H1:$OPERATIONS$AND$SUPLLY$CHAIN$MANAGEMENT$
Operations+and+supply+ The$design,$operation,$and$improvement$of$the$systems$that$create$and$deliver$the$
chain+management+ firm’s$primary$products$and$services.$$
(OSCM)+ (OSCM$wants$the$individual$processes$to$be$as$effective$as$possible)$$
Process++ Made$up$of$one$or$more$activities$that$transform$inputs$into$outputs.$$
(Operations$and$supply$chain$processes$can$be$conveniently$categorized$as$planning,$
sourcing,$making$delivering,$and$returning)$
Services+vs.+Goods+ 1. Service$is$an!intangible!process$that$cannot$be$weighted$or$measured.$
(A$good$is$a$tangible$output$of$a$process$that$has$physical$dimensions!)$
2. Services$require$some$degree$of$interaction!with!the!customer.$
3. Services$are$heterogeneous;$they$vary$from$day$to$day$and$even$hour$to$hour$as$
a$function$of$the$attitudes$of$the$customer$and$the$server.$
(Goods$can$be$produced$to$meet$very$tight$specifications$dayKin$and$dayKout$
with$essentially$zero$variability!)$
4. Services$as$a$process$are$perishable!and!time!dependent.$
$$$$$$$$$$$$$$(goods$can$be$stored!)$
5. The$specifications$of$a$service$are$defined$and$evaluated$as$a$package!of!features!
that$affect$the$five$senses$(supporting$facility,$facilitating$goods,$explicit$services,$
implicit$services)$
Product=service+ When$a$firm$builds$service$activities$into$its$product$offerings$to$create$additional$value$
bundling+ for$the$customer.$$
(Example:$when$you$buy$a$notebook$as$a$consumer,$the$product$is$the$notebook,$but$it$
is$bundled$with$all$the$software$and$the$service$and$everything$else$that$you$need)$
Efficiency+vs.+ Efficiency$!$Doing$something$at$the$lowest$possible$cost.$
Effectiveness+ (Goal$efficient$process$=$to$produce$a$good$or$provide$a$service$by$using$the$smallest$
input$of$recourses)$
Effectiveness$!$Doing$things$that$will$create$the$most$value$for$the$customer.$
(Example:$effectiveness$in$grocery$store$is$to$have$plenty$of$operating$checkKout$lines;$
customer’s$time$is$valuable;$they$don’t$like$waiting$to$be$served!)$
Value+ The$attractiveness$of$a$product$relative$to$its$cost.$$
(Example:$if$you$can$provide$the$customer$with$a$better$car,$without$changing$the$price,$
value$has$gone$up.$If$you$can$give$the$customer$a$better$car$at$a$lower$price,$value$goes$
way$up!)$
Timeline+Depicting+ Late!1970s,!early!1980s$!$Manufacturing$strategy$developed$$
When+Major+OSCM+ Early!1980s$!$JustKinKtime$(JIT)$production$pioneered$by$Japanese$$
concept+became+ Mid!1980s$!$Service$quality$and$productivity$$
popular+ Early!1990s$!$Total$Quality$Management$(TQM)$and$Quality$Certification$programs$
$$$$$$$$$$$$$$$$$$$$$$$$!$$Six$Sigma$Quality$
Late!1990s$!$Supply$Chain$Management$(SCM)$
• Mass+customization$=$the$ability$to$produce$a$unique$product$exactly$
to$a$particular$customer’s$requirements.$
$$$$$$$$$$$$$$$$$$$$$$!$Business$Process$Reengineering$(BPR)$
Early!2000s$!$Electronic$Commerce$(use$of$internet$as$an$essential$element$of$$$
business$activity)$
$$$$$$$$$$$$$$$$$$$$$$$!$Service$Science$$
Mid!2010s!!$Business+Analytics$=$the$use$of$current$business$data$to$solve$business$
problems$using$mathematical$analysis.$$
(new$in$this$subject:$more$data$is$now$captured$and$available$for$decisionKmaking$
analysis$than$was$available$in$the$past)$
$
$
$
$
, H2:$STRATEGY$AND$SUSTAINABILITY$
Sustainability++ The$ability$to$meet$current$resources$needs$without$compromising$the$ability$of$future$
generations$to$meet$their$needs.$(=$to$maintain$a$balance$in$a$system)$
Triple+bottom+line+ A$business$strategy$that$includes$social,$$$$$$$$$
economic$and$environmental$criteria.$
$
$
Operations+and+supply+ The$setting$of$board$policies$and$plans$that$will$guide$the$use$of$the$recourse$needed$by$
