Production and Operations

Management
Dr. Darshan Pandya
MBA (FT) | 2024-25 | SBM | NMIMS Mumbai
 Projects
• Unique, one-time operations designed to accomplish a specific
set of objectives in a limited time frame
• Examples:
• The Olympic Games
• Producing a movie
• Software development
• Product development
• ERP implementation
 The Nature of Projects

• Projects go through a series of stages – a life cycle

• Projects bring together people with a diversity of knowledge

and skills, most of whom remain associated with the project
for less than its full life

• Organizational structure affects how projects are managed

 Project Life Cycle
Initiating Planning Executing Monitoring & Closing
Controlling

• Define the project's • Create a detailed • Mobilize project • Track project • Confirm project
purpose and project plan resources and performance using deliverables meet
objectives. outlining the scope, distribute tasks to key performance the agreed-upon
• Identify key timelines, team members. indicators (KPIs) standards and
stakeholders and resources, and • Implement project and Gantt Charts. stakeholder
define their roles budget. plans according to • Apply change expectations.
and responsibilities. • Develop a Work the schedule and control processes • Conduct a post-
• Develop a project Breakdown ensure adherence to handle any implementation
charter to Structure (WBS) to to the scope. alterations to the review to document
formalize the organize tasks and • Conduct status project scope or lessons learned
initiation process. responsibilities. meetings to plan. and best practices.
• Conduct a • Establish a risk monitor progress • Monitor risk and • Release project
feasibility study to management plan and make implement resources and
assess the viability to identify and adjustments as contingency plans provide necessary
of the project. mitigate potential necessary. as required. documentation to
issues. • Manage • Ensure quality the operations
• Set up stakeholder control measures team.
communication engagement and are in place and • Formally close the
protocols to ensure keep them adhered to project by obtaining
information is informed about throughout the stakeholder
shared effectively. project project lifecycle. acceptance and
developments. sign-off.
 Project Life Cycle
Initiating Planning

• Define the project's purpose and • Create a detailed project plan

objectives. outlining the scope, timelines,
• Identify key stakeholders and resources, and budget.
define their roles and • Develop a Work Breakdown
responsibilities. Structure (WBS) to organize
• Develop a project charter to tasks and responsibilities.
formalize the initiation process. • Establish a risk management
• Conduct a feasibility study to plan to identify and mitigate
assess the viability of the potential issues.
project. • Set up communication protocols
to ensure information is shared
effectively.
 Project Life Cycle
Executing Monitoring & Controlling

• Mobilize project resources and • Track project performance using

distribute tasks to team key performance indicators
members. (KPIs) and Gantt Charts.
• Implement project plans • Apply change control processes
according to the schedule and to handle any alterations to the
ensure adherence to the scope. project scope or plan.
• Conduct status meetings to • Monitor risk and implement
monitor progress and make contingency plans as required.
adjustments as necessary. • Ensure quality control measures
• Manage stakeholder are in place and adhered to
engagement and keep them throughout the project lifecycle.
informed about project
developments.
 Project Life Cycle
Monitoring & Controlling Closing

• Track project performance using • Confirm project deliverables

key performance indicators meet the agreed-upon
(KPIs) and Gantt Charts. standards and stakeholder
• Apply change control processes expectations.
to handle any alterations to the • Conduct a post-implementation
project scope or plan. review to document lessons
• Monitor risk and implement learned and best practices.
contingency plans as required. • Release project resources and
• Ensure quality control measures provide necessary
are in place and adhered to documentation to the operations
throughout the project lifecycle. team.
• Formally close the project by
obtaining stakeholder
acceptance and sign-off.
 Project Life Cycle
Initiating Planning Executing Monitoring & Closing
Controlling

