MGT4101 - Operations Management

Facilitator:
M. Muawwiz Zia

Week 3
 Recap
Strategy & Issues During a Strategy Development Process
Product’s Life

1 3 5

Developing Missions & Strategies Strategy Development Process Global Operations Strategy Options

2 4
Project Management
Project and Project Management
• Temporary: definite start and end TIME
• Produces unique product, service or result
• The end is reached when
• the project’s objectives have been achieved Quality
• its objectives will not or cannot be met,
• the need for the project no longer exists. SCOPE COST

Application of scarce resources efficiently and effectively to achieve objectives

 Operations and Project
• Operations are the day to day affairs of an organization. It is routine work and continues indef
initely since an organization is started with the intent that it will continue to survive
• Project: temporary and unique
• Operations and projects cross each other’s paths during the lifecycle of a project, example wh
en a phase is finished or handed over, when a new product or service is brought into operatio
n. Usually, operations hand over to projects which hands back over to operations
 Scope
Primarily, it is the “definition” and “control” of what IS and What IS NOT included in the project.
“No More – No Less”

Provide swings in the park

Work Breakdown Structure
It is important to define and plan the scope, but the project work does not take place on the scope state
ment alone. Someone needs to break this scope statement down to its bare essentials, to the activities
that actually have to be performed to get the work done.
The Work Breakdown Structure (WBS) in one way of doing it, and provides what the scope statement d
oes not
It breaks the work down into more manageable and executable packages which all add up together to c
omplete the overall scope.
Work Breakdown Structure
 Work Breakdown Structure
Organize a University Career Fair for final year students
, including venue setup, employer invitations, student r 1.University Career Fair
egistration, and event promotion, with a budget of ove
r half million rupees.

1.1. Event Planning & 1.3. Employer 1.4. Student

1.2. Venue & Logistics 1.5. Marketing 1.6. Event Execution 1.7. Post-Event
Coordination Coordination Registration

1.7.1. Collect
1.3.1. Create
1.1.1. Define 1.2.1. Secure event 1.4.1. Create online 1.5.1. Design 1.6.1. Setup event on feedback from
employer invitation
Objectives venue registration form promotional material the day employers and
list
students

1.6.2.Manage on-site 1.7.2. Dismantle

1.1.2. Develop 1.2.2. Arrange seating 1.3.2. Send invitations 1.4.2. Promote 1.5.2. Social media
registration & check- booths and clean
timeline & milestones & booth setup to employers Registration marketing campaign
ins venue

1.2.3. Coordinate with 1.3.3. Follow up with 1.4.3. Manage & 1.5.3. Coordinate with 1.6.3. Coordinate 1.7.3. Analyse
1.1.3. Assign roles &
vendors for catering & companies & monitor registration university marketing employer booth setup feedback & project
responsibilities
refreshment confirmation number team & support outcomes

1.5.4. Distribute flyers 1.7.4. Report results

1.2.4. Ensure safety & 1.3.4. Allocate booth 1.4.4. Distribute entry 1.6.4. Monitor event
and on campus to university
security arrangements for employers passes flow & address issues
promotion administration
Work Breakdown Structure
Project Planning, Scheduling & Controlling
 Project Planning
Project
Project
Business Case Management
Charter
Plan
Business Case:
A business case provides justification for undertaking a project, programme or
portfolio. It evaluates the benefit, cost and risk of alternative options and provi
des a rationale for the preferred solution.

Project Charter:
A project charter is an important document that formally authorizes the existen
ce of a project. It outlines the project’s purpose, objectives, scope, high-level re
quirements, key deliverables, project sponsor, and project manager’s responsibi
lities and authority levels.
Business Case
 Project Charter
Components of Project Charter
A project charter is an important document that formally authorizes t
he existence of a project. It outlines the project’s purpose, objectives,
scope, high-level requirements, key deliverables, project sponsor, and Company
Project Name Date
Name
project manager’s responsibilities and authority levels.

