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University of Batangas

Engr. Reyven P. Culis

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project management PERT CPM project evaluation

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This document contains lecture notes on project management, including topics like PERT/CPM, project networks, and activity schedules. It also includes examples, such as a new athletic complex project and a new product development project, and covers concepts such as crashing and trade offs. It is from the Industrial Engineering Department at the University of Batangas.

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PROJECT MANAGEMENT ENGR. REYVEN P. CULIS Objectives The student must be able to : Learn Learn the concept of project management Illustrate Illustrate a project network using given situation Develop Develop the activity schedule for the project Determine Determ...

PROJECT MANAGEMENT ENGR. REYVEN P. CULIS Objectives The student must be able to : Learn Learn the concept of project management Illustrate Illustrate a project network using given situation Develop Develop the activity schedule for the project Determine Determine the expected completion of time of the project PROJECT MANAGEMENT Project Management is the process and activity of planning, organizing, motivating, and controlling resources, procedures and protocols to achieve specific goals in scientific or daily problems. TYPES OF NETWORK PLANNING Methods used for network planning are: 1. CPM – Critical Path Method 2. PERT – Program/Project Evaluation and Review Technique Managing a project with network planning methods involves four steps: Describing Describing the Project. Diagramming Diagramming the Network. Estimating Estimating time of completion. Monitoring Monitoring Project Progress. Project managers rely on PERT/CPM to help them answer questions such as: 01 02 03 04 WHAT IS THE TOTAL TIME WHAT ARE THE WHICH ACTIVITIES ARE HOW LONG CAN TO COMPLETE THE SCHEDULED START AND CRITICAL AND MUST BE NONCRITICAL ACTIVITIES PROJECT? FINISH DATES FOR EACH COMPLETED EXACTLY AS BE DELAYED BEFORE SPECIFIC ACTIVITY? SCHEDULED TO KEEP THEY CAUSE AN THE PROJECT ON INCREASE IN THE SCHEDULE? PROJECT COMPLETION TIME? 1.Before an activity can begin, its preceding activities must be completed. 2. Arrows indicate logical precedence. 3. Flow of the diagram is from left to right. 4. Arrows should not intersect. 5. Dangling should be avoided. The CPM/PERT is the actual The critical path is the longest performance of a task which path through CPM/PERT consumes time and requires resources (such as labor, network. The critical path is materials, space, machinery and composed of activities with the like. A CPM/PERT activity zero slack time. cannot be performed until the predecessor event has occurred Activities that must be Activity Slacks is the amount completed immediately prior of time that a task in a project to the start of the activity in network can be delayed question are called without causing a delay. It is Immediate Predecessors. also known as Float Activity Forward Pass involves moving forward through the project network to determine the earliest start and earliest finish time for each activity Backward Pass involves moving backward through the network to determine the latest start and latest finish time for each activity EXAMPLE The University of Batangas is considering building a new athletic complex on campus. The complex would provide a new gymnasium for inter-school sports activities, expanded office space, classrooms, and intramural facilities. The following activities would have to be undertaken before construction starts. 1. Draw a project network based on the given above. 2. Identify the critical path. 3. Develop the activity schedule for the project. 4. Determine the expected completion time of the project. A technology company is developing a new product. The project involves several tasks with specific durations and dependencies. The tasks and their descriptions are as follows: Task Description Duration Dependencies Prepare project A 7 days - proposal Conduct market B 9 days - research Develop project C 12 days A plan Design product D 8 days A,B prototype Test product E 9 days D prototype Create marketing F 6 days C,E strategy G Launch product 5 days E PROJECT EVALUATION AND REVIEW TECHNIQUE PROGRAM / PROJECT EVALUATION AND REVIEW TECHNIQUE Program / Project Evaluation and Review Technique (PERT) is a network technique, designed for project planning and scheduling that uses probabilistic activity times. Stochastic PERT is a project scheduling technique in which the activity times are of a probabilistic nature Deterministic PERT is a project scheduling technique in which the activity time are assumed to be known with certainty. Expected Time is the average activity time and Beta Distribution is a probability distribution used to describe activity times. THREE ESTIMATES OF THE ACTIVITY TIME Optimistic Time (a)- is a PERT activity time estimate based on the assumption Most Probable Time (m) is a PERT activity time estimate based on the assumption that the time would occur most frequently. Pessimistic Time (b) is a PERT activity time estimate based on the assumption that it would take the longest possible time to complete an activity if everything went wrong. PROBLEM Construct the project network. Find the expected duration and variance of each activity. Find the Critical path and expected project completion time What is the probability of completing the project on or before 30 weeks? Forward and Backward Pass Mean and Variance of Beta Distribution NOTE: where: If probability is > 60% it will be assumed that the project t = estimate time of expected activity will be completed in due dates; and if probability < 40% a = optimistic time the project will not be completed in due time. If m = most probable time probability = 50%, the project may or may not be b = pessimistic time completed in due date. 