1

Chap 4

Defining

The

Project

2

Chap 4

Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities

Step 3: Creating the Work Breakdown Structure

Step 4: Integrating the WBS with the Organization

Step 5: Coding the WBS for the Information System

Steps in Defining Project

3

Chap 4

Defining the Project Scope

What you expect to deliver, when project is completed.

Project Objective: What, when and how much

Deliverables: Specific outcomes for each stage or milestone or review

Milestones: Major segments of the project

Technical requirements: Specific metrics which a deliverable must satisfy

Limits and Exclusions: What the project will not do

Reviews with Customers: Define frequency, provide direction, coincide with milestones & deliverables

4

Chap 4

Project Definition Example

Basketball game

Fashion Show

Taxi Service

5

Chap 4

Project Definition in Reality

Not well Defined• the more complex typically the less defined?• customer is unsure of what is possible, so they leave it general.

Scope Creep• adding slight changes to the project• impact is perceived to be minor but can be significant• especially prevalent in IT projects

Change control procedure is necessary• documents source of the change• defines specific change• defines impact on budget and time

6

Chap 4

Establishing Project Priorities

Project objectives center around satisfying Time, Performance & Cost.

These project factors can be at conflict? How?

Project Priority Matrix can help a Project Manager in making tradeoffs.

Time Performance Cost

Constrain

Enhance

Accept

Constrain: This factor must be meet, no compromise

Enhance: Optimize but can vary

Accept: Not meeting target is OK, within limits

7

Chap 4

Communication Plan

How to communicate status, changes, and performance

1. Identify Stakeholders

2. Define information required by each stakeholder

3. What are the sources for each form of information

4. Method of getting the information to the stakeholders

5. Who is responsible for placing the information in the correct format

and delivering it to the stakeholders.

6. What is the frequency of the information.

Plan is created by Project Manager in the early stages after discussion with team and stakeholders, in conjunction with WBS and OBS.

What is a WBS?What is a WBS?

A Work Breakdown Structure can show you at a glance:

What the various deliverables of the project are

How the necessary work is distributed between the project deliverables

How the cost or budget is distributed between the project deliverables

How the larger deliverables of the project are subdivided into smaller ones

But it does not say anything about individual tasks or the order of execution.

8

Chap 4

9

Chap 4

Creating the Work Breakdown Structure

Hierarchical approach of dividing the work by types; allowing a framework to track cost and work performance

Types: Frame, Plumbing, Electrical, Landscaping, HVAC, Drywall, Flooring

WBS follows the project structure not the functional organization

Output Oriented

Deliverables

Sub-deliverables :

Sub-deliverables

Cost Account

Work Packages

Costs rolled up

Com

munication

10

Chap 4

Coding the WBS for the Information System

Typically, WBS is coded beginning with Completed project and then indented until all Work Packages have been identified

Other forms of coding can be used to reflect different project structures. - Locations, functional depts, product type, customer, year, etc

11

Chap 4

Banquet Example

12

Chap 4

Product Development WBS Example

13

Chap 4

Project Definition Example

Basketball game

Fashion Show

Taxi Service

14

• A Work Breakdown Structure is not an exhaustive list of work

• A WBS is neither a project plan, a schedule, nor a chronological listing. • It is considered poor practice to construct a project schedule (e.g. using

project management software) before designing a proper WBS.

• A WBS is not an organizational hierarchy. • Some practitioners make the mistake of creating a WBS that shadows the

functional organizational chart.

• WBS updates, other than progressive elaboration of details, require formal change control.

• This is another reason why a WBS should be outcome-oriented and not be prescriptive of methods.

• A WBS is not a logic model. Nor is it a strategy map.

A Work Breakdown Structure is not:

Chap 4

15

• WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management.

• One of the most important principles guiding the development, decomposition and evaluation of the WBS.

• Applies at all levels within the hierarchy:

• The sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project, that is, it cannot include more than 100% of the work…

• It is important to remember that the 100% rule also applies to the activity level. The work represented by the activities in each work package must add up to 100% of the work necessary to complete the work package.