• Define the project's • Create a detailed • Mobilize project • Track project • Confirm project
purpose and project plan resources and performance using deliverables meet
objectives. outlining the scope, distribute tasks to key performance the agreed-upon
• Identify key timelines, team members. indicators (KPIs) standards and
stakeholders and resources, and • Implement project and Gantt Charts. stakeholder
define their roles budget. plans according to • Apply change expectations.
and responsibilities. • Develop a Work the schedule and control processes • Conduct a post-
• Develop a project Breakdown ensure adherence to handle any implementation
charter to Structure (WBS) to to the scope. alterations to the review to document
formalize the organize tasks and • Conduct status project scope or lessons learned
initiation process. responsibilities. meetings to plan. and best practices.
• Conduct a • Establish a risk monitor progress • Monitor risk and • Release project
feasibility study to management plan and make implement resources and
assess the viability to identify and adjustments as contingency plans provide necessary
of the project. mitigate potential necessary. as required. documentation to
issues. • Manage • Ensure quality the operations
• Set up stakeholder control measures team.
communication engagement and are in place and • Formally close the
protocols to ensure keep them adhered to project by obtaining
information is informed about throughout the stakeholder
shared effectively. project project lifecycle. acceptance and
developments. sign-off.
Triple Constraint in Project Management

Cost
Time
 Project Charter
• Purpose and Justification:
• To formally authorize a project or a phase.
• Includes a business case that outlines the problem or opportunity the project addresses.
• Objectives and Constraints:
• Lists specific project objectives aligned with the business goals.
• Details any constraints such as budget, time, scope, and resources.
• Scope and Deliverables:
• Describes the project scope, boundaries, and what the project will and will not include.
• Outlines the key deliverables the project is expected to produce.
• Stakeholders and Team Roles:
• Identifies internal and external stakeholders and their interests in the project.
• Defines roles and responsibilities of project team members, including the project sponsor and
project manager.
 Scope Statement
• Project Scope Description:
• Describes the project's deliverables, functions, features, and tasks required to
create those deliverables

• Acceptance Criteria:
• Specific conditions under which project deliverables will be accepted by
stakeholders.

• Project Boundaries:
• Clearly defines what is included and excluded from the project.

• Assumptions and Constraints:

• Lists assumptions made during the planning process and identifies constraints that
limit project execution.
 Project Manager
• The project manager is the person ultimately responsible for the success
or failure of the project
• The project manager must effectively manage:
• The work
• The human resources
• Communications
• Quality
• Time
• Costs
 Project Sponsor
• Provides financial resources and support for the project
• Provides overall guidance for the project, ensuring alignment
with strategic business objectives.
• Secures project resources and budget and assists in resolving
high-level project issues and scope changes.
• Acts as a bridge between the project team and stakeholders,
facilitating communication and driving project acceptance.
 Project Champion
• A person, usually residing within the organization, who
promotes and supports a project.
• Facilitate the work of the project by ‘talking up’ the project to
other managers who might be asked to share resources with
the project team as well as employees who might be asked to
work on parts of the project
• The project champion is critical to the success of a project.
Dr. Balram Bhargava

• Dr. Balram Bhargava, as the

Director General of the Indian
Council of Medical Research
(ICMR), played a crucial role in
developing Covaxin, India's
first indigenous COVID-19
vaccine.

• Under his guidance, ICMR

focused on ensuring the rapid
development, regulatory
approval, and extensive
clinical trials of Covaxin.
Tessy Thomas

• Tessy Thomas served as the

Project Director for Agni-IV
missile in Defence Research
and Development Organisation
(DRDO).

• She also played a crucial role

in the development of the Agni
series of missiles and is the
first woman scientist to head
a missile project in India.
S. S. Rajamouli

• Rajamouli envisioned Baahubali as

a mythological epic with universal
appeal. His ability to combine
Indian mythology with new-age
storytelling set new standards.

