UNIVERSITY OF SAINT LOUIS
Tuguegarao City
SCHOOL OF ACCOUNTANCY, BUSINESS and HOSPITALITY
Second Semester
A.Y. 2023-2024
COURSE LEARNING MODULE
OMGT 1013 – Operations Management and Total Quality Management
Prepared by:
GLADYS T. TUMBALI, DBM
Reviewed by:
MARY ANN C. BARTOLOME, DBM
Business Administration Department Head
Recommended by:
ALICIA S. TULIAO, DBM
Academic Dean
Approved by:
EMMANUEL JAMES PATTAGUAN, Ph.D.
Vice President for Academics
WARNING: No part of this E-module/LMS Content can be reproduced, or transported or shared to others without
permission from the University. Unauthorized use of the materials, other than personal learning use, will be penalized.
Please be guided accordingly.
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School of Accountancy, Business and Hospitality
Business Administration Department
Curriculum 2018-2019
COURSE LEARNING MODULE
OMGT 1013 (Operations Management and Total Quality Management)
AY 2023-2024
Lesson 16: Project Management Part 2
Topic: Network Planning Methods
Steps in Managing a Project with Network Planning Methods
Learning Outcomes: After reading this module, you are expected to:
Construct a network diagram and identify the critical path as well as the target completion time of a
given project;
Estimate the earliest and latest start and finish times of each activity in the project;
Appreciate the value of creating a network diagram.
LEARNING CONTENT
Introduction:
This module discusses the basic steps in managing a project with network planning methods. In addition,
it will present the process of constructing the project network diagram.
Lesson Proper:
Basic Terminologies:
Project – is an interrelated set of activities that has definite starting and ending point that results in a unique
product or services.
Three major elements of project management:
a. Project Manager- has the responsibility to integrate the efforts of the people from various functional
areas to achieve specified project.
b. Project Team – group of people, often representing different functional areas or organizations, led by
the project manager.
c. Project Management System – it consist of an organizational structure and information system.
Organizational Structures –this specified by top management and defines the relationship of
the project team member to the project manager.
Functional Organization – is the traditional structure whereby the project is housed in a specific
functional area, presumably the one with the most interest in the project.
Pure Project structure – team member’s work exclusively for the project manager
on a particular project.
Matrix Structure – each functional area maintains authority over who will work on
the project and the technology to be used.
Networking Planning Methods
Can help project managers monitor and control projects.
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o This methods threat a project as a set of interrelated activities that can be visually displayed in a
network diagram which consists of nodes and circles that depict the relationship between
activities
Nodes - represented by a circle
Arcs - represented by an arrow
Two Network Planning Method
PERT (program evaluation and review technique) was created for the U.S. navy’s Polaris missile project,
which involved 3,000 separate contractors and suppliers.
CPM (critical path method) was developed by J.E. Kelly of Remington- Rand and M.R. Walker of DU
Pont as a means of scheduling maintenance shutdown of chemical processing plants.
Four Steps in Managing a Project with Network
Planning Methods
A. Describing the projects
Describing the project involves identifying the following:
Activity – is the smallest unit of work effort consuming both time and resources that the project manager
can schedule and control
Precedence Relationships– it determines a sequence for undertaking activities.
It specifies that one activity cannot start until a preceding activity has been completed.
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B. Diagramming the Network
Precedence Relationships – are represented by a network diagram.
o Two approaches to create a network diagram:
AOA – Activity-on-Arc Network, it uses arcs to represent activities and nodes to represents
events.
- Since it emphasizes activity connection point, we say that it is event oriented.
- Sometimes this approach requires the addition of dummy activity to clarify the
precedence relationships between two activities.
AON – Activity-on-Node Network it uses nodes to represents activities and arcs indicate
the precedent relationships between them.
- It is an activity oriented.
Dummy Activity– use to clarify the precedence relationships between two activities.
C. Estimating time of Completion
Deterministic Estimates – when same type of project has been done many times before, time estimates
involve uncertainty and are called Probabilistic Estimates.
a. Optimistictime(a) – is the shortest time in which the activity can be completed,
if all goes exceptionally well.
b. MostLikelyTime (m) – is the probable time required to perform the activity.
c. PessimisticTime(b) – is the longest estimated time required to perform an
activity.
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Critical Path – is the sequence of activities between a project’s start and finish that takes the longest
time to complete.
Activity Slack – is the maximum length of time that an activity can be delayed without delaying the entire
project.
Formula: Slack= LS-ES or Slack= LF-EF
- Activity on the critical path have zero slack.
- Activity slack is calculated from four ties for each activity; earliest start time; earliest
finished time; latest start time for each and latest finish time.
o Earliest Finish Time (EF) of an activity equals its earliest start time plus its expected duration, t, or
EF=ES+t.
o Earliest Start Time (ES) for an activity is the earliest finish time of the immediately preceding activity.
For activities with more than one preceding activity. ES is the latest of the earliest finish times of the
preceding activities.
o Latest Finished Time – for an activity is the latest start time of the activity immediately following it.
For activities with more than one activity immediately following, LF is the earliest for the latest start
times of those activities.
o Latest Start Time – for an activity equals its latest finish time minus its expected duration, t, or LS=LF
– t.
D. Monitoring project progress
*** END of LESSON***
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REFERENCES
Textbooks
Collier, David Alan, et.al.(2020). Operations Management and Total Quality Management. Cengage Learning
Asia Pte. Ltd.
Stevenson, William J. (2018). Operations management thirteenth edition. McGraw Hill Education, 2 Penn Plaza,
New York, NY 10121.
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