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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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’
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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)
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Network planning (Continued)
Figure 16.16 When dummy activities are necessary (Continued)
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Network planning (Continued)
Figure 16.18 Network diagram for the motorway project
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 16.12
Activity diagram for the Laz-skan development
Figure 16.27 Some of the elements integrated in enterprise project management systems
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 16.13
Chapter 17
Quality
management
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Customers’ expectations
for the product or
service
Customers’ perceptions
of the product or
service
Customers’ expectations
for the product or
service
Customers’ perceptions
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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.
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 16.22
A P A P
A P A P
X
X X
X
Process variability
Scatter PRECISION : P
Off target ACCURACY : P
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
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
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 16.24
Intervention
learning
Process knowledge
Process knowledge
Innovation
Capability
RTO and CTO are not mutually exclusive activities
(Continued)