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M.Tech (I.I.T-Madras)
PGDM (I.I.M-Bangalore)

Process Analysis
and Design

Operations Management Overview
Process Control
and Improvement


Job Design

Facility Layout

Waiting Line Analysis
and Simulation

Process Control

Supply Chain

Supply Chain
Just in Time
Planning for Production


Capacity Management
Inventory Control
Materials Requirement


The Pyramid of Giza in Egypt

The Great Wall of China .

What is a Project One Time Large Investment No Revenue Wide variety of Skills used and of High Caliber Use of Special purpose equipment for short duration Involvement of many specialized agencies Technology-Wide Variety .

then project management has been around for quite some time.History of Project Management •If we define project management to be: • the situation where a group of people and resources that have been assembled and organized to achieve specific one-time objectives. •Examples of one time projects requiring complicated management systems includes ancient wonders such as: • the great Egyptian pyramids and • the Great Wall of China. .

206 B.550 B.C.) Exceptional planning Coordination Allocation Hundreds of thousands of workers Paid and Slave labor. .Ancient History Examples: The Great Pyramids of Giza (2.) The Great Wall of China (221 B.C.C. 7 .

Ancient History Similar basic elements of project management: Managing resources Maintaining a schedule Coordinating different groups All are used in today’s modern project management practice No evidence that they used optimal scheduling 8 .

Example is the 1862 Transcontinental Railroad 9 . to manufacturing Large scale projects caused large scale management decisions.The Early Years: Late 19th Century PM emerged in the growing complexity of commerce Seen in transportation.

Modern Project Management 1900-1950 – Henry Gantt Modern project management Construction Engineering Defense Henry Gantt forefather of project management Known for planning and control techniques “Gantt” chart keeps track of project schedule. 10 .

html 11 .com/Evolution.Modern Project Management 1900-1950 – Gantt chart Source Gantt Charts at http://www.ganttchart.

html 12 .ganttchart.Modern Project Management 1900-1950 – Gantt chart Source Gantt Charts at

html 13 .agcon.Modern Project Management 1950 and beyond .com/HTML/site_content/page_episode_2_en.PERT Two mathematical scheduling methods “Program Evaluation Review Technique” or PERT Edwin Booz Analyzes the tasks Identifies minimum amount of time Source: The Story of Consulting: 1920-1939 http://www.

14 .Modern Project Management 1950 and beyond .CPM The “Critical Path Method” developed for plant maintenance projects Algorithm for scheduling project activities. A CPM diagram based on the following project elements: List of all activities required for project Length of time for each activity Dependencies between the activities.

Objectives of a Project 3 Project Objectives: .

Organizing. activities or tasks that support an effort to accomplish something Management : is the process of Planning.What is Project Management? Project : A group of milestones or phases. Controlling and Measuring .

with a clearly defined START POINT and END POINT to achieve some specific results desired to satisfy the needs of the organisation at the current time .. A collection of linked activities. carried out in an organised manner. .Project.

organization. Inc. All Rights Reserved. and goals • Catalyst for change • Unique product or service • Heterogeneous teams • Start and end date 18 Operations • Semi-permanent charter. organization. and goals • Maintains status quo • Standard product or service • Homogeneous teams • Ongoing Copyright © 1999 Project Management Institute.Contrast Projects and Operations Projects • Create own charter. .

Characteristics of a Project Have a purpose Have a life cycle Interdependencies Uniqueness Conflict Chapter 1-9 .

long-range objective that is broken down into a set of projects Task . finite task to be accomplished Chapter 1-8 .an exceptionally large.The Definition of a “Project” Must make a distinction between terms: Program .division of work packages In the broadest sense. a project is a specific.set of activities comprising a project Work Packages .division of tasks Work Units .

Why Project Management? Companies have experienced: Better control Better customer relations Shorter development times Lower costs Higher quality and reliability Higher profit margins Sharper orientation toward results Better interdepartmental coordination Higher worker morale Chapter 1-10 .

Why Project Management? Companies have also experienced some negatives: Greater organizational complexity Increased likelihood of organizational policy violations Higher costs More management difficulties Low personnel utilization Chapter 1-11 .

The Project Life Cycle Stages of a Conventional Project: Slow beginning Buildup of size Peak Begin a decline Termination Chapter 1-12 .

What does Project Management Entail? Planning: is the most critical and gets the least amount of our time Beginning with the End in mind-Stephen Covey Organizing: Orderly fashion (Contingent/Prerequisites) Controlling: is critical if we are to use our limited resources wisely Measuring: To determine if we accomplished the goal or met the target? .

you can’t manage it . You can’t do it If you can’t measure it.Measuring… …. Are we efficient? Are we productive? Are we doing a good job? What is the outcome? Is it what we wanted to be? If you can’t plan it.

their Vacations and their Budgets and keep a simple project management form known as ‘’To Do’’ list  Any Process or Means used to track tasks or efforts towards accomplishing a goal could be considered Project Management .Who uses Project Management?  Nearly Everyone to some degree People plan their Days. their Weeks.

Why is Project Management used? It is necessary to Track or Measure the progress we have achieved towards a Goal we wish to accomplish We use Project Management to Aid us in Maximizing and Optimizing our resources to accomplish our goals .

Probably more time is wasted as a consequence of lack of Project Management tool than is spent to Plan adequately. Control effectively and Measure appropriately How long: As long as there are things to do . Organize.How much time does Project Management take? Not much.

Why is Project Management Important? Enables us to map out a course of action or work plan Helps us to think systematically and thoroughly Unique Task Specific Objective Variety of Resources Time bound .