𝛿2= variance The process of reducing the time necessary to complete a project by adding resources is called crashing. CONSIDERING TIME-COST Crashing an activity refers to taking special costly measure to minimize the activity time TRADE OFFS in its normal value Some special measures to reduce time are using overtime, hiring additional temporary employees, obtaining special equipment, adopting a new method of working, etc. Crashing the project refers to crashing a number of activities to reduce the time of the project below its normal value. The minimum possible duration for an activity is known as the crash duration. Example 1: A two-SUV maintenance project consists of five activities. The mechanics had extensive experience with similar car problems. The times for maintenance activities are shown in the table. Suppose the current project can be completed within 15 days, what activities must be crashed to meet the target completion time? Solution: Step 1. Develop the project Step 2. Determine the network. completion time per activity. Step 3. Determine the earliest start time and earliest finish Step 4. Compute for the slack time using forward pass and of all activities and determine develop the latest finish time the zero slack to identify the and latest start time using the critical path. backward pass. ANALYSIS: Thus, the critical path are the activities A → B → E with 17 days to finish the project. E(t) = 9 + 5 + 3 = 17 Step 4. Determine each activity that can be crashed and the crashing process costs. To do this, identify the following: 4.1. Estimated activity cost in normal or expected activity time. 4.2. Estimated time to complete the activity under the maximum crashing. 4.3. Estimated activity cost under maximum crashing. Let: Ei – expected time for activity i Ei’ – time for activity i under maximum crashing Mi – maximum possible reduction in the time for activity i due to crashing. Mi =Ei –Ei’ Ci – estimated cost per activity i under the normal or expected activity time. Ci’ – estimated cost for activity i under the maximum crashing Ki – crashing cost for each activity 𝐾𝑖 = 𝐶𝑖′−𝐶𝑖 / 𝑀𝑖 Recall that the critical path is A→B→E, these are activities that we can crash in order to minimize the time to 15 days. We need to select the lowest crash cost of P100 for activity A. Selecting activity A would lead to additional costs of P100 per day, thus the new cost for the project would be: New Cost = 5,800 + 100(2) = P 6,000.00 DURATION (WEEKS) ACTIVITY PREDECESSORS A M B A - 5 6 7 B - 1 3 5 C - 1 4 7 D A 1 2 3 E B 1 2 9 F C 1 5 9 G C 2 2 8 H E,F 4 4 10 I D 2 5 8 J HG 2 2 8 Activity #1 1. Develop the project network. 2. Determine the completion time per activity. 3. Determine the earliest start time and earliest finish time using forward pass and develop the latest finish time and latest start time using the backward pass. 4. Compute for the slack of all activities and determine the zero slack to identify the critical path. 5. Compute for the maximum possible reduction in time (Mi) and crash cost (Ki). 6. Compute for the new cost UNIVERSITY OF BATANGAS – LIPA CITY ENGR. REYVEN P. CULIS INDUSTRIAL ENGINEERING DEPARTMENT CENAR - UBLC UNIVERSITY OF BATANGAS - LIPA CAMPUS COLLEGE OF ENGINEERING AND ARCHITECTURE INDUSTRIAL ENGINEERING Undeniably the Best! IE234E OPERATIONS MANAGEMENT ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITY PLANNING An Introduction Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] LEARNING OBJECTIVES: At the end of this presentation, the learner are expected to: 1. Define what is facility planning 2. Identify the importance of facility planning 3. Analyze the objective, application and significance of facility planning 4. Apply the facility planning process Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] DEFINITION: Facilities can be broadly defined as buildings where people, material, and machines come together for a stated purpose – typically to make a tangible product or provide a service. Facility Planning is concerned with the design, layout, and accommodation of people, machines and activities of a system or enterprise within a physical spatial environment. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] WHY STUDY FACILITY PLANNING? Facilities planning determines how an activity’s tangible fixed assets best support achieving the activity’s objectives Building People Material Machines Stated purpose Objectives Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITY PLANNING For a manufacturing firm, facilities planning involves the determination of how the manufacturing facility best supports production. For an airport, facilities planning involves determining how the airport facility is to support the passenger- airplane interface. For a hospital: How the hospital facility supports providing medical care to patients. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] DISCIPLINES INVOLVED IN A FACILITY PLANNING PROJECT Civil Engineers Electrical Engineers Mechanical Engineers Industrial Engineers Architects Consultants General contractors Managers Real estate brokers Urban planners Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] APPLICATIONS OF FACILITY PLANNING (FP) Facilities Planning (FP) can be applied to planning of: a new hospital, an assembly department, an existing warehouse, the baggage department in an airport, department building of IE in EMU, a production plant, a retail store, a dormitory, a bank, an office, a cinema, a parking lot, or any portion of these activities, etc. