Project Management.
Maintenance and Reliability
14 Aug 2001
Introduction



What – Project Management
Where – Where the success or failure of
a project will have major consequences
for the company
Why – At some point every company
takes on large and complicated projects
– opening a new store, building a plant,
developing a product
Project Management





What is at stake?
Large projects, outside of normal
production
Cost overruns
Late completion – penalties
Early completion – bonuses
Project Planning


Project organization
Project manager
Project Planning



Planning Task
Work Breakdown Structure
Determines gross requirements for
people, supplies and equipment
Work Breakdown Structure





Level
1 Project
2
Major tasks
3
Subtasks
4
Activities
Example









Level
1 Open a new Retail Outlet
2
Select Location
2
Refurbish Location
3
Signage
4
Install new sign
3
Displays
4
Install racks
4
Install Mannequins
Project Scheduling


Sequence project activities
Allotting time
Gantt Chart
Project Controlling


Monitor resources, costs, quality, and
budgets
Use feedback to revise project plan
PERT and CPM



Program Evaluation and Review
Technique
Critical Path Method
Schedule, monitor and control large
projects
PERT and CPM Framework






Define project
Develop relationships among activities
Draw network connecting activities
Assign time / cost estimates to each activity
Compute longest time path through network
– the critical path
Use network to plan, schedule, monitor,
control project
Difference Between PERT and
CPM


CPM – one estimate of time
PERT three estimates with probabilities
PERT Symbols
Project: Obtain a college degree (B.S.)
Register
1
Event (Node)
Receive diploma
Attend class,
study etc.
4 Years
Activity (Arrow)
2
Event (Node)
PERT Symbols
2
A
1
B
A & B can occur
concurrently
3
PERT Symbols
A must be done before
C & D can begin
2
A
C
1
B
D
3
4
PERT Symbols
2
A
C
1
B
D
3
4
E
B & C must be done
before E can begin
Activity Time Estimates






Optimistic Time (a)
Most Likely Time (m)
Pessimistic Time (b)
Beta distribution
Expected Time t = (a + 4m + b) / 6
Variance v = [(b – a)/6]2
Critical Path Analysis








ES – Earliest Start Time
LS – Latest Start Time
EF – Earliest Finish
LF – Latest Finish
S – Slack Time – LS – ES
Critical Path – Group of activities in the
project that have a slack time of zero
T – total project completion time
V – total variance of activities on the critical
path
Project Crashing


Crashing – shorten activity time by
adding resources
Can be expensive – may be less
expensive than cost penalties
PERT Advantages







Useful at several stages, especially scheduling
and control
Not mathematically complex
Graphical display show relationships
Critical path pinpoints activities to closely
monitor
Documents who is responsible for each
activity
Applicable to a wide range of industries
Monitors schedules and costs
PERT Limitations




Project activities clearly defined,
independent, stable in their
relationships
Precedence relationships must be
specified in advance
Time estimates are subjective
Danger of too much emphasis on
critical path
Maintenance and Reliability
Introduction



What – maintain capability of system
while controlling costs
Where – Where results of failure can be
disruptive, wasteful, and expensive in
dollars and lives
Why – breakdown – idle facilities – loss
of customers
Definitions


Maintenance – all activities involved in
keeping a system in working order
Reliability – Probability that a machine
function or part will function properly
for a specified period of time under
stated conditions
Improving Individual
Components




If one component fails, entire system
could fail
Reliability is the probability of not failing
Assuming the reliability of each
component does not depend on the
reliability of other components,
Rs = R1 x R2 x R3 x … x Rn
Product Failure Rate



- FR(%) = Number Failures / Number
units tested x 100%
FR(N) = Number of failures / Operating
time
MTBF = 1 / FR(N)
Providing Redundancy


Back up components with additional
components
Rs = R1 + [R2 x (1 – R1)]
Maintenance


Preventative Maintenance – Routine
inspections, servicing, and keeping
facilities in good repair to prevent
failure
Breakdown Maintenance – Equipment
fails and must be repaired
Implementing Preventative
Maintenance





Maintenance is costly – so when to maintain?
Infant Mortality – high initial failure rate
Once past the Infant Mortality phase,
determine MTBF
Requires maintenance and breakdown recordkeeping
Difficult to determine full costs of breakdown
Increasing repair capabilities



Must decide where repairs are to be
performed
Must decide who will perform repairs
Better to have employees perform as
much as possible themselves
Total Productive Maintenance
– TPM







Applies TQM concepts to maintenance
Employee involvement
Excellent maintenance records
Designing machines to be reliable, easy to
operate, easy to maintain
Emphasizing total cost of ownership when
purchasing machines
Developing preventative maintenance plans
Training workers to operate and maintain
machines