Department of Management Studies

Defining the Project – Structured Approach Steps

 Presentation Coverage

Details of the steps involved in a structured

approach
[ In this presentation we shall build on from the previously
shared presentations on defining a project, project
priority matrix and Work Breakdown Structure(WBS) to
integrating the WBS with the organisation and coding the
WBS)

Project Management: Structured approach steps 2

 Recap - Structured approach steps

Defining the project scope

Establishing project priorities

Creating the Work Breakdown Structure (WBS)

Integrating the WBS with the Organisation

Coding the WBS for the Information System

Project Management: Structured approach steps 3

 Recap Step 1 - Project Scope Checklist

Project Objective

Deliverables

Milestones

Technical requirements

Limits and exclusions

Reviews with customer

Project Management: Structured approach steps 4

 Example of Defining the Project Scope
PROJECT OBJECTIVE To construct a high-quality ,custom home within five months at cost not to exceed INR 45,00,000
DELIVERABLES • A 2200 Square-foot, 2-bath, 3-bedroom, furnished home
• A finished garage.
• Kitchen appliances to include oven, microwave.
• High efficiency gas furnace with programmable thermostat.
MILESTONES • Permits approved – May 5
• Foundation poured – May 14
• Drywall in- Framing , sheathing ,plumbing electrical and mechanical inspections passed – July
25
• Final inspection – August 7
TECHNICAL • Home must meet local building codes.
REQUIREMENTS • All windows and doors must pass NFRC class 40 energy ratings.
• External wall insulation must meet an “R” factor of 21,Ceiling 38 & Floor 25.
• Garage will accommodate two large-size cars.
• Structure must pass seismic(earthquake resistant) stability codes.
LIMITS AND • The home will be built to the specifications and design of the original blueprints provided by
EXCLUSIONS the customer.
• Owner is responsible for landscaping.
• Refrigerator is not included among kitchen appliances.
• Air conditioning is not included but pre-wiring is included.
• Contractor reserves the right to contract out services.
• Contractor is responsible for subcontracted work.
• Site work limited Monday through Saturday, 8:00 AM – 6:00 PM.
CUSTOMER REVIEW Mrs & Mr Madan (house owners- customer)
Project Management: Structured approach steps 5
 Step 2 – Establishing Project Priorities
Project Management Trade-offs

• To get the project done quickly or Scope

(Performance)
less expensively generally implies
compromising on performance &
scope of a project

• Project costs reduction might be

through cheaper, lesser efficient QUALITY

labour or equipment but this

extends the project duration Cost Time
(Budget) (Schedule)

Project Manager’s role : managing the above trade-off & meet or exceed
customer and /or upper management expectations
Project Management: Structured approach steps 6
 Priority matrix to manage trade-off

• Original parameter is fixed.

Criterion which is Constrained
• Eg. meet completion date, specifications, scope, budget.

• Eg – either reduce costs or shorten schedule by taking

Criterion to be Enhanced advantage of opportunities.
• Add value to the project to enhance performance.

