AER 818 LM_3_15_s(2)

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Lean Manufacturing


  • 1/23/2015 AER 818/ Prof. C. Poon 1

    Project RequirementsWork in teams of 4 to 6 students to develop a robotic riveting facility in a company for manufacturing leading edges of an aircraft with the goal of increasing productivity. Your company is a supplier of leading edges to tier I aircraft manufacturers. In addition to the class presentation, each team is required to submit, in week 12, a final typed report containing the following sections:1. Introduction: Analysis of the market for a specific region; aircraft demand in the

    region by category; ten-year outlook for leading edges.2. Forecast the number of leading edges needed (Presentation 1, Jan 30): Use

    compound equation and region growth rate to forecast the leading edges needed each year for the next ten years.

    3. Project Management (Presentation 2, Feb 13): Statement of work, work breakdown structure, project schedule (Gantt chart), milestones, budget, Program Evaluation Review Technique (PERT or CPM) analysis, tendering robotic riveter cell.

    4. Capacity Planning Number of Robots (Presentation 3, Mar 6): Manual vs. robotic riveting, number of rivets, riveting rate, production rate increase, number of robots needed to meet production increase, capital cost, payback plan, number of years allowed for ramp up.

    5. Layout Design (Presentation 4, Mar 20): Assembly process, operation process chart (assembly tree), assembly process development, flow process chart, layout design of robotic cell, alternative cell design to show improvement.

    6. Conclusion and Recommendations (Final presentation, March 27).7. References.

  • Project /Lab Groups

    1/20/2015 AER 818/ Prof. C. Poon 2

    Each project group will have 10 minutes to present results. Note: Total project = 20% of course grade; each presentation will worth 5% of the 20%.

    Group Student Name Group Student Name Group Student Name


    Vibhor ChabraLucy Davidson Sabrina GomezGianni MonardoSukhvir Dhaliwal

    Adrian Strupp


    Shivang PatelIlionIljazi

    RichardSukhdeoZiad ElShaboury

    Kody BaumVitoPansera


    Brent MillerChris Singh

    Romeo Isaacs Yit Teng Seow

    Amer Choudhury


    Ajandan BagawanCheng Lian

    Muhammad Iqbal Santiago Galvis F


    PowersAlexanderYamichAlexBelliniPavlo Kusov

    Muhamudar Kalam



    Saptarshi DattaQuazi Faisal

    Santhosh InigoFizra Arif

    Huner Sharma



    KennyKarthigesuArsalan SiddiquiNinab Alwarda





    Zehan SadiqDeni DzojaJacobJohnJamesAhnJayShah


    Deepinderpal SinghUjialBizhan Feda

    Hariram SujanthanMacquin Brown



  • 1/23/2015 AER 818/ Prof. C. Poon 3

    Project Presentations

    1. Vision, mission, strategy, business plan (forecast: # of leading edges for your selected regions and types of aircraft SWOT analysis Presentation 1.

    2. Project management, objectives, SOW, WBS, preliminary implementation plan (Gantt Chart)), PERT or CPM, resources, budget Presentation 2.

    3. Capacity planning, robotic cell design (planning) Presentation 3.For given constraints, determine:Capital + maintenance budget (% of operating) (one time) Operating (labor cost using the current year)Workers (current all manual, semi-automated, or fully automated - training)Determine # of robots and # of staff to keep up with the production rate increase (using the same growth rate) for the next 10 years. (payout plan break even)

    4. System layout design (robot, jig, assembly process, operation process chart (assembly tree), flow process chart, plant layout design of robotic cell, alternative cell design to show improvement.) Presentation 4.

    5. Final presentation (report: company information, business plan, capacity planning, layout design, final implementation plan (Gantt Chart)), conclusion and recommendation.

  • 1/23/2015 AER 818/ Prof. C. Poon 4

    AER 818: Manufacturing ManagementLM_3: Project Management

    Project Management Overview Why project managers are needed? Common project structures Essential features of project management

    Statement of Work and Work Breakdown Structures Project Management Techniques

    Gantt chart Program Evaluation and Review Technique (PERT) and

    Critical Path Method (CPM)

    Managing Resources and Tracking Progress

  • 1/23/2015 AER 818/ Prof. C. Poon 5

    Why Project Managers are Needed? Most organizations spend their time putting out fires and pursuing projects

    aimed at catching up to their competitors leading to too many projects going at once and all too often seriously over commit development resources.