chain+strategy+ the$firm$to$implement$its$corporate$strategy.$$
(Example:$if$the$highKlevel$corporate$strategy$includes$goals$related$to$the$environment$
and$social$responsibility,$then$the$operations$and$supply$chain$strategy$must$consider$
this.)$
Operations+effectiveness+ Performing$activities$in$a$manner$that$best$implements$strategic$priorities$at$minimum$
cost.$(A$major$focus$to$the$operations$and$supply$chain$strategy$is$operations$
effectiveness)$
Competitive+dimensions+ • Cost$or$price$(make$the$product,$or$deliver$the$service$cheap)$
• Quality$(make$a$great$product$or$deliver$a$great$service)$
• Delivery$speed$(make$the$product$or$deliver$the$service$quickly)$
• Delivery$reliability$(deliver$it$when$promised)$
• Coping$with$changes$in$demand$(changes$its$volume)$
• Flexibility$and$newKproduct$introduction$speed$(change$it)$
Straddling+ When$a$firm$seeks$to$match$what$a$competitor$is$doing$by$adding$new$features,$
services,$or$technologies$to$existing$activities.$This$often$creates$problems$if$tradeKoffs$
need$to$be$made.$(example:$Continental$tried$to$compete$in$two$ways$at$once$and$paid$
an$enormous$straddling$penalty!$(see$book))$$
Order+winner+ A$specific$marketingKoriented$dimension$that$clearly$differentiates$a$product$from$
+ competing$products.$(example:$the$orderKwinning$criterion$is$the$cost$(price)$of$the$
+ product,$product$quality$and$reliability$etc.)$
+ $
Order+qualifier++ A$dimension$used$to$screen$a$product$or$service$as$a$candidate$for$purchase.$
(example:$a$customer$selects$from$his$list$of$acceptable$computers,$the$one$that$has$the$
longest$battery$life)$
Activity=system+maps+ Diagrams$that$show$how$a$
company’s$strategy$is$delivered$
through$a$set$of$supporting$
activities.$$
(black$=$higherKorder$strategic$
themes)$
!$useful$in$understanding$how$
good$the$fit$is$between$the$system$
of$activities$and$the$company’s$
strategy!$
$
,Supply+chain+risk+ The$likelihood$of$a$disruption$that$would$impact$the$ability$of$a$company$to$continuously$
supply$products$or$services.$$
(Examples:$(1)$In$1996$General$Motors$experienced$an$18Kday$labour$strike$at$a$brake$
supplier$factory.$This$strike$idled$workers$at$26$assembly$plants$and$led$to$an$estimated$
$900$million$reduction$in$earnings.$(2)$In$2000,$a$10Kminute$fire$at$a$Phillips$plant$that$
supplied$integrated$circuits$led$to$a$$400$million$loss$to$the$firm.)$
Productivity++ A$measure$of$how$well$resources$(or$factors$of$production)$are$used.$=$outputs/inputs$
• Partial!productivity!measure$=$(ratio$of$some$output)/(a$single$input)$
• Multifactor!productivity!measure$=$(ratio$of$some$output)/(group$of$inputs)$
(but$not$all$inputs!)$
• Total!factor!measure!of!productivity$=$(ratio$of$all$outputs)/$(all$inputs)$
(example:$see$exhibit$2.5,$page$38)$
$
$
$
H5:$PROJECTS$
Project++ A$series$of$related$jobs$usually$directed$toward$some$major$output$and$requiring$a$
significant$period$of$time$to$perform.$$
Project+management++ Planning,$directing,$and$controlling$resources$(people,$equipment,$material)$to$meet$the$
technical,$cost,$and$time$constraints$of$a$project.$
Pure+project++ A$structure$for$organizing$a$project$where$a$selfKcontained$(autonomous)$team$works$
+ full$time$on$the$project.$$
+ !$team$members$work$exclusively$for$project$manager$
Functional+project+ A$structure$where$team$members$are$assigned$from$the$functional$units$of$the$
+ organization.$The$team$members$remain$a$part$of$their$functional$units$and$typically$are$
+ not$dedicated$to$the$project.$$
+ !$team$members$work$for$both$department$and$project$manager$
