MGMT 4000 Final

What is a project?

A series of related jobs, usually directed toward some major output and requiring a significant period of time to perform

Project Management

Planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project

Why is project management important?

At the highest levels of an organization, management often involves juggling a portfolio of projects

Project Management key concepts

complex, one-time endeavor, limited by budget, schedule and resources, developed to resolve a clear goal or set of goals, customer focused

Quadruple constraint

Cost, time, quality, client approval → Success

Project managers Deal with _____ Skills

People and technical

Pure project

A self contained team works full time on the project

Functional project

Responsibility for the project lies within one functional area of the firm

Matrix Project

A blend of pure and functional project structures

Earned Value management

Technique for measuring project progress in an objective manner, ability to combine measurements of scope, schedule and cost

Critical Path

the path taking the longest time through the network of activities

Critical path method

1. Identify each activity to be done and estimate length

2. Determine the required sequence and construct a network diagram

3. Determine critical path

4. Determine the early start/finish and late start/finish schedule

Slack time

The amount of time a project can be delayed without jeopardizing its completion time

PP-Process : Initiation

Define the project’s goals, scope, budget, and timeline

PP-Process :Planning

Create a detailed action plan

PP-Process :Execution

Carry out the plans to deliver the product

PP-Process :Monitoring and controlling

Track progress and adjust work as needed to keep the project on schedule and within budget

PP-Process :Closure

Wrap up tasks, obtain project acceptance, and archive records

Statement of work

A written description of the objectives needed to be achieved

Task

A further subdivision of the project

Work package

A group of activities combined to be assignable to a single organizational unit

Work breakdown structure

Defines the hierarchy of project tasks, subtasks, and work packages

Activities

Pieces of work that consume time

Gantt chart

Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed

Value based leadership

Do the right thing by making choices and decisions that are aligned with your values

Guiding principles of VBL

Self reflection, empathy, courage, true self confidence, genuine humility

Five behaviors of effective leaders

Model the way, inspire vision, empower others, challenge the process, encourage the heart

Toyota Production system

“waste is anything other than the minimum amount of equipment, material, parts, space, and worker’s time, which are absolutely essential to add value to the product”

Lean production

Integrated activities designed to achieve high-volume production using minimal inventories

Value chain

Each step in the supply chain should create value

Customer value

Something for which the customer is willing to pay

Waste

Anything that does not add value from the customer’s perspective

Just in time methodology

Receiving ordering and receiving inventory when ready for use or just in time for use

Just in time continued…

Uses a process facility layout, general purpose machinery, small batches, pull system, simplifies the production process, Kanban cards, shorter planning horizons

Group technology production system

Grouping and producing similar items that use the same processing to reduce set-up time and improve efficiency

Pull system

moves materials through a system to work-stations as they are needed.

Push system

Moves materials through processing operations based on a schedule and forces the flow of materials

7 types of waste

1. waste from overproduction

2. Waste of waiting time

3. transportation waste

4. Inventory waste

5. Processing waste

6. Waste of motion

7. Waste from product defects

Value stream mapping

A special type of flowcharting tool for development of lean processes

Kanban

“visual record/card”

Conveyance Kanban

C-Kanban is an authorization to move a container of parts of materials

Production Kanban

P-Kanban is used to authorize the production parts or sub-assemblies

Dual Card

Is using both C and P Kanban systems

Electronic Kanban

Digital or electronic authorization to move a container or parts to produce parts or subassemblies

Master Schedule

Weekly time buckets and is used to prepare final assembly schedule

Planning horizon

2-3 months instead of the standard medium range planning horizon of 6-18 months

Final assembly schedule

Daily schedule that reflects exactly what should be assembled or produced that day. Goes 1 week into the future

Quality

The degree of excellence or superiority of a product or service

Internal orientation of quality

An organizations perspective of the degree in which a product or service meets or exceeds customer’s expectations

External orientation of quality

The consumer’s perspective of the degree in which a product or service meets or exceeds their expectations

Internal Organization for Standardization

An internal standard setting body composed of representatives from various national standards organizations

ISO-900

Set of standards related to quality management systems and designed to help organizations ensure they meet the needs of the customer

ISO-1400

A set of standards related to environmental management designed to help organizations reduce the negative environmental effects

