Page 386 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

346 Chapter Ten

other activities. The subdivision of tasks affects the project progress because
it changes the interdependence structure. Project network, CPM, and PERT
can be used to model and control project execution.

The answers to the following questions may be very helpful in designing
and improving a project shop process:
• What is the optimum project plan that minimizes total costs?
• What is the length and/or cost of a project given a defined set of
activities?
• What is the best use of resources to minimize the delay of a project?
• How many resources are needed to meet a particular deadline?
• What is the best coordination of multiple projects to minimize delays?

The common decision variables for a project shop process include
• The subdivision of the project into individual tasks
• The time required to complete each task
• The resources required to perform each task
• The priorities with which activities access resources
• The order in which multiple projects are performed
The common problems in project shop processes include
1. Excessive long project completion time
2. Poor project quality
3. Cost overrun
4. Excessive number of errors and reworks
These common problems are often caused by
• Poor subdivision of the project into tasks
• Poor project management
• Poor coordination
• Excessive changes of plans
• Poor cost estimation
• Excessive complexity of the planned product
• Poor resource allocation

10.3.10 Logistics and Distribution Processes
Logistics and distribution processes are used for packing, warehousing,
shipping, and setting up materials. Materials include raw materials, finished
goods, work-in-process, as well as equipment, tools, and even personnel.
The materials involved may be large or small, they may be compact or
clumsy, or indeed, they may be delicate or rugged. The distances involved