Matrix+project+ A$structure$that$blends$the$functional$and$pure$project$structures.$Each$project$uses$
people$from$different$functional$areas.$A$dedicated$project$manager$decides$what$tasks$
need$to$be$performed$and$when,$but$the$functional$managers$control$which$people$to$
use.$
!$project$falls$within$department$$$$$$
Project+milestones++ A$specific$event$in$a$project.$(examples:$the$completion$of$the$design,$production$of$a$$
prototype,$the$completed$testing$of$the$prototype$etc.)$
Work+breakdown+ The$hierarchy$of$project$tasks$(=$subdivisions$of$project),$
structure+(WBS)+ subtasks,$and$work!packages$(=$description$of$what$is$to$be$
done,$when$it$is$to$be$started$and$completed,$budget,$
measures$of$performance,$and$specific$events$to$be$
reached$at$points$in$time)$$
Activities++ Pices$of$work$within$a$project$that$consume$time.$The$completion$of$all$actvities$of$a$
project$marks$the$end$of$the$project.$$
Gantt+chart++ Shows$in$a$graphic$manner$the$amount$of$time$involved$and$the$sequence$in$which$
activites$can$be$performed.$Often$referred$to$a$as$a$bar!chart.$
(example:$see$exhibit$5.4A,$page$139)$$
Earned+value+ Technique$that$combines$measures$of$scope,$schedule,$and$cost$for$evaluating$project$
management+(EVM)+ progress.$(example$EVM$charts:$see$exhibit$5.5,$page$140$+$example$5.1,$page$141K142$
!$you$can$see$if$the$project$is$over$or$under$budget$and$if$it$is$on$schedule)$
Critical+path+ The$sequence(s)$of$activities$in$a$project$that$forms$the$longest$chain$in$terms$of$their$
time$to$complete.$
$
, Critical+path+method+ 1. Idintify!each!activity!to!be!done!in!the!project!and!estimate!how!long!it!will!take!to!
(CPM)+ complete!each!activity!!
2. Determine!the!required!sequence!of!activities!and!construct!a!network!reflecting!
the!precedence!relationship.!!
!$easy$way$to$do$this$is$first$identify$the$immediate+predecessors$=$activities$
that$need$to$be$completed$immediatley$before$another$activity.$
3. Determine!the!crticical!path!(=$longest$sequence$of$connected$activities$through$
the$network$and$is$defined$as$the$path$with$zero$slack$time!)$
4. Determine!the!early!start/finish!and!late!start/finisch!schedule!
!$to$schedule$the$project,$find$when$each$activity$needs$to$start$and$when$it$
needs$to$finish.$$
!$slack+time$=$the$time$that$an$activity$can$be$delayed;$without$delaying$the$
intire$project;$the$difference$between$the$late$and$early$start$times$of$an$activity.$
(example:$see$example$5.2,$page$146)$
$
(red$=$critical$path$!$zero$slack!)
$
Early+start+schedule+ A$project$schedule$that$lists$all$activities$by$their$early$start$times.$This$schedule$
+ completes$the$project$and$all$its$activities$as$soon$as$possible.$$
+ $
Late+start+schedule+ A$project$schedule$that$lists$all$activities$by$their$late$start$times.$This$schedule$may$
create$savings$by$postponing$purchases$of$material$and$other$costs$assiciated$with$the$
project.$
Time=cost+models+ Extension$of$the$critical$path$models$that$considers$the$tradeKoff$between$the$time$
required$to$complete$an$activity$and$cost.$This$is$often$referred$to$as$“crashing”$the$
project.$(“crashing”$refers$to$the$compression$or$shortening$the$time$to$complete$the$
project)$!$on$one$hand,$it$costs$money$to$expedite$an$activity;$on$the$other,$it$costs$
money$to$sustain$(or$lengthen)$the$project.$
• Activity!direct!costs$=$costs$associated$with$expediting$actvities.$(examples;$
overtime$work,$hiring$more$workers,$buying$more$efficient$equipment$etc.)$
• Project!indirect!costs$=$costs$associated$with$sustaining$the$project$(examples;$
overhead,$resource$opportunity$costs,$penalty$costs$or$incentive$payements..)$
$
(example$project$crashing:$see$exhibit$5.10,$5,11,$5.12,$page$152K154)$$
$
$
$
$
$
$
