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Project production management
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<h2 id="historical-background-and-related-areas">Historical background and related areas</h2> <p>Modern <a href="/facts/Project_management/JgQVSU3o">project management</a> theory and techniques started with <a href="/facts/Frederick_Winslow_Taylor/cLfxAVbq">Frederick Taylor</a> and Taylorism/<a href="/facts/Scientific_management/rpYYnxuX">scientific management</a> at the beginning of the 20th century, with the advent of mass manufacturing. It was refined further in the 1950s with techniques such as <a href="/facts/Critical_path_method/cl8LtYqY">critical path method</a> (CPM)<a class="footnote-ref" id="fnref:16" href="#fn:16"><sup>16</sup></a><a class="footnote-ref" id="fnref:17" href="#fn:17"><sup>17</sup></a> and <a href="/facts/Program_evaluation_and_review_technique/TVTWehCE">program evaluation and review technique</a> (PERT).<a class="footnote-ref" id="fnref:18" href="#fn:18"><sup>18</sup></a><a class="footnote-ref" id="fnref:19" href="#fn:19"><sup>19</sup></a> Use of CPM and PERT became more common as the computer revolution progressed. As the field of project management continued to grow, the role of the project manager was created and certifying organizations such as the Project Management Institute (PMI) emerged. Modern project management has evolved into a broad variety of knowledge areas described in the Guide to the Project Management Body of Knowledge (PMBOK).<a class="footnote-ref" id="fnref:20" href="#fn:20"><sup>20</sup></a> </p><p><a href="/facts/Operations_management/jTNFINl1">Operations management</a><a class="footnote-ref" id="fnref:21" href="#fn:21"><sup>21</sup></a><a class="footnote-ref" id="fnref:22" href="#fn:22"><sup>22</sup></a><a class="footnote-ref" id="fnref:23" href="#fn:23"><sup>23</sup></a><a class="footnote-ref" id="fnref:24" href="#fn:24"><sup>24</sup></a> (related to the fields of <a href="/facts/Manufacturing_process_management/QcQHYDIT">production management</a>, <a href="/facts/Operations_research/H5yJkV5n">operations research</a> and <a href="/facts/Industrial_engineering/TjInYQeC">industrial engineering</a>) is a field of science that emerged from the modern manufacturing industry and focuses on modeling and controlling actual work processes. The practice is based upon defining and controlling production systems, which typically consist of a series of inputs, transformational activities, <a href="/facts/Inventory/vSBu0d9r">inventory</a> and outputs. Over the last 50 years, project management and operations management have been considered separate fields of study and practice. </p><p>PPM applies the theory and results of the various disciplines known as <a href="/facts/Operations_management/jTNFINl1">operations management</a>, operations research, <a href="/facts/Queueing_theory/8NDl56EM">queueing theory</a> and industrial engineering to the management and execution of projects. By viewing a project as a <a href="/facts/Operations_management/jTNFINl1">production system</a>, the delivery of capital projects can be analyzed for the impact of <a href="/facts/Statistical_dispersion/xqevRHmz">variability.</a> The effects of variability can be summarized by VUT equation (specifically <a href="/facts/Kingman%2527s_formula/0cProUut">Kingman's formula for G/G/1 queue</a>). By using a combination of <a href="/facts/Safety_stock/Vxchl2l3">buffers</a> – <a href="/facts/Capacity_planning/VqbuA3C3">capacity</a>, inventory and time – the impact of variability to project execution performance can be minimized. </p><p>A set of key results used to analyze and optimize the work in projects were originally articulated by <a href="/facts/Philip_M._Morse/CoY0Lmop">Philip Morse</a>, considered the father of operations research in the U.S. and summarized in his seminal volume.