Lecture Introduction to operations management - Chapter 14: Project planning and scheduling

In this chapter we will discuss: What is a “project”? objectives and tradeoffs, planning and control in projects, scheduling methods, constant-time networks, PERT method, CPM method, use of project management concepts.

Contemporary Concepts and Cases

Chapter FourteenProject Planning and Scheduling

Ad campaign Software installation

Objectives and Tradeoffs

Meet the specifications

Meet the deadline­­schedule

Due Date!

Stay within

the budget

Project Management Activities & Decisions

Planning Activities & Decisions

Scheduling Activities & Decisions

PMI Body of Knowledge

Gantt Chart Project Example (Figure 14.2)

Week

1 Lease the site

2 Hire the workers

3 Arrange for the Furnishings

4 Install the furnishings

5 Arrange for the phones

6 Install the phones

7 Move into the office

‘Write a Business Report’

(Table 14.4)

Immediate Duration Activity Description Predecessors Days

Network Diagram for ‘Write a Business Plan’

Forward Pass for ‘Write a Business Plan’

Calculating ES, EF, LS, LF, and Completion

Backward Pass for ‘Write a Business Plan’

Slack Times

Slack time equals amount of time a path may be delayed without delaying the project

– Paths not on the critical path have slack

– Slack = LS­ES  or  LF­EF

Precedence and Times for Opening a New Office

Network for ‘Open a New Office’

(Figure 14.6)

1

2

4 3

ES   EF

LS   LF

7 6

– Optimistic

– Most likely

– Pessimistic

PERT Activity Times

T T

T T

PERT Activity Times

PERT Activity Times

If T = total completion time of the project, then

and

path critical

e

T T

E

path critical

i

var

Critical Path Method

Developed in 1950’s in private sector

Used under conditions of certainty in activity times

Requires one time estimate for each activityLooks at time/cost trade­offs

– Normal activity time

– Normal cost

Time-Cost Relationship in CPM (Fig 14.9)

Crash Cost

Cost

Normal Cost

Crash Time

Normal Time

Time

Use of Project Management Concepts

Scheduling is only part of a complete approach 

to project management

Trade­off between sophistication and cost of 

methods

Choice between constant time, PERT, CPM or more advanced techniques

Choice of project management software 

packages, e.g., Microsoft Project

End of Chapter Fourteen