Project Management Session 4

Project Definition

Project Definition

Session Outcomes

Following completion of the session the delegate

should:
Understand the rationale and format of the SOW,
WBS and OBS;
Understand how the above relate to resource
allocation.
In addition the delegate should be able to develop a
basic SOW and WBS, using an appropriate case
study.

Project Definition

Preamble

Project Definition

Defining the Project

One of the best ways to
meet the needs of
stakeholders is through an
integrated, planning and
control system;
Essentially breaking down
of final deliverable, into the
work that need to be
performed;
Further outlining the
boundaries of what must be
delivered and done and who
is responsible.
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Project Definition

Defining the Project

Project Definition

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.

Project Definition

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;
Draws boundaries for the
project.
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Project Definition

Project Scope Checklist

Project objective

1.

End customers needs drive the

objective;

A project makes a promise value

proposition;

Deliverables

2.

Practically the final deliverable and the

deliverable that directly link to this;

Milestones

3.

Major events;

Technical requirements

4.

Key technical requirements;

Limits and exclusions

5.

What is clearly inside and outside the

scope of the project;

What are the assumptions;

What are the constraints or limitations;

Reviews with customer

6.

Reporting and review of deliverables,

budgets etc.
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Project Definition

Project Scope: Terms and Definitions

Scope Statement:
Also called statements of work (SOW);
Project Charter:
Can contain an expanded version of scope
statement;
A document authorizing the project manager to
initiate and lead the project;
Project Creep:
The tendency for the project scope to expand over
time due to changing requirements, specifications,
and priorities.
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Project Definition

Project Scope: Example of Charter

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Project Definition

Project Scope: Example of Charter

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Project Definition

Project Scope: Example of Charter

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Project Definition

Project Scope: Example of Charter

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Project Definition

Project Scope: Example of Charter

Individuals and organizations who are actively involved
in the project, or whose interests may be positively or
negatively affected as a result of project execution or
successful project completion

Project
Manager
The individual
responsible for
managing the
work

Customer
The individual or
organization who
will use the
product
customer is
always right

Sponsor
The individual or
group within the
performing
organization who
provides the
financial
resources, in cash
or in kind, for the
project

Performing
Organization
The enterprise
whose employees
are most likely
directly involved in
doing the work of
the project

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High
Ability to infuence the outcome

Project Definition

Project Scope: Example of Charter

Low

Consult

Negotiate

Inform

Enable

Interest in the project

High
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Project Definition

Practical Exercise

Write a project scope statement for the following

project (see video clip)
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Project Definition

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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Project Definition

Step 2: Establishing Project Priorities

Causes of Project Trade-offs:

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

Project Management Trade-offs

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Project Definition

Project Priority Matrix

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Project Definition

Time Limited (Constrained) Project

Resources
(Inc Cost)

Time
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Project Definition

Resource Limited (Constrained)

Project

Resources
(Inc Cost)

Time
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Project Definition

Over Determined Project

Resources
(Inc Cost)

Scope

Time
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Project Definition

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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Project Definition

Step 3: Creating the Work

Breakdown Structure
Work Breakdown Structure (WBS):
A hierarchical outline (map) that identifies the products
(deliverables) 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 (collection of elements
related to work that must be done);
Best suited for design and build projects that have
tangible outcomes rather than process-oriented
projects.

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Project Definition

Step 3: Creating the Work

Breakdown Structure
Very important for understanding the WBS:
Aim is to break down (decompose):
Final deliverable; to
Sub deliverables; to
Work package;
Deliverable already delivered, past tense, does not
consume resources;
Work package doing, verb, consume resources and
time.

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Project Definition

Project Definition

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;
Helps manage plan, schedule, and budget;
Defines communication channels and assists in
coordinating the various project elements.

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Project Definition

Work Breakdown Structure

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Project Definition

Work Packages
A work package is the lowest level of the WBS;
It is output-oriented (not output in itself) 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 linked to a cost centre);
Identifies resources needed to complete a work package
(how much);
Identifies a single person responsible for units of work
(who);
Identifies monitoring points (milestones) for measuring
success;
Roughly 10 days maximum (80 hours) experience
shows.
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Project Definition

Practical Exercise

Develop a WBS for

an Airbus 340
passenger aircraft
see Google Video.

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Project Definition

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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Project Definition

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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Project Definition

Project Definition

Direct Labor Budget Sorted By WBS

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Project Definition

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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Project Definition

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
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Project Definition

Practical Demonstration

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Project Definition

Project Definition

Work Package Estimates

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Project Definition

Project Roll-up

Cost Account:
The intersection of the
WBS and the OBS that is
a budgetary control point
for work packages;
Used to provide a roll-up
(summation) of costs
incurred over time by a
work package across
organization units and
levels, and by
deliverables.

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Project Definition

Project Definition

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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Project Definition

PBS for Software Project Development

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Project Definition

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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Project Definition

Responsibility Matrix
for a Market Research Project

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