Advantages In built Monitoring/ Sequencing Easy and Early identification of Bottlenecks Activity based costing Identification and Addition of missing and new activities Preempting unnecessary activity/expenditure Timely Completion Assigning tasks Reporting .

Road to Better Project Management Find a Project plan that fits your style of project management needs It may be as simple as creating templates. forms and spreadsheets to track tasks Formation of a Project Management committee Listing out all the tasks and sub-tasks to accomplish a goal Jot down the time period and person responsible against each task/sub-task .

..Road to Better Project Management Identify a Project Manager Identify Task Managers Sequence the activities in relation to time period Present to the PMC Finalize by reaching an agreement and start work…. .

Implementatio n Regular Monitoring Resource Support Critical issues discussed and solution Meeting with the team on completion of each major milestone Track the progress against the plan System to add/delete tasks in the PMT .


Machinery/Material. Communication plan. assumptions and constraints. verification and validation plan.benefit} . schedulePDC}.Risk Plan{identify.mitigation. budget. Project Description{for ex:schematic diagrams}.Stages in a Project Conceptual: (Study and understanding Statement of Work is given by Customer) Initiation ( First Phase of Project): Decided to take up.deliverables.Manpower.risk for the project.quality plan.Estimation of project{work content. Schedule of project. and Team. Project Charter(Objective. Business Potential.implementation plan{wbs}.Training requirement. effort. Allocation of Manager/Leader.approval from sponsorers to execute) Detailed Project Plan /Mother Document meant for Stake Holders(Purpose of Project. Set of Standards to be followed.contigency. Identify Stakeholders. Scope of Project.

Design Phase: Overall High Level Design.documentation.Stages in a Project Requirement Phase: Elicitation of requirement specification from customers.Technical Review. Implementation/Fabrication Phase: Validation Phase . Detailed design . Product interface detail.

Deliverables and Objectives Appoint Project Leader Approve Project Set-up Conceptual Design Scheme Design Raise/Extend/Update initial TCD-R/PERF Prepare Outline Conceptual Design Define Design Constraints Prepare Interface Requirements Spec..Approval of Final Documents Readiness for Gate 3 Manufacture .Approve Project Definition Gate 1 Strategic and Budgetary Approval Undertake Design Gate 2 Design Approval ..Project Plan Risk and Procurement Strategies ** These will only take place here for large projects demanding DO effort for preliminary Conceptual work Draft Statement of Requirements (SoR) Review & Approve SoR Identify Resources Appoint Project Team Produce & Maintain Procurement Plans Undertake Project Risk Assessment Prepare Project Boundary Document Develop Project Management Plan (PMP)* Raise initial TCD-R/PERF** Prepare Preliminary Conceptual Design** Project Team/Interfaces/EFDA/CSU/JDC *** These will comprise: .Acceptance of System Complete Project Install Equipment Test & Commission Confirm Completion Project Review Note: Overall Project Management and Reporting will be as defined in the Project Management Plan (PMP) Gates (Formal Decision Points) See accompanying notes Test Equipment against Test Schedule Commission Complete System Undertake Post Project Review Project Team/ICM/EFDA/CSU Project Team/CSU Receive Equipment Pre-test Equipment Install equipment Project Team/ICM Confirm Technical Completion Review Project Records Complete Handover Documents Resolve Reservations Obtain Acceptance of Completed Project Project Team/EFDA/CSU UNCONTROLLED WHEN PRINTED . Proj.Initial WBS.Drawings .Approval to place Contract Initiate Project Prepare Technical Design Ensure Machine Compatibility Prepare Safety Case Modification Major Project Proposals Project set-up Project Definition Appoint Project Sponsor Assess Project Priority Assess Budget Implications Est.*** Send out Invitations (ITTS) Hold Clarification Meetings Receive Tenders Evaluate Tenders Arrange site visits Approve changes to Specs.The Project Process Gate 0 Project Justification . Choose preferred Company Raise/Extend Sub-system TCD-Rs/PERFs Agree Classifications & Interfaces Prepare Sub-system Scheme Design Hold Sub-system Scheme Design Review (SDR) Clear Sub-system SDR Issues Update PMP Use TCD-I/MMAC for Sub-system SD Approval Project Team/Contracts/EFDA Project Team/Interfaces Project Leader/Project Team/EFDA/CSU Implement Project Manufacture Equipment Raise Contract Documentation Place Contract Hold Kick off Meeting (KOM) Clarify Issues (Quality Plan) Monitor Progress Witness key Procedures Complete Release Note Approve Complete Package**** Approve Release Note Pack & Dispatch Equipment Project Team/Contractor/ICM **** This includes supporting documentation Tender Invitation & Assessment Extend TCD-Rs/PERFs Prepare Sub-system Detailed Design Hold Detailed Design Review (DDR) Clear Sub-system DDR Issues Use TCD-I/MMAC for Sub-system DD Approval Prepare Final Documents including: .Contractual Requirements Compile Tender Docs.Technical Specification . Safety Case Modification Project Team/IRP/EFDA/CSU/JDC * This will include: Undertake Tender Readiness for Operation Gate 4 . Machine Compatibility Documents. OBS and CBS .Design Documents. (IRP) Finalise Conceptual Design Hold Conceptual Design Review (CDR) Clear CDR Issues Initiate Modification Safety Case Update PMP Approve Proceed to Detailed Design EFDA/CSU/JOC Management Detailed Design .

Project Management…. Work Smart Not Hard !!! .