Lecture 4
Defining the Project
Where We Are Now
Project Schedule
Estimate
networks resources & costs
5
6 8
Define Reducing
project duration
4 9
Managing Monitoring Project
Introduction Organization
risk progress closure
1 3
7 13 14
Project
Strategy Teams Outsourcing
manager
2 11 12
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Learning objectives
1. Identify key elements of a project scope statement and understand
why a complete scope statement is critical to project success.
2. Understand why it is important to establish project priorities in terms
of cost, time, and performance.
3. Demonstrate the importance of a work breakdown structure (WBS)
to the management of projects and how it serves as a data base for
planning and control.
4. Demonstrate how the organization breakdown structure (OBS)
establishes accountability to organizational units.
5. Describe a process breakdown structure (PBS) and when to use it.
6. Create responsibility matrices for small projects.
7. Create a communication plan for a project.
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Contents
1. Five steps of defining the project
2. Process Breakdown Structure
3. Responsibility matrices
4. Communication plan
Key terms
Review questions & exercises
4
Defining the Project: 5 steps
Step 1: Defining the Project Scope
Step 2: Establishing Project Priorities
Step 3: Creating the Work Breakdown Structure
≠ Process Breakdown Structure
Step 4: Integrating the WBS with the Organization
Step 5: Coding the WBS for the Information System
Contents
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Step 1:
Defining the Project Scope
• Project scope
– A definition of the end result or mission of the project—a
product or service for the client/customer.
• 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 Mô tả dự án
1. Project objective Mucj tiêu dự án
2. Deliverables Hạng mục ở sản phẩm cuối cùng. Mục quan trọng,
cần được làm rõ
3. Milestones
4. Technical requirements Yêu cầu kĩ thuật
5. Limits and exclusions Giới hanj phạm vi
trách nhiệm
6. Reviews with customer Đối tượng mà thường
xuyên cập nhật tiến độ
dự án
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Project Scope Checklist:
1. Project objective
• Overall objective to meet your customer’s need(s)
– Answers to questions of what, when & how much, and at
times, where.
• Examples:
1. Develop a program that automatically translates verbal
sentences in English to Russian, completed within three
years at a cost not to exceed $1.5 million.
2. Design and produce a completely portable, hazardous waste,
thermal treatment system in 13 months at a cost not to
exceed $13 million.
Back
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Project Scope Checklist:
2. Deliverables
• Expected, measurable outputs over the life of the project
– Deliverables & requirements: often used interchangeably.
• Example: Software development project
– Early design phase: list of specifications.
– Second phase: software coding &
a technical manual.
– Next phase: the prototype
– Final phase: final tests &
approved software
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Project Scope Checklist:
3. Milestones
Milestone = significant event in a project that occurs at a
point in time
• Shows only major segments of work, representing first,
rough-cut estimates of time, cost, and resources.
– Example: Testing complete and finished by 30/11/2021.
• Should be natural, important control points in the project.
• Should be easy for all project participants to recognize.
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Project Scope Checklist:
4. Technical requirements
• Clarifying the deliverables or defining the performance
specifications
• Examples:
– Personal computer: to accept 120-volt alternating current or
240-volt direct current without any adapters or user switches
– 911 emergency systems: to identify the caller’s phone
number and location of the phone
– Information systems: speed and capacity of database systems
and connectivity with alternative systems.
Back
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Project Scope Checklist:
5. Limits and exclusions
• Examples of limits:
– System maintenance and repair will be done only up to one
month after final inspection
– Client will be billed for additional training beyond that
prescribed in the contract.
• Examples of exclusions:
– Data will be collected by the client, not the contractor.
– A house will be built, but no landscaping/security devices
added.
– Software will be installed, but no training given.
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Project Scope Checklist:
6. Reviews with customer
• Understanding of & agreement to expectations:
– Is the customer getting what he or she desires in deliverables?
– Does the project definition identify key accomplishments,
budgets, timing, and performance requirements?
– Are questions of limits and exclusions covered?
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Project Scope: Terms and Definitions
1. Scope statements
– Also called statements of work (SOW)
Example
2. Project charter
– Can contain an expanded version of scope statement
– A document authorizing the project manager to initiate and
lead the project.
3. Scope creep
– The tendency for the project scope to expand over time due to
changing requirements, specifications, and priorities.
Back
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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
• Budget–Cost
• Schedule–Time
• Performance–Scope
– Project Management Trade-offs
• Managing the priorities of project trade-offs
– Constrain: a parameter is a fixed requirement.
