Prof RottinghausMAC 209 ADateReading Name QuestionArch.docx

Prof Rottinghaus
MAC 209 A
Date
Reading Name
Question
Archilitem volut arum idem veniat latur, nullit dis rae. Sumet
pellendandis et officit, ut ex eaquatisquam eaquias enecti aut
intem aut quas volecabo?
Quotes
“Archilitem volut arum idem veniat latur, nullit dis rae. Sumet
intem aut quas volecabo. Or sum ullacep ratur? Aruptatendi re
quaere, simpelisit et harchil ilis” (p.xx).
“Officid magnihilis aut pro omnis reprae sant mi, quo inciis sum
harumquunde voles doluptum et ut omnis adis nonsedis non pe
veri ut quassit quatur aut aperspelles molut quia” (p.xx).
“Ehenit, sus. Solupta plabo. Luptas ut quaerio id est, audit
aliam, volor aliqui dit quae dolum volupta que experatet”
(p.xx).
Summary
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intem aut quas modite volecabo. Or sum ullacep ratur?
Aruptatendi re quaere, simpelisit et harchil ilis explant ipsa
corum reperum, ommo il idunt, sum ipient vellori alia aessimpor
auda parit pernam nis solum dolorerciet latquatur, optatquunt
que voluptur, il mi, odit ut am, ipis aspiet ea ex eume volum
renti ati tem harum adigendem velit quisci non nonest es dusae

voles eiur alia quatet facerumquis rehenisin core non cus eum
faccae quoditiis et est, quas doloribus estrum, unt.
Ehenit, sus. Solupta plabo. Luptas ut quaerio id est, audit aliam,
volor aliqui dit quae dolum volupta que experatet aut harum rem
event aboribusdae nam exero mo doleceatet et dolore aut que
exerupictur, utem aut et, sunt maximendunt quam quis ipid qui
aut eos eum illupictem niendi qui corrorporrum qui ut aliquo
quis eum consed que quis rest molupta quam etur, consere stiant
occuste et quam dolum dolore facerror rerro vollaccum et lam
hici ni utem sedi amuscias escimi, omnimi, occatem qui nobis
expero et officipsae. Ita vellitat. Ihita apiendissi reculla boreper
ionectur andis andanduntem quo odit, officit volutecta quis ne
venis repudaestion etus aute rerem. Officid dolore magnihilis
aut pro omnis reprae sant mi, quo inciis sum harumquunde voles
doluptum et ut omnis adis nonsedis non pe veri ut quassit quatur
aut aperspelles molut quia consecta peruptatur re, ut oditist aut
quas as aut quatur, utem et, cone quis ex et assunt.
MLA/APA/Chicago Citation:
EXAMPLE: Author. (Year) “Title of Article,” Name of Journal.
Issue/Vol.
Project Management
Chapter 8

8 | *
Copyright © Cengage Learning. All rights reserved.
Learning Objectives
Define the term project, list the steps involved in project
management, and explain the role of the project manager.
Describe various project management tools and techniques, such
as work breakdown structure, critical path method, program
evaluation and review technique, cost and time tradeoff, and
resource management.
Understand how to execute project successfully and how to
avoid risks and failure.
8 | *
Elements of Project Management
To identify the elements of project management
we need to answer two questions:
What is a project?
What is Project Management?
And then we need to also consider the role of:
The Project Manager
*
8 | *
What is a Project?Project: a set of interrelated activities
necessary to achieve established goals using a specified amount

of time, budget, and resourcesThe primary characteristics are:
A well-defined goal or objective
Composed of a set of interrelated activities
A specified beginning and ending time
Specified resource and personnel requirements
A specified budget
Uniqueness
8 | *
Supplementary
Characteristics for Projects
Projects generally have or include:
Pre-specified deliverables after completion
Pre-established limits and exclusions
Specific intermediate goals or performance milestones.
An element of risk
Teams made up of several individuals who come from different
departments or functional areas or who have unique skills
Team members work are working on multiple projects at the
same time
Source: © Image Source/Corbis
*
8 | *
Examples of

Operations Management ProjectsThe development of new
product and service offerings such as Nintendo Wii, Sony
Playstation, and Microsoft-X-Box.Quality improvement projects
such as implementation of Six Sigma projects at a large service
organization like American Express.Preparation for ISO9000 or
ISO14000 certifications.
*
8 | *
What is Product ManagementProject management: the
application of the knowledge, skills, tools, and techniques
necessary to successfully complete a project.According to the
Project Management Institute (www.pmi.org), the body of
knowledge of project management can be divided into five
categories:
initiation
planning
execution
control
closure
*
8 | *
Project InitiationDuring the project initiation phase, a business

problem or opportunity is identified, a solution is identified and
a project team is established.The project manager is ultimately
responsible for the successful execution of the project.The
Project Management Institution recommends that project
managers need to gain expertise in areas such as: information
integrations, scope, time, cost, quality, human resources,
communications, risk, and procurement.
*
8 | *
Discussion Starter
What are Project Champions?
*
8 | *
Project PlanningInvolves the creation of a number of planning
documents such as:
Project plan
Resource plan

