...Table of Contents 1.0 INTRODUCTION 3 2.0 NETWORK TECHNIQUES 7 2.1 Introduction 7 2.2 Critical Path Method (CPM) ……………………………………………………………..…………………………………… 8 2.2.1 Steps of CPM Project Planning ……….……………………………………………………………………………… 9 2.2.2 Example of CPM …………………………………………………………………………………………………………… 11 2.2.3 Benefits of CPM …………………………………………………………………………………………………………… 12 2.2.4 Limitation of CPM …………….…………………………………………………………………………………………. 12 2.3 Project Evaluation and Review Techniques (PERT) ……..……………..………………………………………… 13 2.3.1 Steps of PERT in Project Planning ……....……………………………………………………………………….. 14 2.3.2 Benefits of PERT……..……………………………………………………………………………………………………. 16 2.5.1 Limitation of PERT ……………………………………………………………………………………………………….. 16 3.0 CONCLUSION 17 4.0 REFERANCES 29 1.0 INTRODUCTION: 1.1 What is a project? A project is a series of activities directed to accomplishment of a desired objective. A project have a defined start which is when the descision of the project process starts and also a defined end where by that point the goal and the objectives of that project is achived. 1.2 What is project management? Project management its concerned with the overall planning and co-ordination of a project from conception to completion aimed at meeting the stated requirements and ensuring completion on time, within cost and to required quality standards. Project management is normally reserved for focused, non-repetitive, time-limited...
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...CPM/PERT Presented by DATE- 08 Aug. 2014 Shravan Kumar Project “A project is a series of activities directed to accomplishment of a desired objective.” Plan your work first…..then work your plan Network analysis Introduction Network analysis is the general name given to certain specific techniques which can be used for the planning, management and control of projects. One definition of a project: “A project is a temporary endeavour undertaken to create a "unique" product or service” History Developed in 1950’s CPM by DuPont for chemical plants PERT by U.S. Navy for Polaris missile CPM was developed by Du Pont and the emphasis was on the trade-off between the cost of the project and its overall completion time (e.g. for certain activities it may be possible to decrease their completion times by spending more money how does this affect the overall completion time of the project?) PERT was developed by the US Navy for the planning and control of the Polaris missile program and the emphasis was on completing the program in the shortest possible time. In addition PERT had the ability to cope with uncertain activity completion times (e.g. for a particular activity the most likely completion time is 4 weeks but it could be anywhere between 3 weeks and 8 weeks). CPM - Critical Path Method Definition: In CPM activities are shown as a network of precedence relationships using activity-on-node network construction – Single estimate of activity time – Deterministic...
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...and ‘T’ be the time period for which funds are invested then interest earned will be … d. P*I*T 3. Following the above given conditions, compound interest is given by … b. P*(1+I)T 4. Firms resorting to “Proactive Growth” a. do constant strategic planning 5. SPACE stands for Strategic Position and Action Evaluation 6. Increasing market expenditure heading to an increased market share is known as … c. market expansion 7. If profit after tax is ‘A’, depreciation be ‘B’ and interest be ‘I’, then Interest cover ratio is given by 8. E-V rule is also called … 9. In case of internally generated funds the opportunity cost to the firm is … b. the lending rate 10. ‘PERT’ stands for Program Evaluation and Review Technique. Part Two: 1. Write a note on ‘Sinking Fund Payment’. Answer: A sinking fund is a means of repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. Rather than the issuer repaying the entire principal of a bond issue on the maturity date, another company buys back a portion of the issue annually and usually at a fixed par value or at the current market value of the bonds, whichever is less. Should interest rates decline following a bond issue, sinking-fund provisions allow a firm to lessen the interest rate risk of its bonds as it essentially replaces a portion...
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...CHAPTER 1: OPERATIONS AND PRODUCTIVITY TRUE/FALSE 1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) 2. The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) 3. All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) 4. Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) 5. An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations...
