Principles of Operation Management

Topics: Project management, Critical path method, Project planning Pages: 15 (2443 words) Published: August 28, 2013
Project Management
• • • • • Introduction to project management Critical path method (CPM) Crashing Uncertain activity durations Reading: Page 760 – 794

• Project:
– A special type of process / transformation – A series of related jobs directed toward some major output – Require time and resources – Examples • MS Windows 2000, Fund raising, Preparation for a private party, Building a new airport…

The Campus Wedding

Reserve Church (1)

Church Notice (17)

Decorate Church (3)

Choose Cake (2)

2 3
Jack’s Catering (10) Rehearsal Dinner (1) Wedding (April 22)

Start Preparatio ns

Get Gifts (1)

Choose Pattern (3)


Travel from Guatemala (10) Receive Lace (8)


Fit Dress (2)

Clean & Press (2)

Sew Dress (11)

Inv. To Post Office (1)

Choose Invitation s (3)

Invitation Lead Time (10)

Prepare Guest List (4)

Invitation s (12)

Address Inv. (4)

Project Management
• Project management
Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project.

• Different aspects of PM
– Team work – Leadership – We focus on technical aspect

Project Manager
Responsible for:
Work Human Resources Communications Quality Time Costs

Project Management
• Statement of work (SOW)
Objectives, work to be done, a proposed schedule, performance measures (cost, time, quality)

• Work breakdown structure
– Break project down into manageable pieces

Work Breakdown Structure
Level 1 Project

Level 2

Level 3

Level 4

Questions about a Project
• How long does it take to complete a project? • When should each activity start? • Which activities might delay the project? In other words, which activities should the project manager pay particular attention to? • How to expedite the completion of a project? • Time-cost trade off 9

Example 1: Clear Ocean Bay Motion Pictures Ltd
A Hire actors, actresses B Hire film directors C Hire crew members D Cast announcement E Stage setting F Music Recording G Film shooting

Immediately Predecessor

Durations (weeks)
6 11 8 9 8 7.5 7


• How long will it take to complete the project?
• When should each activity start?

• If we wish to reduce the completion time, which activities should be crashed (expedited)? Answer: Critical path method (CPM)

Basic Four Steps
Step 1: Construct the Network Diagram 2: Compute the Earliest Start time & Earliest Finish time (determine the earliest project completion time) 3: Compute the Latest Start time & Latest Finish time (determine the Slack time) 4: Determine the Critical Activities and the Critical Paths. 12

Critical Path Method
Step 1. Construct the Network Diagram. AON: Activity-on-node Each node represents an activity. Arrows indicate sequencing requirements. A D

Example: A immediately precedes D.

Another Representation
• AOA: Activity-on-arrow Activity A immediately precedes D. In our class, we use AON more frequently


D 1

The Network Diagram
D,9 A,6

C,8 B,11




F,7.5 A path is a sequence from Start to Finish. The “Start” and “finish” nodes may be omitted.

Critical Path Method
Step 2: Compute the Earliest Start time ES and Earliest finish time EF for each activity. ES = The earliest start time of an activity EF = The earliest finish time of an activity An activity may start when all its predecessors are finished: ES(an activity) = maximum(EF’s of all its predecessors) EF = ES + activity duration 16

Compute ES’s and EF’s
ES EF 19 28 0 6

0 0

D,9 A,6
11 19 0 11 19 27 28 35



19 26.5




The project can be completed in 35 weeks.

• How long will it take to complete the project?
• When should each activity start?

• If we wish to reduce the completion time, which activities should be crashed...
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