Financial plan
Quality plans
Communications plan
Risk plan
8 | *
Project ExecutionInvolves the actual completion of all activities
that are part of the project.Requires the project manager to start
constructing the deliverables.The deliverables can be sequenced
in series so that neither the project team nor the recipient is
overburdened by them.
*
8 | *
Project ControlIs the real-time assessment of the execution of a
planned projectRequires time, cost, quality, resource, risk, and
change management skillsHardest job for a project manager
*
8 | *
Project ClosureAt the conclusion of all project activities and

after submission of the required deliverables, a project is
formally closed.Conducting a critical assessment of all project
phases that went well and those that did not allows the
organization to learn and to improve the execution of the next
project.
8 | *
The Project ManagerProject manager: the person responsible for
delivering the goals of a projectProject time: the amount of time
available to complete a projectProject cost: the budgeted
amount available for the projectProject scope: the activities that
must be completed to achieve a project’s end goal
*
8 | *
Figure 8.1: Three Interrelated
Constraints in Project Management
8 | *
Project Management
Tools and TechniquesThe discipline of project management has
available a number of tools and procedures that enable the

project team to organize its work to meet the constraints:
Work Breakdown Structure
Precedence Relationship and Time Estimates
Gantt Chart
Network Diagram
Critical Path Method (CPM)
Cost and Time Tradeoff Analysis
Program Evaluation and Review Technique (PERT)
Resource Management
*
8 | *
Work Breakdown StructureWork breakdown structure (WBS):
an approach that defines a project in terms of its subprojects,
tasks, and activities
Most fundamental technique for designing and
organizingActivity: the smallest work package that can be
assigned to a single worker or a teamIt is essential that care is
taken to develop a realistic work breakdown structure.
*
8 | *
Figure 8.2: Work Breakdown Structure

8 | *
Precedence Relationship
and Time EstimatesPrecedence relationship analysis:
identification of the relationships and the sequence of activities
within a projectGreat care is taken to estimate the approximate
completion time for each activity.The project schedule, cost,
and resource requirements depend on the precedence
relationships and time estimates for individual tasks.
8 | *
Gantt ChartGantt chart: a special type of horizontal bar chart
used to display the schedule for an entire projectNamed after
Henry Gantt, who originally developed the chart in the 1910s.A
Gantt chart with different color codes can be used to track
performance while the project is in progress.
8 | *
Figure 8.3: An
Example of a Gantt Chart
8 | *
Network DiagramNetwork diagram: a diagram with arrows and

nodes (circles) created to display a sequence of activities within
a projectActivity on node (AON) approach: a network diagram
that shows each activity as a circle (or a node) and connects the
activities with arrowsActivity on arrow (AOA) convention: a
network diagram in which each activity is represented by an
arrow, and the nodes are used to show the beginning and end
points
*
8 | *
Figure 8.5: Activity on Node (AON)
and Activity on Arrow (AOA) Conventions
for Representing Network Diagrams
*
8 | *
Figure 8.7: AON Network Diagram
for Sunny Beach Resort Project

*
8 | *
Critical Path MethodCritical path method: an algorithm for
scheduling activities within a project for the fastest and most
efficient executionCritical path: the path within a project that
takes the longest time to complete
Dictates the project completion time
a.k.a.: the bottleneck path or the binding constraintCritical
activities: the project activities making up a critical pathSlack:
the amount of flexibility in scheduling an activity within a
project
*
8 | *
Identifying the Critical Path
The algorithm involves calculating four parameters
for each activity:
Early start time (ES): the earliest time at which an activity can
start, considering the beginning and ending for each of the
preceding activities
Early finish time (EF): the sum of the early start time (ES) and
the time required to complete the activity
Late state time (LS): the latest time at which an activity can
start, considering all the precedence relationships, without
delaying the completion time for the project
Late finish time (LF): the sum of the late start time and the time

required to complete the activity
*
8 | *
Figure 8.9: Convention for Displaying the Earliest and Latest
Start and Finish Times
8 | *
Cost and Time Tradeoff AnalysisSometimes the most efficient
schedule is not sufficient for meeting customer needs.
The scope of the project may need to be changed or additional
resources may need to be assigned to speed up the project.If the
scope of the project is changed, the project team can reevaluate
the schedule based on the new guidelines using the critical path
method.If additional resources are assigned to speed up the
project schedule, a cost and time tradeoff analysis (crashing) is
conducted.Crashing: an approach for identifying the lowest-cost
approach for reducing the project duration
*
8 | *

