Slide Chapter 16 Project management

Transcription

1 Slide 16.1 Chapter 16 Project management

2 Slide 16.2 Project management Direct Design Operations management Develop Project management Deliver The market requires specified time, quality and cost of a project The operation supplies.. the delivery of the project ontime, on-specification and to budget Figure 16.1 This chapter covers project planning and control

3 Slide 16.3 Stages in project management Stage 1 Understanding the project environment Stage 2 Project definition Changes Stage 3 Project planning Corrective action Stage 4 Technical execution Stage 5 Project control Figure 16.3 The project management model

4 Slide 16.4 The three project objectives of quality, cost and time New aircraft project Quality Fixed-grant research project Music festival Cost Time Figure 16.5 The project objectives triangle

5 Slide 16.5 Stages in the project planning process Adjust as necessary Identify the activities in the project Estimate the times and resources for activities Identify the relationships and dependencies between the activities Identify time and resource schedule constraints Fix the schedule for time and resources Figure 16.6 Stages in the planning process

6 Slide 16.6 Work breakdown structure Serve breakfast in bed Produce glass of orange drink Produce boiled egg in egg cup Produce buttered toast Arrange tray Obtain juice Obtain glass Produce boiled egg Obtain egg cup Produce toast Obtain butter Obtain plates and cutlery Obtain tray Obtain bread Obtain egg Obtain water Figure 16.7 A work breakdown structure for a simple domestic project

7 Staff required Slide 16.7 Making breakfast do activities at earliest time Time (mins) Orange Bread Toast Butter Activities requiring operator time Water Boil water Boil egg Bed room Tray Time (mins) Figure 16.9 Initial project plan for a simple project, with resources

8 Slide 16.8 Network planning Activities and network for a simple project Activity Immediate Activity duration predecessors (in days) a Remove furniture None 1 b Prepare bedroom a 2 c Paint bedroom b 3 d Prepare kitchen a 1 e Paint kitchen d 2 f Replace furniture c, e 1 Remove furniture Replace furniture Figure The activities, relationships, durations and arrow diagram for the project decorate apartment

9 Slide 16.9 Network planning (Continued) Activity on arrow using dummy activities to clarify relationships x x 1 3 y y Figure When dummy activities are necessary

10 Slide Network planning (Continued) Activity on arrow using dummy activities to describe a relationship that could not be expressed any other way Figure When dummy activities are necessary (Continued)

11 Slide Network planning (Continued) The network diagram for a motorway project A 5 D 8 G H B 10 E F I 9 4 L C J K 5 M Figure Network diagram for the motorway project

12 Slide Activity diagram for the Laz-skan development Figure Some of the elements integrated in enterprise project management systems

13 Slide Chapter 17 Quality management

14 Slide High quality puts costs down and revenue up Revenue effects Cost effects Enhanced service/product image (brand value) Reduced price competition Increased sales volume Increased revenue Improved quality (consistent conformance to customers expectations) Faster customer response time Increased customer service Economies of scale Increased profit Reduced cost of rectifying errors Reduced capital costs Reduced operations costs Figure 17.2 Higher quality has a beneficial effect on both revenues and costs Reduced cost of compensating customers Reduced cost of detecting errors Increased productivity

15 Slide Perceived quality is governed by the gap between customers expectations and their perceptions of the product or service Customers expectations for the product or service Gap Customers perceptions of the product or service Customers expectations for the product or service Customers perceptions of the product or service Gap Customers expectations for the product or service Customers perceptions of the product or service Expectations > perceptions Expectations = perceptions Expectations < perceptions Perceived quality is poor Perceived quality is acceptable Perceived quality is good Figure 17.3 Perceived quality is governed by the magnitude and direction of the gap between customers expectations and their perceptions of the service or product

16 Slide A Gap model of quality Previous Experience Word-of-mouth communications Image of product or service The customer s domain Management s concept of the product or service Gap 2 Customer s expectations concerning a product or service Customer s own specification of quality Gap 1 Organization s specification of quality Gap? Customer s perceptions concerning the product or service The operation s domain The actual product or service Gap 3 Gap 4 Figure 17.4 The customer s domain and the operations domain in determining the perceived quality, showing how the gap between customers expectations and their perception of a service or product could be explained by one or more gaps elsewhere in the model Source : Adapted from Parasuraman, A. et al. (1985) A Conceptual Model of Service Quality and Implications for Future Research, Journal of Marketing, vol. 49, Fall.

17 Slide Quality Quality fitness for purpose Reliability ability to continue working at accepted quality level Quality of Design degree to which design achieves purpose Quality of Conformance faithfulness with which the operation agrees with design Variables things you can measure Attributes things you can assess accept/reject

18 Slide Total quality management can be viewed as a natural extension of earlier approaches to quality management Makes quality central and strategic in the organization Broadens the organizational responsibility for quality Solves the root cause of quality problems Statistics Process analysis Quality standards Quality is strategic Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Prevents out of specification products and services reaching market Error detection Rectification Inspection Quality control Quality assurance Total quality management Figure 17.7 TQM as an extension

19 Slide EFQM Business excellence model People People results Leadership Policy and strategy Processes Customer results Key performance results Partnerships and resources Society results

20 Slide The cost of rectifying errors becomes increasingly expensive the longer the errors remain uncorrected in the development and launch process Cost to rectify error 10,000 1, Concept Design Prototype Pilot production Market use Stage in the development and launch process

21 Costs of quality Slide Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories Appraisal Total cost of quality Internal failure Appraisal Prevention Time Figure 17.9 Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories

22 Slide Process variability X A P X A P Off target ACCURACY : P Scatter PRECISION : P X A X P A P

23 Slide Partnerships notwithstanding power imbalance Can offer knowledge insights to suppliers Security of demand and revenue Customer willing to invest in relationship Confidence to give new orders Customer trust in process stability Control charts become focus of process discussions Enhanced organizational learning Develop customer relationship skills Less chance of arbitrary decisions Forms basis of continuous improvement Internal process predictability Higher capacity utilization Less downtime and waste Gain control of run the operation Better understanding of process capabilities Reduced decision making ambiguity Sense of professionalism being in control Increased job satisfaction Enhanced staff retention Lower cost base Ability to cope with variety without excess cost Develop basis for in-house product development Staff confidence in own abilities

24 Slide RTO and CTO are not mutually exclusive activities (Continued) learning Process knowledge Intervention Innovation Process knowledge Capability