• He oversaw every aspect of

filmmaking, including scriptwriting,
character development, world-
building, and action sequences,
leading the franchise becoming a
global phenomenon.
 Project Management Decisions for
Success
Project success depends upon making key managerial decisions
over a sequence of steps:
• Deciding which projects to implement
• Selecting the project manager
• Selecting the project team
• Planning and designing the project
• Managing and controlling project resources
• Deciding if and when a project should be terminated
 Behavioral Issues
• Behavioral problems can be created or aggrevated by
• Decentralized decision making
• Stress of achieving project milestones on time and within budget
• Surprises

• The team must be able to function as a unit

• Interpersonal and coping skills are very important
• Conflict resolution and negotiation can be an important part of a
project manager’s job
 Avoiding Problems
Many problems can be avoided or mitigated by:
• Effective team selection
• Leadership
• Motivation
• Maintaining an environment of
• Integrity
• Trust
• Professionalism
• Being supportive of team efforts
 World’s Successful Mega-Projects
• Channel Tunnel Project
• Lagaan
• Ram Mandir, Ayodhya
 Making of Lagaan - Chale Chalo
• https://www.youtube.com/watch?v=fJBAFtgD_P4
• https://www.youtube.com/watch?v=eARLuil1mQw
 Channel Tunnel
• https://www.youtube.com/watch?v=KclYKAnaJ_k
 Ram Mandir
• https://www.youtube.com/watch?v=aXbYWEPOG3g
 Some Unsuccessful Mega-Projects
• Dubai’s Islands
• UK’s Rail Privatization
• Amazon’s Drone Delivery
 Dubai’s Islands
• https://www.youtube.com/watch?v=HehpMkl1jlg
 Amazon’s Drone Delivery
• https://www.youtube.com/watch?v=J-M98KLgaUU
 UK’s Rail Privatization
• https://www.youtube.com/watch?v=DlTq8DbRs4k
Introduction to Work Breakdown Structure
• Definition:
• A hierarchical decomposition of the total scope of work to be carried
out by the project team.

• Purpose:
• To organize and define the total scope of a project.

• Importance:
• Ensures clear project objectives, improves estimation accuracy, and
facilitates resource allocation.
 Types of WBS
• Deliverable-Based WBS:
• Organized around project deliverables or outcomes.

• Phase-Based WBS:
• Structured according to project phases or stages.

• Responsibility-based structure:
• Structured based on the organizational units that will work on the
project.
 Gantt Charts
• Definition:
• A visual representation of a project schedule, showing the start and
end dates of tasks.

• Purpose:
• To provide a clear overview of project timelines, task durations, and
dependencies.

• Utility:
• Widely used in project management for planning, coordinating, and
tracking project tasks.
 Key Features of Gantt Charts
• Task Bars:
• Horizontal bars representing the duration of tasks across a timeline.
• Milestones:
• Diamond-shaped markers indicating significant events or completion
points.
• Dependencies:
• Arrows or lines showing the relationship and sequence between
tasks.
• Progress Indicators:
• Portions of task bars shaded to depict the percentage of work
completed.
 Network Diagram
• Diagram of project activities that shows sequential relationships by use of
arrows and nodes

• Activity on arrow (AOA)

• Network diagram convention in which arrows designate activities

• Activity on node (AON)

• Network convention in which nodes designate activities
• Activities: Project steps that consume resources and/or time
• Events: The starting and finishing of activities
 PERT and CPM
• PERT (program evaluation and review technique) and CPM
(critical path method) are two techniques used to manage
large-scale projects

• By using PERT or CPM Managers can obtain:

1. A graphical display of project activities
2. An estimate of how long the project will take
3. An indication of which activities are most critical to timely project
completion
4. An indication of how long any activity can be delayed without delaying
the project
 Deterministic Time Estimates

• Deterministic (CPM)
• Time estimates that are fairly certain

• Probabilistic (PERT)
• Time estimates that allow for variation
a. Length of Each Path
b. Critical Path
The critical path is the longest path through the network, which
determines the minimum time required to complete the project.

Critical Path: 1 → 2 → 5 → 6 (20 weeks)

c. Expected Length of the Project

The project's expected length is the duration of the critical path,
which is 20 weeks.
d. Amount of Slack Time for Each Path
Slack time is the difference between the critical path duration and
the duration of a specific path.