Table 8.2: Sunny Beach Resort: Activity Relationships and
Time Estimates
*
8 | *
Figure 8.17: Additional
Project Cost Versus Duration
8 | *
Program Evaluation
and Review Technique (PERT)Program evaluation and review
technique: a technique for addressing the impact of
uncertainties in activity time estimates on the duration of the
entire projectIn a project schedule, different estimates for
activity times are developed:
Optimistic time (to): the minimum possible time required to
complete an activity, assuming that everything proceeds better
than is normally expected
Pessimistic time (tp): the maximum possible time required to
complete ac activity, assuming that everything proceeds at the
slowest possible pace
Most likely time (tm): the best estimate of the time required to
accomplish a task assuming that everything proceeds normally

Expected time (te): the best estimate of the time required to
accomplish an activity considering the potential impact
of to, tm, and tp
*
8 | *
Figure 8.18: Potential
Distributions of Activity Times
8 | *
Resource ManagementTwo commonly used techniques are:
Resource breakdown structure (RBS): a standardized list of
personnel required to complete various activities in a project
Resource leveling: an approach to reduce the amount of
fluctuations in day-to-day resource requirements within an
organization
*
8 | *

Figure 8.26: Resource Requirements
in Multiproject Environments
8 | *
Project Management SoftwareA large number of concepts, tools
and techniques for project management have been introduced
since the 1950s, and their use has become quite widespread in
recent years.Several reasons for this increase in the use of
project management techniques:
Globally diverse workforce
Multi-project environments
Availability of user-friendly software
*
8 | *
Success Factors
in Project ManagementWhy Do Projects Fail?Project Risk
ManagementWhy Do Projects Succeed?
*
8 | *

Project Risk ManagementEven with careful planning, it is not
possible to anticipate everything that can put a project’s scope,
schedule, or budget at risk. A careful manager develops plans
for managing various risks associated with the projects.Four
categories of risks:
Financial Resource Risk
Human Resource Risk
Supply Risk
Quality Risk
*
8 | *
Risk Assessment Plan
Step 1: Identify problems (and map them).
Problems are classified according to:
Severity: What percentage of the project’s scope will be
affected by a problem?
Probability: What are the chances that a specific problem will
occur?
Timing: At what point in the project is the specific problem
likely to appear?
Dynamic risk: As the project proceeds, will the probability of
the problem occurrence increase, decrease, or stay constant?
*

8 | *
Table 8.9: Project Risk Map Template
*
8 | *
Risk Assessment Plan continued
Step 2: Analyze each potential problem.
The project manager should quantify the impact of each
potential problem such as time delays or cost overruns.
Step 3: Once the risks are presented on the same scale, develop
a prioritization scheme.
Step 4: Develop a contingency plan.
Done by the project team
Step 5: Develop a potential upside for the project.
Done by the project manager
Step 6: Assign team members the responsibility for monitoring
the signs of each potential problem.
*
8 | *

Risk RegisterProjects Teams will define the various risks and
document these issues.Each risk will have a “potential
solution.”One owner will be assigned the risk.Living document
– dynamic – will change
*
8 | *
Why Do Projects Succeed?Clearly Defined Goals
Is there a clear and written-down objective for the project?
Are the main tasks structured?
Has the scope of the project been agreed upon?
Does the team know and agree with the goals?
Are there clear milestones along the way?Project Manager
Ability
Is the project manager skilled and experienced?
Does the project manager have a plan and a budget?
Does the project manager have technical knowledge in the area
of the project?
Does the project manager have leadership skills?
Can the project manager motivate the team?
*
8 | *