<a class="footnote-ref" id="fnref:25" href="#fn:25"><sup>25</sup></a> In introducing its framework for <a href="/facts/Manufacturing/3qW7bcdy">manufacturing</a> <a href="/facts/Management/8KMV9yMM">management</a>, <i><a href="/facts/Factory_Physics/0332Uhnv">Factory Physics</a></i> summarizes these results: </p> <ol><li>A perfect world of maximum profitability and service occurs when <a href="/facts/Demand/mtb1m6F0">demand</a> and transformation (also called <a href="/facts/Supply_(economics)/spSRt0JM">supply</a>) are perfectly synchronized: all demand is met instantly at minimum cost</li> <li>Because there is <a href="/facts/Statistical_dispersion/xqevRHmz">variability</a>, demand and transformation can never be perfectly synchronized. In some cases, detrimental variability can be removed. An example would be the statistical quality control techniques used in manufacturing to control deviations, but even then, there is residual detrimental variability that causes demand and supply never to be perfectly synchronized. This leads us to:</li> <li><a href="/facts/Safety_stock/Vxchl2l3">Buffers</a> are required when synchronizing demand and transformation in the presence of variability</li> <li>There are only three buffers: capacity, inventory and time</li></ol> <p>There are key mathematical models that describe the relationships between buffers and variability. <a href="/facts/Little%2527s_law/lVGmPs6U">Little's law</a><a class="footnote-ref" id="fnref:26" href="#fn:26"><sup>26</sup></a> – named after academic <a href="/facts/John_Little_(academic)/vSVDGNsL">John Little</a> – describes the relationship between throughput, cycle time and work-in-process (WIP) or inventory. The Cycle Time Formula<a class="footnote-ref" id="fnref:27" href="#fn:27"><sup>27</sup></a> summarizes how much time a set of tasks at a particular point in a project take to execute. Kingman's formula, also known as the VUT equation<a class="footnote-ref" id="fnref:28" href="#fn:28"><sup>28</sup></a> – summarizing the impact of variability. </p> <h2 id="journals">Journals</h2> <p>The following academic journals publish papers pertaining to Operations Management issues: </p> <ul><li><i><a href="/facts/Management_Science_(journal)/vsIxkCsL">Management Science</a></i></li> <li><i><a href="/facts/Manufacturing_%2526_Service_Operations_Management/r4xddrDj">Manufacturing & Service Operations Management</a></i></li> <li><i><a href="/facts/Operations_Research%3a_A_Journal_of_the_Institute_for_Operations_Research_and_the_Management_Sciences/8nyfSTRq">Operations Research</a></i></li> <li><i><a href="/facts/International_Journal_of_Operations_%2526_Production_Management/dL1qJYpa">International Journal of Operations & Production Management</a></i></li> <li><i><a href="/facts/Production_and_Operations_Management/QLIf6b1H">Production and Operations Management</a></i></li> <li><i>Journal of Operations Management</i></li> <li><i>Journal of Project Production Management</i>, Project Production Institute</li></ul> <h2 id="further-reading">Further reading</h2> <ul><li><i>Factory Physics for Managers: How Leaders Improve Performance in a Post-Lean Six Sigma World</i>, Edward S. Pound, Jeffrey H. Bell, Mark L. Spearman, McGraw Hill 2014 <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-0-07-182250-3 MHID: 0-07-182250-X</li> <li>"Link Manufacturing and Product Process Lifecycles", R. H. Hayes and S. C. Wheelwright, Harvard Business Review, January 1979</li> <li>"Queues, Inventories and Maintenance: The Analysis