$
$
Operations+and+supply+ The$design,$operation,$and$improvement$of$the$systems$that$create$and$deliver$the$
chain+management+ firm’s$primary$products$and$services.$$
(OSCM)+ (OSCM$wants$the$individual$processes$to$be$as$effective$as$possible)$$
Process++ Made$up$of$one$or$more$activities$that$transform$inputs$into$outputs.$$
(Operations$and$supply$chain$processes$can$be$conveniently$categorized$as$planning,$
sourcing,$making$delivering,$and$returning)$
Services+vs.+Goods+ 1. Service$is$an!intangible!process$that$cannot$be$weighted$or$measured.$
(A$good$is$a$tangible$output$of$a$process$that$has$physical$dimensions!)$
2. Services$require$some$degree$of$interaction!with!the!customer.$
3. Services$are$heterogeneous;$they$vary$from$day$to$day$and$even$hour$to$hour$as$
a$function$of$the$attitudes$of$the$customer$and$the$server.$
(Goods$can$be$produced$to$meet$very$tight$specifications$dayKin$and$dayKout$
with$essentially$zero$variability!)$
4. Services$as$a$process$are$perishable!and!time!dependent.$
$$$$$$$$$$$$$$(goods$can$be$stored!)$
5. The$specifications$of$a$service$are$defined$and$evaluated$as$a$package!of!features!
that$affect$the$five$senses$(supporting$facility,$facilitating$goods,$explicit$services,$
implicit$services)$
Product=service+ When$a$firm$builds$service$activities$into$its$product$offerings$to$create$additional$value$
bundling+ for$the$customer.$$
(Example:$when$you$buy$a$notebook$as$a$consumer,$the$product$is$the$notebook,$but$it$
is$bundled$with$all$the$software$and$the$service$and$everything$else$that$you$need)$
Efficiency+vs.+ Efficiency$!$Doing$something$at$the$lowest$possible$cost.$
Effectiveness+ (Goal$efficient$process$=$to$produce$a$good$or$provide$a$service$by$using$the$smallest$
input$of$recourses)$
Effectiveness$!$Doing$things$that$will$create$the$most$value$for$the$customer.$
(Example:$effectiveness$in$grocery$store$is$to$have$plenty$of$operating$checkKout$lines;$
customer’s$time$is$valuable;$they$don’t$like$waiting$to$be$served!)$
Value+ The$attractiveness$of$a$product$relative$to$its$cost.$$
(Example:$if$you$can$provide$the$customer$with$a$better$car,$without$changing$the$price,$
value$has$gone$up.$If$you$can$give$the$customer$a$better$car$at$a$lower$price,$value$goes$
way$up!)$
Timeline+Depicting+ Late!1970s,!early!1980s$!$Manufacturing$strategy$developed$$
When+Major+OSCM+ Early!1980s$!$JustKinKtime$(JIT)$production$pioneered$by$Japanese$$
concept+became+ Mid!1980s$!$Service$quality$and$productivity$$
popular+ Early!1990s$!$Total$Quality$Management$(TQM)$and$Quality$Certification$programs$
$$$$$$$$$$$$$$$$$$$$$$$$!$$Six$Sigma$Quality$
Late!1990s$!$Supply$Chain$Management$(SCM)$
• Mass+customization$=$the$ability$to$produce$a$unique$product$exactly$
to$a$particular$customer’s$requirements.$
$$$$$$$$$$$$$$$$$$$$$$!$Business$Process$Reengineering$(BPR)$
Early!2000s$!$Electronic$Commerce$(use$of$internet$as$an$essential$element$of$$$
business$activity)$
$$$$$$$$$$$$$$$$$$$$$$$!$Service$Science$$
Mid!2010s!!$Business+Analytics$=$the$use$of$current$business$data$to$solve$business$
problems$using$mathematical$analysis.$$
(new$in$this$subject:$more$data$is$now$captured$and$available$for$decisionKmaking$
analysis$than$was$available$in$the$past)$
$
$
$
$
, H2:$STRATEGY$AND$SUSTAINABILITY$
Sustainability++ The$ability$to$meet$current$resources$needs$without$compromising$the$ability$of$future$
generations$to$meet$their$needs.$(=$to$maintain$a$balance$in$a$system)$
Triple+bottom+line+ A$business$strategy$that$includes$social,$$$$$$$$$
economic$and$environmental$criteria.$
$
$
Operations+and+supply+ The$setting$of$board$policies$and$plans$that$will$guide$the$use$of$the$recourse$needed$by$
