Department of Business Management

Institut Teknologi Sepuluh Nopember

(Manajemen Proyek TB 141207)

4th week course material:

Defining and Planning Project

Dr. Yani Rahmawati

yanirahmawati2012@gmail.com

ProjectManagement/MB-ITS/YRahmawati/2017
Main contents

A. Defining project scope

B. Establishing project priorities
C. Work Breakdown Structure (WBS)

ProjectManagement/MB-ITS/YRahmawati/2017
A. Defining Project Scope
1. DEFINITION Project scope is definition of the end result or
2. Project scope mission of the project.
checklist Primary purpose: define as clearly as possible the
3. Scope statement deliverable for the end user and to focus project
plans.
4. Problems
PM practices: poorly defined scope or mission of
project is the barrier of project success. Project
scope directs the focus of PM deliveries/process.
Clear project scope will support the achievement of
project success.
Project scope definition is document that will be
published and used as basic foundation to deliver
project by owner, managers and other participants.

ProjectManagement/MB-ITS/YRahmawati/2017
A. Defining Project Scope
1. Definition Scope describes what you expect to deliver to the
2. PROJECT SCOPE customer when the project is completed.
CHECKLIST Project scope should define results to be achieved
3. Scope statement in specific, tangible, and measurable terms. To
create specific project scope, it needs checklist to
4. Problems complete.
Project scope checklist is used to develop the
project scope definition.

ProjectManagement/MB-ITS/YRahmawati/2017
 A. Defining Project Scope
PROJECT SCOPE CHECKLIST

Project Technical Limits & Reviews with

Deliverables Milestones
Objective Requirements Exclusions customer
Define Requirement Points that Requirement Limitations Reviews the
objective to & progress occurs under that clarifies of project project
meet results in specific of or defines scope that definition
customer every phase. time during proper refers to the with the
needs project. performance. scope of jobs customers
Ex:Open new Can be used Ex: The AC that needs to needs or
store before to declare able to be done, and requirements
Hari Raya the position create the use of The
of progress. comfort resources requirements
environment and time including
for guests. frame. budgets,
Ex: Building timing,
new store performance.
without
interior
equipments

CLEAR PROJECT SCOPE DEFINITION (specific, tangible, measurable)

ProjectManagement/MB-ITS/YRahmawati/2017
 A. Defining Project Scope
1. Definition Scope statements is also known as statement of
2. Project scope works and project charter.
checklist The scope statements is also used to engaged the
3. SCOPE STATEMENT Project Manager & Owner as a contract documents.
4. Problems

Scope Statements Agreement (contract)

document between
Project Scope customer/ owner & Project
Statement of works Manager (PM) that
Scope Definition
authorizes PM to initiate &
Project Charter lead the project

Usually also includes the risks

limits and team composition

ProjectManagement/MB-ITS/YRahmawati/2017
 A. Defining Project Scope
1. Definition Many projects suffer from SCOPE CREEP, which
2. Project scope caused the project scope expand over time.
checklist
3. Scope statement
4. PROBLEMS For examples: Possible to happen if the
Owner wants to change the wall material, project scope is not detail
change the design of the fashion that has been & clear, or the scope
ordered before, change the location of the event definition is too wide/
for product promotion, etc. broad.
Owner/customer
always has Changing Solution:
tendency to change requirements, Caused the Carefully define &
project scope in the specifications, SCOPE CREEP write the specific
middle of project and priorities project scope
progress
Impacts:
Project cost increases, project doesnt finish on
time, need extra time & budget to redesign & COST OVERRUN &
modify the plan DELAYS
ProjectManagement/MB-ITS/YRahmawati/2017
B. Establishing Project Priorities
performance
1. PM TRADE-OFF
Realizing the
2. Priority matrix expectation of Scope
customer and/or
upper management
in terms of
BUDGET,
SCHEDULE, and
PERFORMANCE Quality

By using:
PROJECT PRIORITY Cost Time
MATRIX

budget schedule
To implement trade-offs,
Managing trade-offs among time, cost, and
Project Manager must
define the project priority performance
Examples of trade-offs:
Compromising performance to get the project done
quickly or the cost less expensive

ProjectManagement/MB-ITS/YRahmawati/2017
B. Establishing Project Priorities
1. PM trade-off Main purpose: identify & classified criterion to find
project priority and make right decision in facing
2. PRIORITY MATRIX
changes during PM practices.

Project Priority Matrix

Time Performance Cost
Original parameter,
Ex: product specification for certain market, conference
criteria that cannot be Constraint schedule, final price for low-cost flight
compromised

Criterion that should be Ex: shorten the schedule to quickly meet the market,
optimized Enhance add value to projects

Criterion that is tolerable Ex: Add budget to supply more employee in order to
to meet the original Accept fasten the project
parameter

ProjectManagement/MB-ITS/YRahmawati/2017
 B. Establishing Project Priorities
1. PM trade-off Example 1:
Time to market is important for sales, so Microsoft
2. PRIORITY MATRIX
wants to take opportunity to reduce completion time in
innovating qualified product.

