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Chapter 5, Slide 2
Bechtel Construction:
Mobilized workforce of 9,000 Deployed 125,000 tons of equipment and supplies Built 150 km of pipeline delivering 20 million gallons of water per day to the fires Served 27,000 meals per day Established storage, docking, and warehouse facilities in Dubai
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 3
What Is a Project?
A series of related tasks directed toward some major output or goal Often driven by a completion deadline
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 4
Project Phases
Concept
Broad definition and feasibility analysis Budget estimates within s 30%
Project definition
Tentative schedules, budgets, organization Budget estimates refined within s 5%
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 5
Performance phase
Execution and control
Post completion
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 6
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 7
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 8
Chapter 5, Slide 9
Chapter 5, Slide 10
Chapter 5, Slide 11
Develop a critical path diagram and determine the duration of the critical path and slack times for all activities
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 12
. . .as well as the length of each activity. Do you see the two paths through the network?
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 13
Some Definitions
Earliest Start Time (ES)
= Latest EF for all immediate predecessors
Chapter 5, Slide 14
Insights
A hit to a critical activity will make project late Rational time estimates needed Slack activities can start later Difference between effort-driven and time-driven activities
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 15
Some Assumptions
Project activities can be identified as entities. (There is a clear beginning and ending point for each activity.) Project activity sequence relationships can be specified and networked Project control should focus on the critical path (activities with no slack)
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 16
Chapter 5, Slide 17
Competitive pressures
Product launch
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 18
Chapter 5, Slide 19
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 20
Project Data
Activity
A B C D E F G H I J K L
Duration
6 11 14 2 4 5 6 7 3 4 4 3
Predecessors
None A A A B B C C D E F, G H, I
Crashable Weeks
None 4 3 None 1 1 1 2 None None 2 1
$1,500 $2,500
Chapter 5, Slide 21
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 22
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 24
Shorten C by 3 weeks
Cost = 3$2,000 = $6,000
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 25
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 26
To Crash Further
1. Shorten C, or 2. Shorten {G or K} and {H or L}
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 27
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 28
Chapter 5, Slide 29
Observations
Cost of crashing becomes more and more expensive as cheapest options are used up There is a limit to how far a project can be crashed. Crashing non-critical activities is pointless
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 30
Controlling Projects
CPM used primarily to Plan and Schedule, BUT ... Things rarely go as planned Additional activities arise Better time and resource estimates are made as project progresses
2006 Pearson Prentice Hall Introduction to Operations and Supply Chain Management Bozarth & Handfield
Chapter 5, Slide 31
Chapter 5, Slide 32