Chapter 8 - Timeliness: Scheduling and project management. After reading the material in this chapter, you should be able to: Explain the effect time has on each profitability measure, describe the impact of feedback delay on quality, explain the common time reduction strategies, construct a Gantt chart, Sequence orders using the traditional sequencing rules, describe the physical features of queues and describe how they affect queue performance,. | Chapter 8 Timeliness: Scheduling and Project Management Learning Objectives Explain the effect time has on each profitability measure. Describe the impact of feedback delay on quality. Explain the common time reduction strategies. Construct a Gantt chart. Sequence orders using the traditional sequencing rules. Describe the physical features of queues and describe how they affect queue performance. Compute the probability of x arrivals per unit time for a queue. Describe the psychological approaches to managing perception of queue length. Construct a network diagram for a project. Identify the critical path for a project using CPM calculations Calculate the likelihood of completing a project in a specified time. Complete the calculations necessary to effectively crash a project. 8- Time is money It affects customer perceived value It affects Net Income It affects Return on Assets Operations Management Framework 8- Time and Customer Value Speed and flexibility Faster . | Chapter 8 Timeliness: Scheduling and Project Management Learning Objectives Explain the effect time has on each profitability measure. Describe the impact of feedback delay on quality. Explain the common time reduction strategies. Construct a Gantt chart. Sequence orders using the traditional sequencing rules. Describe the physical features of queues and describe how they affect queue performance. Compute the probability of x arrivals per unit time for a queue. Describe the psychological approaches to managing perception of queue length. Construct a network diagram for a project. Identify the critical path for a project using CPM calculations Calculate the likelihood of completing a project in a specified time. Complete the calculations necessary to effectively crash a project. 8- Time is money It affects customer perceived value It affects Net Income It affects Return on Assets Operations Management Framework 8- Time and Customer Value Speed and flexibility Faster processes allow greater flexibility Deliver more options in the same amount of time Customers will only wait so long. Start later, closer to demand Better predictions of what will be needed 8- Time Really Is Money Time affects profitability through net income Time-based value attributes - Increasing net sales Response time Delivery dependability 8- Time Really Is Money Managing timing of payments to make money (managing “float”) Example. . . .Travel Agents You pay right away (on a credit card) They pay in 30 days (business billing cycle) They deep the interest Example . . . . .Insurance companies Collect only as much as (or less than) they will eventually pay in claims Invest money while they are waiting to pay out claims 8- The Effect of Time on ROA The cash-to-cash cycle Not just production time. . . Waiting for supplies to arrive -- Opportunity cost of sales Waiting to sell product -- Delay of return on investment in inventory and production Waiting to collect from customer --
