TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-1?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458OperationsManagementProjectManagementChapter16TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-2?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Outline¨GlobalCompanyProfile:Bechtel¨TheStrategicImportanceofProjectManagement¨ProjectPlanning¨TheProjectManager¨WorkBreakdownStructure¨ProjectScheduling¨ProjectControllingTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-3?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Outline-continued¨ProjectManagementTechniques:PERTandCPM¨TheFrameworkofPERTandCPM¨Activities,Events,andNetworks¨DummyActivitiesandEvents¨PERTandActivityTimeEstimates¨CriticalPathAnalysis¨TheProbabilityofProjectCompletion¨CaseStudyofPERT:SchwareFoundryTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-4?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Outline-continued¨Cost-TimeTradeoffsandProjectCrashing¨ApplyingProjectSchedulingtoServiceFirms¨ACritiqueofPERTandCPMTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-5?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458LearningObjectives¨Explainwhataprojectis¨Summarizethe3mainprojectmanagementactivities¨Drawprojectnetworks¨ComparePERT&CPM¨Determineslack&criticalpath¨Computeprojectprobabilities¨CritiquePERTandCPMTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-6?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Bechtel¨AskedbyKuwaittobeginrebuildingafterDesertStorm¨650wellsablaze,othersuncapped¨Nowater,electricity,foodorfacilities¨Landmines!Bombs!Grenades!¨Manyfiresinaccessiblebecauseofoil-coveredroadsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-7?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Bechtel¨Projectrequired:¨Storage,docking,andwarehousingfacilitiesatDubai¨125,000tonsofequipmentandsupplies¨150kilometersofpipelinecapableofdelivering20,000,000gallonsofwaterperdaytothefiresite¨morethan200lagoonswith1,000,000galsofseawaterTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-8?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458StrategicImportanceofProjectManagement¨BechtelKuwaitProject:¨8,000workers¨1,000constructionprofessionals¨100medicalpersonnel¨2helicopterevacuationteams¨6full-servicedininghalls¨27,000mealsperday¨40bedfieldhospitalTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-9?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458StrategicImportanceofProjectManagement-continued¨MicrosoftWindows98Project:¨hundredsofprogrammers¨millionsoflinesofcode¨millionsofdollarscost¨FordRedesignofMustangProject:¨450memberprojectteam¨Cost$700-million¨25%fasterand30%cheaperthancomparableprojectatFordTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-10?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458¨Singleunit¨Manyrelatedactivities¨Difficultproductionplanningandinventorycontrol¨Generalpurposeequipment¨HighlaborskillsProjectCharacteristicsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-11?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458¨Buildingconstruction?1995CorelCorp.__AnExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-12?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458¨Researchproject?1995CorelCorp.AnExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-13?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458¨Newproductintroduction19?NudeSandalfootMediumtoTall(B)NononsenseNew!Improved!?1995CorelCorp.AnExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-14?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ManagementofLargeProjects¨Planning-goalsetting,projectdefinition,teamorganization¨Scheduling-relatingpeople,money,andsuppliestospecificactivitiesandactivitiestooneandother¨Controlling-monitoringresources,costs,quality,andbudgets;revisingplansandshiftingresourcestomeettimeandcostdemandsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-15?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458PlanningObjectivesResourcesWorkbreak-downscheduleOrganizationSchedulingProjectactivitiesStart&endtimesNetworkControllingMonitor,compare,revise,actionProjectManagementActivitiesTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)16-16?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProjectPlanning,Scheduling,andControllingProjectPlanning1.Settinggoals2.Definingtheproject3.Tyingneedsintotimedprojectactivities4.OrganizingtheteamProjectScheduling1.Tyingresourcestospecificactivities2.R