Production and Operations

Management

Project Management
Lecture Session 01

Eng. K.C Wickramasinghe

BSc(Hons), AMIESL
Dept. of Mechanical & Manufacturing
Engineering,

Faculty of Engineering,
University of Ruhuna.

01

Introduction
Project: is an interrelated set of activities that has a definite starting and ending
point and that results in a unique product or service.
Project: is a temporary endeavour undertaken to create a unique product or
service.
Project Management Institute, A Guide to the Project Management Body
of Knowledge, Project Management Institute, Sylva, NC, 1994.

Ex: Developing new products, Conducting company audits, , Changing

the company layout, Planning weddings, Providing disaster relief
Projects Involve Multiple Resources
Both human and nonhuman, require close coordination
There are conflicts for resources as to quantity, timing, and specific
assignments, along with other sources of conflict in projects.

02

Elements of Project Management

Project Management: involves the coordination of tasks, people, organizations, and
other resources to achieve a goal.
Major Elements:
Project manager: establish means to achieve project goals, integrate the
various personal for activities, specify how the work done, necessary
training, timing, etc..
Project team: size of the team fluctuate during the life of the project,
people- different functional areas, suppliers of materials, services,
components, etc.
Project management system: consists of
Organizational structure specified by top management and defines the
relationship of the project team members to the project manager
Information system information relate to performance, cost, resource
usage, schedule changes, project completion, etc.
03

Network Planning Methods

Treat a project as a set of interrelated activities that can be visually
displayed as a network diagram.

Methods:
PERT (Program Evaluation and Review Technique)

CPM (Critical Path Method)

Monte Carlo Simulation
DCPM (Decision CPM)
GERT (Graphical Evaluation and Review Technique)

04

Network Planning Methods

PERT: 1950s, US Navy project
CPM: 1950s, J E Kelly & M R Walker-scheduling maintenance
shutdowns at chemical processing plants

Differences minor. So consider as PERT/CPM here

Monte Carlo Simulation :Time computations are the same as in
PERT/CPM except they are repeated many times.
Uncertainties of all activities that precede a given event are
considered in determining the uncertainty of that event
Deal with the problem late completion
05

Network Planning Methods

DCPM: Provision for identifying alternative methods of
performing the same task
Allows alternative task sets to be defined,

A task set is preceded by a decision node.

GERT: considered an extension of DCPM
GANTT Chart:
WBS (Work Breakdown Structure):
Identifies the work content (for which the contractor is to be

paid) of the project

sequential relationships define later (Network dia.)
06

Network Planning Methods

But the importance is,
Team work
Clearly identify project responsibilities
Simple & timely progress reporting system

Good people management practices

07

Managing a project with PERT/CPM

Steps:
1. Describing the Project

Clear statement of projects end point

Define all project activities and precedence relationships

2. Diagramming the network

Precedence relationships are presented by a network diagram

Two Approaches:
AOA (Activity on Arc)
AON (Activity on Node)

3. Estimating time of completion

4. Monitoring project progress
08

Example: A Hospital Project

In the interest of better serving the public in St. Adolfs Hospital has decided to
relocate from Christofer to Northville, a large suburb that at present has no primary
medical facility. The move to Northville will involve constructing a new hospital and
making it operational. The table shows the precedence relationship for this project
Activity

Description

Immediate
Predecessor(s)

A
B
C
D
E

Select administrative and medical staff

Select site & do site survey
Select equipment
Prepare final construction plans & layout
Bring utilities to the site

A
B
B

Interview applicants

G
H
I
J
K

Purchase & delivery of equipment

Construct he hospital
Develop an information system
Install the equipments
Train nurses and supportive staff

C
D
A
E,G,H
F,I,J

09