chain+strategy+ the$firm$to$implement$its$corporate$strategy.$$
(Example:$if$the$highKlevel$corporate$strategy$includes$goals$related$to$the$environment$
and$social$responsibility,$then$the$operations$and$supply$chain$strategy$must$consider$
this.)$
Operations+effectiveness+ Performing$activities$in$a$manner$that$best$implements$strategic$priorities$at$minimum$
cost.$(A$major$focus$to$the$operations$and$supply$chain$strategy$is$operations$
effectiveness)$
Competitive+dimensions+ • Cost$or$price$(make$the$product,$or$deliver$the$service$cheap)$
• Quality$(make$a$great$product$or$deliver$a$great$service)$
• Delivery$speed$(make$the$product$or$deliver$the$service$quickly)$
• Delivery$reliability$(deliver$it$when$promised)$
• Coping$with$changes$in$demand$(changes$its$volume)$
• Flexibility$and$newKproduct$introduction$speed$(change$it)$
Straddling+ When$a$firm$seeks$to$match$what$a$competitor$is$doing$by$adding$new$features,$
services,$or$technologies$to$existing$activities.$This$often$creates$problems$if$tradeKoffs$
need$to$be$made.$(example:$Continental$tried$to$compete$in$two$ways$at$once$and$paid$
an$enormous$straddling$penalty!$(see$book))$$
Order+winner+ A$specific$marketingKoriented$dimension$that$clearly$differentiates$a$product$from$
+ competing$products.$(example:$the$orderKwinning$criterion$is$the$cost$(price)$of$the$
+ product,$product$quality$and$reliability$etc.)$
+ $
Order+qualifier++ A$dimension$used$to$screen$a$product$or$service$as$a$candidate$for$purchase.$
(example:$a$customer$selects$from$his$list$of$acceptable$computers,$the$one$that$has$the$
longest$battery$life)$
Activity=system+maps+ Diagrams$that$show$how$a$
company’s$strategy$is$delivered$
through$a$set$of$supporting$
activities.$$
(black$=$higherKorder$strategic$
themes)$
!$useful$in$understanding$how$
good$the$fit$is$between$the$system$
of$activities$and$the$company’s$
strategy!$
$
,Supply+chain+risk+ The$likelihood$of$a$disruption$that$would$impact$the$ability$of$a$company$to$continuously$
supply$products$or$services.$$
(Examples:$(1)$In$1996$General$Motors$experienced$an$18Kday$labour$strike$at$a$brake$
supplier$factory.$This$strike$idled$workers$at$26$assembly$plants$and$led$to$an$estimated$
$900$million$reduction$in$earnings.$(2)$In$2000,$a$10Kminute$fire$at$a$Phillips$plant$that$
supplied$integrated$circuits$led$to$a$$400$million$loss$to$the$firm.)$
Productivity++ A$measure$of$how$well$resources$(or$factors$of$production)$are$used.$=$outputs/inputs$
• Partial!productivity!measure$=$(ratio$of$some$output)/(a$single$input)$
• Multifactor!productivity!measure$=$(ratio$of$some$output)/(group$of$inputs)$
(but$not$all$inputs!)$
• Total!factor!measure!of!productivity$=$(ratio$of$all$outputs)/$(all$inputs)$
(example:$see$exhibit$2.5,$page$38)$
$
$
$
H5:$PROJECTS$
Project++ A$series$of$related$jobs$usually$directed$toward$some$major$output$and$requiring$a$
significant$period$of$time$to$perform.$$
Project+management++ Planning,$directing,$and$controlling$resources$(people,$equipment,$material)$to$meet$the$
technical,$cost,$and$time$constraints$of$a$project.$
Pure+project++ A$structure$for$organizing$a$project$where$a$selfKcontained$(autonomous)$team$works$
+ full$time$on$the$project.$$
+ !$team$members$work$exclusively$for$project$manager$
Functional+project+ A$structure$where$team$members$are$assigned$from$the$functional$units$of$the$
+ organization.$The$team$members$remain$a$part$of$their$functional$units$and$typically$are$
+ not$dedicated$to$the$project.$$
+ !$team$members$work$for$both$department$and$project$manager$
Matrix+project+ A$structure$that$blends$the$functional$and$pure$project$structures.$Each$project$uses$
