Course Title: Production and Operations

Management

Course Code: MGT 362

Course Book: Operations Management 10th

Edition. By Jay Heizer & Barry Render

3-1
Chapter 3: Project Management

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 Outline

Project Planning
The Project Manager
Work Breakdown Structure
Project Scheduling
Project Controlling
Project Management Techniques: PERT and CPM
The Framework of PERT and CPM
Network Diagrams and Approaches
Activity-on-Node Example
Activity-on-Arrow Example

3-3
 Outline - Continued

Determining the Project Schedule

Forward Pass
Backward Pass
Calculating Slack Time and Identifying the Critical
Path(s)
Variability in Activity Times
Three Time Estimates in PERT
Probability of Project Completion
Cost-Time Trade-Offs and Project Crashing
A Critique of PERT and CPM

3-4
 Problems and Solutions

Problem 3.6

Problem 3.14

Problem 3.20

3-5
 Problem 3.6
XYZ is developing a program in leadership training for middle
level managers. XYZ has listed a number of activities that
must be completed before a training program of this nature
could be conducted.
a)Develop an AON network for this problem
b)What is the critical path
c)What is the total project completion time
d)What is the slack time for each of the activities.

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 Problem 3.14
The company XYZ installs carpets in commercial offices. The boss of the
XYZ Inc has been concerned with the amount of time it took to complete
several recent jobs. Some of his workers are very unreliable.
a)Determine the expected completion time and variance for each activity
b)Determine the total project completion time and the critical path
c)Determine ES,EF,LS,LF and slack for each activity
d)What is the probability that XYZ company will finish the project in 40
days.

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 Problem 3.20
Development of a new version of a particular software is being considered
by XYZ software house.
a)What is the project completion date
b)What is the total time required for completion of this project on normal
time
c)If you wish to reduce the time of the project by 1 week, which activity
should be crashed and how much will it increase the total cost.
d)What is the max time it can be crashed . How much would cost increase.

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