    Completing projects successfully on time and within budget requires project managers to exercise careful control of critical resources; the key resource is often the time of employees.

    Project managers (PM) are not only skilled at the technical aspects, just as important, they must possess the people skills related to motivation, conflicts resolution, negotiation, and salesmanship.

    Project work is team work and leading and/or managing a project involves leading a team; therefore it is vital for successful project managers to possess leadership skills.

    In summary, project managers perform the management functions in planning, scheduling, and controlling resources (people, equipment, material) to meet technical, cost and time constraints of projects.

  • 1/23/2015 AER 818/ Prof. C. Poon 6

    Common Project StructuresFunctional Projects A critical mass of functional-area

    experts creates synergistic solutions to different projects problems.

    Problems not related to functional area get shortchanged leading poor response to certain clients.

    Matrix Projects Each project uses people and facility

    from different functional areas as decided by PM who has to negotiate with functional area managers for use of resources.

    Duplication of resources is minimized; employees have better job security since they have a functional home.

    Two bosses, PM needs to have strong negotiation skills to get resources from functional area managers.

    From: Operations Management for Competitive Advantage, 11th Edition, Chase, Jacobs & Aquilano, 2006

  • 1/23/2015 AER 818/ Prof. C. Poon 7

    Functions of Project ManagersPlanning setting objectives, defining the project, creating work breakdown structures (WBS), determining resources, organizing team.Scheduling sequencing activities, identifying precedence relationships, determining critical activities, determining activity times and costs, estimating material and worker requirements during the entire project.Controlling monitoring resources, costs, quality, and budgets, revising plans and shifts resources to meet time and cost demands.

  • 1/23/2015 AER 818/ Prof. C. Poon 8

    Project Management Essentials

    From: Operations Management, 8th Edition, Jay Heizer and Barry Render, 2007.

  • 1/23/2015 AER 818/ Prof. C. Poon 9

    Statement of Work (SOW) A project begins with a statement of work that

    contains the objectives, a brief statement of the work to be performed, and schedule specifying the start and end dates.

    SOW also often contains performance measures in terms of budget and completion steps (milestones), and the deliverables to be supplied.

  • 1/23/2015 AER 818/ Prof. C. Poon 10

    Work Breakdown Structures (WBS) A project has a work breakdown structure (WBS) that

    contains the hierarchy of tasks, subtasks, and work packages. Completion of one group of work packages results in the

    completion of a subtask, completion of one group of subtasks results in the completion of a task, and completion of all tasks results in the completion of project.

    Activity is used within WBS to indicate a piece of work that consumes time.

    Activity can also mean no work, e.g., waiting for the paint that was applied in the previous activity to dry before proceeding to the next activity.

  • 1/23/2015 AER 818/ Prof. C. Poon 11

    Work Breakdown Structures

    The number of hierarchy levels within WBS is not fixed; it may vary depends on the complexity of the project.

    There is not a single correct WBS for any project; two different project teams may develop two different WBS for the same project.

    Project Management is often referred to as an art rather than a science, since there are so many different ways that a project can be approached.

  • 1/23/2015 AER 818/ Prof. C. Poon 12

    WBS for Projects


    Project 1 Project 2

    Task 1.1

    Subtask 1.1.1

    Work Package






    Task 1.2

    Subtask 1.1.2

    Work Package

    From: Operations Management, 8th Edition, Jay Heizer and Barry Render, 2007.

  • 1/23/2015 AER 818/ Prof. C. Poon 13

    Project Scheduling: Gantt Charts

    The Gantt chart is named after Henry L. Gantt who developed this type of bar charts for controlling shipbuilding projects in World War I.

    The Gantt chart is used to show the duration (amount of time required), start dates and end dates, and the sequence of performance for the tasks, subtasks, and activities (work packages) in a project.


  • 1/23/2015 AER 818/ Prof. C. Poon 14

    Project Management Techniques Program Evaluation and Review Technique (PERT) and Critical

    Path Method (CPM) were both developed in 1950s to help managers plan, schedule and control large projects.