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...THE IMPORTANCE OF PROJECT MANAGEMENT Globalization has changed the way business organizations work. Modern organizations face bigger and harder challenges as competitions and technology grow. Growing project complexity and collapsing product/service life cycle has made businesses have to adapt to sustain their profitability and competitiveness. Hard Rock Cafe and Bechtel Group are two examples of firms that manage to adapt to these changes using their strength in managing projects. Bechtel uses their outstanding project management skills to build massive constructions all over the world. Hard Rock Cafe won’t be able to run their day-to-day business and sponsor the annually-held Rockfest if they don’t have a good project management team. Scheduling projects is a difficult challenge for operation managers. Cost overruns and unnecessary delays may occur due to poor schedulling and controls. Good project management is a substantial key to guarantee projects comes within budget and meet the required time and quality. Businesses usually form project organizations outside the normal production system to run projects that takes month or year to finish. Project organizations within a firm is usually set up to handle specific jobs and often disbanded when the project is complete. The management of project involves three phases: planning, scheduling, and controlling. PROJECT PLANNING Planning projects is the first phase of project management. This phase includes setting goals...
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...with PERT/CPM One of the most challenging jobs that any manager can take on is the management of a large-scale project that requires coordinating numerous activities throughout the organization. A myriad of details must be considered in planning how to coordinate all these activities, in developing a realistic schedule, and then in monitoring the progress of the project. Fortunately, two closely related operations research techniques, PERT (program evaluation and review technique) and CPM (critical path method), are available to assist the project manager in carrying out these responsibilities. These techniques make heavy use of networks (as introduced in the preceding chapter) to help plan and display the coordination of all the activities. They also normally use a software package to deal with all the data needed to develop schedule information and then to monitor the progress of the project. Project management software, such as MS Project in your OR Courseware, now is widely available for these purposes. PERT and CPM have been used for a variety of projects, including the following types. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Construction of a new plant Research and development of a new product NASA space exploration projects Movie productions Building a ship Government-sponsored projects for developing a new weapons system Relocation of a major facility Maintenance of a nuclear reactor Installation of a management information system Conducting an advertising campaign PERT and...
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...activities of project are critical in the sense that delay in their commencement will delay the overall project completion time. Therefore, management and scheduling of projects is inevitable. In this paper, project scheduling in agriculture, for establishing 300 hectares grape garden in Agricultural Research Center of University of Zabol, is carried out by CPM (Critical Path Method) and PERT (Program Evaluation Review Technique) methods. Results show that the minimum completion time of this project, based on using Normal time and PERT method is 390 days and 364.67 days, respectively. Also the results obtained from employing CPM method indicate that the cost of reducing the project completion time to 365 days is 23643530 Rials. Key words: Project scheduling % CPM % PERT % Agriculture INTRODUCTION Project scheduling and control refers to the planning, scheduling and control of projects, which consist of numerous activities. In the other words, Scheduling issue is a frequent task in the control of various systems such as manufacturing processes [1], project management [2] and service system control (reservation systems, timetabling). Examples can be found in diverse areas such as shipbuilding, road construction, oil refinery maintenance, missile launching and auditing. The management of such projects is problematic, because certain activities must be completed in a prescribed order or sequence. This means that some of these activities are critical so that they delay in their commencement...
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...Until 1900, civil engineering projects were generally managed by creative architects, engineers, and master builders themselves, for example Vitruvius (first century BC), Christopher Wren (1632–1723), Thomas Telford(1757–1834) and Isambard Kingdom Brunel (1806–1859).[8] It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex engineering projects.[9] Henry Gantt (1861–1919), the father of planning and control techniques As a discipline, project management developed from several fields of application including civil construction, engineering, and heavy defense activity.[10] Two forefathers of project management are Henry Gantt, called the father of planning and control techniques,[11] who is famous for his use of the Gantt chart as a project management tool (alternatively Harmonogram first proposed by Karol Adamiecki[12]); and Henri Fayol for his creation of the five management functions that form the foundation of the body of knowledge associated with project and program management.[13] Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation. The 1950s marked the beginning of the modern project management era where core engineering fields come together to work as one. Project management became recognized as a distinct discipline arising from...
