Basics of Project Management & Service Operations Management
Basics of Project Management & Service Operations Management
OPERATIONS MANAGEMENT – I
· Service Blueprinting
Project management has final deliverables that are constrained to a finite timescale and
budget.
A key factor that distinguishes project management from just 'management' is that it has this
final deliverable and a finite timespan, unlike management which is an ongoing process.
Because of this a project professional needs a wide range of skills; often technical skills, and
certainly people management skills and good business awareness. (Definition by APM Body
of Knowledge 7th edition)
What is a project?
A project is a unique, transient endeavour, undertaken to achieve planned objectives, which
could be defined in terms of outputs, outcomes or benefits. A project is usually deemed to be
a success if it achieves the objectives according to their acceptance criteria, within an agreed
timescale and budget. Time, cost and quality are the building blocks of every project.
Time: scheduling is a collection of techniques used to develop and present schedules that
show when work will be performed.
Cost: how are necessary funds acquired and finances managed?
Quality: how will fitness for purpose of the deliverables and management processes be
assured?
From start to finish, every project needs a plan that outlines how things will get off the
ground, how they will be built, and how they will finish.
Characteristics of a Project :
Projects are not homogeneous. Each project is different in itself. The distinctive
characteristics of a project are as follows.
Characteristic of Project
1. Objectives –
Every project is started with some objective or goal viz. time, budget, quality, and
quantity, when objectives are fulfilled project cause exists. You can initially define the
objectives of the project and what actually need to achieve. Objectives are the key
characteristics of the project where you will see the progress of the project and time to
time analysis will show you the result of how much you have achieved.
2. Single entity –
A project is one whole thing. This means that in a project, although different people
contribute still is recognized as a single entity. The teams are often specifically
assembled for a single project.
3. Life Span –
No project can be ceaseless and indefinite. It must have one and beyond which it cannot
proceed. Every project is invariably time-bound. At the time of planning, you will see
the time phase of the project where the team can work independently on the project
modules. Let’s consider an example project that is divided into three modules let’s say
A, B, and C. If the total time span of a project is 5 months then you can set the time
span for modules independently like A can complete in 2 months and also B can
complete in 2 months and C can complete in 1 month as per requirement.
4. Require funds –
Every project needs funds to reach the endpoint. Without adequate funds, no project can
be successfully implemented. Cost estimation is one of the essential factors for any
organization. So, calculating in advance the required funds for the project will be very
impactful.
5. Life Cycle –
Each project has a life cycle with different stages like start, growth, maturity, and
decay. A project has to pass through different stages to get itself completed. Let’s
consider an example where the project is related to software development then you can
say SDLC (Software Development lifecycle) will be the life cycle of the project where
you will see many stages like planning, defining, designing, building, testing, and
deployment, etc.
6. Team Spirit –
Team spirit is required to get the project completed because the project constitutes
different members having different characteristics and from various disciplines. But to
achieve common goal harmony, missionary zeal, team spirit is necessary.
8. Directions –
Project is always performed according to the directions given by the customers with
regard to time, quality and quantity, etc. The convenience of the supply sides of
economics such as labor availability ore resources and managerial talent etc. are all
secondary concerns, primary being the customer requirement.
9. Uniqueness –
Each project is unique in itself, and it’s having own features. No two projects are
similar even if the type of organization is the same. The uniqueness of the project can
measure by considering the many factors like objectives, features of the project,
application of the project, etc.
10. Flexibility –
Change and project are synonymous. A project sees many changes throughout its life
span. These changes can make projects more dynamic and flexible.
11. Sub-Contracting –
Subcontracting is a subset of every project and without which no project can be
completed unless it is a proprietary firm or tiny in nature. The more complexity of a
project the more will be the extent of contracting. Every project needs the help of an
outsider consultant, engineer, or expert in that field.
12. Cost –
If the quality of the project is to be changed there could be an impact on the cost of the
project. The cost could increase if more resources are required to complete the project
quicker.
Success Factors
CSFs (Critical Success Factors) are activities that adhere to a high standard of quality, help you
meet your project goals, and help you prioritize your tasks to meet your projected goals.
When implemented correctly, CSFs make it clear which steps your team needs to tackle first,
and what they should pay close attention to. They also allow for better collaboration between
team members.
