISTIC LIKELY PESSIMISTIC EXPECTED TIME VARIANCE
ACTIVITY a m b t = (a + 4m + b)/6 [(b – a)/6]2
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1.00
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
15 Weeks
(Expected Completion Time)
.5
due expected date
Z.69146
= date.69497 .71566 .71904
− of completion /sp
.6 .72575 .72907 .74857 .75175
15 16 Time
Weeks Weeks
Figure 3.13
Probability
of 0.01
2.33 Standard Z
From Appendix I deviations
0 2.33
Figure 3.14
possible
$30,000 —
Normal
Normal —
Cost
| | |
1 2 3 Time (Weeks)
Figure 3.15
Crash Time Normal Time
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3 - 83
Critical Path and Slack Times
Figure 3.16
for Milwaukee Paper
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
Start Slack = 0 Slack = 0 E Slack = 6 H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
Start Slack = 0 Slack = 0 E Slack = 6 H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A C F
0 1 1 3 3 6
0 1 1 3 9 12
1 2 3
Start Slack = 0 Slack = 0 E Slack = 6 H
0 0 3 7 12 14
0 0 3 7 12 14
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 7 12
0 3 3 7 7 12
3 4 5
A C F
0 1 1 3 3 6
0 1 1 3 9 12
1 2 3
Start Slack = 0 Slack = 0 E Slack = 6 H
0 0 3 7 12 14
0 0 3 7 12 14
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 7 12
0 3 3 7 7 12
3 4 5
A C F
0 1 1 3 3 6
0 1 1 3 8 11
1 2 3
Start Slack = 0 Slack = 0 E Slack = 5 H
0 0 3 7 11 13
0 0 3 7 11 13
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 7 11
0 3 3 7 7 11
3 4 4