Quality function Deployment

The process of incorporating customer feedback to improve the quality of a product or service to further meet customer expectations

Quality Audit

The process of systematic examination of a quality system carried out by an internal or external quality auditor or audit team

Quality management system

The organizational structure, procedures, processes, and resources needed to implement quality management

Five dimensions of service quality

Reliability, Responsiveness, Assurance, Empathy, Tangibles

Dimensions of product quality

Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived quality

Failure costs

Costs that are incurred due to internal and external inefficiencies

Internal Failure costs

These costs arise when defects are identified within an organization before the products or services reach the customer

External failure costs

These costs occur when defects are discovered after products or services have been delivered

Appraisal costs

These are expenses associated with assessing the quality of products or services to identify defects or issues

Prevention costs

These are expenses incurred to prevent defects from occurring in the first place

Total quality management

A strategic approach to management aimed at embedding awareness of quality in all organizational processes

Two fundamental operational goals

1. Careful design of the product or service

2. Ensuring that the organization’s systems can consistently produce the design

Six sigma

A disciplined continuous improvement methodology that adopts a data-driven approach to process improvement to eliminate defects and improve the quality of products and services. 3.4 defects per million

Six Sigma Process

Define, Measure, Analyze, Improve, Control

Plan-Do-Check-Act

Four step iterative management methodology used for continuous improvement in various processes and systems

Statistics Process control

Testing a sample of output to determine if the process is producing items within a preselected range

Attributes

Quality characteristics that are classified as either conforming or not conforming

Variable

Characteristics that are measured using an actual value

Data collection

1. Check sheet

2. Control chart

3. Run chart

Data analytics

1. Histogram

2. Pareto chart

3. Scatter plot

Check sheet

A manual tool in which data is collected on location and recorded in real-time. Often the first tool used for collecting raw data

Control Chart

A graphic tool used to monitor and control a process over time. Determines whether a process is in a state of statistical control or if it exhibits signs of special causes of variation

Run chart

A graphical tool used to display and analyze data over time. It is a simple line graph that plots data specific to central tendency

Central tendency

It is a measure that provides insight into the average or typical value of a dataset. The three commonly used measures of central tendency are mean, median and mode

Histogram

Bar chart that shows how often something occurs

Pareto chart

Chart that prioritize and displays the relative importance of different categories or factors in a dataset by presenting data in descending order

Scatter Plot

A graphical representation of data points on a two dimensional coordinate system

Cause and effect diagram

A diagram used to search for the causes of a problem, also known as a fishbone diagram

Goldratt’s rules of production scheduling

1. Do not balance capacity, balance the flow

2. The level of utilization of a non bottleneck resource is not determined by its own potential but by another constraint

3. Utilization and activation are not the same thing

4. An hour lost at a bottleneck is an hour lost for the entire system

5. An hour saved at a non-bottleneck is a mirage

Goldratt’s rules continued…

6. Bottlenecks govern throughput and inventory in the system

7. Transfer batch may not, and many times should not, be equal to the process batch

8. A process batch should be variable both along its route and time

9. Priorities can be set only by examining the system’s constraints, and lead time is a derivative of the schedule

Theory of constraints

Identify the constraint, Exploit the constraint, subordinate everything to the constraint, elevate the constraint, don’t allow intertia to become a constraint

Constraint

Any resource whose capacity is less than or equal to demand for that resource

Three types of constraints

Demand, Supply, process/system

Throughput

The maximum rate of output achievable

Bottleneck

The most limiting constraint on the system

Process bottleneck

In a supply chain, occurs at the point in the process that requires the longest time or has the slowest rate of throughput

Regulatory bottleneck

Government regulation or company policy that cause system constraints

Technology bottleneck

Constraints caused by company’s technology, software and or hardware

Labor bottleneck

Constraints due to a lack of talent or a necessary number of employees to complete a task

Financial bottleneck

Constraints due to limited budgets and or credit availability

Decision making bottleneck

Constraints caused by indecision

Cultural bottleneck

Constraints caused by communication and cultural barriers within the workplace

What is the goal of a firm?

To make money

Synchronous manufacturing

The entire production process works in harmony to achieve the profit goal of the firm

Methods for synchronous manufacturing

Two performance methods, redefine productivity, unbalance capacity, find and focus bottlenecks, use a control point

Net profit

An absolute measurement in dollars