IEM-Module 4

Industrial Engineering and
Management
Module 4
Project Management
• What Is a Project?
A project can be simply defined as an endeavor that involves
completing tasks to achieve an objective with a limited set of resources
and a finite timeline.
• What Is Project Management?

Project management is a process that allows project managers to plan,
execute, track and complete projects with the help of a project team.
To do so, they must use project management principles, skills,
methodologies and tools to lead team members through each of the
project management steps which are known as the project lifecycle.
Project management is the use of specific knowledge, skills, tools and

techniques to deliver something of value to people.
Operations Research
• Operations Research, often abbreviated as OR, is the application of
mathematical and analytical methods to solve complex decision-
making problems. It is a multi-disciplinary approach that combines
techniques from mathematics, statistics, computer science, and
engineering to optimize outcomes. In project management, OR acts
as a guiding light, aiding in making informed choices that lead to
efficient resource utilization and project success.
Benefits of Operations Research in Project Management
• In the dynamic landscape of project management, where constraints and
uncertainties abound Operations Research provides a structured approach
to tackle challenges. It enables project managers to analyze data, model
scenarios, and find optimal solutions, ensuring that projects are completed
on time, within budget, and with maximum efficiency. Operations Research
(OR) is a valuable tool in project management that helps optimize decision-
making and resource allocation. Here's why it's relevant:
i) Calculable Decisions - Operational research drives business engagement

based on models that interpret empirical data and perform calculations as
per modeling analysis and theories to come up with the best possible
solution.
ii) Empirical Evidence - Operations research involves the study and

understanding of existing business processes, governance models,
challenges, and opportunities to make decisions that are most suited to fulfill
the requirement at hand.
iii) Full-fledged Planning and Scheduling - specifically for project management,
operations research helps simulate real-time understanding of project situations to
devise foolproof project planning and scheduling of activities. This helps minimize
variances, saves costs, and keeps the project progress on track and schedule.
Techniques like the Critical Path Method (CPM) and Program Evaluation and Review
Technique (PERT) identify the most critical tasks and their dependencies.
iv) Enhances Productivity - Project managers can help facilitate better team
engagement by understanding models which help effective work breakdown and
utilization of resources, thereby minimizing under-allocation as well as burnout of
project resources.
v) Fosters Innovation - With predictive analytics and quantitative metrics that are
visible to the project manager and stakeholders, there can be a focus on innovating
mundane ways of working as well as looking for opportunities to adapt to more
promising outcomes.
Components of Operation Research?
• In the words of Alex Vasegaard, operations research incorporates techniques from statistical analysis, mathematical
modeling, optimization, and machine learning while accentuating the human-technology interface. The key components of
this field include:
1. Mathematical Modeling and Statistical Analysis

• A post-mortem analysis of operations research examples and solutions specifies that it involves applying statistical methods
to analyze and derive mathematical algorithms from solving problems. It involves applying data to dig deeper, draw
conclusions and come up with algorithms that provide insights and solutions under business scenarios.
2. Optimization Approaches
• Optimization approaches come in handy when there is a tradeoff between potential options or choices that a business
needs to make. Optimization techniques also include providing the solution to the business problem, taking into account
existing project constraints. Constraints may be anything that may subdue decision-making or pose limitations when trying
to make the best choice.
3. Simulation Techniques
• Simulation is the penultimate step in the operations research process in which the algorithms, models, or approaches that
are suggested are tried and tested before being implemented. Simulation involves evaluating outcomes of the operation
research methods, adjusting factors or constraints to tailor solutions to business needs, performing implementation
analysis, and finally suggesting the solution with the highest weightage from these factors.
CPM and PERT
• The critical path method (CPM) is a project management technique
that is used by project managers to create an accurate project
schedule. The CPM method, also known as critical path analysis (CPA),
consists in using the CPM formula and a network diagram to visually
represent the task sequences of a project. Once these task sequences
or paths are defined, their duration is calculated to identify the critical
path.
• In project management, the Project Evaluation Review Technique
(PERT) , is used to identify the time it takes to finish a particular task
or activity. It is a system that helps in the proper scheduling and
coordination of all tasks throughout a project. It also helps in keeping
track of the progress, or lack thereof, of the overall project.
• Advantages of PERT
1. It helps maximize the use of resources.
2. It makes project planning more manageable.
3. It’s useful even if there is little or no previous schedule data.
4. It enables project managers to better estimate or determine a more
definite completion date.
• Disadvantages of PERT
1. In complex projects, many find PERT hard to interpret, so they may also
use a Gantt chart, another popular method for project management.
2. It can be tedious to update, modify, and maintain the PERT diagram.
3. It entails a subjective time analysis of activities and, for those who are
less experienced or are biased, this may affect the project’s schedule.

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Industrial Engineering and

• What Is Project Management?

Project management is the use of specific knowledge, skills, tools and

i) Calculable Decisions - Operational research drives business engagement

ii) Empirical Evidence - Operations research involves the study and

1. Mathematical Modeling and Statistical Analysis

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