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...1) Please identify the critical path using the activity letter provided and explain the significance of the critical path. The QSB output below shows the critical path. The path is significant because it demonstrates the path that is the most time consuming (longest to finish), as the activities on the critical path have no slack. The completion of each activity in this sequence is critical to the start of the next activity in the sequence. There is likely a “bottle neck” with one or more of these activities that contribute to the critical paths long finish time. 2) With respect to the total project what is the best estimate of: [pic] A) the expected project completion time? The project is expected to be completed in 448.0 Days as shown by the QSB run above. B) the most-likely project-completion time? The probability analysis output shows that the probability of finishing in 474 is most likely to happen. C) the variance of the project completion time? The standard deviation of the expected project completion time of 448 days is -5.4874. Therefore the variance = 5.4874^2 or 30.1116 Also, one by one please discuss briefly the specific statistical assumptions if any that you made to answer questions 1a, 1b, and 1c. 3) Please create the fully labeled network diagram for the project using the activity letters provided as labels and explain its usefulness in managing this project. What information...
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...PROJECT CONTROL WITH PERT/CPM CPM (Critical Path Method) determines the longest path and the critical activities along this path in a project network; the project completion time can't be shorter than the duration of this longest path unless such techniques as time crashing are used. PERT (Program Evaluation and Review Technique) incorporates probabilistic elements into the computation of activity durations and hence the project completion time; PERT uses optimistic (o), most probable (m), and pessimistic (p) activity times to estimate the expected activity times. Expected time is given by (o + 4m + p) / 6 and variance is given by ((p - o)/6)2 . The reason for dividing by 6 is due to the fact that the area under the normal curve between -3 and 3 accounts for more than 99% of the total probability of 100%. In case of standard normal curve, = 1; hence -3 = -3(1) = -3 and 3() = 3(1) = 3 and the difference between 3 and -3 is 6. An example will illustrate the PERT/CPM technique. Example: The optimistic, most probable, and pessimistic times (in days) for completion of activities for a certain project are as follows: ACTIVITY | IMMEDIATE PREDECESSOR | OPTIMISTIC TIME (o) | MOST PROBABLE TIME (m) | PESSIMISTIC TIME (p) | A | - | 4 | 5 | 6 | B | - | 6 | 8 | 10 | C | A | 6 | 6 | 6 | D | B | 3 | 4 | 5 | E | B | 2 | 3 | 4 | F | C,D | 8 | 10 | 12 | G | E | 6 | 7 | 8 | H | C,D | 12 | 13 | 20 | I | F,G | 10 | 12 | 14 | ...
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...7. PROJECT MANAGEMENT Syllabus Definition and scope of project, Technical design, Financing, Contracting, Implementation and performance monitoring. Implementation plan for top management, Planning Budget, Procurement Procedures, Construction, Measurement & Verification. 7.1 Introduction Project management is concerned with the overall planning and co-ordination of a project from conception to completion aimed at meeting the stated requirements and ensuring completion on time, within cost and to required quality standards. Project management is normally reserved for focused, non-repetitive, time-limited activities with some degree of risk and that are beyond the usual scope of operational activities for which the organization is responsible. 7.2 Steps in Project Management The various steps in a project management are: 1. 2. 3. 4. 5. 6. 7.2.1 Project Definition and Scope Technical Design Financing Contracting Implementation Performance Monitoring Project Definition and Scope What is a Project? “A project is a one-shot, time-limited, goal-directed, major undertaking, requiring the commitment of varied skills and resources”. A project is a temporary endeavor undertaken to create a unique product or service. A project is temporary in that there is a defined start (the decision to proceed) and a defined end (the achievement of the goals and objectives). Ongoing business or maintenance operations are not projects. Energy conservation projects and process improvement...
