Defining the Project

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Defining the Project

• Chapter 4

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(No Transcript)
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Defining the Project

• 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

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Step 1 Defining the Project Scope

• Project Scope
• A definition of the end result or mission of the
  projecta product or service for the
  client/customerin specific, tangible, and
  measurable terms.
• Purpose of the Scope Statement
• To clearly define the deliverable(s) for the end
  user.
• To focus the project on successful completion of
  its goals.
• To be used by the project owner and participants
  as a planning tool and for measuring project
  success.

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Project Scope Checklist

• A complete project scope contains the following
  elements
• Project objective
• Deliverables
• Milestones
• Technical requirements
• Limits and exclusions
• and then, finally
• Reviews with customer

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Project Objective

• Yes you can reduce your project to one sentence
• Like the Elevator Pitch in Marketing
• Answers the following questions
• What?
• When?
• How Much?
• And, if its not obvious. Why?
• One possible sample format
• We will deliver____ by date _____ (or within ____
  weeks) at a cost of _____ (because of _____)

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Scope Statement Example

• You are in charge of organizing a dinner-dance
  concert for a local charity. You have hired a
  jazz combo.
• Develop a scope statement for this project that
  contains examples of all the elements. Assume
  that the event will occur in 8 weeks and provide
  your best guess estimate of the dates for
  milestones.
• Some of the necessary information has not yet
  been provided for you by your customer. Identify
  it.
• Youve managed to solicit an in-kind donation of
  30 bottles of wine from a large winery. Modify
  all parts of your scope statement to support this

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Project Scope Terms and Definitions

• Scope Statements
• Can also be called statements of work (SOW)
• Project Charter
• May contain an expanded version of scope
  statement
• Key Point this is a document authorizing the
  project manager to initiate and lead the project.
• Scope Creep
• The tendency for the project scope to expand over
  time due to changing requirements,
  specifications, and priorities.

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Beware of Creeps

• Projects without explicit project objectives or
  other poorly define portions of the scope
  statement are more subject to scope creep.
• Discussion point Is it important to re-build the
  Bay Bridge to incorporate a signature span

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Step 2 Establishing Project Priorities

• Causes of Project Trade-offs
• Shifts in the relative importance of criterions
  related to cost, time, and performance parameters
• BudgetCost
• ScheduleTime
• PerformanceScope
• Managing the Priorities of Project Trade-offs
• Constrain the parameter is a fixed requirement.
• Enhance optimizing that parameter over others.
• Accept reducing (or not meeting) a parameter
  requirement.

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Step 2 Establishing Project Priorities

• Ever heard the following?
• Good, Fast, Cheap you can have any 2

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Project Management Trade-offs
Scope
Cost
Quality
Time
FIGURE 4.1
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Project Priority Matrix
FIGURE 4.2
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Project Priority Matrix Examples

• Define a project priority matrix for the
  following projects
• The previously mentioned charity dinner-dance
• The new Bay Bridge
• Your wedding

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Step 3 Creating the Work Breakdown Structure

• Work Breakdown Structure (WBS)
• An hierarchical outline (map) that identifies the
  products and work elements involved in a project
• Defines the relationship of the final deliverable
  (the project) to its sub-deliverables, and in
  turn, their relationships to work packages
• Best suited for design and build projects that
  have tangible outcomes rather than
  process-oriented projects

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Hierarchical Breakdown of the WBS
FIGURE 4.3
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How WBS Helps the Project Manager

• WBS
• Facilitates evaluation of cost, time, and
  technical performance of the organization on a
  project
• Provides management with information appropriate
  to each organizational level
• Helps in the development of the organization
  breakdown structure (OBS), which assigns project
  responsibilities to organizational units and
  individuals
• Though it does not yet incorporate time and
  precedence info, it helps in defining and
  managing the plan, schedule, and budget
• Defines communication channels and assists in
  coordinating the various project elements

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Work Breakdown Structure
FIGURE 4.4
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WBS -Example

• Develop a WBS for a project in which you are
  going to build a bicycle. Try to identify all of
  the major components and provide three levels of
  detail.

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Work Packages

• A Work Package Is the Lowest Level of the WBS.
• It is output-oriented in that it
• Defines work (what)
• Identifies time to complete a work package (how
  long)
• Identifies a time-phased budget to complete a
  work package (cost)
• Identifies resources needed to complete a work
  package (how much)
• Identifies a single person responsible for units
  of work (who)

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Step 4 Integrating the WBS with the Organization

• Organizational Breakdown Structure (OBS)
• Depicts how the firm is organized to discharge
  its work responsibility for a project
• Provides a framework to summarize organization
  work unit performance
• Identifies organization units responsible for
  work packages
• Ties the organizational units to cost control
  accounts

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Integration of WBS and OBS
FIGURE 4.5
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Step 5 Coding the WBS for the Information System

• WBS Coding System
• Defines
• Levels and elements of the WBS
• Organization elements
• Work packages
• Budget and cost information
• Allows reports to beconsolidated at any level
  in the organization structure

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WBS Coding
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Alternatives to WBS

• Not all industries use WBS
• We will consider 2 others, which can also be used
  to supplement WBSs or help with subprojects

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Process Breakdown Structure

• Process-Oriented Projects
• Are driven by performance requirements in which
  the final outcome is the product of a series of
  steps of phases in which one phase affects the
  next phase
• Process Breakdown Structure (PBS)
• Defines deliverables as outputs required to move
  to the next phase
• Checklists for managing PBS
• Deliverables needed to exit one phase and begin
  the next
• Quality checkpoints for complete and accurate
  deliverables
• Sign-offs by responsible stakeholders to monitor
  progress

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PBS for Software Project Development
FIGURE 4.8
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Responsibility Matrices

• Responsibility Matrix (RM)
• Also called a linear responsibility chart
• Summarizes the tasks to be accomplished and who
  is responsible for what on the project
• Lists project activities and participants
• Clarifies critical interfaces between units and
  individuals that need coordination
• Provide an means for all participants to view
  their responsibilities and agree on their
  assignments
• Clarifies the extent or type of authority that
  can be exercised by each participant

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Example Responsibility Matrix for a Market
Research Project
FIGURE 4.9
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Responsibility Matrix for the Conveyor Belt
Project
FIGURE 4.10
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Communications

• 90 of project management is communication
• Poor or inappropriate communication is
  responsible for many project failures, employee
  dissatisfaction, and much dark office humor.

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Project Communication Plan

• A communication plan answers the following
• What information needs to be collected?
• Who will receive information?
• What information methods will be used?
• What are the access restrictions?
• When will information be communicated?
• How will information be communicated?
• Different level of detail and styles are
  appropriate for
• Communication to Clients
• Communication to Upper Management
• Communication to the Project Team

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Communication Plan Example
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Case Soccer Tournament

• Make a list of the major deliverables for the
  project and use them to develop a draft of the
  WBS for the tournament that contains at least
  three levels of detail (for some of the items).
  What are the major deliverables associated with
  hosting an event such as a soccer tournament?
• How would developing a WBS alleviate some of the
  problems that occurred during the first meeting
  and help Nicolette organize and plan the project?
• Where can Nicolette find additional information
  to help her develop a WBS for the tournament?
• How could Nicolette and her task force use the
  WBS to generate cost estimates for the
  tournament? Why would this be useful information?