Why Do Projects Succeed?Team Member Skills
Do we know what skills are required on this project?
Does the team have all these skills?
Is there a training program for team members?
Is there a range of skills and experience on the project?
Are people there because of what they bring to the project and
not due to their position in the organization?Top Management
Support
Is there support from top management for the project?
Does the project have a champion in top management?
Have adequate resources been allocated to the project?
Does top management have a stake in the outcome of the
project?
Does the project fit with organization objectives?
*
8 | *
Why Do Projects Succeed?
Project Planning
Is there a clear method for achieving the project?
Has a plan for the project life been prepared from this method?
Is there good short-term planning?
Is progress measured against plan?
Is the plan adjusted to match progress?Communication
Are there clear channels of communication to all parties on the
project?
Can team members discuss issues openly?
Can team members communicate their opinions on decisions?
Do team members get feedback on performance?
Do team members trust each other enough to communicate

freely at all times?
*
8 | *
Why Do Projects Succeed?User Involvement
Do we know the end users of the project?
Have the end users been involved in setting the project
outcomes?
Is it easy for end users to get involved in the project?
Do the end users give feedback on progress?
Do the end users have ownership of the solution? Commitment
of Team
Are team members behind the goals of the project?
Do the team members own the project outcome?
Are team members involved in decision making?
Can team members make suggestions about improving and
changing the project?
Do team members go beyond their job description for the good
of the project?
*
8 | *
Why Do Projects Succeed?Control Systems
Does the project have a control system?

Do we check planned time and cost against actual duration and
expenditure?
Are checks carried out early enough to detect problems and
correct them?
Do we give feedback on progress to the team?
Do we check that action on feedback is effective?Risk
Management
Have key risks on the project been identified?
Has the effect of each risk been measured?
Have responses been decided for key risks?
Have action plans been prepared for each response?
Does the team have a plan for managing unexpected risks?
*
Optimization and Simulation Modeling
Chapter 9
9 | *
Learning Objectives
Formulate and solve linear programming problems.
Describe the use of computer simulation modeling in operations
decision making.
9 | *

Linear Programming Helps Kellogg’s Optimize Production,
Inventory, and DistributionKellogg’s must manage a highly
complex production, inventory control, and distribution
system.Kellogg’s employs an enterprise resource planning
(ERP) system to coordinate its raw material purchases,
production, distribution, and demand.The many different
varieties of products and brands, packaged in many different
sizes and produced at several different plants, require the use of
an optimization approach known as linear programming.The
innovative use of optimization techniques has allowed the
company to develop a system that is estimated to save between
$35 million and $40 million annually.
9 | *
Discussion Starter
What benefits can we receive from simulations and modeling?
9 | *
Operations Research
or Management ScienceOperations research or management
science: the use of interdisciplinary scientific methods such as
mathematical modeling, statistics, and algorithms that aid
decision making for complex real-world problems of
coordination and execution of the operations in an
organizationThe goal is to derive the best possible solution to a
problem or to optimize the performance of the organization.

9 | *
IntroductionMany management decisions involve making the
most effective use of limited resourcesLinear programming (LP)
Widely used mathematical modeling technique
Planning and decision making relative to resource
allocationBroader field of mathematical programming
Here programming refers to modeling and solving a problem
mathematically
Copyright ©2015 Pearson Education, Inc.
9 | *
Requirements of a
Linear Programming ProblemFour properties in common
Seek to maximize or minimize some quantity (the objective
function)
Restrictions or constraints are present
Alternative courses of action are available
Linear equations or inequalities
9 | *
LP Properties and Assumptions
TABLE 7.1
Copyright ©2015 Pearson Education, Inc.PROPERTIES OF

LINEAR PROGRAMS1. One objective function2. One or more
constraints3. Alternative courses of action4. Objective
function and constraints are linear – proportionality and
divisibility5. Certainty6. Divisibility7. Nonnegative variables
9 | *
Formulating LP ProblemsDeveloping a mathematical model to
represent the managerial problemSteps in formulating a LP
problem
Completely understand the managerial problem being faced
Identify the objective and the constraints
Define the decision variables
Use the decision variables to write mathematical expressions for
the objective function and the constraints
9 | *
Formulating LP ProblemsCommon LP application – product mix
problemTwo or more products are produced using limited
resources Maximize profit based on the profit contribution per
unit of each productDetermine how many units of each product
to produce
9 | *
Flair Furniture CompanyFlair Furniture produces inexpensive

tables and chairsProcesses are similar, both require carpentry
work and painting and varnishing
Each table takes 4 hours of carpentry and 2 hours of painting
and varnishing
Each chair requires 3 of carpentry and 1 hour of painting and
varnishing
There are 240 hours of carpentry time available and 100 hours
of painting and varnishing
Each table yields a profit of $70 and each chair a profit of $50
9 | *
Flair Furniture CompanyThe company wants to determine the
best combination of tables and chairs to produce to reach the
maximum profit
TABLE 7.2
Copyright ©2015 Pearson Education, Inc.HOURS REQUIRED
TO PRODUCE 1 UNITDEPARTMENT(T) TABLES(C)
CHAIRSAVAILABLE HOURS THIS
WEEKCarpentry43240Painting and varnishing21100Profit per
unit$70$50
9 | *
Flair Furniture CompanyThe objective is
Maximize profitThe constraints are
The hours of carpentry time used cannot exceed 240 hours per
week