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...The PERT Chart Program Managers often utilize tools such as, the Program Evaluation and Review Technique or PERT charts. PERT charts help managers with planning the schedule of projects that involve sequential activities. A PERT chart identifies the amount of time that is required to complete the activities in a project, and the order of the steps that occurs throughout the project. Each activity is assigned an earliest and latest start time and end time; activities with no slack time are said to lie along the critical path, this is the path that must stay on time for the project to stay on schedule (Ingram, 2013). One of the strengths that the PERT charts have is their ability to calculate exactly how long a project will take. They provide managers with a range of time in which the project should be completed, based on the total of all the minimum and maximum time limits for all of the activities. This gives companies a number of advantages, such as the ability to tell their customers exactly when their orders will be filled, or exactly when they should order new supplies. One weakness a PERT chart has is that it does not take into account the possibility of unexpected occurrences. The expected completion time of all subsequent activities and the project as a whole can get off track when things go wrong, which can cause problems if the company has made plans that rely on the timely completion of the project. Another weakness of PERT chart is that the technique relies...
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...how this would be done for Critical Chain. This document is written to be accessible to any reader regardless of the level of prior exposure to the Theory of Constraints. APPROVED BY DIRECTOR OF HONORS THESIS: ______________________________________________________ Dr. Elisabeth Umble, Department of Management APPROVED BY THE HONORS PROGRAM: __________________________________________________ DATE: _______________________ CRITICAL CHAIN PROJECT MANAGEMENT: AN OVERVIEW A Thesis Submitted to the Faculty of Baylor University In Partial Fulfillment of the Requirements for the Honors Program By Christopher Aitken Waco, Texas May, 2012 TABLE OF CONTENTS DEDICATION CHAPTER ONE: What is Critical Chain? CHAPTER TWO: Examples of Critical Chain Project Management CHAPTER THREE: The History of Project Management CHAPTER FOUR: Convincing someone to do Critical Chain BIBLIOGRAPHY iii 1 9 14 24 30 ii DEDICATION There are many people to thank that have helped me get to the point...
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...repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. From the investor's point of view, a sinking fund adds safety to a corporate bond issue: with it, the issuing company is less likely to default on the repayment of the remaining principal upon maturity since the amount of the final repayment is substantially less. This added safety affects the interest rate at which the company is able to offer bonds in the marketplace. 2. DIFFERENCE BETWEEN PERT AND CPM MODEL: CPM and PERT (Program Evaluation and Review Technique) are most commonly used methods for project management. There are some similarities and differences between PERT and CPM. PERT can be applied to any field requiring planned, controlled and integrated work efforts to accomplish defined objectives. On the other hand, CPM (Critical Path Method) is the method of project planning consisting of a...
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...16 Product waste is an example of waste in the sense that no value is added- true In a JIT system, product inspection adds value by identifying defective items-false A push system means providing the station with exactly what is needed when it is needed-false Waste is anything that does not add value from the consumers prospective- True Increasing inventory exposes variability in production processes-false The 5’s do not include-safety Manufacturing cycle time is best described as-time from raw material to finished product. A common JIT layout tactic is to minimize distance-true One goal of JIT partnerships is the removal of in plant inventory by delivery in small lots directly to the using as needed-true JIT supplies have concerns that the JIT firms demands for a small lot size are simply a way of transforming holding costs from HIT firm to Supplies-true Which of the following is true regarding the steps to reducing setup times? All the above Which if the following statements is true about the Kanban system?-The customer workstation signals to supplier workstations when production is needed. Employee empowerment is not needed at the Toyota plant-true Kaizen- continuous improvement. Jidoka-stop production when defect Which of the following is not one of the principles at Toyota? Improvements with scientific method JIT has internal focus while lean production begins with external focus on-Customers Not an attributes to lean operations- Increase space required...
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