10/2/2024

What is Project?

• Project is a temporary endeavor that is taken to

produce a unique deliverable.
• Temporary: It has an end (project can last from few
days to many years)
• End of the project is reached when
PM & SC Concepts • Project is Completed
• When it is clear that it is not possible to complete project
work
• There is no need for the project to be carried out

• Unique: Output of every project is different

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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What is a Project deliverable? Project Attributes

• Product: It could be an end item, or it could be a • Clear objective

component of another item. • Series of interdependent activities
• Various resources
• Service: Which has capability to perform a business • Specific time frame
function. • Unique, one-time endeavor
• Result: It is in the form of document. • Sponsor or customer
• Example????????? • Degree of uncertainty

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Organizational Structure: Project Constraints

• 6 Project constraints:
• Functional: Handle Operations Only
1. Scope (Work)
• Project Based/ Projectised: Handle Projects only 2. Time (Schedule)
Quality
3. Cost (Budget)
4. Resources
5. Risks
6. Quality Resources Risks
Scope
Change in ‘one’ will have effects on others

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Balancing Project Constraints Project Manager Actions

• Prevent, anticipate, overcome

• Have good planning and communication
• Be responsible

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What is a Project Management? The Project Life Cycle

• Application of Knowledge , Skills, Tools & Techniques,

to project activities to meet project requirements.

This is done by applying……

Project management Processes, listed in

5 Process Groups &
10 Knowledge areas

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What is a Project Management? Initiating Phase

• Five Process Groups are: • First phase
• Identify need, problem, or
1. Initiation opportunity
2. Planning • Determine if select project
3. Execution • Develop project charter
• Rationale
4. Monitoring & Control
• Project objective
5. Closing • Expected benefits
• General requirements and
conditions
• Decide if RFP needed

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Planning Phase Performing Phase

• Second Phase • Third phase
• Show how project scope will be • Accomplish project objectives
accomplished • Project manager leads
• Plan the work and work the plan • Project team completes the
• Develop baseline plan project
• What needs to be done -- scope, • Increase pace as more resources
deliverable
are added
• How it will get done -- activities,
sequence • Monitor and control progress
• Who will do it -- resources, • Take corrective action as needed
responsibilities • Manage and control changes with
• How long it will take -- durations, sponsor approval
schedule
• Achieve customer satisfaction
• How much it will cost -- budget
• What the risks are
with acceptance of deliverable
• Have actual resources plan the work

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Closing Phase Project Planning Process

• Final phase • Establish project objective

• Collect and make final • Define scope
payments • Create WBS
• Recognize and evaluate staff • Assign responsibility
• Conduct post project • Define specific activities
evaluation • Sequence activities
• Document lessons learned • Estimate activity resources
• Archive project documents • Estimate activity durations
• Record lessons learned • Develop project schedule
• Estimate activity costs
• Determine budget

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Create WBS and Assign Responsibility Sequence Activities

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Develop the Project Schedule Determine Budget

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Execute the Project Plan Stakeholder Engagement

• Perform the work Who are Stakeholders? What to Create

• Monitor and control • Customer/sponsor • Stakeholder register
progress • Project team including • Created as identify
• Control changes subcontractors and stakeholders
suppliers • Include
• Organizations or groups • Key contact information
• Role or specific topics of
• Supportive or interest
adversarial • Expectations
• Want to be kept • Any known issues
informed because of • Areas of potential influence
potential impact • Issue log

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Global Project Management

Globalization Helpful Competencies

• Adds a dimension of • Foreign language skills
complexity • Knowledge of
• Changes project dynamics • Cultures
• Geography
• Requires awareness of
• World history and contemporary
factors events
• Cultural differences • International economics
• Currency • Awareness of
• Codes and regulations • Customs and etiquette
• Business organization • Geopolitical environment
• Political relations • Technology adoption and
• Workforce availability translation software
© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Critical Success Factors

• Planning and communication are critical to successful project management. They prevent
problems from occurring or minimize their impact on the achievement of the project
objective when they do occur.
• Taking the time to develop a well thought-out plan before the start of the project is critical
to the successful accomplishment of any project.
• A project must have a clear objective of what is to be accomplished and defined in terms of
end product or deliverable, schedule, and budget; and is agreed upon by the customer.
• Involve the sponsor or customer as a partner in the successful outcome of the project
through active participation during the project.
• Achieving customer satisfaction requires ongoing communication with the customer to keep
the customer informed and to determine whether expectations have changed.
• The key to effective project control is measuring actual progress and comparing it to planned
progress on a timely and regular basis and taking any needed corrective action immediately.
• After the conclusion of a project, the project performance should be evaluated to learn what
could be improved if a similar project were to be undertaken in the future. Feedback should
be obtained from the sponsor or customer and the project team.
• Learning and understanding the culture and customs of other project participants will
demonstrate respect, help build trust, and aid in developing an effective project team; and it
is critical for successful global project management.
© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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What is a Supply Chain? What is a Supply Chain?...

