Unformatted text preview: project team often includes people who don’t usually work
together – sometimes from different organizations and across multiple geographies.
The development of software for an improved business process, the construction of a building or
bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic market
— all are projects.
And all must be expertly managed to deliver the on-time, on-budget results, learning and integration
that organizations need.
Project management, then, is the application of knowledge, skills and techniques to execute
projects effectively and efficiently. It’s a strategic competency for organizations, enabling them to tie
project results to business goals — and thus, better compete in their markets.
Project management processes fall into five groups:
•Monitoring and Controlling
Project Scheduling PERT / CPM
Involves finding out the critical path and ensuring that
activities in that sequence do not get delayed; Manufacture Throughput time – Time to produce an unit of output
Capacity – Units of output in the unit of time
Cycle time = 1 / Capacity Inventory
The amount and number of raw material, parts,
and finished products that a company has in its
possession; Raw material, components, WIP, finished goods Costs of maintaining inventory Ordering costs
Stockout costs Systems for Managing Inventory
Independent Demand Systems Economic Order Quantity (EOQ)
EOQ = SQRT (2xDxO/H) D is demand
O is ordering cost per order
H is holding cost per unit Dependent Demand Systems Just in time
Minimizes holding costs, including actual wear and tear and
the cost of financing inventory
Computer software based schedule MRP, ERP and beyond
Materials Requirement Planning A computer-based production management system
that uses sales forecasts to make sure that needed
parts and materials are available at the right time and
place; Enterprise Resource Planning A software solution that addresses enterprise needs
taking the process view of the organization to meet
the organizational goals tightly integrating all functions
of an enterprise.
Operations management refers to the set of activities by
which an enterprise transforms resources into the
products and services it offers;
Important concepts that have affected the development of
operations management are:
operations Economies of scale and mass production
The service economy
The quality and productivity revolution and lean production Operations management comprises: Location
Scheduling (including MRP and ERP techn...
View Full Document