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In this chapter, the following content will be discussed: Case Study– hard rock café, projects why? characteristics and activities, work break down structure, project scheduling techniques, cost time trade offs, project control reports.
LECTURE LM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF Summary of last Session • The Global Environment and Operations Strategy – Growth of World Trade – Reasons to Globalize – Improve the supply chain – Attract and Retain Global Talent – Cultural and Ethical Issues – Developing Mission and Strategies – Strategic for Competitive Advantage Agenda for this Session • Case Study– Hard Rock Cafe • Projects Why? • Characteristics and Activities • Work Break down structure • Project Scheduling techniques • Cost time trade offs • Project Control reports Case Study: Hard Rock Cafe Operation Management at Hard Rock Café • Operations Managers • Operations Managers are the one who carry the task of providing the well-being of the world wide society by producing many products These products can take any kind of forms The first Hard Rock Cafe • Hard Rock cafe in the old days was a cafe and a bar but nowadays it became a famous restaurant Project Management Techniques • Gantt chart • Critical Path Method (CPM) • Program Evaluation & Review Technique (PERT) © 1984-1994 T/Maker Co 3-33 Gantt Chart Activity Time Period J F M A M J Design Build Test 3-34 J PERT / CPM Network planning methods that generate: ♦ ♦ ♦ ♦ ♦ ♦ Relationship between activities Project duration Critical path Slack for non – critical activities Crashing (cost / time trade-offs) Resource usage 3-35 St Paul’s Hospital Activity A B C D E F G H I J K Description Immediate Predecessor(s) Select administrative and medical staff — Select site and site survey — Select equipment A Prepare final construction plans and layout B Bring utilities to the site B Interview applicants and fill positions in nursing, support staff, maintenance, and security A Purchase and take delivery of equipment C Construct the hospital D Develop an information system A Install the equipment E,G,H Train nurses and support staff F,I,J 3-36 St Paul’s Hospital Activity A B C D E F G H I J K AON Network Description I Immediate Predecessor(s) Select administrative and medical staff — Select site and site survey — A F K Select equipment A Prepare final construction plans and layout B Bring utilities to the site B Start C fill positions G Interview applicants and in Finish nursing, support staff, maintenance, and security A Purchase and take delivery of equipment C D H J Construct theBhospital D Develop an information system A Install the equipment E,G,H E Train nurses and support staff F,I,J 3-37 St Paul’s Hospital Completion Time I Activity Description 15 A B C D E F G H I J K Immediate Predecessor(s) Select administrative and medical staff — A site Fsurvey K Select site and — 12 10 Select equipment A Prepare final construction plans and layout B C G Bring utilities to the site B Start Finish 10 35 Interview applicants and fill positions in nursing, support staff, maintenance, and security A D H J Purchase and9Btake delivery of equipment C 10 40 Construct the hospital D Develop an information system A E Install the equipment 24 E,G,H Train nurses and support staff F,I,J 3-38 Path St Paul’s Hospital Expected Time (wks) A-I-K 36 A-F-K 31 Critical Immediate Completion Time A-C-G-J-K 70 Path I Activity Description Predecessor(s) B-D-H-J-K 72 15 B-E-J-K 46 — A Select administrative and medical staff B Select siteA and site survey — F K 12 10 C Select equipment A D Prepare final construction plans and layout B E Bring utilities to the site G B C Start Finish F Interview applicants 10 and fill 35positions in nursing, support staff, maintenance, and security A G Purchase Band takeDdeliveryHof equipment C J 10 40 H Construct9 the hospital D I Develop an information system A J Install the equipment E,G,H E K Train nurses and support staff F,I,J 24 3-39 Critical Path ♦ ♦ ♦ The longest path in the network Defines the shortest time project can be completed Critical path activity delay project delay 3-40 Completion Time for Noncritical Activities • • Variability of times for activities on noncritical paths must be considered when determining the probability of finishing in a specified time Variation in non-critical activity may cause change in critical path 3-41 Cost / Time Trade-offs Most activities can be done faster if you pay more money ♦ Work overtime / hire more people / rent extra equipment / incentive contracts ♦ PERT / CPM have the ability to a schedule – to shorten activity time in a network to reduce project completion time crash 3-42 Cost / Time Relationship Direct cost (dollars) 8000 — Crash cost 7000 — Activity B 6000 — 5000 — Normal cost 4000 — 3000 — 0— | Crash time | | | | 10 | 11 Normal time 3-43 Project Control Reports • Performance vs schedule • Expected time to project completion • Cost vs budget • Detailed cost breakdowns for each task and organization • Expected total project cost • Resource reports • Corrective action / contingency3-44 reports Summary • Project management requires special tools PERT / CPM – Network planning methods that generate relationship between activities, project duration, critical path, slack for non-critical activities, crashing (cost / time trade-offs), and resource usage • Project-based work is becoming increasingly prevalent for market-driven reasons - Growing project complexity - Collapsing product/service life cycles • • People with these skills are in demand We have only scratched the surface of the topic– if you are interested, take the Project Management course 3-45 Summary for this Session • Case study Hard Rock Cafe • Projects Why? • Characteristics and Activities • Work Break down structure • Project Scheduling techniques • Cost time trade offs • Project Control reports THANK YOU ... Hospital Expected Time (wks) A-I-K 36 A-F-K 31 Critical Immediate Completion Time A-C-G-J-K 70 Path I Activity Description Predecessor(s) B-D-H-J-K 72 15 B-E-J-K 46 — A Select administrative and medical... 10 40 Construct the hospital D Develop an information system A E Install the equipment 24 E,G,H Train nurses and support staff F,I,J 3-3 8 Path St Paul’s Hospital Expected Time (wks) A-I-K 36 A-F-K... non-critical activities, crashing (cost / time trade-offs), and resource usage • Project-based work is becoming increasingly prevalent for market-driven reasons - Growing project complexity -