• Two or more parties linked by a flow of resources – typically material, information, and
money – that ultimately fulfill a customer request. . . . and that they involve multiple parties . . .

Information
(order)
Information (Status)

Physical
(delivery)

Financial (payment)

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
Supply
license Chain
distributed Management
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a certain product or service or otherwise on a password-protected website or school-approved learning management system for Supply
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What is a Supply Chain?... What is a Supply Chain?...

. . . with complex and non-linear relationships . . . Rubber

Customer
Mfg Tire Retailer
Supplier Hardware
Supplier Supplier
Gear
Supplier
Wholesaler
Customer
Pedal
Supplier Supplier
Bicycle Retailer

Casting
Smelter Plant
Wholesaler Customer
Frame
Supplier
Retailer

Pigment
Supplier
Paint
Supplier Retailer Customer
Chemical
Mfg

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
Supply
license Chain
distributed Management
with [email protected]
a certain product or service or otherwise on a password-protected website or school-approved learning management system for Supply
license Chain
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What is a Supply Chain?... Objective of Supply Chain

• The primary purpose of a SC is to satisfy customer
needs. • The objective of every supply chain should be to maximize
the overall value generated.
• Only one source of revenue – the customer
• The value a supply chain generates is the difference
• Payments between parties are just fund exchanges between what the final product is worth to the customer and
• Division of intra-SC payments are a function of power, the costs the supply chain incurs in filling the customer's
market conditions, etc. request.
• For most commercial supply chains, value will be strongly
correlated with supply chain profitability (also known as
• Supply Chains try to maximize the total value supply chain surplus), the difference between the revenue
generated generated from the customer and the overall cost across the
supply chain.
= [What customer pays] – [Total effort To achieve supply chain objectives

expended to fulfill] Decisions

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Supply
license Chain
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with
Have to be made
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[email protected]
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Decision Phases in
Supply Chain
1. Strategy or Design

• Timeframe of Several years

1. Supply Chain Strategy

• Decisions on
• Configuration, resource allocation & Processes
• Outsourcing vs in-house
• Locations, Capacities of production & Warehousing
2. Supply Chain Planning
• Mode of transportations etc.

• Strategic Decisions are

3. Supply Chain Operations
• Expensive
• Hard/difficult to change
• Taken in consideration of anticipation of market conditions for next few years

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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license Chain
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2. Planning 3. Operations

• Timeframe of a Quarter to One year • Timeframe of daily to Weekly

• Planning is constrained by Strategy • Decision regarding individual customer orders
• Decisions on • Decisions on
• Which market to feed from which locations
• Promotions • Inventory allocation to orders
• When • Datelines for order filling
• How long • Pick lists for ware houses
• For how much
• Shipping modes, delivery schedules
• Subcontracting, Inventory policies
• Replenishment orders
• Planning Phase defines operating policies for short
term operations based on constrains and flexibility of
Strategy
© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Process Views of a Supply Chain Cycle View of Supply Chain: Processes

• A supply chain is a sequence of processes and flows that take place within and between different stages and
combine to fill a customer need for a product.
Customer
• There are two ways to view the processes performed in a supply chain.
Customer Order Cycle

Retailer

Replenishment Cycle
1. Cycle View - The processes in a supply chain are divided into a series of cycles,
Distributor
each performed at the interface between two successive stages of a supply chain.
2. Push/Pull View - The processes in a supply chain are divided into two categories Manufacturing Cycle
depending on whether they are executed in response to a customer order or in Manufacturer
anticipation of customer orders. Pull processes are initiated by a customer order,
whereas push processes are initiated and performed in anticipation of customer
• Cycles Occur Between Stages
Procurement Cycle
• Interactions differ at each stage
orders. Supplier
• Not every SC will have all 4 Cycles
© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Push/Pull View of Supply Chain Processes Push/Pull View of Supply Chain Processes
• Pull Processes
• Execution is initiated in response to a customer order.
Push/ Pull
• Customer demand is known with certainty.
Boundary
• May also be referred to as reactive processes because they react to customer demand.
Push Process Pull Process
• Often constrained by inventory and capacity decisions that were made in the push phase.

• Push Processes
• Execution is initiated in anticipation of customer orders.
• Demand is not known and must be forecast.
• May also be referred to as speculative processes because they respond to speculated demand.
• Operate in an uncertain environment because customer demand is not yet known.
Customer Order
• The push/pull boundary in a supply chain Arrives
separates push processes from pull processes
© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a © 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
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Push/Pull View of Supply Chain Processes…

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