Post on 21-Dec-2015
Chapter 4
Defining the Project
NEED FOR DEFINING PROJECTS
• One Project, small
• Many small projects, or large one– Yes
Steps for a Project
• Step 1 - Defining the Project Scope
• Step 2 -Establishing Project Priorities
• Step 3 -Creating the WBS
• Step 4 –
• Step 5 - Coding the WBS for the Information System
Project Scope Terms and Definitions
• Scope Statements–Also called
–Project Charter–Expanded scope statement–Project manager Authorization
• Project Creep–The tendency for the project scope to expand over time due to
changing requirements, specifications, and priorities.
Step 1: Defining the Project Scope
• Project Scope–End result or mission of the project
• specific, tangible, measurable terms.
• Purpose of the Scope Statement –Define customer deliverables–Project focus
• Planning tool
–Project measurement
Step 1 Defining the Project Scope (cont’d)
See Text book Page 101 Example: Page 104
• Project Scope Checklist1. Project objectives
– What, Where, When, How Much
2. Deliverables– Major Output(s) of the Project
3. Milestones
– Significant events that occur at specific times in the project
4. Technical requirements5. Limits and exclusions6. Reviews with Customer
Step 2Establishing Project Priorities
Step 2: Establishing Project Priorities
• Project Trade-offs• Budget• Schedule• Performance
• Management of Trade-offs• Constrain: fixed requirement• Enhance: optimize over other parameters• Accept:
Step 2Establishing Project Priorities
(Cont’d)
Performance (Scope)
Quality
Cost Time
Step 2Establishing Project Priorities (Cont’d)
• COST minimization
• TIME minimization
• QUALITY assure that product
Performance performs to specifications
Objectives
Step 2Establishing Project Priorities (Cont’d)
• Management of Tradeoff’s– Primary Job of PM– A Tool
• Priority Matrix– Constrain– Enhance
Project Priority Matrix
Constrain
Enhance
Accept
Time Performance Cost
Text Example of a Project – High Speed Modem:
Step 2Establishing Project Priorities (Cont’d)
Work Breakdown Structure
• WBS
• Disciplined
• Structured
• Selective collection of information
Step 3Creating the WBS
• Map of the Project• Divides Project in Smaller Elements
– Element Identity– Project / Organization Integration– Basis for Control– Project Structure
• With Different Levels of Detail– Allows for:
• Planning, scheduling and budgeting• Cost roll-up
Step 3Creating the WBS Cont’d
• WBS Elements– Deliverables (The output, not functions)
• Nouns– Prototype– Mouse– Engine
• If Functional
Hierarchical Breakdown of the WBS
Irwin/McGraw-Hill
1
2
3
4
Project
Deliverable
Subdeliverable
Lowest subdeliverable
Cost account*
Work package
5
Complete project
Major deliverables
Supporting deliverables
Lowest managementresponsibility level
Grouping of work packagesfor monitoring progress andresponsibility
Identifiable work activities
Level Hierarchical breakdown Description
*This breakdown groups work packages by type of work within a deliverable and allows assignment ofresponsibility to an organizational unit. This extra step facilities a system for monitoring project progress(discussed in Chapter 12).