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] MANUFACTURING FACILITY Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] PRODUCTION PLANT Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] PRODUCTION PLANT Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES LOCATION Determining how the location of a facility supports meeting the facility's objective Its placement with respect to customer, suppliers, and other facilities with which it interfaces. Its orientation on a specific plot of land. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES DESIGN The determination of how the design components of a facility support achieving the facility's objectives. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITY SYSTEM Structural and enclosure systems Lighting, electrical, communication systems Life safety systems Sanitation systems For a plant: Power, light, gas, heat, ventilation, air conditioning, water, sewage needs. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] HANDLING SYSTEM Mechanisms needed to satisfy the required facility interactions. For a Manufacturing Facility Materials, personnel, information, and equipment- handling systems required to support production. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] SIGNIFICANCE OF FACILITIES PLANNING To understand the significance of Facilities Planning (FP) consider the following questions: What impact does facilities planning have on handling and maintenance cost? What impact does facilities planning have on employee morale, and how does employee morale impact operating costs? In what do organizations invest the majority of their capital, and how convertible is their capital once invested? What impact does facilities planning have on the management of a facility? What impact does facilities planning have on facility’s capability to adapt to change and satisfy future requirements? Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES PLANNING PROCESS DEFINE THE PROBLEM The objective of the facility Products/Volumes/Role in the Supply Chain The primary and support activities Operations, equipment, personnel, material flows Maintenance Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES PLANNING PROCESS ANALYZE THE PROBLEM The interrelationships among all activities (Qualitative and quantitative) Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES PLANNING PROCESS DETERMINE THE SPACE REQUIREMENTS FOR ALL ACTIVITIES For all equipment, material, and personnel Alternative designs Alternative facilities plans Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] FACILITIES PLANNING PROCESS EVALUATE THE ALTERNATIVES SELECT THE PREFERRED DESIGN IMPLEMENT THE DESIGN Implement the plan Maintain and adapt the plan Redefine the objective of the facility Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] MODEL OF SUCCESS OF FACILITIES PLANNING Five elements that form an organization’s model of success: VISION Vision: a description of where you are headed. MISSION Mission: how to accomplish the vision. REQUIREMENT Requirements of success: the science of your OF SUCCESS business. GUIDING Guiding principles: the values to be used, PRINCIPLES while pursuing the vision. Evidence of success: measurable results that will demonstrate when an organization is moving towards their vision. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] THE ROLE OF INDUSTRIAL ENGINEERS IN FACILITIES PLANNING “The involvement of Industrial Engineers in the design process enhances and optimizes all aspects of architectural professional practice in commercial, healthcare, or industrial projects. Traditionally. IEs possess skills and analytical tools for determining site selection, space requirements, flow/activity analysis, and space/function relationship programming. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] THE ROLE OF INDUSTRIAL ENGINEERS IN FACILITIES PLANNING Using these skills, the IE brings value to the overall design by assisting in operations planning, concept design, and layout evaluation and therefore yielding a more cost- effective and functional design.” Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] Employee Services – Space Requirements Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] OBJECTIVES After reading the chapter and reviewing the materials presented the students will be able to: Identify employee needs and requirements. Identify facilities such as parking lot, cafeteria in support of employee needs. Calculate space requirements in fulfillment of such requirements. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] INTRODUCTION The quality of employee services will affect the quality of work life and the employee relationship with the company management. The location will affect the efficiency and productivity of the employees. A neat clean restroom indicates a positive attitude. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] PARKING LOTS The goal is to provide adequate space with a convenient location. Three parking lots may be needed. Manufacturing employee parking. Office employee parking. Visitor parking. One thousand feet takes an average of 4 minutes to walk. Assign the closest parking space to visitor parking. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] PARKING LOTS The facilities planner must incorporate the requirements of the ADA (American with Disabilities Act) of 1989 in all aspects of planning and design of parking facilities, entrances, restrooms, offices, and most areas of personnel services. Once the number of parking lots and parking spaces has been determined there are different ways to arrange parking. Large cars need a width of 10 feet, and length of 20 feet. Width of driveways are 11 feet for single lane and 22 feet for double lane. Local building codes determine parking space size, and number of handicapped spaces. As a rule of thumb, a parking lot will be 250 square feet per number of parking spaces needed. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] PERPENDICULAR PARKING LOTS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] ANGULAR PARKING LOTS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] EMPLOYEE ENTRANCE The flow of people into the factory is from their cars into the plant via the employee entrance to their lockers and to the cafeteria to wait for the start of their shifts. The employee entrance is where security, time cards, bulletin boards, and sometimes the personnel departments are located. Personnel offices and security offices will be sized at 200 square feet per office person. About one personnel person for 100 employees and one security person per 300 employees are normal. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] LOCKER ROOMS Locker rooms give the employees space to change from their street clothes to their work clothes and a place to keep their personnel effects while working – coats, lunches, street shoes. Showers, toilets, washbasins, lockers and benches are all part of a well equipped locker room. The size of the locker room can be initially sized by multiplying the number of employees by 4 square feet per employee. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] LOCKER ROOMS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] TOILETS AND RESTROOMS As a rule of thumb, one toilet is required for every 20 employees, and restrooms should be no farther than 200 feet away from the employee. One sink per toilet must be installed in every restroom. At a minimum, there should be a men’s restroom and a women’s restroom in the office and factory. Special accommodations and provisions must be made for people with disabilities as required by ADA. The size of the restroom is 15 square feet per toilet, washbasin, and entryway, and 9 square feet for urinals Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] TOILETS AND RESTROOMS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] CAFETERIAS OR LUNCHROOMS A cafeteria feeds a lot of people in a short time. Cafeterias are generally used in big plants Vending machines can serve very complete meals. A vending machine with a microwave oven for special foods can provide employees with many meal choices. Vending machines are usually used for small plant lunchrooms. Mobile vendors are outside vendors who drive their specially built pickup trucks. Only very small plants could use this service. Executive dining rooms are used to entertain special customers, vendors, and stockholders. Off site dinning at local diners is attractive to many employees. Companies discourage employees from leaving the plant at lunchtime. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] CAFETERIAS OR LUNCHROOMS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] CAFETERIAS OR LUNCHROOMS Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] RECREATIONAL FACILITIES Health conscious employees are better employees and companies are recognizing this fact. Health facilities take space, and the plant layout designer must talk with management to understand what facilities need to be included. The space required must be determined and included in the plan Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] AISLES Aisles are for movement of people, equipment and material and must be sized for that use. For example, two way fork truck traffic means aisles must be 10 feet wide( for safety). Two way people aisles must be at least 5 feet wide. Aisles should be long and straight. The major aisle of the plant may run from the receiving dock straight through the plant to the shipping dock. Side aisles may be smaller but perpendicular to the main aisle (fig 9-11, page 262). Space allocation for the production aisles is accomplished by increasing the total production space by a factor of 50%. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] MEDICAL FACILITIES Medical facilities vary from 6 x 6 foot first aid rooms to full fledged hospitals. In smaller plants, first aid is handled by trained employees at the plant. Medical emergencies are handled by the emergency room at the local hospital or clinic. When a plant approaches 500 people, a registered nurse is usually justified. One nurse would require a 400 square foot area. Nurses require facilities such as waiting rooms, examining rooms medical supplies, and record and reclining areas Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] BREAK AREAS AND LOUNGES If the lunchroom is too far (over 500 feet) away from groups of employees, a break area should be provided. A break area in a remote area may be a picnic table, a drinking fountain, maybe a vending machine and sometimes a ping pong table that folds up and rolls away. There should be enough seats for everyone on a break. Staggered breaks will reduce the need for excessive space. Lounges are usually found in shipping and receiving areas for visiting truck drivers to wait for their loads. Restrooms should be conveniently close to the lounges to eliminate the need for drivers walking through the plant. Lounges should be sized by multiplying the number of drivers that could be waiting at one time by 25 square feet. Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] CLASSWORK 1. What is the number of personnel and security people needed in a factory? 2. How do we size locker rooms? 3. How do we size restrooms? 4. When does a plant need a registered nurse? How much space would be required for a nurse facility? Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] REFERENCES Thompkins, White, Boser and Tanchoco, (2010) Facilities Planning 4th ed., John Wiley and Sons Meyers, F., Stephens , M. (2011) Manufacturing Facilities Design and Materials Handling, 4th ed., Pearson Educational International Undeniably the Best! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected] UNIVERSITY OF BATANGAS LIPA CAMPUS Undeniably the Best! COLLEGE OF ENGINEERING AND ARCHITECTURE INDUSTRIAL ENGINEERING DEPARTMENT Thank You! ENGR. REYVEN P. CULIS CLSSYB, PMFC, SO2 | [email protected]

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