Project Management. Maintenance and Reliability

14 Aug 2001

Introduction What – Project Management Where – Where the success or

failure of a project will have major consequences for the company

Why – At some point every company takes on large and complicated projects – opening a new store, building a plant, developing a product

Project Management What is at stake? Large projects, outside of normal

production Cost overruns Late completion – penalties Early completion – bonuses

 Project Planning Project organization Project manager

Project Planning Planning Task Work Breakdown Structure Determines gross requirements for

people, supplies and equipment

Work Breakdown Structure Level 1 Project 2 Major tasks 3 Subtasks 4 Activities

Example Level 1 Open a new Retail Outlet 2 Select Location 2 Refurbish Location 3 Signage 4 Install new sign 3 Displays 4 Install racks 4 Install Mannequins

Project Scheduling Sequence project activities Allotting time

Gantt Chart

Project Controlling Monitor resources, costs, quality,

and budgets Use feedback to revise project plan

PERT and CPM Program Evaluation and Review

Technique Critical Path Method Schedule, monitor and control

large projects

PERT and CPM Framework Define project Develop relationships among activities Draw network connecting activities Assign time / cost estimates to each

activity Compute longest time path through

network – the critical path Use network to plan, schedule, monitor,

control project

Difference Between PERT and CPM CPM – one estimate of time PERT three estimates with

probabilities

PERT Symbols

224 Years4 Years

Activity (Arrow)Activity (Arrow)

RegisterRegister Receive diplomaReceive diploma

Project: Obtain a college degree (B.S.)Project: Obtain a college degree (B.S.)

Event (Node)Event (Node)

Attend class, Attend class, study etc.study etc.

11

Event (Node)Event (Node)

PERT Symbols

11AA

BBA & B can occur A & B can occur concurrentlyconcurrently

22

33

PERT Symbols

11 44

22

33

AA

BB

CC

A must be done before A must be done before C & D can beginC & D can begin DD

PERT Symbols

11 44

22

33

AA

BB EE

CC

B & C must be done B & C must be done before E can beginbefore E can begin

DD

Activity Time Estimates Optimistic Time (a) Most Likely Time (m) Pessimistic Time (b) Beta distribution Expected Time t = (a + 4m + b) /

6 Variance v = [(b – a)/6]2

Critical Path Analysis ES – Earliest Start Time LS – Latest Start Time EF – Earliest Finish LF – Latest Finish S – Slack Time – LS – ES Critical Path – Group of activities in the

project that have a slack time of zero T – total project completion time V – total variance of activities on the critical

path

Project Crashing Crashing – shorten activity time by

adding resources Can be expensive – may be less

expensive than cost penalties

PERT Advantages Useful at several stages, especially

scheduling and control Not mathematically complex Graphical display show relationships Critical path pinpoints activities to closely

monitor Documents who is responsible for each

activity Applicable to a wide range of industries Monitors schedules and costs

PERT Limitations Project activities clearly defined,

independent, stable in their relationships

Precedence relationships must be specified in advance

Time estimates are subjective Danger of too much emphasis on

critical path

Maintenance and Reliability

Introduction What – maintain capability of

system while controlling costs Where – Where results of failure

can be disruptive, wasteful, and expensive in dollars and lives

Why – breakdown – idle facilities – loss of customers

Definitions Maintenance – all activities

involved in keeping a system in working order

Reliability – Probability that a machine function or part will function properly for a specified period of time under stated conditions

Improving Individual Components If one component fails, entire

system could fail Reliability is the probability of not

failing Assuming the reliability of each

component does not depend on the reliability of other components,

Rs = R1 x R2 x R3 x … x Rn

Product Failure Rate - FR(%) = Number Failures /

Number units tested x 100% FR(N) = Number of failures /

Operating time MTBF = 1 / FR(N)

Providing Redundancy Back up components with

additional components Rs = R1 + [R2 x (1 – R1)]

Maintenance Preventative Maintenance –

Routine inspections, servicing, and keeping facilities in good repair to prevent failure

Breakdown Maintenance – Equipment fails and must be repaired

Implementing Preventative Maintenance Maintenance is costly – so when to

maintain? Infant Mortality – high initial failure rate Once past the Infant Mortality phase,

determine MTBF Requires maintenance and breakdown

record-keeping Difficult to determine full costs of

breakdown

Increasing repair capabilities Must decide where repairs are to

be performed Must decide who will perform

repairs Better to have employees perform

as much as possible themselves

Total Productive Maintenance – TPM Applies TQM concepts to maintenance Employee involvement Excellent maintenance records Designing machines to be reliable, easy to

operate, easy to maintain Emphasizing total cost of ownership when

purchasing machines Developing preventative maintenance plans Training workers to operate and maintain

machines