Unit 34: Operations

Management
LO3
Importance of OM for Organizations
Governs the core system of an
organization
Ensures and sustains effectiveness
and efficiency
Helps in strategic planning and gives
competitive advantage
Heavily impacts profitability (cost of
production reduced)
Effective Organizational coordination
and control


Critical Path Analysis & Network
Planning
Project Management tools that help
managers:
1. Schedule
2. Monitor
3. Control large projects

Critical Path: The longest necessary path
through a network of activities when
respecting their interdependencies

Critical Path Analysis & Network
Planning
Answers the following questions:

1. Project completion time
2. Critical activities
3. Non-critical activities
4. Project on schedule or not
5. Project exceeding or within budget
6. Resources sufficiency for the project


CPM Cost Benefit Analysis
Advantages Disadvantages
Project monitoring and risk management Complexity increases for larger projects
The activities and their outcomes shown
as a network
Does not handle personnel or cost
scheduling
Displays dependencies to help
scheduling
Critical path not always clear; needs
accurate calculations
Evaluates which activities can run
parallel to each other
Time consuming
Determines slack time Doesnt cater for problems in real time
implementation
Widely used in industry Time estimates are not easy to make in
certain projects
Example: Milwaukee Paper Mfg.
Installation of complex air filter system
Activity Description Time
(Weeks)
Immediate
Predecessors
A Build internal componenets 2 -
B Modify roof and floor 3 -
C Construct collection stack 2 A
D Pour concrete and install frame 4 A, B
E Build high-temperature burner 4 C
F Install pollution control system 3 C
G Install air pollution device 5 D, E
H Inspect and test 2 F, G