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PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3-1
Outline
Global Company Profile:
Bechtel Group
Project Scheduling
Project Controlling
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3-7
Bechtel Projects
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3-8
Importance of
Project Management
Bechtel Project Management
International workforce, construction
professionals, cooks, medical personnel,
security
Strategic value of time-based
competition
Quality mandate for continual
improvement
Single unit
Many related activities
Difficult production planning and
inventory control
General purpose equipment
High labor skills
Research Project
2014 Pearson Education, Inc. 3 - 11
Management of Projects
1. Planning - goal setting, defining the
project, team organization
2. Scheduling - relate people, money,
and supplies to specific activities and
activities to each other
3. Controlling - monitor resources, costs,
quality, and budgets; revise plans and
shift resources to meet time and cost
demands
2014 Pearson Education, Inc. 3 - 12
Project Management Activities
Planning
Objectives Scheduling
Resources Project
activities
Work break-
down structure Start & end
times
Organization
Network
Controlling
Monitor, compare, revise, action
2014 Pearson Education, Inc. 3 - 13
Project Planning,
Scheduling, and Controlling
Figure 3.1
Figure 3.1
Figure 3.1
Figure 3.1
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Figure
Cash 3.1schedules
flow
Human Quality
Resources Marketing Finance Design Production
Mgt
Figure 3.2
Project 1
Project 2
Project 3
Project 4
Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or work packages)
to be completed
Compatible with
Level 4 1.1.2.1
Windows 7
(Work packages)
Compatible with
1.1.2.2
Windows Vista
Time
J F M A M J J A S
Design
Prototype
Test
Revise
Production
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 3 - 35
Project Control Reports
Detailed cost breakdowns for each task
Total program labor curves
Cost distribution tables
Functional cost and hour summaries
Raw materials and expenditure forecasts
Variance reports
Time analysis reports
Work status reports
C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D
B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and C
(f) are completed Dummy
A dummy activity activity
C
C
is again
introduced in AOA
Activity A
A
(Build Internal Components)
Start
Activity B
Start B (Modify Roof and Floor)
Activity
Figure 3.5
A C
Start
B D
F
A C
E
Start H
B D G
H
1 Dummy 6 7
Activity (Inspect/
Test)
D
3 5
(Pour Figure 3.8
Concrete/
Install Frame)
2014 Pearson Education, Inc. 3 - 49
Determining the Project Schedule
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
Activity Duration
2014 Pearson Education, Inc. 3 - 53
Forward Pass
Begin at starting event and work forward
EF = ES + Activity time
ES EF = ES + Activity time
Start
0 0
2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3
3
2014 Pearson Education, Inc. 3 - 58
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B
0 3
2 2
Start
0 0
= Max (2, 3) D
0
3 7
B
0 3
3
4
2014 Pearson Education, Inc. 3 - 60
ES/EF Network for Milwaukee
Paper
A C
0 2 2 4
2 2
Start
0 0
B D
0 3 3 7
3 4
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.10
2014 Pearson Education, Inc. 3 - 62
Backward Pass
Begin with the last event and work backwards
Latest Finish Time Rule:
LS = LF Activity time
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
B D Activity timeG
LS = LF
0 3 3 7 8 13
3 4 5 LF = EF
of Project
2014 Pearson Education, Inc. 3 - 65
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF 4= Min(LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Slack = LS ES or Slack = LF EF
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-temperature
burner
F Install pollution control
system
G Install air pollution
device
H Inspect and test
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-temperature
burner
F Install pollution control
system
G Install air pollution
device
H Inspect and test
t = (a + 4m + b)/6
Variance of
Probability
1 in 100 of
oftimes:
Probability of
Probability
Activity
Time
MOST
OPTIMISTIC LIKELY PESSIMISTIC EXPECTED TIME VARIANCE
ACTIVITY a m b t = (a + 4m + b)/6 [(b a)/6]2
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1.00
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
15 Weeks
(Expected Completion Time)
.5 = due .69497
Z.69146 expected.71566
date /s
.71904
p
date of completion
.6 .72575 .72907 .74857 .75175
= (16 wks 15 wks)/1.76
15 16 Time
Weeks Weeks
Figure 3.13
Probability
of 0.01
2.33 Standard Z
From Appendix I deviations
0 2.33
Figure 3.14
$30,000
Normal
Normal
Cost
| | |
1 2 3 Time (Weeks)
Figure 3.15
Crash Time Normal Time
2014 Pearson Education, Inc. 3 - 95
Critical Path and Slack Times
for Milwaukee Paper
Figure 3.16
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Program 3.1
Program 3.2
2014 Pearson Education, Inc. 3 - 101
Using Microsoft Project
Pollution Project
Percentage Completed on
Aug. 12
ACTIVITY COMPLETED
A 100
B 100
C 100
D 10
E 20
F 20
G 0
H 0 Program 3.3