Operations Management

PROJECT
Manageme
Abejuela M. & Fracisco D.
nt
Importance of
Project
Management
Importance of Project
Management
a. Clearly defines
the plan of the
project before it
begins.
Management
b. Establishes and
agreed schedule and
plan.
Management
c. Creates base for

teamwork.
Management
d. Resources are
maximized.
Management
e. Helps to keep
control of costs.
Management
f. Helps to manage
change.
Management
g. Helps to manage
change.
Management
h. Knowledge.
Management
i. Creates an
opportunity for
learning.
Project
Planning
Project Planning
BASIC PROCESSES
Project Planning
1. Scope Planning
Project Planning
2. Project Schedule
Development
Project Planning
3. Resource
Planning
Project Planning
4. Budget Planning
Project Planning
5. Risk Management
Project Planning
6. Communication
Planning
Project
Management
Techniques
Project Management
Techniques
PROGRAM (PROJECT)
EVALUATION AND REVIEW
PERT TECHNIQUE – is where the
planning, scheduling, organizing,
coordinating and controlling
uncertain activities take place.
Project Management
Techniques
CRITICAL PATH METHOD (CPM) – is an
algorithm used for planning, scheduling,
CPM
coordination and control of activities in
a project. Here, it is assumed that the activity
duration is fixed and certain.is an algorithm
used for planning, scheduling, coordination and
control of activities in a project. Here, it is
assumed that the activity duration is fixed and
certain.
Project Management
Techniques
BASIS FOR
PERT CPM
COMPARISON
Meaning PERT is a project CPM is a statistical
management technique, technique of project
used to manage uncertain management that manages
activities of a project. well defined activities of a
project.
What is it? A technique of planning A method to control cost

and control of time. and time.
Model Probabilistic Model Deterministic Model
Project Management
Techniques
Focuses on Time Time-cost trade-off
Management of Unpredictable Activities Predictable activities
Suitable for Research and Development Non-research projects like
Project civil construction, ship
building etc.
Crashing Not Applicable Applicable

concept
Project
Schedule
Project Schedule
SCHEDULING in project
management is the listing of
activities, deliverables, and
milestones within a project.
PROCESS
Project Schedule
: Plan schedule management.
Define project activities.
Sequence activities.
Project Schedule
Estimate resources.
Define Estimate durations.
activities.
Develop the project
schedule.
Project Schedule
BENEFITS OF
PROJECT a. Assists with tracking,
SCHEDULING reporting on, and
communicating progress.
b. Ensures everyone is on the
same page as far as tasks,
dependencies, and deadlines.
Project Schedule
BENEFITS OF
PROJECT c. Helps highlight issues and
SCHEDULING concerns, such as a lack of
resources.
d. Helps identify task
relationships.
e. Can be used to monitor
progress and identify issues
early.
Variability in
Activity
Times
Variability in Activity Times
1. OPTIMISTIC TIME
– The length of time
required under
optimum conditions to.
2. PESSIMISTIC TIME
– The length of time
required under the worst
conditions; represented
by tp .
3. MOST LIKELY
TIME – The most
probable amount of
time required;
represented by tm .
BETA
DISTRIBUTION
is generally used
to describe the
inherent
variability in
time estimates.
EXPECTED TIME
OF AN ACTIVITY, te
is a weighted
average of the
three time
estimates:
STANDARD
DEVIATION
of each activity’s time is
estimated as one-sixth of
the difference between
the pessimistic and
optimistic time estimates.
VARIANCE
reflects the degree
of uncertainty
associated with an
activity’s time.
Cost Time,
Trade-Offs and
Project Crashings
Cost Time, Trade-Offs and
Project Crashings
Estimates of activity times

for projects usually are made
for some given level of
resources.
Project Crashings
The impetus to shorten

projects may reflect efforts.
Project Crashings
In new product development,

shortening may lead to a
strategic benefit.
Project Crashings
Various Options to shorten
or crash certain activities
1. The use of additional funds to support
additional personnel or more efficient
equipment
2. The relaxing of some work specifications
Project Crashings
General Procedure
General Procedure for
for Crashing
Crashing
1. Crash the project one period at a time.

Project Crashings
General Procedure
for Crashing
Crashing
2. Crash the least expensive activity that is

on the critical path.
Project Crashings
General Procedure
for Crashing
Crashing
3. When there are multiple critical paths, find the sum of
crashing the least expensive activity on each critical path. If
two or more critical paths share common activities, compare
the least expensive cost of crashing a common activity shared
by critical paths with the sum for the separate critical paths.
Critique of
PERT and CPM
Critique of PERT and CPM
P - can provide important services for the
project manager:
E 1. To organize and quantify available
information.
R 2. Provide a graphic display of the project
T and its major activities.

3. Identify activities that should be closely
watched and other activities that have slack
time.
C - Eli Goldratt identifies certain aspects of

projects that he believes managers need to
P be aware of to better manage projects:
1. Time estimates are often pessimistic
M 2. When activities are finished ahead of
schedule
- A key feature of the critical chain approach
is the use of various buffers.
a. Feeding (time) buffers
b. Project (time) buffer
c. Capacity (resource) buffers
Using Microsoft
Project to
Manage Project
Using Microsoft Project to
Manage Project
COMPUTER-AIDED
DESIGN (CAD)
- produce updated
prototypes on
construction and product-
development projects.
Manage Project
PROJECT
MANAGEMENT
SOFTWARE PACKAGE
• Microsoft Project
• Microsoft Office
PowerPoint
• Microsoft Office Visio
Manage Project
Advantages of using the Microsoft
Project
• It imposes a methodology and a common
project management terminology.
• It provides a logical planning structure.
• It can enhance communication among team
members.
Manage Project
Project
• It can flag the occurrence of constraint
violations.
• It automatically formats reports.
• It can generate multiple levels of summary
reports and detailed reports.
Manage Project
Project
• It enables what-if scenarios.
• It can generate various chart types, including
basic Gantt charts.

Operations Management

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PROJECT

c. Creates base for

What is it? A technique of planning A method to control cost

Crashing Not Applicable Applicable

Define project activities.

Estimates of activity times

The impetus to shorten

In new product development,

1. Crash the project one period at a time.

2. Crash the least expensive activity that is

T and its major activities.

C - Eli Goldratt identifies certain aspects of

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