people$from$different$functional$areas.$A$dedicated$project$manager$decides$what$tasks$
need$to$be$performed$and$when,$but$the$functional$managers$control$which$people$to$
use.$
!$project$falls$within$department$$$$$$
Project+milestones++ A$specific$event$in$a$project.$(examples:$the$completion$of$the$design,$production$of$a$$
prototype,$the$completed$testing$of$the$prototype$etc.)$
Work+breakdown+ The$hierarchy$of$project$tasks$(=$subdivisions$of$project),$
structure+(WBS)+ subtasks,$and$work!packages$(=$description$of$what$is$to$be$
done,$when$it$is$to$be$started$and$completed,$budget,$
measures$of$performance,$and$specific$events$to$be$
reached$at$points$in$time)$$
Activities++ Pices$of$work$within$a$project$that$consume$time.$The$completion$of$all$actvities$of$a$
project$marks$the$end$of$the$project.$$
Gantt+chart++ Shows$in$a$graphic$manner$the$amount$of$time$involved$and$the$sequence$in$which$
activites$can$be$performed.$Often$referred$to$a$as$a$bar!chart.$
(example:$see$exhibit$5.4A,$page$139)$$
Earned+value+ Technique$that$combines$measures$of$scope,$schedule,$and$cost$for$evaluating$project$
management+(EVM)+ progress.$(example$EVM$charts:$see$exhibit$5.5,$page$140$+$example$5.1,$page$141K142$
!$you$can$see$if$the$project$is$over$or$under$budget$and$if$it$is$on$schedule)$
Critical+path+ The$sequence(s)$of$activities$in$a$project$that$forms$the$longest$chain$in$terms$of$their$
time$to$complete.$
$
, Critical+path+method+ 1. Idintify!each!activity!to!be!done!in!the!project!and!estimate!how!long!it!will!take!to!
(CPM)+ complete!each!activity!!
2. Determine!the!required!sequence!of!activities!and!construct!a!network!reflecting!
the!precedence!relationship.!!
!$easy$way$to$do$this$is$first$identify$the$immediate+predecessors$=$activities$
that$need$to$be$completed$immediatley$before$another$activity.$
3. Determine!the!crticical!path!(=$longest$sequence$of$connected$activities$through$
the$network$and$is$defined$as$the$path$with$zero$slack$time!)$
4. Determine!the!early!start/finish!and!late!start/finisch!schedule!
!$to$schedule$the$project,$find$when$each$activity$needs$to$start$and$when$it$
needs$to$finish.$$
!$slack+time$=$the$time$that$an$activity$can$be$delayed;$without$delaying$the$
intire$project;$the$difference$between$the$late$and$early$start$times$of$an$activity.$
(example:$see$example$5.2,$page$146)$
$
(red$=$critical$path$!$zero$slack!)
$
Early+start+schedule+ A$project$schedule$that$lists$all$activities$by$their$early$start$times.$This$schedule$
+ completes$the$project$and$all$its$activities$as$soon$as$possible.$$
+ $
Late+start+schedule+ A$project$schedule$that$lists$all$activities$by$their$late$start$times.$This$schedule$may$
create$savings$by$postponing$purchases$of$material$and$other$costs$assiciated$with$the$
project.$
Time=cost+models+ Extension$of$the$critical$path$models$that$considers$the$tradeKoff$between$the$time$
required$to$complete$an$activity$and$cost.$This$is$often$referred$to$as$“crashing”$the$
project.$(“crashing”$refers$to$the$compression$or$shortening$the$time$to$complete$the$
project)$!$on$one$hand,$it$costs$money$to$expedite$an$activity;$on$the$other,$it$costs$
money$to$sustain$(or$lengthen)$the$project.$
• Activity!direct!costs$=$costs$associated$with$expediting$actvities.$(examples;$
overtime$work,$hiring$more$workers,$buying$more$efficient$equipment$etc.)$
• Project!indirect!costs$=$costs$associated$with$sustaining$the$project$(examples;$
overhead,$resource$opportunity$costs,$penalty$costs$or$incentive$payements..)$
$
(example$project$crashing:$see$exhibit$5.10,$5,11,$5.12,$page$152K154)$$
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