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
Project management
Direct
Design
Project
management
Operations
management
Develop
Deliver
The market requires…
specified time, quality and
cost of a project
The operation supplies..
the delivery of the project ontime, on-specification and to
budget
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
Stages in project management
Stage
Understanding the
1
project
environment
Stage
2
Stage
3
Changes
Project definition
Project planning
Corrective
action
Stage
4
Technical
execution
Stage
5
Project control
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
The three project objectives of quality, cost and time
Quality
New aircraft
project
Music festival
Fixed-grant
research project
Cost
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
Stages in the project planning process
Adjust as
necessary
Identify
the
activities
in the
project
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
Work breakdown structure
Serve breakfast in
bed
Produce
glass of
orange drink
Obtain
juice
Produce
boiled egg
in egg cup
Obtain
glass
Produce
boiled
egg
Obtain
egg
cup
Produce
buttered
toast
Produce
toast
Obtain
butter
Arrange
tray
Obtain
plates and
cutlery
Obtain
tray
Obtain
bread
Obtain
egg
Obtain
water
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
Time (mins)
0
1
2
3
4
5
6
7
8
9
Orange
Bread
Toast
Activities requiring
operator time
Butter
Boil water
Water
Bed room
Boil egg
Staff required
Tray
4
3
2
1
0
0
1
2
3
4
5
6
7
8
9
Time (mins)
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
Network planning
Activities and network for a simple project
Activity
a
b
c
d
e
f
Remove furniture
Remove furniture
Prepare bedroom
Paint bedroom
Prepare kitchen
Paint kitchen
Replace furniture
Immediate
predecessors
None
a
b
a
d
c, e
Activity duration
(in days)
1
2
3
1
2
1
Replace furniture
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
Network planning (Continued)
Activity on arrow – using ‘dummy’ activities to clarify
relationships
2
x
x
2
1
1
y
3
y
Figure 16.16 When dummy activities are necessary
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
Network planning (Continued)
Activity on arrow – using ‘dummy’ activities to describe a
relationship that could not be expressed any other way
1
3
5
2
4
6
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
Network planning (Continued)
The network diagram for a motorway project
18 20
A
D
5
0
0
B
10
7
8
H
E
10
10 10
L
8
27 27
35 35
I
F
9
C
1
G
3
4
19 19
3 J
K
5
M
4
22 22
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
Revenue effects
Cost effects
Improved quality (consistent conformance to
customers’ expectations)
Enhanced
service/product
image (brand
value)
Reduced cost of
detecting errors
Faster customer
response time
Reduced cost
of rectifying
errors
Increased
customer
service
Increased
sales volume
Reduced
price
competition
Economies of
scale
Reduced cost of
compensating
customers
Reduced
capital costs
Increased
productivity
Reduced
operations
costs
Increased
revenue
Increased profit
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
Perceived quality is governed by the gap between
customers’ expectations and their perceptions of the
product or service
Gap
Gap
Customers’
expectations
for the
Customers’
product or
perceptions
service
of the
product or
service
Expectations > perceptions
Perceived quality is
poor
Customers’ Customers’
expectations perceptions
of the
for the
product or
product or
service
service
Expectations =
perceptions
Perceived quality is
acceptable
Customers’
expectations
for the
product or
service
Customers’
perceptions
of the
product or
service
Expectations <
perceptions
Perceived quality is
good
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
A ‘Gap’ model of quality
Word-of-mouth
communications
Previous
Experience
Image of product
or service
Customer’s
expectations
concerning a
product or service
The
customer’s
domain
Gap?
Customer’s
perceptions
concerning the
product or service
Gap 4
Customer’s own
specification of
quality
Gap 1
Management’s
concept of the
product or service
The actual product
or service
Organization’s
specification of
quality
Gap 3
Gap 2
The operation’s domain
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
Quality
Quality
fitness for purpose
Quality of Design
degree to which
design achieves purpose
Reliability
ability to continue
working at accepted
quality level
Quality of Conformance
faithfulness with which the
operation agrees with design
Variables
things you can measure
Attributes
things you can assess
accept/reject
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
Makes quality
central and strategic
in the organization
Quality systems
Quality costing
Problem solving
Quality planning
Broadens the
organizational
responsibility for quality
Solves the root
cause of quality
problems
Prevents ‘out of
specification’ products and
services reaching market
Statistics
Process analysis
Quality standards
Error
detection
Rectification
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
People
results
People
Leadership
Policy and
strategy
Partnerships
and resources
Processes
Customer
results
Key
performance
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
Cost to rectify error
10,000
1,000
100
10
1
Concept
Design
Prototype
Pilot
Market use
production
Stage in the development and launch process
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 16.21
Increasing the effort spent on preventing errors occurring
in the first place brings a more than equivalent reduction
in other cost categories
Total cost of quality
Costs of quality
Appraisal
Internal failure
Appraisal
Prevention
Time
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
Process variability
AP
X
AX
P
Off target ACCURACY : P
Scatter
PRECISION : P
AX
P
X
AP
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
Security of
demand and
revenue
Customer willing
to invest in
relationship
Partnerships
notwithstanding
power imbalance
Enhanced
organizational
learning
Confidence to
give new orders
Can offer
knowledge
insights to
suppliers
Internal process
predictability
Forms basis of
continuous
improvement
Customer trust in
process stability
Gain control
of ‘run the
operation’
Higher capacity
utilization
Control charts
become focus of
process
discussions
Less chance of
arbitrary decisions
Reduced decision
making ambiguity
Increased job
satisfaction
Less downtime
and waste
Lower cost base
Develop customer
relationship skills
Sense of
professionalism
‘being in control’
Better
understanding of
process
capabilities
Ability to cope
with variety
without excess
cost
Enhanced staff
retention
Develop basis for
in-house product
development
Staff confidence
in own abilities
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
RTO and CTO are not mutually exclusive activities
(Continued)
learning
Innovation
Intervention
Process
knowledge
Capability
Process
knowledge
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014