• For which criterion it is tolerable to meet the original

parameters
Criterion to be Accepted
• Eg – is it permissible to for the duration (schedule) to
extend in order to scope & performance
Eg. – For projects where time to market is critical such
Example of Project Priority Matrix as launch of a new wireless modem or Microsoft
software projects:
• A project manager may be instructed to take
Time Performance Cost
advantage of every opportunity to reduce project
Constrain completion time .
• Performance specifications are a constrain in that
Enhance
they cannot be compromised.
Accept • In doing so , going overbudget is acceptable but not
desirable.
Project Management: Structured approach steps 7
 Step 3 – Work Breakdown Structure (WBS)
LEVEL 1 Advantages:
• Assures project manager that all
PROJECT: Complete project products and work elements are
identifieds
LEVEL 2 • Integrate the project with the
current organization
DELIVERABLE: Major deliverables • To establish a basis of control
• Facilitates planning & evaluation of
LEVEL 3 cost, time and technical
performance at all levels over the
SUBDELIVERABLE: Supporting deliverables project life
• Provide appropriate information to
LEVEL 4 each level of management
LOWEST • Helps plan, schedule and budget
Lowest management responsibility level project
SUBDELIVERABLE:
• Framework fro tracking cost and
LEVEL 5 work performance
Grouping of work packages for monitoring progress • Organisational units or individuals
COST ACCOUNT: are assigned execution of work
and responsibility
packages
LEVEL 6 • Define communication channels
• Assists in understanding and
WORK PACKAGE: Identifiable work activities
coordinating many parts or project
A hierarchical process by which a project can be successively subdivided into smaller and
smaller work elements – an outline of the project with different levels of detail
Project Management: Structured approach steps 8
 Example Work Breakdown Structure (WBS)
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)
• WBS as basic unit used for planning ,
scheduling and controlling of project
• Should be output oriented rather than Identifies a single person responsible
following organization structure for units of work (who)
• Relevant examples from previous projects
can be taken to begin the process
• Is a group effort of team members Identifies monitoring points for
measuring progress (how well)
involved who meet to establish the various
levels
Project Management: Structured approach steps 9
 Step 4 – Integrating the WBS with the Organisation
LEVEL 1 OBS:
PROJECT: Complete project • Depicts how the firm has
organized to to discharge
LEVEL 2 work responsibility
DELIVERABLE: Major deliverables • Summarise
organisational unit work
LEVEL 3
performance
• Identify organizational
SUBDELIVERABLE: Supporting deliverables
units responsible for
work packages
LEVEL 4 • Tie the organisational
LOWEST
Lowest management responsibility level unit to cost control
SUBDELIVERABLE:
accounts
LEVEL 5 • Cost accounts group
Grouping of work packages for monitoring
COST ACCOUNT:
progress and responsibility
similar work packages
(usually under the
LEVEL 6 purview of a
WORK PACKAGE: Identifiable work activities department)

Organisational Breakdown Structure (OBS): linking organisational units responsible for performing the work
Project Management: Structured approach steps 10
 Example of Integration of WBS and OBS – Developing
a new prototype tablet computer (E-Slim Tablet x-13)

Intersection of work packages and organisational unit creates a project control point (cost account).
For example at level 5 Touch Sensors has three work packages that have been assigned to the Design,
Quality Control Test, and Production departments.

Project Management: Structured approach steps 11

 Step 5 – Coding the WBS for the Information System
Example
Sr. No. Task Name
• The codes are used to define levels
1 1 E-Slim Tablet x-13 Prototype and elements in the WBS,
2 1.1 Hardware
organisation elements, work
3 1.1.1 Cameras
packages, budget and cost
4 1.1.2 Speakers
5 1.1.3 Antenna
information.
6 1.2 CPU
• The codes help reports to be
7 1.2.1 Power Supply consolidated at any level in the
8 1.2.1.1 Battery (more items) structure
9 1.2.1.2 Charger (more items) • Larger projects might have WBS
10 1.2.2 Flash ROM (more items) supported by WBS dictionary
11 1.2.2.1 I/O controller
containing details about each
12 1.2.2.2 USB slots (more items)
element of WBS such as work
13 1.2.2.3 Internet (more items)
14 1.2.3 Touch Screen
package level(code),name and
15 1.2.3.1 Keyboard
functional description (may be
16 1.2.3.1.1 Work Package further supported by
17 1.2.3.2 Touch Sensors specifications)
18 1.2.3.2.1 Work Package • For large projects additional
19 1.2.3.2.2 Work Package schemes (such as adding ’20’ after
20 1.2.3.2.3 Work Package
the code )could indicate a site
21 1.2.3.3 Back Light (more items)
location
22 1.2.3.4 Resolution (more items)
Project Management: Structured approach steps 12
 Thanks….

Project Management: Structured approach steps 13