The hours of painting and varnishing time used cannot exceed
100 hours per weekThe decision variables are
T = number of tables to be produced per week
C = number of chairs to be produced per week
9 | *
Flair Furniture CompanyCreate objective function in terms of T
and C
Maximize profit = $70T + $50CDevelop mathematical
relationships for the two constraints
For carpentry, total time used is
(4 hours per table)(Number of tables produced)
+ (3 hours per chair)(Number of chairs produced)
First constraint is
Carpentry time used ≤ Carpentry time available
4T + 3C ≤ 240 (hours of carpentry time)
9 | *
Flair Furniture CompanySimilarly
Painting and varnishing time used
≤ Painting and varnishing time available
2 T + 1C ≤ 100 (hours of painting and varnishing time)
This means that each table produced requires two hours of
painting and varnishing time
Both of these constraints restrict production capacity and affect
total profit

9 | *
Flair Furniture CompanyThe values for T and C must be
nonnegative
T ≥ 0 (number of tables produced is greater than or equal to 0)
C ≥ 0 (number of chairs produced is greater than or equal to 0)
The complete problem stated mathematically
Maximize profit = $70T + $50C
subject to
4T + 3C ≤240(carpentry constraint)
2T + 1C ≤100(painting and varnishing constraint)
T, C ≥0(nonnegativity constraint)
9 | *
Graphical
Solution
to an
LP ProblemEasiest way to solve a small LP problems is
graphicallyOnly works when there are just two decision

variables
Not possible to plot a solution for more than two
variablesProvides valuable insight into how other approaches
workNonnegativity constraints mean that we are always
working in the first (or northeast) quadrant of a graph
9 | *
Graphical Representation
of Constraints
This Axis Represents the Constraint T ≥ 0
This Axis Represents the Constraint C ≥ 0
FIGURE 7.1 – Quadrant Containing All Positive Values
100 –
–
80 –
–
60 –
–

40 –
–
20 –
–
C
||||||||||||
020406080100
T
Number of Chairs
Number of Tables
9 | *
of ConstraintsThe first step is to identify a set or region of
feasible solutionsPlot each constraint equation on a graphGraph
the equality portion of the constraint equations
4T + 3C = 240Solve for the axis intercepts and draw the line
9 | *

of ConstraintsWhen Flair produces no tables, the carpentry
constraint is:
4(0) + 3C = 240
3C = 240
C = 80Similarly for no chairs:
4T + 3(0) = 240
4T = 240
T = 60
This line is shown on the following graph
9 | *
of Constraints
(T = 0, C = 80)
FIGURE 7.2 – Graph of Carpentry Constraint Equation
(T = 60, C = 0)

100 –
–
80 –
–
60 –
–
40 –
–
20 –
–
C
||||||||||||
020406080100
T
Number of Chairs
Number of Tables
9 | *
FIGURE 7.3 – Region that Satisfies the Carpentry Constraint

of ConstraintsAny point on or below the constraint plot will not
violate the restrictionAny point above the plot will violate the
restriction
100 –
–
80 –
–
60 –
–
40 –
–
20 –
–
C
||||||||||||
020406080100
T
Number of Chairs
Number of Tables
(30, 40)
(30, 20)

(70, 40)
9 | *
of ConstraintsThe point (30, 40) lies on the line and exactly
satisfies the constraint
4(30) + 3(40) = 240The point (30, 20) lies below the line and
satisfies the constraint
4(30) + 3(20) = 180The point (70, 40) lies above the line and
does not satisfy the constraint
4(70) + 3(40) = 400
9 | *

of Constraints
(T = 0, C = 100)
FIGURE 7.4 – Region that Satisfies the Painting and Varnishing
Constraint
(T = 50, C = 0)
100 –
–
80 –
–
60 –
–
40 –
–
20 –
–
C
||||||||||||
020406080100
T
Number of Chairs
Number of Tables

9 | *
of ConstraintsTo produce tables and chairs, both departments
must be usedFind a solution that satisfies both constraints
simultaneouslyA new graph shows both constraint plotsThe
feasible region is where all constraints are satisfied
Any point inside this region is a feasible solution
Any point outside the region is an infeasible solution
9 | *
of Constraints
FIGURE 7.5 – Feasible

Prof RottinghausMAC 209 ADateReading Name QuestionArch.docx

Prof RottinghausMAC 209 ADateReading Name QuestionArch.docx

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