Step 3Creating the WBS Cont’d
WBS / Project Manager• Helps to:
–Facilitate/Plan
–Provide information appropriate to each function
–develop of organization breakdown structure (OBS)• Assigns responsibilities
–Define communication
Work Breakdown Structure
Personal computerprototype
Vendor,software,
applications
Mouse,keyboard,
voice
Diskstorageunits
Microprocessorunit
Moreitems
Floppy HardOptical Internalmemory
unit
BIOS (basicinput/output
system)
ROM RAM I/O File Utilities
Motor Circuitboard
Chassisframe
Read/writehead
~ ~ ~ ~ ~
~ ~
~ ~
Lowest manageablesubdeliverables
Level1
2
3
4
5
Step 3Creating the WBS Cont’d
Step 3Creating the WBS Cont’d
• Work Packages (WP)– Lowest level of the WBS– Short Duration Tasks
• Action Verb – Noun
–Design Prototype
–Build Mouse
–Test Engine
Step 3 - Creating the WBS Cont’d
• Work Package (WP) Continued1. Defines Work
– (What)2. Identifies time to complete a WP
– (How Long)3. Identifies a time-phased budget to complete a WP
– (Cost)
4. Identifies resources needed to complete a WP– (How Much)
5. Identifies a single person responsible for units of work– (Who)
Work Breakdown StructurePersonal computer
prototype
Vendor,software,
applications
Mouse,keyboard,
voice
Diskstorageunits
Microprocessorunit
Moreitems
Floppy HardOptical Internalmemory
unit
BIOS (basicinput/output
system)
ROM RAM I/O File Utilities
Motor Circuitboard
Chassisframe
Read/writehead
WP-1M WP-1 CB WP-1 CF WP-1 RWHWP-2 CB WP-2 CF WP-2 RWHWP-3 CB WP-3 CF WP-3 RWHWP-4 CB WP-4 RWHWP-5 CB WP-5 RWHWP-6 CBWP-7 CB
~ ~ ~ ~ ~
~ ~
~ ~
Work packages
Lowest manageablesubdeliverables
Level1
2
3
4
5
Step 3 - Creating the WBS Cont’d
Step 3 - Creating the WBS Cont’d• Work Package (WP) Continued
– WP manager responsible for • WP schedule
– Should not exceed 10 days (on average)» If it Does:» Monitor Points every three to five days
• WP budget• WP performance (Quality)
– Several WP’s rolled together can constitute sub-deliverable
• From Different functional areas– Can organize WP’s for function, but must be deliverable oriented WBS
Example Work Package
Step 4 Integrating the WBS with the organization
• Defines responsibility– OBS
• Lowest org. unit for responsibility of WP’s within cost accounts
Step 4 Integrating the WBS with the organization
• Intersection of WBS and OBS– Creates a project control point
Step 4 - Integration of WBS and OBS
Time
Cost accountnumber
Personal computerprototype
Vendor,software,
applications
Mouse,keyboard,
voice
Diskstorageunits
Microprocessorunit
Moreitems
Floppy HardOptical Internalmemory
unit
BIOS (basicinput/output
system)
ROM RAM I/O File Utilities
Motor Circuitboard
Chassisframe
Read/writehead
~ ~ ~ ~ ~
~ ~
~ ~
Lowest manageablesubdeliverables
Level1
2
3
4
5
1.0
1.2 1.3 1.1 1.4
1.1.1 1.1.2 1.1.31.4.1 1.4.2
1.4.1.1 1.4.1.2 1.4.2.1 1.4.2.2 1.4.2.3
1.1.3.1 1.1.3.2 1.1.3.3 1.1.3.4
Cost 1.1.3.4.1account
Cost Costaccount account
Cost Costaccount account
Costaccount
Costaccount
Work packages WP1.1.3.4.2.1 WP1.1.3.4.2.2 WP1.1.3.4.2.3
Budget byperiod
Production
Design
Test
Purchasing
Software
Manufacturing
Organization
Step 4 - Integration of WBS and
OBS Read/Write Head Design
Cost
Direct Costs Low Average High
Design engineers $ 80 $100 $150Proto engineers 130 150 280Materials 25 25 25Equipment rental 25 25 30
Total direct costs $260 $300 $485
Work package cost estimate
Step 5 Coding the WBS for the
Information System• Used to Define
– levels and elements in the WBS– Organization elements– Work Packages– Budget
– Allow reports to be consolidated at any level in the structure
– Most common system –
WBS Coding
Project Roll-up
• Cost Account
–Intersection of
• WBS and
• budgetary control point for work packages (WP).
–Roll-up Capability
Direct Labor Budget Rollup
(000)
FIGURE 4.7