of Operational Systems with Variable Supply and Demand", P. M. Morse, John Wiley & Sons, 1962</li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Arbulu, R. J.; Choo, H-J.; Williams, M. (3–5 October 2016). "Contrasting Project Production Control with Project Controls". Proceedings of International Conference on Innovative Production and Construction (IPC 2016). Darwin, Australia. <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>A Guide to the Project Management Body of Knowledge, Fifth Edition, Project Management Institute Sec 1.5.1.1, p13 http://www.pmi.org/pmbok-guide-standards/foundational/pmbok <a href="http://www.pmi.org/pmbok-guide-standards/foundational/pmbok" target="_blank">http://www.pmi.org/pmbok-guide-standards/foundational/pmbok</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>Arbulu, R. J.; Choo, H-J.; Williams, M. (3–5 October 2016). "Contrasting Project Production Control with Project Controls". Proceedings of International Conference on Innovative Production and Construction (IPC 2016). Darwin, Australia. <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> <li id="fn:7"><p>A Guide to the Project Management Body of Knowledge, Fifth Edition, Project Management Institute Sec 1.5.1.1, p13 http://www.pmi.org/pmbok-guide-standards/foundational/pmbok <a href="http://www.pmi.org/pmbok-guide-standards/foundational/pmbok" target="_blank">http://www.pmi.org/pmbok-guide-standards/foundational/pmbok</a> <a href="#fnref:7" class="footnote-back-ref">↩</a></p></li> <li id="fn:8"><p>Arbulu, R. J.; Choo, H-J.; Williams, M. (3–5 October 2016). "Contrasting Project Production Control with Project Controls". Proceedings of International Conference on Innovative Production and Construction (IPC 2016). Darwin, Australia. <a href="#fnref:8" class="footnote-back-ref">↩</a></p></li> <li id="fn:9"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:9" class="footnote-back-ref">↩</a></p></li> <li id="fn:10"><p>A Guide to the Project Management Body of Knowledge, Fifth Edition, Project Management Institute Sec 1.5.1.1, p13 http://www.pmi.org/pmbok-guide-standards/foundational/pmbok <a href="http://www.pmi.org/pmbok-guide-standards/foundational/pmbok" target="_blank">http://www.pmi.org/pmbok-guide-standards/foundational/pmbok</a> <a href="#fnref:10" class="footnote-back-ref">↩</a></p></li> <li id="fn:11"><p>'"Construction: one type of Project Production System". Proceedings of 13th Annual Conference of the International Group for Lean Construction. Sydney, Australia: 29–35. 19–21 July 2005.[dead link] <a href="https://www.academia.edu/download/4862841/29b_Ballard_Construction_One_Type_of_Project_Production_System.doc" target="_blank">https://www.academia.edu/download/4862841/29b_Ballard_Construction_One_Type_of_Project_Production_System.doc</a> <a href="#fnref:11" class="footnote-back-ref">↩</a></p></li> <li id="fn:12"><p>Arbulu, R. J.; Choo, H-J.; Williams, M. (3–5 October 2016). "Contrasting Project Production Control with Project Controls". Proceedings of International Conference on Innovative Production and Construction (IPC 2016). Darwin, Australia. <a href="#fnref:12" class="footnote-back-ref">↩</a></p></li> <li id="fn:13"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:13" class="footnote-back-ref">↩</a></p></li> <li id="fn:14"><p>Stauber, B. Ralph; Douty, H. M.; Fazar, Willard; Jordan, Richard H.; Weinfeld, William; Manvel, Allen D. "Federal Statistical Activities". The American Statistician. 