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Project Management

Nature of Projects Project Management Issues Visualizing Projects Project Evaluation & Review Uncertainty Critical Path Management Resource-Constrained Competitive Bidding Project Manager Interactions

What is Operations Management


Inputs & Resources Outputs Transformation System
(Products & Services)

Desired Characteristics of
Inputs & resources Outputs

dictates the type of Transformation System

Example Transformation System I


Few Fixed
Inputs & Resources
Transformation System:

Fluid Highly standardized Extremely large volumes Outputs Continuous Process


(Products & Services)

e.g.: Thermal Power Generating Plant


Fixed sequence of operations Prohibitively costly, long setups 24/7/52 operations Fixed output rates Fixed unit manufacturing times Little, highly qualified labor

Example Transformation System II


Discrete

Many Fixed
Inputs & Resources
Transformation System:

Standardized Fixed variations Large volumes Outputs Flow Shop


(Products & Services)

e.g.: Diesel Engine Assembly Line


Fixed sequence of operations Costly stops, long setups Output rate changes costly Small unit-manufacturing-time variations Unskilled labor

PROJECT as a Transformation System


Discrete, large scale Non-Standardized, unique Unbounded variations Single unit or small # Outputs
Transformation System:

Many Variable
Inputs & Resources

PROJECT

(Products & Services)

Interdependent, simultaneous operations Costless (?) stops Output rate changes by crashing Large variations in production times of different projects Highly skilled labor

Construction PROJECT

Design PROJECT

Advertising PROJECT

EXAMPLE PROJECTS
Infrastructure: Dams, airports, subway sytems Cosntruction: Buildings, factories Transportation: Airplanes, submarines, ships Events: Election campaigns, Olympic campaigns Advertising campaigns New product development New science Management consulting Executive training

Project Management Issues


Estimating Planning Controlling of Costs (inputs & resources: manpower, materials, ) Durations of current and future projects.

Defining Projects
Activities Precedence relationships
Activity X can not start before activity A is completed Activity X can not start before activity A starts Activity X must start within a time window following completion of A Activity X can not finish before activity A is completed Activity X can not finish before activity A starts

Activity durations Activity costs

Resource utilization

Costs

Duration

Example Project Definition


ACTIVITIES A B C D E F G H I Immediate Prerequisites ---B,C A A E,F D F,H Duration (days) 4 4 2 2 4 6 2 3 5 32 days Cost (TL) 3000 2000 2500 1500 4000 7000 1000 8000 4000 33000 TL

Defining Refrigerator Design Project


Activities mMS - Market Survey mPC - Panel Consensus mDL - Delphi session epS - Preliminary specs Immediate Prerequisites --MS,PC DL Team size 4 3+10 2+5 3 Expected Duration (wks) 4 2 8 2

eCO - Concept development


eAR - Architecture ePA - Engineering efS Final Specs efD Prototype design oPR - Prototyping oQC Testing & control eFD Final Design mPA Production approval

pS
pS CO, AR PA fS fD PR QC QC

2
2 4 1 3 7 2 2 1

4
2 1 1 2 2 0.5 2 0.5

Visualizing a Project
NETWORK DIAGRAMS
Activities on Nodes (AON) Diagram Activities on Arcs (AOA) Diagram

GANTT CHARTS

RULES for Activities on Nodes Network Diagrams


1. 2. 3. 4. Each activity is denoted by a unique node; Each node must correspond to an activity, except that: Dummy (fake) nodes may show the events of beginning & ending the project; To show an immediate prerequisite relationship, the node for an activity X must be separately connected to the nodes of each of its immediate prerequisite activities by a (solid, straight line) directed arc that emanates from the node for that immediate prerequisite activity and leads to the node for activity X. No portion of the network diagram should proceed right to left.

5.

Activities on Nodes Network Diagrams 1


1. Each activity is denoted by a unique node;

Design

OK

mMS

Activities on Nodes Network Diagrams 2


2. Each node must correspond to an activity,

mMS

OK

Activities on Nodes Network Diagrams 3


2. Each node must correspond to an activity, except that 3. Dummy (fake) nodes may show the events of beginning & ending the project;

Beg

OK OK OK

END

SON

Activities on Nodes Network Diagrams 4


4. To show an immediate prerequisite relationship, the node for an activity X must be separately connected to the nodes of each of its immediate prerequisite activities by a (solid, straight line) directed arc that emanates from the node for that immediate prerequisite activity and leads to the node for activity X.
Beg A

OK
SON

Q B D C

OK OK

Activities on Nodes Network Diagrams 5


5. No portion of the network diagram should proceed right to left.
Beg A

U2

End

OK

AON Network Diagram of Example Project


Immediate Activities Prerequisites A B C D E F G H I ---B,C A A E,F D F,H

RULES for Activities on Arcs Network Diagrams PART 1


1.
2. 3.