Practice Standard for Work Breakdown Structures (Second Edition), published by the Project Management Institute, ISBN 1933890134, page 8

The 100% RuleChap 4

16

Chap 4

Integrating the WBS with the Organization

Organizational Breakdown structure: Describes how the firm has assigned the work responsibility. - results from assigning of work packages responsibilities, made in WBS

When a dedicated project management structure is not used the OBS can: • help define and group the Cost Accounts by function• promotes communication of reporting and project changes

Same as WBS with the addition of functional departments matrices to WPs

Organizational Breakdown Structure (OBS)Organizational Breakdown Structure (OBS)

17

Project Mgr

Structural

ConcreteFramingMasonry

Interior

DrywallMuddersFinishingflooring

Plumbing

Water/SewerGas

Electrical

HookupOutletsWiringFixturesInfo Tech

Accounting

Marketing

Purchasing

Trucking

Project Oriented Structure

Chap 4

Organizational Breakdown Structure (OBS)Organizational Breakdown Structure (OBS)

18

Project Mgr

Accounting

ConcreteFramingMasonry

Info Tech Marketing Trucking

HookupOutletsWiringFixtures

Interior

Structural

Plumbing

Electrical

Roofing

Engineering

DrywallMuddersFinishingflooringWater/Sewer

Gas

Functional Structure

Chap 4

19

Chap 4

Project Definition Example

Basketball game

Fashion Show

Taxi Service

x x x

x x x

x x

x x

20

Responsibility Activity Matrix (RAM)

RAM is used to integrate the Work Breakdown Structure (WBS) and the Organizational Breakdown Structure (OBS).

RAM output is Work Packages.

WBS

OBS

Chap 4

Work PackageWork Package

21

A work package at the activity level is a task that:

• can be realistically and confidently estimated;

• makes no sense practically to break down any further;

• can be completed in accordance with one of the heuristics defined above;

• produces a deliverable which is measurable; and

• forms a unique package of work which can be outsourced

• The activities listed in the work package are the activities listed in the MS Project plan.

• allows user to estimate costs for each task

Chap 4

22

Chap 4

1. Define work• Detail events• Specific deliverable(s)

2. Identify time to complete

3. Identify a time phased budget to complete

4. Identify a single person responsible for unit of

work

5. Identify monitoring points for measuring progress• How to measure a successful deliverable

Creating a Work Package

Lowest unit of WBS; This is where all the tasks are accomplished

23

• The “80 hour rule“: no single activity or group of activities to produce a single deliverable should be more than 80 hours of effort.

• Single Reporting Period: no activity or series of activities should be longer than a single reporting period.

• The "if it makes sense" rule. Applying this rule of thumb, one can apply "common sense" when creating the duration of a single activity or group of activities necessary to produce a deliverable defined by the WBS.

Level of DetailChap 4

$580 $300 $210

$600 $900 $950

$750 $450

$1860 $100

24

Responsibility Activity Matrix (RAM)

RAM output is Work Packages.

WBS

OBS

Create Menu 2 hrs $200Shop 4 hrs $250Prep 1 hrs $150Cook 3 hrs $ 200Serve 2 hrs $250

WP 1.2.4WP 1.2.3

Rent Tables $250Rent glass ware $200Rent silverware $200Setup 4 hrs $160

Chap 4

25

Chap 4

Assignment

Read and answer questions regarding

Manchester United Soccer Club case study.

Questions

26

27

Chap 4

Aircraft Example

28

1          SupportThis WBS element includes all management activities that typically span the entire project and are estimated in terms of level of effort rather than by reference to the specific work products produced. These include Program Management, Implementation (Release) Management, Logistics Management, and Technical Management. 11        Program ManagementThis WBS element includes all management tasks at the level of the entire project including organizing, directing, coordinating, and controlling all of the resources required to accomplish project objectives, cost/schedule performance management, subcontractor management, and quality management. 12        Implementation (Release) ManagementThis WBS element includes all of the effort to plan, control, and execute the implementation of all releases. 13        Logistics ManagementThis WBS element includes all of the effort to establish and maintain a logistics support and provisioning program, including, for example, supplies, storage, spares, and repairs of material used by the project.  Material includes commercial off-the-shelf (COTS) software, and other tangible supplies. 14        Technical ManagementThis WBS element includes all of the effort to direct and control the technical engineering effort to transform the operational needs into a specification of requirements and an optimum configuration, including risk and issue management and configuration management.

WBS Dictionary (First Level)Chap 4