Chapter 16 OM Lecture 6 NCOI BPM H 16 en 17.pdf · Project management Project management The operation supplies.. the delivery of the project on-time, on-specification and to

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014

Slide 16.1

Chapter 16

Project management


Slide 16.2

Direct

Design Develop

Deliver

Operations management

Project management

Project

management

The operation supplies.. the delivery of the project on-time, on-specification and to

budget

The market requires… specified time, quality and

cost of a project

Figure 16.1 This chapter covers project planning and control


Slide 16.3

Understanding the

project

environment

Stage

1

Project definition

Stage

2

Project planning

Stage

3

Technical

execution

Stage

4 Project control

Stage

5

Stages in project management

Changes

Corrective

action

Figure 16.3 The project management model


Slide 16.4

Quality

Time Cost

New aircraft

project

Music festival

Fixed-grant

research project

The three project objectives of quality, cost and time

Figure 16.5 The project objectives triangle


Slide 16.5

Identify the

activities in the

project

Adjust as necessary

Stages in the project planning process

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


Slide 16.6

Produce

boiled

egg

Obtain

egg

cup

Produce

toast

Obtain

butter

Obtain

plates and

cutlery

Obtain

tray

Obtain

egg

Obtain

water

Obtain

bread

Work breakdown structure

Arrange

tray

Produce

buttered

toast

Produce

boiled egg

in egg cup

Produce

glass of

orange drink

Serve breakfast in

bed

Obtain

juice

Obtain

glass

Figure 16.7 A work breakdown structure for a simple domestic project


Slide 16.7

‘Making breakfast’– do activities at earliest time

0 1 2 3 4 6 7 8 9 5

Orange

Tray

Water Boil water Boil egg Bed room

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 9 5 0

1

2

3

4

Bread Toast Butter

Time (mins)

Time (mins)

Activities requiring

operator time

Figure 16.9 Initial project plan for a simple project, with resources


Slide 16.8

Remove furniture Replace furniture

Activities and network for a simple project

Network planning

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

Activity Immediate

predecessors

Activity duration

(in days)

Figure 16.14 The activities, relationships, durations and arrow diagram for the project ‘decorate apartment’


Slide 16.9

1 2

x

y

1 3

2

x

y

Activity on arrow – using ‘dummy’ activities to clarify

relationships

Figure 16.16 When dummy activities are necessary

Network planning (Continued)


Slide 16.10

1 3 5

2 4 6

Activity on arrow – using ‘dummy’ activities to describe a

relationship that could not be expressed any other way


Figure 16.16 When dummy activities are necessary (Continued)


Slide 16.11

A

B

D

C

F

E

J

K

I

M

L

G H 3

8

4

7

10

5

1

10

8

3

9 4

5

18

10 27

19

22

35 10

0

0

20

19

27 35

22

The network diagram for a motorway project


Figure 16.18 Network diagram for the motorway project


Slide 16.12

Activity diagram for the Laz-skan development

Figure 16.27 Some of the elements integrated in enterprise project management systems


Slide 16.13

Chapter 17

Quality

management


Slide 16.14

High quality puts costs down and revenue up

Improved quality (consistent conformance to

customers’ expectations)

Enhanced

service/product

image (brand

value)

Increased

sales volume

Reduced

price

competition

Increased

revenue

Economies of

scale

Reduced cost of

detecting errors

Reduced cost

of rectifying

errors

Reduced cost of

compensating

customers

Faster customer

response time

Reduced

capital costs Increased

productivity

Reduced

operations

costs

Increased

customer

service

Increased profit

Cost effects Revenue effects

Figure 17.2 Higher quality has a beneficial effect on both revenues and costs


Slide 16.15

Customers’ expectations

for the product or

service

Customers’ perceptions

of the product or

service

Gap

Expectations > perceptions Expectations = perceptions

Expectations < perceptions

Perceived quality is governed by the gap between

customers’ expectations and their perceptions of the

product or service

Gap

Perceived quality is poor

Perceived quality is good

Perceived quality is acceptable


for the product or

service


of the product or

service


for the product or

service


of the product or

service

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


Slide 16.16

The operation’s domain

Management’s concept of the

product or service

The customer’s

domain

Previous Experience

Word-of-mouth communications

Image of product or service

Customer’s own specification of

quality

Organization’s specification of

quality

The actual product or service Gap 1

Gap 2 Gap 3

Gap 4

A ‘Gap’ model of quality

Customer’s expectations concerning a

product or service

Customer’s perceptions

concerning the product or service

Gap?

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.


Slide 16.17

Variables

things you can measure

Attributes

things you can assess

accept/reject

Quality

fitness for purpose Reliability

ability to continue

working at accepted

quality level

Quality

Quality of Design

degree to which

design achieves purpose

Quality of Conformance

faithfulness with which the

operation agrees with design


Slide 16.18

Total quality management can be viewed as a natural

extension of earlier approaches to quality management

Quality is strategic

Teamwork

Staff empowerment

Involves customers and suppliers

Quality systems

Quality costing

Problem solving

Quality planning

Statistics

Process analysis

Quality standards

Error

detection

Rectification

Prevents ‘out of

specification’ products and

services reaching market

Solves the root

cause of quality

problems

Broadens the

organizational

responsibility for quality

Makes quality

central and strategic

in the organization

Inspection Quality

control

Quality

assurance

Total quality

management

Figure 17.7 TQM as an extension


Slide 16.19

EFQM ‘Business excellence’ model

Leadership

People

Partnerships

and resources

Processes

Key

performance

results

Policy and

strategy

Customer

results

People

results

Society

results


Slide 16.20

The cost of rectifying errors becomes increasingly

expensive the longer the errors remain uncorrected in

the development and launch process C

ost to

re

ctify

err

or

Stage in the development and launch process

Pilot production

Market use Prototype Design Concept

1,000

100

10 1

10,000


Slide 16.21

Time

Co

sts

of q

ua

lity

Appraisal

Internal failure

Appraisal

Prevention

Total cost of quality

Increasing the effort spent on preventing errors occurring

in the first place brings a more than equivalent reduction

in other cost categories

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


Slide 16.22

A P A P

A P A P

X

X X

X

Process variability

Scatter PRECISION : P

Off target ACCURACY : P


Slide 16.23

Customer trust in process stability

Confidence to give new orders

Customer willing to invest in relationship

Security of demand and

revenue

Better understanding of

process capabilities

Gain control of ‘run the operation’

Less downtime and waste

Lower cost base

Higher capacity utilization

Internal process predictability

Control charts become focus of

process discussions

Enhanced organizational

learning

Sense of professionalism

‘being in control’

Staff confidence in own abilities

Can offer knowledge insights to suppliers

Reduced decision making ambiguity

Less chance of arbitrary decisions

Increased job satisfaction

Develop basis for in-house product

development

Forms basis of continuous

improvement

Partnerships notwithstanding power imbalance

Ability to cope with variety

without excess cost

Develop customer relationship skills

Enhanced staff retention


Slide 16.24

Intervention

learning

Process knowledge

Process knowledge

Innovation

Capability

RTO and CTO are not mutually exclusive activities

(Continued)

Documents

Chapter 16 OM Lecture 6 NCOI BPM H 16 en 17.pdf · Project management Project management The operation supplies.. the delivery of the project on-time, on-specification and to