– Enhance: optimizing a criterion over others.
– Accept: reducing (or not meeting) a criterion requirement.
– Project Priority Matrix
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Step 3:
Creating the Work Breakdown Structure
ấp 1: dự án
ấp 2: hạng mục
• 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 subdeliverables, and in turn,
their relationships to work packages.
– Best suited for design and build projects that have tangible
outcomes rather than process-oriented projects.
Hierarchical Breakdown of the WBS & E-Slim Tablet
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How WBS Helps the Project Manager
• WBS
– Facilitates evaluation of cost, time, and technical performance at all
levels in the organization over the life of the project.
– Provides management with information appropriate
to each organizational level.
– Helps manage plan, schedule, and budget.
– Helps in the development of the organization breakdown structure
(OBS), which assigns project responsibilities to organizational
units and individuals
– Provides the opportunity to “roll up” (sum) the budget and actual
costs of the smaller work packages into larger work elements
performance can be measured by organizational units and work
accomplishment.
– Define communication channels and assist in understanding and
coordinating many parts of the project.
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Work Packages
• A work package is the lowest level of the WBS.
• Each work package:
1. Defines work (what).
2. Identifies time to complete a work package (how long).
3. Identifies a time-phased budget to complete
a work package (cost).
4. Identifies resources needed to complete
a work package (how much).
5. Identifies a person responsible for units of work (who).
6. Identifies monitoring points (milestones)
for measuring success.
Back
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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.
E-Slim Tablet
Back
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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 be consolidated at any level in the
organization structure
E-Slim Tablet
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Process
Breakdown
Structure
Contents
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Responsibility matrices
• Aka linear responsibility chart
• Responsibility matrix summarizes:
– The tasks to be accomplished
– Who is responsible for what on a project
Responsibility Matrix for a Market Research Project
• More complex matrix:
– Critical interfaces between units and individuals that require
coordination
Responsibility Matrix for the Conveyor Belt Project
FIGURE 4.2
Contents
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Project Communication Plan
1. What information needs to be collected
and when?
2. Who will receive the information?
3. What methods will be used to gather
and store information?
4. What are the limits, if any, on who has access to certain
kinds of information?
5. When will the information be communicated?
6. How will it be communicated?
Shale Oil Research Project Communication Plan
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Developing a communication plan: 5 steps
1. Stakeholder analysis: Identify the target groups.
2. Information needs: What information is pertinent to
stakeholders who contribute to the project’s progress?
3. Sources of information: Where does the information
reside?
4. Dissemination modes.
5. Responsibility and timing.
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Information Needs
• Project status reports
• Changes in scope
• Gating decisions
• Action items
• Deliverable issues
• Team status meetings
• Accepted request changes
• Milestone reports
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Key Terms
• Cost account • Responsibility matrix
• Milestone • Scope creep
• Organization breakdown structure • Scope statement
(OBS) • WBS dictionary
• Priority matrix • Work breakdown structure (WBS)
• Process breakdown structure
• Work package
(PBS)
• Project charter
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Review questions & exercises
• Review questions
– Textbook, page 123: #1–6
• Exercises
– Textbook, pages 123–124: #1-2-3-4.
Exercise 3: Bicycle WBS
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Example of scope statement
Back
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Project Management Trade-offs
FIGURE 4.1
Back
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Project Priority Matrix
FIGURE 4.2
Back
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Hierarchical
Breakdown
of the WBS
FIGURE 4.3
E-Slim Tablet
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Work
Breakdown
Structure
FIGURE 4.4
Back
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Integration of
WBS & OBS
FIGURE 4.5
Back
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Process Breakdown
Structure
FIGURE 4.6
Back
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Work Breakdown
Structure
FIGURE 4.4
Back
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Coding
the WBS
EXHIBIT 4.1
Back
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Responsibility Matrix for a Market Research Project
FIGURE 4.7
Back
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Responsibility Matrix for the Conveyor Belt Project
FIGURE 4.8
Back
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Shale Oil
Research
Project
Communication
Plan
FIGURE 4.10
Back
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Bicycle WBS (1)
Back
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Bicycle
WBS (2)
Back
[Link] 41
Exercise 3 (1)
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Exercise 3 (2)
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Exercise 3 (3)
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Exercise 3: Building a bicycle
Group work…
1. Who will ride the bicycle?
2. For what?
3. What does the bicycle look like?
– Dimension
– Color
– …
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