Production & Operations

Management
Session-14

Program: FT MBA Core

Trim: III
Instructor: Dr. Abhinav Sharma
 Project Management

• A project can be defined as a series of related jobs usually directed toward some
major output and requiring a significant period of time to perform.

• Project management can be defined as planning, directing, and controlling

resources (people, equipment, material) to meet the technical, cost, and time
constraints of the project.

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 Project Management

Although projects are often thought to be one-time occurrences, the fact is that many
projects can be repeated or transferred to other settings or products.
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 Project Management
Organizing Project Tasks

Work breakdown structure

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 Project Management
Organizing Project Tasks:

Work breakdown structure for a

optical scanner design

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 Project Management
Gantt Chart

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 Project Management
Project Life Cycle:

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 Project Management
Project Management Triangle

Pe
rfo
rm

ey
st

an

Sc
Mo
Co

ce

op
O

e
bj e
cti
Quality Quality
ve

Schedule Time
Cost + Performance Objective + Schedule = quality
Time + money + scope = quality
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 Project Management
Measure of project quality?

• There is no standard measure.

• Depends upon context of project.

• It could be cost or getting to market first.

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 Planning and Co-ordinating Large Projects

1. Program Evaluation and Review Technique (PERT)

2. Critical Path Method (CPM)

For what?
1. A graphical display of project activities
2. An estimate of how long the project will take
3. An indication of which activities are most critical to timely project
completion
4. An indication of how long any activity can be delayed without delaying the
project

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 Network Diagram

Diagram of project activities that shows sequential relationships by use of arrows and
nodes

Activity on arrow (AOA)

Network diagram convention in which arrows designate activities
Activity on node (AON)
Network convention in which nodes designate activities
Activities
Project steps that consume resources and/or time
Events
The starting and finishing of activities

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 Network Diagram

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 Network Conventions

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 Example

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 Example

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 Example

D
2 5
A E K

B
1 3 H 8
F
C 6
I

G
4 7

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 Critical Path Method (CPM)

Planners use an algorithm to develop four pieces of information about the network
activities:
 ES, the earliest time activity can start, assuming all preceding activities start as
early as possible.
 EF, the earliest time the activity can finish.
 LS, the latest time the activity can start and not delay the project.
 LF, the latest time the activity can finish and not delay the project.

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 Critical Path Method (CPM)

Once these values have been determined, they can be used to find
1. Expected project duration.
2. Slack time.
3. The critical path.

 Slack is the amount of time that an activity can be delayed past its earliest start or
earliest finish without delaying the project.
 The critical path is the longest sequence of activities that must be finished on time to
complete the entire project.

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CPM: Calculations of Time Estimates

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 CPM: Forward Pass

14
8 6 4 14
3
17
8 2
8
11 19
8 19 20
0 1
5 6

1 0 13
4 4 9
4

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 CPM: Backward Pass

16
10 16
14
8 6 4 14
3 19
8 8 17
8 2 19
8
19 19 20
0 11
8 19 20
0 1
5 6
6 19
1 0 10 13
10 4 9
4
4

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 Computing Slack Time

Slack  LS  ES or LF  EF

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 Computing Slack Time
Knowledge of slack time provides

• Information for planning the allocation of scarce resources and for directing
control efforts toward those activities.

• If two activities are both on the same path (e.g., activities 2-4 and 4-5 in) and have
the same slack (e.g., two weeks), this will be the total slack available to both.

• In essence, the activities have shared slack. Hence, if the first activity uses all the
slack, there will be zero slack for all following activities on that same path.

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 Try

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