Principles of Operation Management

Project Management
• • • • • Introduction to project management Critical path method (CPM) Crashing Uncertain activity durations Reading: Page 760 – 794

Project
• Project:
– A special type of process / transformation – A series of related jobs directed toward some major output – Require time and resources – Examples
• MS Windows 2000, Fund raising, Preparation for a private party, Building a new airport…

The Campus Wedding

Reserve Church (1)

Church Notice (17)

1
Decorate Church (3)

Choose Cake (2)

2 3
Jack’s Catering (10) Rehearsal Dinner (1) Wedding (April 22)

Start Preparatio ns

Get Gifts (1)

Choose Pattern (3)

5

Travel from Guatemala (10) Receive Lace (8)

4

Fit Dress (2)

Clean & Press (2)

Sew Dress (11)

6
Inv. To Post Office (1)

Choose Invitation s (3)

Invitation Lead Time (10)

7
Prepare Guest List (4)

Invitation s (12)

Address Inv. (4)

Project Management
• Project management
Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project.

• Different aspects of PM
– Team work – Leadership – We focus on technical aspect

Project Manager
Responsible for:
Work Human Resources Communications Quality Time Costs

Project Management
• Statement of work (SOW)
Objectives, work to be done, a proposed schedule, performance measures (cost, time, quality)

• Work breakdown structure
– Break project down into manageable pieces

Work Breakdown Structure
Level 1 Project

Level 2

Level 3

Level 4

Questions about a Project
• How long does it take to complete a project? • When should each activity start? • Which activities might delay the project? In other words, which activities should the project manager pay particular attention to? • How to expedite the completion of a project? • Time-cost trade off
9

Example 1: Clear Ocean Bay Motion Pictures Ltd
Activity
A Hire actors,