POM Ch-16

8/7/2019 POM Ch-16

http://slidepdf.com/reader/full/pom-ch-16 1/13

PRODUCTION AND

OPERATIONSMANAGEMENT

Chapter 16

PROJECT

MANAGEMENT

8/7/2019 POM Ch-16


Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 16

Project Management

� Project: Unique one-time operations designed toaccomplish a specific set of objectives in a limited timeframe.

� Project life cycle: The life cycle through which a projectpasses. Its various phases are

1. The concept phase,

2. Feasibility phase,

3. Detailed planning phase,

4. Organisation phase,5. Execution phase and

6. Termination phase.

Project Management

8/7/2019 POM Ch-16



Chapter 16

Project Management

� Project organisation: Organisation developed to

ensure both continuity of the production systemin its day to day activities and the successful

completion of the project.

Project Organisation

8/7/2019 POM Ch-16



Chapter 16

Project Management

� Much of the success of projects depends on certain key

managerial decisions. They are:

1. Deciding which project to implement

2. Selecting the project manager

3. Selecting the members of the project team

4. Managing and controlling project resources

5. Deciding whether to terminate a project and if so, when

K ey Decisions in Project

Management

8/7/2019 POM Ch-16



Chapter 16

Project Management

Responsibilities of theProject Manager

� The project manager is responsible for the effectivemanagement of:

1. Work

2. Human resource

3. Communication

4. Quality

5. Time

6. Costs.

8/7/2019 POM Ch-16



Chapter 16

Project Management

� Six basic functions that project management mustaddress are

1. Manage the project's scope to define the goals and work

to be done, in sufficient detail to facilitate understandingand correct performance by participants.

2. Manage the human resources involved in the project.

3. Manage communications to see that the appropriateparties are informed.

4. Manage time by planning and meeting a schedule.5. Manage quality so that the project's results aresatisfactory

6. Manage costs so that the project is performed at theminimum practical cost and within budget if possible

The Role of a Project

Manager

8/7/2019 POM Ch-16



Chapter 16

Project Management

Project Planning and

Control Techniques

Project planning: All activities that result in acourse of action for a project.

Project Scheduling: Establishes times andsequences of the various phases of the project.

Project control: Activities designed to measurethe status of component activities of a project,

transmit data to a control centre where it iscompared with the performance standard andinitiate corrective action when required.

8/7/2019 POM Ch-16



Chapter 16

Project Management

Project Planning and Control Flow Chart

8/7/2019 POM Ch-16



Chapter 16

Project Management

Programme Evaluation & ReviewTechnique (PERT) and Critical Path

Method (CPM)

� PERT: (Programme Evaluation and Reviewtechnique): A networking approach to planning,

monitoring, controlling and evaluation of

complex projects.

8/7/2019 POM Ch-16



Chapter 16

Project Management

Critical Path Method (CPM)

� CPM (Critical Path Method): A quantitative

technique which is used for planning andcoordinating large projects.

8/7/2019 POM Ch-16



Chapter 16

Project Management

Crashing CPM Networks

� Crashing CPM Networks: To reduce the normal

project duration to the desired shorter duration

activities on the critical path are crashed by theuse of additional resources\expenses.

8/7/2019 POM Ch-16



Chapter 16

Project Management

Steps in Network Crashing

Step 1 : Determine the time-cost ratio for each activity inthe network. This ratio represents the increase in cost for a unit decrease in time.

Time-cost ratio =

B. Step 2 : Identify the activities on the critical path and selectthat activity on the critical path which has the smallest time-cost ratio and crash that activity to the extent possible.

8/7/2019 POM Ch-16


Himalaya Publishing House Production and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 16

Project Management

Step 3 : Observe whether there is any change in the

critical path i.e., any other path becomes critical.

If so, calculate the time-cost ratio for the

activities in the new critical path.Step 4 : Repeat step 2 and 3, till the activities are

crashed to reduce the project duration to the

desired time period.

The network crashing is better understood throughthe following illustration.

Documents

POM Ch-16