The project charter serves as a reference point and guide for stakehol
Project Objectives Available
ders throughout the project, providing a clear understanding of the pr Purpose (SMART) Resources
oject’s goals and boundaries. The project charter is typically signed of
f by the project sponsor, symbolizing the organization’s commitment t
o the project. Stakeholders
Basic Timeline Milestones
List

Sponsor
PM Signatures
Risks Signatures &
& date
date
Project Organization
An organization formed to ensure that programs (projects) receive the proper management and attention.
Project Scheduling

Sequence activities are the process of identifying and documenting relationships am

ong the project activities. So the fundamental reason for the sequence activities proc
ess is finalizing the interrelationship of activities to finish the project scope and achie
ve the task objectives.

Sequence Make
Scope WBS
Activities Schedule

1.1. Event Planning and Coordination → 1.2. Venue and Logistics → 1.3. Employer C
oordination → 1.4. Student Registration → 1.5. Marketing and Promotion → 1.6. Ev
ent Execution → 1.7. Post-Event Wrap-up
 Project Scheduling
Gantt charts are the planning charts used to schedule resources and allocate time.
Project Scheduling (Using Oracle Primavera P6)
 Project Management Techniques: PERT and CPM
Critical path method (CPM): A project management technique that uses only one time factor per activity.

Program evaluation and review technique (PERT): A project management technique that employs three time estimates
for each activity.

The Framework of PERT and CPM

PERT and CPM both follow six basic steps:
1. Define the project and prepare the work breakdown structure.
2. Develop the relationships among the activities. Decide which activities must precede and
which must follow others.
3. Draw the network connecting all the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network. This is called the critical path.
6. Use the network to help plan, schedule, monitor, and control the project.
 Project Management Techniques: PERT and CPM
PERT and CPM are important because they can help answer questions such as the following about projects with thousa
nds of activities:

1. When will the entire project be completed?

2. What are the critical activities or tasks in the project—that is, which activities will delay the entire project if they are l
ate?
3. Which are the noncritical activities—the ones that can run late without delaying the whole project’s completion?
4. What is the probability that the project will be completed by a specific date?
5. At any particular date, is the project on schedule, behind schedule, or ahead of schedule?
6. On any given date, is the money spent equal to, less than, or greater than the budgeted amount?
7. Are there enough resources available to finish the project on time?
8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this goal at the least co
st?
 Network Diagrams and Approaches
Activity-on-node (AON):
A network diagram in which nodes designate activities.
Activity-on-arrow (AOA)
A network diagram in which arrows designate activities.
Network Diagrams and Approaches (AON)
Network Diagrams and Approaches (AOA)
 Network Diagrams and Approaches (CPM)
Critical path method (CPM): A project management technique that uses only one time factor per activity.

Earliest start (ES) = earliest time at which an activity can start, assuming all predecessors have been completed

Earliest finish (EF) = earliest time at which an activity can be finished

Latest start (LS) = latest time at which an activity can start so as to not delay the completion time of the entire project

Latest finish (LF) = latest time by which an activity has to finish so as to not delay the completion time of the entire proj
ect

Slack time: Free time for an activity. Also referred to as free float or free slack.

Forward pass:
A process that identifies all the early times.

Backward pass:
An activity that finds all the late start and late finish times.
Network Diagrams and Approaches (CPM)
Network Diagrams and Approaches (CPM)
 Program evaluation and review technique (PERT)
In PERT, we employ a probability distribution based on three time estimates for each activity, as follows:

Optimistic time ( a ) = time an activity will take if everything goes as planned. In estimating this value, there should be o
nly a small probability (say, 1/100) that the activity time will be < a .

Pessimistic time ( b ) = time an activity will take assuming very unfavourable conditions. In estimating this value, there s
hould also be only a small probability (also 1/100) that the activity time will be > b .

Most likely time ( m ) = most realistic estimate of the time required to complete an activity.
Program evaluation and review technique (PERT)
To find the expected activity time , t , the beta distribution weights the three time estimates as follows:
t=(a+4m+b)∕6

To compute the dispersion or variance of activity completion time , we use the formula:
Variance = [( b − a ) ∕ 6] 2
Thank You