Slide MGT209 Slide03

Operations
Management
Project Management
Chapter 3
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© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Outline
 GLOBAL COMPANY PROFILE: BECHTEL
GROUP
 THE IMPORTANCE OF PROJECT MANAGEMENT
 PROJECT PLANNING
 The Project Manager
 Work Breakdown Structure

 PROJECT SCHEDULING
 PROJECT CONTROLLING

PowerPoint presentation to accompany Heizer/Render – Principles
of Operations Management, 5e, and Operations Management, 7e

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© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Outline - Continued
 PROJECT MANAGEMENT TECHNIQUES: PERT
AND CPM
 The Framework of PERT and CPM
 Network Diagrams and Approaches
 Activity on Node Example
 Determining the Project Schedule
 Forward Pass
 Backward Pass
 Calculating Slack Time and Identifying the Critical
Path(s)
PowerPoint presentation to accompany Heizer/Render – Principles

of Operations Management, 5e, and Operations Management, 7e

3-3

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Outline - Continued
 Variability in Activity Times
 Three Time Estimates in PERT
 Probability of Project Completion

 Cost-Time Tradeoffs and Project Crashing
 A Critique of PERT and CPM

PowerPoint presentation to accompany Heizer/Render – Principles
of Operations Management, 5e, and Operations Management, 7e

3-4

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Learning Objectives
When you complete this chapter, you should be
able to :
Identify or Define:






Work breakdown structure
Critical path
AOA and AON Networks
Forward and Backward Passes
Variability in Activity Times

PowerPoint presentation to accompany Heizer/Render – Principles
of Operations Management, 5e, and Operations Management, 7e

3-5

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Learning Objectives - Continued
When you complete this chapter, you should be
able to :
Describe or Explain:
 The role of the project manager
 Program evaluation and review technique (PERT)
 Critical path method (CPM)
 Crashing a project
 The Use of MS Project

PowerPoint presentation to accompany Heizer/Render – Principles
of Operations Management, 5e, and Operations Management, 7e

3-6

© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458