Project Priority Matrix

Time Performance Cost
Specification need to meet the
quality standard, so cannot be Constraint
compromised

Enhancing time-schedule by
reducing duration Enhance

Over budget is acceptable in

order to produce qualified Accept
product & able to attract market

ProjectManagement/MB-ITS/YRahmawati/2017
 B. Establishing Project Priorities
1. PM trade-off Example 2:
Conducting international conference about sustainable
2. PRIORITY MATRIX
development at Oct 17th 2015

Project Priority Matrix

Time Performance Cost
Since the conference has fix
schedule, so time becomes
essential parameter Constraint

Quality of the conference can be

increased by inviting great Enhance
keynote speaker

Over budget is acceptable add Accept

quality in the conference and
maintaining the conference held
on time

ProjectManagement/MB-ITS/YRahmawati/2017
C. Work Breakdown Structure
1. DEFINITION WBS is the hierarchical process in subdividing the
2. Roles work of project into smaller and smaller work
elements.
3. Integrating WBS
with organization Basically, the WBS is an outline of the project with
different level of detail.
Major groupings commonly used in the field to
develop hierarchical WBS.
WBS defines all the elements of project in a
hierarchical framework and establishes their
relationship to project & items.
WBS is also the process of breaking down the
large work package into smaller work packages.
Total project is the summation of all smaller work
package.
Work package is basic unit for planning, scheduling,
and controlling project.
ProjectManagement/MB-ITS/YRahmawati/2017
 Hierarchical breakdown of the WBS

C. Work Breakdown Structure

Begin with the project as the
final deliverable

First, identify major project

work deliverables/systems

Then, define the sub-

deliverable that is needed in
order to accomplish larger Lowest sub-deliverable
deliverables. usually includes several
The process is repeated until work packages.
the sub-deliverable detail is Work packages are
small enough to be able to grouped based on the
do by one person. type of work.

The grouping is called

cost account.
Sub-deliverable is then
The groupings facilitates
divided into work packages.
system for monitoring
project progress by
work, cost, &
Taken from Larson&Gray (2011), pp. 108 responsibilities.
ProjectManagement/MB-ITS/YRahmawati/2017
 Example

C. Work Breakdown Structure

Taken from Larson&Gray (2014), pp. 110

ProjectManagement/MB-ITS/YRahmawati/2017
 Example

C. Work Breakdown Structure

Building Project

1.Work Preparation 2. Structure 3. Mech / Elect. 4. Finishing

2.1. Upperr Structure 2.2. Lower Structure

2.2.1.Foundation 2.2.2. 1st Basement 2.2.3. 2nd Basement

2.2.1.1. Pile 2.2.1.2. Pilecap 2.2.1.3. Sloof

INFORMATION :
1. Name of Activities
2. Volume (unit)
3. Resource usage
4. Activity Cost
5. Activity Duration

ProjectManagement/MB-ITS/YRahmawati/2017
C. Work Breakdown Structure
1. DEFINITION Hierarchical structure facilitates evaluation of cost,
2. Roles time, and technical performance.
3. Integrating WBS Each item in WBS needs time and cost estimate.
with organization The information of time & cost estimate support
the activities of project managers to plan, schedule
& budget their project. It can also be use to track
the cost & work performance.

ProjectManagement/MB-ITS/YRahmawati/2017
C. Work Breakdown Structure
1. Definition Guarantee project manager that all products and
2. ROLES elements are identified.
3. Integrating WBS To integrate the project with current organization.
with organization In practice, it also called the organizational
breakdown structure (OBS). In which it is a process
that assigned responsibility of organizational units
and individual in executing work packages.
Establish basis of control.

ProjectManagement/MB-ITS/YRahmawati/2017
 Example of Organization Breakdown Structure

Organization Breakdown Structure

Taken from Larson&Gray (2014), pp. 114 ProjectManagement/MB-ITS/YRahmawati/2017

 Example of Process Breakdown Structure

Process Breakdown Structure

Taken from Larson&Gray (2014), pp. 117 ProjectManagement/MB-ITS/YRahmawati/2017

References

Most of materials in this lecture are adopted from:

Larson, E.W., and Gray, C.F., (2014), Project Management: The
Managerial Process, 6th Ed., New York: McGraw-Hill Education.
Kerzner, H., (2009), Project Management: A System Approach to
Planning, Scheduling, and Controlling, 10th Ed., New Jersey: John
Wiley & Sons.

ProjectManagement/MB-ITS/YRahmawati/2017