Some critical success factor examples include:
Time and Scope: You can reduce your project scope to also reduce your project duration if
you’re running behind schedule. In the opposite case, you can increase the length of your
project timeline in case the project stakeholders come up with extra project activities.
Cost and Scope: By reducing the project scope, you’ll need to execute fewer tasks, which
means lower costs. In the opposite case, a larger project scope means higher costs.
Cost and Time: In some projects, time and cost can be directly related. For example, the costs
of renting equipment or labor are directly proportional to the time you need them for.
All these scenarios apply the triple constraint for managing the project, but there are many
more possible trade-offs that can occur in a project, which also involve quality, risk and
benefit.
By using a project management dashboard, a manager can keep sight of the project as it
progresses. Metrics such as the schedule, cost and scope of the project are easy to track. With
this information, a project manager can identify issues and adjust the triple constraint to
prevent those issues from developing into problems.
The service operations management team is also responsible for monitoring the teams that
provide customer support. They must develop the metrics necessary for evaluating the
performance of such teams. There must be accurate information about the quality of service
the firm provides to its customers. The service operations team will also track the time taken
to resolve issues, and the number of tickets closed in a specific period. They also collect data
about the usage of company services by the customers and the ROI of such services.
Pure services are services that do not involve the supply of any goods or the use of goods as a
material for rendering the service. Examples of pure services include consultancy, training,
software development, accounting, legal services, etc. Pure services are intangible and cannot
be touched, tasted, or seen.
Examples of pure service businesses include airlines, banks, computer service bureaus, law
firms, plumbing repair companies, motion picture theatres, and management consulting firms.
There are four characteristics of service: Intangibility, Inseparability, Variability, and
Perishability (Kotler and Keller, 2007). As service's nature is intangibility, therefore
manufacturing and service delivery is more complex than a product.
The type of process technology used in service industries in which there is high capital
investment and relatively low customer contact, e.g. postal services. These industries involve
a limited range of standardized services with a high level of reliability.
The U.S. Postal Service is an example of a quasi- manufacturing type of company. It provides
a service: speedy, reliable delivery of letters, documents, and packages. Its output is
intangible and cannot be stored in inventory.
Quasi-manufacturing suggests that services associated with the company's product are
inferior to physical goods. For this type of service operations, product quality, manufacturing
cost, and quick delivery are essential
Mixed
Mixed mode manufacturing means that combine make-to-stock (MTS) and make-to-order
(MTO) in one common supply chain. The value proposition of this is that it can strike a
balance between efficiency and flexibility across the product range by assigning different
supply models to different products.
What is mixed mode manufacturing?
In mixed mode manufacturing, it may have some high-volume products to produce using a
batch process, while making other low-volume items with discrete manufacturing methods,
such as make-to-stock or assemble-to-order. Yet still managing entire business under one
umbrella.
Thus a blue print is an operational tool that describes the nature and the characteristics of the
service interaction in enough detail to verify, implement and maintain it. It is based on a
graphical technique that displays the process functions above and below the line of visibility
to the customer.
Capacity management is a strategy utilized by businesses to make the best use of production
efficiency with respect to the demand for a service or a product. The eventual goal of
capacity management is to: Identify and remove any bottlenecks that hinder the
manufacturing process, or service delivery process.
Service capacity management predicts, manages, and controls the end-to-end performance of
the operational services or any other services and their workloads.
The main focus is on managing the performance of the service as it is determined by targets
contained within the service level agreements or requirements.
Service capacity management focuses on monitoring live services and gathering data to
identify trends. Monitoring solutions help teams detect usage and performance problems in
order to prevent incidents from occurring.
The capacity management process should cover the operational and development
environment which includes the hardware, networking equipment, peripherals, software, and
human resources, machines and other resources. Capacity management makes sure that the
service resources are planned and scheduled to deliver a level of service which is consistent
and matched to the present and future needs of the business.
What is a WBS?
WBS stands for Work Breakdown Structure. It is a visual tool that helps you break down a
project into smaller, more manageable tasks. A WBS starts with the end goal of the project
and breaks it down into smaller and smaller pieces until each task is clearly defined.
A WBS can be created in a variety of formats, but it typically looks like a hierarchical tree
structure, with the end goal at the top and the smallest tasks at the bottom. Each level of the
tree represents a different level of detail, with the highest levels representing major
milestones and the lowest levels representing specific tasks.
