Project Planning & Control

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LMS 5
LMS 6
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LMS 10
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LMS 12
PERT Charts Simplified

• Identify the Action Activities

• Prioritize Activities
• Identify Headings and define what they mean
• Make a chart with time frames
• Decide what activities will be shown on the chart
• Calculate the time needed
• Assemble the activities along the time line
• Show relationships between activities

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Benefits and Drawbacks
Problem Potential Benefits Possible
Improvement Drawbacks
Large Smaller, more frequent Reduced holding Traffic congestion
inventories deliveries costs Increased costs

Long lead Delayed differentiation Quick response May not be feasible

times Disintermediation May need absorb
functions
Large number Modular Fewer parts Less variety
of parts Simpler ordering

Cost Outsourcing Reduced cost, Loss of control

Quality higher quality

Variability Shorter lead times, Able to match Less variety

better forecasts supply and
demand
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 SCOR Metrics
Perspective Metrics
Reliability On-time delivery
Order fulfillment lead time
Fill rate (fraction of demand met from stock)
Perfect order fulfillment
Flexibility Supply chain response time
Upside production flexibility

Expenses Supply chain management costs

Warranty cost as a percent of revenue
Value added per employee
Assets/utilization Total inventory days of supply
Cash-to-cash cycle time
Net asset turns

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Materials Movement
Work center
Work center Work
center

Work Storage
center

Storage

Storage
RECEIVING

Shipping

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 Project Management
• The management of projects involved 3 phases:
- Planning
- Scheduling
- Controlling

Last Update:October 16, 2022 LMS 17

 Elements of Project Management

Element Typical Issues

Customers Determining what customers want
Forecasting Predicting quantity and timing of demand
Design Incorporating customer wants, mfg., and time
Processing Controlling quality, scheduling work
Inventory Meeting demand while managing inventory costs
Purchasing Evaluating suppliers and supporting operations
Suppliers Monitoring supplier quality, delivery, and relations
Location Determining location of facilities
Logistics Deciding how to best move and store materials

Last Update:October 16, 2022 LMS 18

Bullwhip Effect

Amount of
= inventory

Tier 2 Tier 1 Final

Producer Distributor Retailer
Suppliers Suppliers Customer

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Need for Project Management
1. Improve operations
2. Increasing levels of outsourcing
3. Increasing transportation costs
4. Competitive pressures
5. Increasing globalization
6. Increasing importance of e-commerce
7. Complexity of supply chains
8. Manage inventories

LMS 20
• Inventory velocity
• The rate at which inventory(material) goes through the
supply chain through project management.
• Information velocity
• The rate at which information is communicated in a supply
chain through project management.

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