13 (2): 9–12. <a href="/wiki/Willard_Fazar" target="_blank">/wiki/Willard_Fazar</a> <a href="#fnref:14" class="footnote-back-ref">↩</a></p></li> <li id="fn:15"><p>A Guide to the Project Management Body of Knowledge, Fifth Edition, Project Management Institute Sec 1.5.1.1, p13 http://www.pmi.org/pmbok-guide-standards/foundational/pmbok <a href="http://www.pmi.org/pmbok-guide-standards/foundational/pmbok" target="_blank">http://www.pmi.org/pmbok-guide-standards/foundational/pmbok</a> <a href="#fnref:15" class="footnote-back-ref">↩</a></p></li> <li id="fn:16"><p>Arbulu, R. J.; Choo, H-J.; Williams, M. (3–5 October 2016). "Contrasting Project Production Control with Project Controls". Proceedings of International Conference on Innovative Production and Construction (IPC 2016). Darwin, Australia. <a href="#fnref:16" class="footnote-back-ref">↩</a></p></li> <li id="fn:17"><p>Shenoy, R. G.; Zabelle, T. R. (November 2016). "New Era of Project Delivery – Project as Production System". Journal of Project Production Management. 1: 13–24. <a href="https://www.researchgate.net/publication/312602707" target="_blank">https://www.researchgate.net/publication/312602707</a> <a href="#fnref:17" class="footnote-back-ref">↩</a></p></li> <li id="fn:18"><p>Stauber, B. Ralph; Douty, H. M.; Fazar, Willard; Jordan, Richard H.; Weinfeld, William; Manvel, Allen D. "Federal Statistical Activities". The American Statistician. 13 (2): 9–12. <a href="/wiki/Willard_Fazar" target="_blank">/wiki/Willard_Fazar</a> <a href="#fnref:18" class="footnote-back-ref">↩</a></p></li> <li id="fn:19"><p>Malcolm, D. G.; Roseboom, J. H.; Clark, C. E.; Fazar, W. (September–October 1959). "Application of a Technique for Research and Development Program Evaluation" (PDF). Operations Research. 7 (5): 646–669. doi:10.1287/opre.7.5.646. <a href="http://mech.vub.ac.be/teaching/info/Ontwerpmethodologie/Appendix%20les%202%20PERT.pdf" target="_blank">http://mech.vub.ac.be/teaching/info/Ontwerpmethodologie/Appendix%20les%202%20PERT.pdf</a> <a href="#fnref:19" class="footnote-back-ref">↩</a></p></li> <li id="fn:20"><p>A Guide to the Project Management Body of Knowledge, Fifth Edition, Project Management Institute Sec 1.5.1.1, p13 http://www.pmi.org/pmbok-guide-standards/foundational/pmbok <a href="http://www.pmi.org/pmbok-guide-standards/foundational/pmbok" target="_blank">http://www.pmi.org/pmbok-guide-standards/foundational/pmbok</a> <a href="#fnref:20" class="footnote-back-ref">↩</a></p></li> <li id="fn:21"><p>Schmenner, R. W. (1990). Production and Operations Management: Concepts and Situations (Fourth ed.). Macmillan. <a href="#fnref:21" class="footnote-back-ref">↩</a></p></li> <li id="fn:22"><p>Schmenner, R. W. (1993). Production/operations management: from the inside out. Macmillan College. <a href="#fnref:22" class="footnote-back-ref">↩</a></p></li> <li id="fn:23"><p>Muhlemann, A.; Okland, J.; Lockye, K. (1992). Production and Operations Management (6th ed.). London: Pitman. <a href="#fnref:23" class="footnote-back-ref">↩</a></p></li> <li id="fn:24"><p>Johnson, R. A.; Newelll, W. T.; Vergin, R. C. (1972). Operations Management. Houghton Mifflin. <a href="#fnref:24" class="footnote-back-ref">↩</a></p></li> <li id="fn:25"><p>Schmenner, R. W. (1993). Production/operations management: from the inside out. Macmillan College. <a href="#fnref:25" class="footnote-back-ref">↩</a></p></li> <li id="fn:26"><p>'Hopp, W.; Spearman, M. (2011). Factory Physics (3rd ed.). Waveland Press. pp. 289, 327–328, 674–675. <a href="#fnref:26" class="footnote-back-ref">↩</a></p></li> <li id="fn:27"><p>'Hopp, W.; Spearman, M. (2011). Factory Physics (3rd ed.). Waveland Press. pp. 289, 327–328, 674–675. <a href="#fnref:27" class="footnote-back-ref">↩</a></p></li> <li id="fn:28"><p>'Hopp, W.; Spearman, M. (2011). Factory Physics (3rd ed.). Waveland Press. pp. 289, 327–328, 674–675. <a href="#fnref:28" class="footnote-back-ref">↩</a></p></li> </ol>