Project Management PowerPoint

Employees seem to like teams○

Flattened hierarchies○

Ought to be empowered

Must be allowed to make mistakes (at least they are trying, companies sometimes reward this)

With multi-functional teams that are composed of different areas of the business (marketing, sales, engineering, etc.)

Teams are successful○

High-powered, focused and time constrained□

Tiger Teams

May have customer complaints they may decide how to tackle the problem

Team identifies problems on its own□

Do not meet physically

Could allow for around the clock work since the time is different in different group areas and would allow for online saving of documents (think Google Docs)

◊

Could be design teams (ie: from Asia, North America, Europe, etc. that meet only virtually)

Virtual teams□

Self-directed work teams

Types:○

Teams•

Derivative (incremental change)

Platform (fundamental improvement)

Breakthrough (major change – new markets)

Types:○

Product Change

Process Change

Research and development (advanced technology)

Alliances and partnerships (capabilities beyond current level)

○ Categories

Aka skunkworks

□ Autonomous

□ Single-project set-up□ Project manager has full-authority□ Apple often utilizes this

Pure Project

□ Comes from an existing division within a business Functional

□ Combination of the two□ Has section heads and Project Manager□ Project Manager overall responsible and meets customer□ May have central or decentralized power of managers involved

Matrix Project

○ Structure:

Project Types•

Helpful for creating the activities together for a project○

Or even when things are not going well or on time

Help for seeing when milestones are met○

Shows time and activity done during that time period○

○ Set up like a X Y diagram

• Gantt chart

Went over Mid-Term first

Write a 1/2 page report on this: (from ch. 10 Project Management PP)

See http://www.4pm.com/articles/wbs.pdf (please read) about the level of detail needed in a WBS: don’t micromanage.

•

Good break-down of the cost structure of the project

In-Class Lecture 10/25/2010Monday, October 25, 20107:59 PM

Lecture Notes 10-4-2010 Page 1

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○

Critical Path Method•

1. Identify all activities and their time durations

2. Determine their sequence, and construct a network diagram (activity on node)

3. Determine the critical path (‘forward pass’)

mean = (a + 4m + b)/6, std.dev. = (b – a)/6

from this, one can compute average and standard deviation of the project completion time.This will help to compute the variability of the project

○ When there are three activity time estimates, estimate the mean and standard deviation of each activity and do the CPM:

4. Determine the early start/ early finish times, and late start/ late finish times. (‘backward pass’)

○ Activities are clearly identified and don't change over time

○ Sequential relationships are clearly identified○ Project control should focus on critical path○ Find crash times, and find the optimal project completion time.

It assumes:•Criticism of CPM

Lecture Notes 10-4-2010 Page 2

M is most likely (is NOT average)

B is pessimistic time

A is optimistic

4m gives weight (4X) to most likely course of action

Squaring makes it variance, without it would beStandard Deviation

Lecture Notes 10-4-2010 Page 3

T is normal (T = Project completion Time)Mean = 38Variance = 11.89Standard Deviation = 3.45 = 3.45 Square root of 11.89(Probability) P(T<40) = P(Z > (40-38)/3.45) = Approximately 72%

Project Completion Time = T is normal (from above)

Time-cost tradeoff:

It costs to expedite activity – due to activity direct costs (overtime, hiring, additional equipment)

It costs to sustain activity – due to project indirect costs (overhead, opportunity costs, contractual terms)

Find crash times, and find the optimal project completion time.

Microsoft Project

Primavera

See http://infogoal.com/pmc/pmcswr.htm

See www.pmi.org PMI: The Project Management Institute

Software

Variances are only valid on the Critical Path (time constraints)

Lecture Notes 10-4-2010 Page 4

See www.pmi.org

Next we Went over Lean, JIT, OM consulting, and Reengineering Powerpoint

• Developed by Toyota, Taiichi OhnoLean/JIT

○ Overproduction, waiting time, unnecessary transport, scrap, multi-task○ WORMPIT: waiting, overtime, rework, motion, processing, inventory, transportation○ Use Pull system (pull them to inventory) not push (push them into inventory storage = wasteful)

Eliminate Waste, especially inventory

○ IE a batch of 100 with flow time, in a 4 stage process, of 100 mins would produce the first 100 in 400 mins

Gets out quicker

□ THIS IS LEAN PRODUCTION Prevents waste or inventory surplus

Batch size of 10 with flow time 10 would make 100 in only 140 mins ○

Reduction in batch sizes in production reduces inventory and flow time

○ Push is pushed into inventory

○ Pull doesn't run unless the market pulls it through manufacturing

Push Pull

○ Product design (standard parts, modular design, flexible manufacturing systems, quality, concurrent engineering)

○ Process design (small lot size, set up time reduction, manufacturing cells, limited work in process, visual controls, improved quality, flexible production, lower inventory, reduced lead times, 5S)

○ Personnel (respect for workers, cross-training, continuous improvement, cost accounting, leadership v management)

○ Planning and control (level loading – mixed model sequencing, pull systems, visual systems, close vendor relationships, reduced transaction processing, preventive maintenance, reduced lead times)

Comparison

JIT thinking Traditional view

Inventory

Liability Asset

Lot size Minimum Formulas (EOQ)

Set ups Reduce the time

Not a priority

Quality Zero defects Some scrap tolerated

Building Blocks in Developing JIT and implementing

○ Eliminate disruptions

○ Make the system flexible

○ Reduce setup times, processing times, lead times

○ Eliminate waste

○ Minimize work in process

○ Simplify the process (reengineer the process)

JIT in Services

○ Low inventory (less investment)

○ Quick response to design changes

○ If design is obsolete, not much is lost

○ Defect is immediately taken care of

○ Forces improvements – like faster change of dies in manufacturing

○ Increases flexibility, reduces lead time

Cross trained workers are more effective

JIT Advantages

Lecture Notes 10-4-2010 Page 5

○ Use of smaller units of capacity allows ‘shifting’ of capacity

○ Use of off-line buffers reduces congestion

○ Reserve capacity for important customers (‘over capacity’)

○ JIT may degenerate to JIC

○

“Living in Dell Time” – when ports closed, Dell airshipped vital parts

Any disruption causes a large impact

○ Inability to ramp up production quickly

○ No hedge against shortage in supply, or increasing prices

○ Cannot take advantage of quantity discounts

○ Too many ‘replenishments’

○ Sometimes, those with power make others keep inventory

JIT Problems

○ Based on original work of Hammer and Champy

○ “rethinking and radical redesign of business processes to achieve dramatic improvements in critical areas of performance”

Organize around outcomes, not tasks

Have those who use the output of the process perform the process

Merge information-processing work into the real work that produces the information

Treat geographically dispersed resources as though they were centralized

Link parallel activities instead of integrating only their results

Put the decision point where the work is performed, and build control into the process

Capture information once – at the source

○ Principles

□ IT

□ Flow charts, value stream maps

□ Creativity and innovation

Innovation

○ Tools

Re-engineering

Lecture Notes 10-4-2010 Page 6