Chapter 4

DEFINING THE PROJECT

Chapter Outline

1. Step one: Defining the Project Scope

The Project Scope describes what you expect to deliver (product or service) to
your client/customer when the project is complete. It should define the results
expected to be achieved in specific, tangible, & measurable terms.

A. Employing a project scope checklist

1. Project objective:
Defines the overall objective to meet your client/customers needs.

Example: To construct a custom home within 6 months at a cost not to exceed

$350,000.

2. Deliverables:
Are the expected outputs over the life of the project.

Example: *A 2,500 s.f., 3-bedroom, 2.5 bath, finished home.

*A finished garage, insulated and sheet rocked.
*Appliances: Washer/Dryer, Refrigerator, Range, & Dishwasher.
*Energy Efficient Gas furnace w/ programmable thermostat.

3. Milestones:
A significant event in a project that occurs at a point in time. It is built using
deliverables as a platform to identify on the Major Segments of work and the
end date.

Example: *Architect/Engineering Construction Drawings completed Date?

*Permits approved Date?
*Foundations poured Date?
*Framing, sheathing, MPE, finishes completed Date?
*Final inspection Date?

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 4. Technical requirements:
What are the codes or guidelines that must be implemented in order to meet all
safety requirements? Requirements that ensure proper performance of the product
or service.

Example: *House must meet local building code requirements.

*House must pass seismic stability codes.
*All windows and doors must pass NFRC class 40 energy ratings.
*Exterior wall insulation must meet an R factor of 21.
*Ceiling insulation must meet an R factor of 38.
*Floor insulation must meet an R factor of 25.

5. Limits and exclusions:

What are the limits to the scope of work or what items will be excluded as a part
of the final product.

Example: *Owner responsible for all landscape.

*Owner responsible for all Appliances.
*Air-Conditioning not included, but pre-wiring is included.

6. Review with customer

The completion of the scope checklist ends with a review from the customer.
Does the product or service meet the expectations of the customer?

2. Step two: Establishing Project Priorities

The ultimate success of a project is traditionally defined as meeting or exceeding
the expectations of the customer in terms of Cost (Budget), Time (schedule),
Performance (Scope) of the project. The primary objective of the Project
Planner/Manager is being able to manage the Trade-offs between these items.
Example: Is the client willing to compromise Performance in order to get the
project done Quicker (Time) and Cheaper (Cost). See fig. 4.1

One technique used in industry: Project Priority Matrix See fig. 4.2

Constrain: The original parameter is fixed. The project must meet the
completion date, specifications, and scope or budget.
Enhance: Given the scope, which criterion should be optimized? Taking
advantage of opportunities to either reduce Cost, shorten Schedule, adding value
through Performance.
Accept: For which criterion is it tolerable/acceptable not to meet the original
parameters? Is the schedule allowed to slip? Can we go over budget? Are we
willing to reduce the projects performance?

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 *The purpose of this exercise is to define and agree on what the projects priorities
and constraints are, so that when Push comes to shove, the right decisions are
made.

*Establishing priorities with the customer/client create shared expectations and

avoid misunderstandings.

*The Project Matrix helps the Project Planner/Manager anticipate and confirm
changes in priorities in order to make the appropriate adjustments.

3. Step three: Creating the Work Breakdown Structure (WBS) Fig.4.3

The hierarchy process where the work of the project is successively subdivided into
smaller work elements, once the scope and deliverables have been identified. This is the
map of the project.

A. Major groupings found in a WBS:

1. Project Completed Project (Final Deliverable)
2. Deliverable Major Deliverables
3. Subdeliverable Supporting Deliverables
4. Lowest Subdeliverable Lowest Management responsibility level
5. Cost Account Grouping of work packages for monitoring progress responsibility
6. Work Package Identifiable work activities

B. How WBS helps the project manager

1. The WBS defines all the elements of the project in a hierarchical framework and
establishes their relationships to the project end items.
2. Each item in the WBS needs a time and cost estimate, making it possible to track cost
and work performance.
3. As WBS is developed, individuals are assigned responsibility for executing work
packages. Making it easier to track work performance.
4. The WBS provides the opportunity to Roll-Up (Sum) the budget and actual costs.
5. The WBS defines communication channels and assist understanding and coordinating
the different parts of the project.

C. WBS development Fig.4.4

1. Level 1 (Deliverable) Is the project end item; a deliverable product or service.
2. Levels 2,3,4 (Subdeliverable) Is the partial list of subdeliverables necessary to
develop the deliverable product or service.
3. Lowest Level (Workpackage) These are short duration tasks that have a definite
start and stop point, consume resources and represent cost.
Workpackage:
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 single person responsible for units of work (who).

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 6. Identifies monitoring points for measuring progress (how well).

4. Step four: Integrating the WBS with the Organization

The WBS is used to line the organizational units responsible for performing the work. In
practice, the outcome of this process is the Organization Breakdown Structure (OBS).
The purpose of the OBS is to depict how the firm has organized to discharge work
responsibility. It provides a framework to summarized organization unit work
performance, identify organization units responsible for work packages, and tie the
organization unit to cost control accounts.

5. Step five: Coding the WBS for the Information System

Getting the maximum usefulness of a breakdown structure depends on a coding system.
The codes are used to define levels and elements in the WBS, organization elements,
workpackages, and budget & cost information. Fig. 4.5

6. Responsibility Matrices:
In many cases, the size and scope of the project do not warrant an elaborate WBS or
OBS. A Responsibility Matrix (RM) or a linear responsibility chart can be used for
smaller projects. It summarizes the tasks to be accomplished and who is responsible for
what on a project. It also provides for all participants in a project to view their
responsibilities and agree on their assignments. Fig. 4.6 & Fig 4.7

7. Project Communication Plan

Communication is a key component in coordinating and tracking project schedules,
issues, and action items. Therefore, the purpose of a Project Communication Plan is to
express what, who, how, and when information will transmitted to project stakeholders so
schedules, issues, and action items can be tracked.
Items addressed in Project Communication Plans:
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. Who is allowed access to specific information?
5. When will the information be communicated?
6. How will it be communicated.

Basic steps followed in developing a Project Communication Plan:

1. Stakeholder Analysis Identify the target groups; ex. Customer/client,
project team, project office, or anyone who needs the project information to
make decisions and/or contribute to the project progress.

2. Information Needs What information is pertinent to stakeholders who

contribute to the projects progress? Possibly, information needed to make

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 strategic decisions. Project team members need to see schedules, task lists,
specifications, so they know what needs to be done.
3. Sources of Information Where does the information reside and how will it
be collected?
4. Dissemination Modes A way for stakeholders of the project to have
immediate access to relevant project information. In todays world, there are a
variety of data based sharing programs to circulate information such as e-mail,
teleconferencing, Lotus Notes, Sharepoint, etc.
5. Responsibility and Timing Determine who will send out the information.
Will the Project Office, Project Manager, or the Administrative Assistant be
sending out the meeting minutes? Timing and frequency of distribution of
information need to be established

*The advantage of establishing a communication plan is that instead of

responding to information requests, you are controlling the flow of
information. This reduces confusion and unnecessary interruptions, and
allows all the team players to feel comfortable about how things are going
and what is happening with the project.

9. Summary

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