-WBS: decomp project into: phases,

deliverables, work packages

Scheduling: ensure all activities planned
for, order of performance accounted for,
activity time estimates recorded, overall
project time developed
-Gantt chart, Critical path method, program
evaluation and review technique
Controlling: monitoring resources, costs,
quality, budgets; feedback enables revising
project plan and shift resources;
computerized & mobile tools produce
reports
Six Steps CPM & PERT
1. Define project, prepare WBS
2. Develop relationships among activities;
which must precede, which must follow
3. Draw network connective activities
4. Assign time and/or cost estimates
5. Compute critical path
6. Use network to plan, schedule, monitor and
control project
-Critical path is longest path through
network; shortest time in which project can
be completed; no slack time
ES=Earliest start; EF=Earliest finish; LS=latest
start activity can start and not delay completion
of project; LF=latest finish activity can be
finished and not delay project
-Forward Pass: find earliest start & earliest
finish of all activities
-Backwards pass: find latest start & latest
finish of all activities
-Activities with same ES & LS, and same LS
& LF are on critical path
-ES=Max of EF of all immediate
predecessors
-EF= ES + Activity time
Slack time= LS-ES
LS=LF Activity
-Most likely time (m)
-Optimistic Time (a)
-Pessimistic time (b)
-Expected time= (a+4m+b)/6
Variance of times=[(b-a)/6]^2
Project Variance: sum of variances of
Projects critical activities

Forecasting: process of predicting a future event (3 major

types are economic, technological, demand)
7 steps:
1. Determine use of forecast
2. Select items to forecast
3. Determine time horizon
4. Select forecasting model
5. Gather data needed
6. Make forecast
7. Validate and implement results
-Product family and aggregated forecasts are more
accurate than individual product forecasts
-Qualitative methods: use when situation is vague and little
data exists; involved experience, personal judgement
1. Jury of executive opinion-pool opinions of high-level
experts
2. Delphi Method: panel of experts, queried iteratively
3. Sales force composite: estimates from individual
salespersons are reviewed then aggregated
4. Market survey: ask customer
-Quantitative Methods: use when situation is stable and
historical data exists
Time series models:
1. Nave approach: assumes demand in next period is
same as demand in most recent period
2. Moving averages=demand in previous n periods/n
Weighted moving average=((weight for period n)
(demand in period n))/weights
3. Exponential smoothing: new forecast=previous periods
forecast +a(previous periods actual demand previous
periods forecast)
a=smoothing constant
4. Trend projections use y=a+bx
Associative models:
5. Linear regression
-Time series data components:
Trend: gradual movement over time
Seasonal: repeating data pattern after days, weeks,
months, years
Cyclical: multi-year data patterns, related to
unpredictable business cycles
Random: unpredictable data anomalies with
indiscernible pattern
Common measures of error
1. MAD=sigma lactual-forecastl/n
2. MSE=sigma (forecast errors)^2/n
Porters 5 forces model
-evalutes competition based on immediate rivals, potential
entrants, customers, suppliers, substitute products
-Value chain analysis: product research, human resources,
quality management, process innovation

Matthew Levitt
Essential Functions of Any Business:
RED ID: 816819608
1. Marketing Generates demand
2. Production/Operations Creates the Product
Division of Labor-Smith, Standardized parts& Service
Whitney, scientific management-Taylor, coordinated
3. Finance / Accounting Tracks how well the
assembly line-Ford, Motion study-Gilbreths, quality
organization is doing, Collects the Money &
control-deming
Pays Bills
Productivity=outputs/inputs
Basic OM Management Functions
Labor Productivity=units prod./labor hours used
Planning, organizing, staffing, leading,
Productivity=output/
controlling
(labor+material+energy+capital+misc.)
Strategic Decisions
% improvement=(new-old)/old
1. Design of Goods and Services
-Defines what is Required of Operations
Reasons to Globalize
-Product Design determines Functionality,
1. Improve supply chain
Sustainability and Human Resources.
2. Reduce costs
2. Managing Quality
3. Improve operations
-Determine the customers Quality
4. Understand markets
Expectations
5. Improve products
-Establish Policies and Procedures to identify
6. Attract and retain global talent
and achieve that Quality.
Mission Statements: tell org where it is going.
3. Process and Capacity Design
Strategy: tells org how to get there (action plan)
-How is a Good or Service Produced?
Strategies for Competitive Advantage:
-Commits Management to Specific
Differentiation (better, different), Cost Leadership
Technology, Quality, Resources, and
(cheaper), Response (more responsive)
Investment.
Product Design, inventory, location, technology &
4. Location Strategy
process, supply chain, maintenance, human resource,
-Nearness to Customers, Suppliers, and Talent.
service delivery
-Considering: Costs, Infrastructure, Logistics,
Outsourcing: transfer internal activities to external
and Government.
suppliers
5. Layout Strategy
International Strat.: import/export or license
-Determine the Efficient Flow of Materials,
existing product
People, and Information.
Global strat.: standardize product, economies of
-Integrate Capacity Needs, Personnel Levels,
scale, cross-cultural learning
Technology, and Inventory.
Multi-domestic Strat.: use existing domestic model
6. Supply-Chain Management
globally; franchise, joint ventures, subsidiaries
-Integrate Supply Chain into the firms strategy.
Transnational strat.: move material, people, ideas
-Determine what is to be Purchased, from
across national boundaries; economies of scale;
Whom, and under What Terms & Conditions.
cross-cultural learning
7. Inventory Management
-Inventory Ordering and Holding Decisions.
Project Manager: activities finished in order and on
-Optimize Considering Customer Satisfaction,
time; stay within budget; meet quality goals; people
Supplier Capability, and Production Schedules
assigned get motivation, direction and information.
& Cost.
Should be: good coaches, good communicators, able
8. Scheduling
to organize activities from variety of disciplines
-Determine and Implement Intermediate- and
Project: unique and non-routine activities; problem
Short-term Schedules.
with known solution scheduled for completion;
-Optimize the use of Personnel and Facilities in
specific, finite task
Meeting Customer Demands.
Project Constraints: cost, scope, time; plus quality
9. Maintenance
and risk
Consider Facility Capacity, Production
Project management activities:
Demands, and Personnel.
Planning: establishing goals/objectives, define
Maintain a Reliable and Stable Process.
project, create work breakdown structure,
determine needed resources, select and form
team