Operations Management OPER 3100
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This 4 page Class Notes was uploaded by Carolanne Treutel on Sunday October 25, 2015. The Class Notes belongs to OPER 3100 at University of North Carolina - Charlotte taught by W.Douglas Cooper in Fall. Since its upload, it has received 59 views. For similar materials see /class/228950/oper-3100-university-of-north-carolina-charlotte in Operations And Info Mgmt at University of North Carolina - Charlotte.
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Date Created: 10/25/15
The dopest of dopest smoke but don t choke bitch on it Operations Finals Notes Project Management 0 Project A series of related jobs usually directed toward some major output and requiring a significant period of time to perform 0 Project Management Planning directing and controlling resources people equipment material to meet the technical cost and time constraints of the project 0 STRUCTURING PRO ECTS Senior management must decide which of the three organizational structures will be used to tie the project to the parent firm pure project mct139onal project or matrix project 0 Pure Project skunkworks A selfcontained team works full time on the project I Advantages o The project manager has full authority over the project 0 Team members report to one boss They do not have to worry about dividing loyalty 0 Lines of communication are shortened Decisions are made quickly 0 Team pride motivation and commitment are high I Disadvantages o Duplication of resources Equipment and people are not shared across projects 0 Organizational goals and policies are ignored as team members are often both physically and psychologically removed not included from headquartes o The organization falls behind in its knowledge ofnew technology due to weakened functional divisions 0 Since team members have no functional area home they worry about life afterproject causing project termination to be delayed 0 Functional Project Housing the project within a functional division I Advantages o A team member can work on several projects 0 Technical expertise is maintained within the functional area even if individuals leave the project or organization 0 The functional are is a home after the project is completed Functional specialists can advance vertically o A critical mass of specialized functionalarea experts creates synergistic solutions to a project s technical problems I Disadvantages o Aspects of the project that are not directly related to the functional area get shortchanged 0 Motivation of team members is often weak 0 Needs of the client are secondary and are responded to slowly 0 Matrix Project Specialized organizational form attempts to blend properties of functional and pure project structures Each project utilizes people from di ferent functional areas 0 Project managerPM decides what tasks and when they will be perform ed but functional managers control which people and technologies are used 0 Different projects borrow resources from functional areas 0 Senior management decides if matrix form is weak balanced or strong This decides if project managers have little equal or more authority than functional managers Respectably I Advantages 0 Communication between functional divisions is enhanced o A project manager is held responsible for successful completion of the project Are they not for pure Duplication of resources is minimized Team members have a functional home after project completion causing them to be less worried about lifeafterproject like they are with Pure Policies of the parent organization are followed This increases support for the projects I Disadvantages o 2 Bosses Functional manager usually has more power because they can promote and give raises 0 It is doomed to failure unless PM has strong negotiating skills 0 Suboptimization is a danger PM s hold resources for their own project thus harming other projects 0 Project manager is the primary contact point with the customer all structures WORK BREAKDOWN STRUCTURE 0 Project start out as Statement ofwork SOW written description of the objectives to be achieved with a brief statement of the work to be done and a proposed schedule specifying the start and completion dates Also can contain performance measures in terms of budget and completion steps Milestones and the written reports to be supplied 0 Task Further subdivision ofa project Not longer than several months in duration and is performed by one group or organization I Subtask Used ifneeded to further subdivide the project into more meaningful pieces 0 Work Package Group of activities combined to be assignable to a single organizational unit I Provides a description ofwhat is done when is it to be done when it is to be started and completed the budget measures ofperformance and specific events to be reached at points in time I Pro39ect mile Specific events Typically things like completion of the design the prod tion ofa prototype the completed testing of the prototype and the approval ofa pilot run 0 Work breakdown structure WBS The hierarchy of project tasks subtasks and work packages See 102 pg 341 How much detail or how many levels to use depends on o The level at which a single individual or organization can be assigned responsibility and accountability for accomplishing the work package 0 The level at which budget and cost data will be collected during the project 39 Not a single correct WBS for any project Project management is an art not science Correct way depends on experience m Pieces ofwork that consume time Usually require use of effort by people but not always Waiting for paint to dry A part ofWBS must be defined in such a way that when activities are completed project is done W566 104 pg 343 US deperatment