Core concepts
Gantt charts are an essential tool for project management, providing a visual representation of
a project's timeline and tasks. However, to effectively use Gantt charts, it is important to
understand some of the key concepts, including dependencies, milestones, baselines, and
critical paths.
Dependencies
Dependencies refer to the relationship between different tasks in a project. For example, if one
task cannot be started until another task is completed, there is a dependency between the two
tasks. Dependencies can be classified into four types:
Finish-to-start (FS): This is the most common type of dependency. It means that a task
cannot start until the previous task has finished.
Start-to-start (SS): In this type of dependency, one task cannot start until another task has
started.
Finish-to-finish (FF): This type of dependency means that a task cannot finish until another
task has finished.
Start-to-finish (SF): This is the least common type of dependency. It means that a task cannot
finish until another task has started.
Milestones
Milestones are specific events or deadlines in a project that mark the completion of a
significant task or phase. Milestones can be used to track progress, communicate important
deadlines to stakeholders, and ensure that the project is on track. In a Gantt chart, milestones
are typically represented by a vertical line.
Baseline
A baseline is the original plan for a project's timeline and tasks. It is used as a reference point
for measuring progress and tracking changes to the project schedule. Once the baseline has
been established, any changes to the project schedule can be compared against it to determine
how the project is progressing.
Critical path
The critical path is the sequence of tasks in a project that must be completed on time for the
project to be completed on schedule. It is the longest sequence of tasks that have dependencies
and determine the overall duration of the project. Any delay in tasks on the critical path can
cause a delay in the project's completion.
In a Gantt chart, the critical path is typically represented by a bold line. Project managers can
use the critical path to identify potential delays, prioritize tasks, and make adjustments to the
project schedule as needed.
Understanding these key concepts is essential for effectively using Gantt charts in project
management. By understanding dependencies, milestones, baselines, and critical paths, project
managers can more accurately plan and track project progress, identify potential issues, and
make adjustments to the project schedule as needed. Gantt charts are a powerful tool for
project management, and mastering these concepts can help project managers to use them to
their full potential.
Creating a Gantt Chart
Creating a Gantt chart can seem daunting at first, but with the right tools and knowledge, it
can be a straightforward process. Here are the key steps to creating a Gantt chart:
1. Identify Tasks: The first step is to identify all the tasks involved in the project. Make a list of
all the tasks that need to be completed, and group them into categories or phases as needed.
2. Determine Task Durations: Once you have identified all the tasks, determine how long each
task will take to complete. Be realistic in your estimates and consider factors such as task
complexity, available resources, and dependencies between tasks.
3. Establish Dependencies: Next, determine the dependencies between tasks. Identify which
tasks must be completed before others can begin and which tasks can be done simultaneously.
4. Determine Milestones: Identify key events or milestones in the project, such as the
completion of a phase or the delivery of a critical component.
5. Choose a Gantt Chart Tool: There are many Gantt chart tools available, both online and
offline. Choose a tool that meets your needs and is easy to use.
6. Input Data: Enter the task names, durations, dependencies, and milestones into the Gantt
chart tool.
7. Customize the Chart: Customize the chart to meet your needs. Add labels, adjust the font
size, and choose colors that make the chart easy to read and understand.
8. Share the Chart: Share the chart with stakeholders, such as team members, clients, and
suppliers. This will help everyone involved in the project to stay informed and on track.
9. Update the Chart: As the project progresses, update the Gantt chart to reflect changes in task
durations, dependencies, and milestones. This will ensure that the chart remains an accurate
reflection of the project's progress and helps you to stay on track.
By following these steps, you can create a Gantt chart that is a useful tool for project
management. A well-designed Gantt chart can help you to visualize the project's timeline,
track progress, and identify potential issues. By sharing the chart with stakeholders and
updating it regularly, you can ensure that everyone involved in the project is working towards
the same goals and is aware of the project's progress.
Development
3.1 Front-end development
3.2 Back-end development
3.3 API development
3.4 Database development
Testing
4.1 Functionality testing
4.2 Performance testing
4.3 Security testing
4.4 Usability testing
Deployment
5.1 App store submission
5.2 Server setup and configuration
5.3 App launch and promotion
Design 34 days
Development 70 days
Start End
Task Duration Predecessors
Date Date
Testing 28 days
Deployment 20 days