Page 309 - Orlicky's Material Requirements Planning

288 PART 3 Managing with the MRP System

FIGURE 16-1

Project task structure.

Task 1 Task 4 Task 5 Task 6 Task 7
2 4 Days 5 15 Days 6 15 Days 7 20 Days 8 18 Days
Task 3

4 1 Day
Task 2 Task 8 Task 10 Task 11 Project_end
3 5 Days 10 6 Days 12 9 Days 13 6 Days 23 1 Day

Task 12 Task 13 Task 9
14 9 Days 15 18 Days 11 28 Days

Task 14 Task 15 Task 16 Task 17 Task 18 Task 19
17 15 Days 18 12 Days 19 20 Days 20 14 Days 21 7 Days 22 10 Days

preparing and maintaining this essential document in a paper format. The product is test-
ed to ensure that the specifications defined in the definition phase have been achieved.
MRP can be used to bridge the transition from the planning to the production phase by
supporting the project with detailed capacity and material planning. Timely status feed-
back is essential during this phase to provide an early warning of any part of the project
that may not support the required completion date.

Operational Phase

The operational phase of the project occurs when the product has been delivered to the
customer. This can be a time when the field service personnel may be intimately involved
to aid in installation or training for the product. During the operational phase, the real-
ized costs are compared with the quoted costs to determine whether or not the product
has been delivered at a profit. The actual cost of the product should not be a surprise at
the very end of the project. Effective project management tools provide running feedback
2
on completion status through a process called earned-value analysis or CS . This compares
cost and schedule through a series of measures such as:
■ Budgeted cost of work scheduled (BCWS)
■ Actual cost of work scheduled (ACWS)
■ Budgeted cost of work performed (BCWP)