Operations Management: An Integrated Approach, 5th Edition

Chapter Highlights

A project is a unique, one-time event of some duration (weeks, months, or even years) that consumes resources (human, capital, materials, and equipment capacity) and is designed to achieve an objective in a given time period. In business, projects can be designing new products, installing new systems, constructing new facilities, mounting advertising campaigns, designing information systems, and developing company Web pages. In politics, a project can be designing a political campaign.

Each project goes through a five-phase life cycle: concept, feasibility study, planning, execution, and termination. In the concept phase, we identify the need for the project. With the feasibility study, we evaluate expected costs, benefits, and risks. Planning consists of calculating the work and the time to do it; execution is doing the work; and termination is finishing the project.

Two network planning techniques are PERT and CPM. PERT uses probabilistic time estimates. CPM uses deterministic time estimates.

PERT and CPM determine the critical path of the project and the estimated ...