Supply chain; Project Management

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A series of related jobs usually directed toward some major
output and requiring a significant period of time to
What is a project
• Unique item – often a single unit.
• Often located on one place. The unit does not move during production.
• Resources are brought to the project.
• May be of any size.
Project Management
The management activities of planning, directing, and
controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project.
Pure Project
• A self-contained team works full time on the project.
Advantages to Pure Project
• The project manager has full authority over the project
• Team members report to one boss
• Shortened communication lines
• Team pride, motivation, and commitment are high
Disadvantages of Pure Project
• Duplication of resources
• Organizational goals and policies are ignored
• Lack of technology transfer
• Team members have no functional area “home”
Functional Project
• Responsibility for the project lies within one functional area of the firm. Employees from that area work on the project, usually only part
Advantages of Functional Projects
• A team member can work on several projects
• Technical expertise is maintained within the
functional area
• The functional area is a “home” after the
project is completed
• Critical mass of specialized knowledge
Disadvantages of Functional Project
• Aspects of the project that are not directly
related to the functional area get short-changed
• Motivation of team members is often weak
• Needs of the client are secondary and are
responded to slowly
Matrix Project
• A blend of pure and functional project structures – people from different functional areas work on the project, possibly only part time.
Advantages to Matrix Project
• Enhanced communications between functional areas
• Pinpointed responsibility
• Duplication of resources is minimized
• Functional “home” for team members
• Policies of the parent organization are followed
Disadvantages to Matrix Project
• Too many bosses
• Depends on project manager’s negotiating skills
• Potential for sub-optimization
Statement of Work
A written description of the objectives to be achieved. Provides a high level view of the project
Contains information about:
– Objectives
– Description of work to be completed
– Task breakup – the high level work breakdown structure
– Proposed schedule
– Milestones
– Performance measures
– Acceptance/Signoff criteria
Gantt Chart
A chart that has:
Activities or jobs on the vertical axis
Time on the horizontal Axis
Critical Path Method
-Helps to identify the critical path(s) in the project networks
– Used when activity times are known with certainty
– Used to determine timing estimates for the project, each activity in the project, and slack time for activities
Prerequisites for Critical Path Method
A project must have:
(1) well-defined activities whose completion marks the
end of the project;
(2) independent activities;
(3) activities that follow a given sequence
Time-Cost Models
– Used when cost trade-off information is a major consideration in planning
– Used to determine the least cost in reducing total project time
Categories: Project Management