4.

Each activity is denoted by a unique solid, straight line, directed arc; Each solid, straight line, directed arc must correspond to an activity; Each arc must have a beginning node and an ending node, showing the beginning and the end (respectively) of the activity the arc represents. However, these beginning and ending nodes need not be unique to one activity. To show the precedence relationships the node at the beginning of the arc for an activity X must be separately connected to the nodes at the ends of each of its immediate prerequisite activities.

RULES for Activities on Arcs Network Diagrams PART 2


5. So called dummy arcs (i.e., fake arcs) denoted by straight, broken line arcs may be used to represent dummy activities ( fake activities which do not take any real time or cost any real money) to connect a pair of distant nodes. Any given two nodes may be connected by at most one directed arc. (This rule actually emphasizes the rule that the activity arcs should be drawn as straight lines, rather than as curves.) Two or more activity arcs should not cross each other (but a dummy arcs can cross other arcs.) A single node must show the beginning of the project, and a single node must show the end of the project. No portion of the network diagram must ever proceed right to left.

6.

7.

8.
9.

Activities on Arcs Network Diagrams 1 I


1. Each activity is denoted by a unique, solid, straight line, directed arc;
A

OK
B

Activities on Arcs Network Diagrams 2


2. Each solid, straight line, directed arc must correspond to an activity;

mMS

OK

Activities on Arcs Network Diagrams 3


3. Each arc must have a beginning node and an ending node, showing the beginning and the end (respectively) of the activity the arc represents. However, these beginning and ending nodes need not be unique to one activity. For instance:
More than one activity can share the same beginning node, or mMS mPC More than one activity can share the same ending node, or mMS mPC

The same node may act as the ending node of one or more activities while also acting as the beginning node of other activities. A B

Activities on Arcs Network Diagrams 4


4. To show the precedence relationships the node at the beginning of the arc for an activity X must be separately connected to the nodes at the ends of each of its immediate prerequisite activities.
A B

A HALL B

R2D2

Activities on Arcs Network Diagrams 5


5. So called dummy arcs (i.e., fake arcs) denoted by straight, broken line arcs may be used to represent dummy activities (fake activities which do not take any real time or cost any real money) to connect a pair of distant nodes.

A HALL B

R2D2

Activities on Arcs Network Diagrams 6


6. Any given two nodes may be connected by at most one directed arc. (This rule actually emphasizes the rule that the activity arcs should be drawn as straight lines, rather than as curves.)
A

A B

Activities on Arcs Network Diagrams 7


7. Two or more activity arcs should not cross each other (but a dummy arcs can cross other arcs.)

A B

OK

OK

Activities on Arcs Network Diagrams 8


8. A single node must show the beginning of the project, and a single node must show the end of the project.

A A

Beg B B

OK

Activities on Arcs Network Diagrams 9


9. No portion of the network diagram must ever proceed right to left.
A B

C ZB ZA

OK
ZC

AOA Network Diagram of Example Project


Immediate Activities Prerequisites A B C D E F G H I ---B,C A A E,F D F,H

RULES for Gantt Charts


1. 2. 3.
4.

Each activity is shown by a unique, horizontal, directed arc; Each arc must correspond to an activity; The length of each arc is proportional to the duration of the corresponding activity. An activity arc must not start before the ends of the arcs for any of its immediate prerequisite activities.

Gantt Chart of Example Project


Activities Immediate Prerequisites Activity Duration (days)

A B C D E F G H I

---B,C A A E,F D F,H

4 4 2 2 4 6 2 3 5

Gantt Chart for Software Development Consulting Project

QUIZ 1 (10 min)


Draw an activities-on-arcs network for the following project:
Immediate Prerequisites BB Z BB, Z JOE, U2 Z, BB C, Q, REM, B52s REM, B52s

Activity REM BB Z Q B52s A C U2 JOE