Project Management:Defining the project

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ByO. Vadillo

D. DimitrovC. Klein

F. Bourret

Table of Contents

• Introduction to Work Breakdown Structure

• 5 steps to define a project

• Process breakdown structure and Communication plan

• Key factors to remember

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Work breakdown structure

• Importance of a clear structure

– Cope with details

– Stay focused

– Satisfy stakeholders

• 5 steps guide provides a well structured guide

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Step 1: Define the scope

• Brief but specific definition of result or mission

• Focuses on the project purpose throughout its life

• Agreement between costumer and project manager

• To plan and control performance

The key stone of a project

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Project Scope Checklist

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1/ Project objectives Overall goalwhat, when, how much

2/ Deliverables Major expected outputs

3/ MilestonesNatural and significant events time, cost, resources

4/ Technical requirements To assure performance

5/ Limits and exclusion Avoid false expectations

6/ Reviews with costumersUnderstanding and agreement of expectations

Avoid scope creep : added costs or delays

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Step 2: Establishing priorities

• Primary job of the Project Manager

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• Need to define priorities priority matrix

• Which criterions have to be:

– Constrained

– Enhanced

– Accepted

Creates shared expectationsAvoids misunderstanding

• Variation of priorities

Microsoft / Event

• Which criteria can be compromised?

• Priorities may change

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Need for vigilance and anticipation

• Outline of the project with different levels of detail

• Evaluation of

– Cost

– Time

– Technical performance

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Step 3: Create the WBS

• Work package

– The basic unit of planning, scheduling and

controlling

– Maximum 10 days

– Independent from other work packages

– No more than 1 sub-deliverable

• Components

What/ How long/ Cost/ How much/ Who / How well

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WBS Example

GGSB- Project Management 11Reference: Gray and Larson, Project Management, Irwin/McGraw-Hill, 2000

Step 4: WBS in Organisations

• Result of linking the WBS with the organisational units (hereafter OU):

OBS (Organizational Breakdown Structure)

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Purposes

Framework to summarize OU work performance

Identify OU responsible for Work Packages

Tie the OUs to control cost accounts

Example: Integration of WBS and OBS

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Cost accountnumber

Personal computerprototype

Vendor,software,

applications

Mouse,keyboard,

voice

Diskstorage

units

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 packagesWP1.1.3.4.2.1WP1.1.3.4.2.2WP1.1.3.4.2.3

Budget byperiod

Production

Design

Test

Purchasing

Software

Manufacturing

Organization

Reference: Gray and Larson, Project Management, Irwin/McGraw-Hill, 2000

Step 5: Coding WBS for IS

• Codes define levels and elements in

– WBS

– Work Packages

– Budget/cost information

• Allows reports to be consolidated at any level in the organization structure

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Facility Area Pipe 2” WP#

3R-237A-P2-33.61

Example: Integration of WBS and OBS

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Process Breakdown Structure

Intangible projects: phases

USE

Process-oriented projects

• Project organized around phases

• PBS vs. WBS

• Project Communication Plan– WWWH the information will be transmeted

• 5 Steps– Stakhoder analysis– Information needs– Sources of Information– Disseminiation modes– Responsibility and timing

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Communication Plan

Key factors to remember

• Scope definition focuses on end items

• Priorities (PM) trade-off decisions

• BS project control

Key stones

• Use of WBS, PBS or RM depends on size and nature

• First step of planning / Major reason for failure

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Thank you

We would be delighted to answer any question.

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