ofdefense one of the first large users ofproject management They have published variety ofhelpful standard form Computer programs generate these charts fast as fuck 0 Gantt chart Bar Chart Shows both the amount of time involved and the sequence in which activities can be performed O Earned Value Management EVM Technique for measuring project progress in an objective manner Can combine measurements of scope schedule and cost in a project I EVM provides a method for evaluating the relative success ofa project at a point in time Can be applied to projects focused on either revenue generation or cost I Essential Features of EVM implementation 0 A project plan that identifies the activities to be accomplished o A valuation of each activity work Project evaluated on how it generates revenues is called the Planned Value PV ofthe activity Project is evaluated on cost is called Budgeted Cost of Work Scheduled BCW S for the activity 0 Predefined quotearning or costing rules aka Metrics to quantify the accomplishment ofwork Earned Value EV or Budgeted Cost ofWork Performed BCWPj EVM implementation for large or complex projects include many more features such as indicators and forecasts of cost performance over or under budget and schedule performance ahead or behind schedule Above is the most basic I Project Tracking without EVM 0 See pg 344 cuzo I Project Tracking with EVM 0 See same page But just so ya know True understanding of cost performance and schedule performance relies first on measuring technical performance objectively This is the foundational principle of EVM NETWORKINGPLANNING MODELS best known models were developed in 1950s CPM was developed for scheduling maintenance shutdowns at chemical processing plants own by Du Pont Program Evaluation and Review Technique PERT was developed for the US Navy Polaris missile projectDeveloped to handle uncertain time estimates Distinguishing features have diminished on the both of these and no we just be talking about CPM o O Kk In a sense CPM owe their development to the Gantt Chart Critical Path ofactivities in a project The sequence of activities that form the longest chain in terms of their time to complete If any one of the activities in the critical path is delayed the entire project is delayed Possible to have multiple critical paths Critical Path Method CPM Major goal is determining scheduling information about each activity in the project Based on the assumptions that project activity times can be estimated accurately and that they do not very Steps is this I Identify each activity to be done in the project and estimate how long it will take to complete each activity Determine the required sequence of activities and construct a network re ecting precedence relationships 0 Identify the Imgegm Predecessors associated with an activity These are Activities that eed to be completed immediately before an activity Determine the critical path Consider each sequence of activities that runs from the beginning to the end of the project Determine the early start finish and late start finish schedule Find when each activity needs to start and when it needs to finish 0 Slack Time Activities in a project where there can be some leeway in when the activity can start and finish Difference between late start time and early start time I Early start schedule One that lists all of the activities by their early start times For activities not on the critical path there is slack time between the completion of each activity and the start of the next activity I Late start schedule Lists the activities to start as late as possible without delaying the completion date of the project Savings are realized by postponing purchases of materials use oflabor and other costs until necessary 0 CPM with 3 activity time estimates I Not only allow us to estimate the activity time but also let us obtain a probability estimate for completion time for the entire network 0 Calculated using a weighted average of a minimum maximum and most likely time estimate 0 TIMECOST MODELS AND PRO ECT CRASHING o TimeCost Models Extensions of the basic critical path method They attempt to develop a minimum cost schedule for an entire project and to control expenditures during the project I MinimumCost Scheduling TimeCost TradeOff Basic assumption in minimum cost scheduling aka Crashing is that there is a relationship between activity completion time and the cost ofa project 0 Crashing The compression or shortening of the time to complete the project 0 Activity Direct Costs The costs associated with expediting activities 0 Workerrelated overtime work hiring more workers etc o Resourcerelated buying more equipment etc 0 Project Indirect Costs Costs associated with sustaining the project 0 Overhead facilities and resource opportunity costs 0 Both are opposing costs dependent on time Therefore the scheduling problem is essentially one of finding the project duration that minimizes their sum Finding the optimum point in a timecost trade off I Procedure for project crashing 0 Prepare a CPMtype network diagram 0 Normal cost NC the lowest expected activity costs 0 Normal time NT the time associated with each normal cost 0 Crash time CT The shortest possible activity time 0 Crash cost CC 0 Determine the cost per unit of time days to expedite each activity The relationship between activity time and cost may be shown graphically by plotting CC and CT coordinates and connecting them to the NC and NT coordinates by a concave convex or straight line fuck look in book 0 Compute the critical path 0 Shorten the critical path at the least cost Fuck see page 356 0 Plot project direct indirect and totalcost curves and find the minimumcost schedule Good luck bitch
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