Professional Documents
Culture Documents
4–2
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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Step 1: Defining the Project Scope
4–4
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
– Must be in 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.
4–5
Project Scope Checklist
1. Project Objective
2. Deliverables
3. Milestones
4. Technical Requirements
5. Limits and Exclusions
6. Reviews with Customer
4–6
Project Scope: Terms and Definitions
• Scope Statements
– also called as Statements of Work (SOW)
• Project Charter
– contain an expanded version of scope statement
– a document authorizing the Project Manager to
initiate and lead the project.
• Scope Creep
– the tendency for the project scope to expand over
time due to changing requirements, specifications,
and priorities.
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Step 2: Establishing Project Priorities
4–8
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
• 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.
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Step 3: Creating the Work Breakdown
Structure
4–10
Step 3: Creating the Work
Breakdown Structure
4–11
Elements of each WBS Element:
4–12
Hierarchical
Breakdown of
the WBS
FIGURE 4.3
4–13
Work Breakdown Structure
4–14
Work Packages
• A work package is the lowest level of the WBS.
– It is output-oriented in that it:
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.
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Work Break Down Structure (WBS)
WBS is a technique/process in which the complete project is broken down into
small chunks/parts.
Project
Chunks/Parts
project Work
Sub-projects Tasks Sub-tasks
packages
(LEVEL 1) (LEVEL 2) (LEVEL 3) (LEVEL 4) (LEVEL 5)
• There is no hard and fast rule and depends on your own choice
• 1 or 2 levels can lead to difficulty in integration of activities
• Too many levels can make the analysis complex
• Then, how many levels ??
TIPs
• WBS should be viewed as a roadmap.
• It should be descriptive, not vague.
• It should list out all the steps down to the smallest
level.
• For example: If 5 steps are there, then all should be
listed.
• Assuming that “everyone knows what steps are
required to complete the task” means failure.
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Level of work breakdown structure
1. Two approaches to the no. of levels
2. Building up the WBS till such time that the work packages
available is capable of giving a good definition of work
content, the cost, time, and resources required.
3. Using 8/80 rule
80
8
Rules for determining the smallest chunk
1. Thumb Rule
2. If it makes sense Rule
3. 8/80 hour rule
4. Three week/year rule, etc.
4–21
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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Step 4: Integrating the WBS with the
Organization
4–23
Step 4: Integrating the WBS
with the Organization
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Organization Breakdown Structure (OBS)
• Development of WBS is developed demands the assignment
of appropriate resources and responsibilities.
• Develop the Organizational Breakdown Structure (OBS) for the
project. This indicates the organizational relationships and is
used as the framework for assigning work responsibilities. See
next slide.
FIGURE 4.5
4–26
Organization Breakdown Structure (OBS)
PROJECT OFFICE
RESP
DEPT
B. Smithers
TEST DRYWALL
PERF DEPT 6030 PERF DEPT 5030
K. Neumann D. Smith
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Step 5: Coding the WBS for the
Information System
4–28
Step 5: Coding the WBS for
the Information System
4–29
Coding
the WBS
EXHIBIT 4.5
4–30
WBS-Construction of House
Level 1
Level 2
32
• Divide the work into the major elements needed to build a house. You
divide Level 3 into six elements: concrete, framing, plumbing,
electrical, interior and roofing. These are both major deliverables and
milestones for managing the project. They also enable the project by task.
• Each codes at level 3 is unique to the project and starts with the WBS code
from the level above (11.11.1.1).
• Do we need another level?
Level 1
Level 2
Level 3
33
Level 4 of the WBS will enable us to manage the project as desired. All
of our contractors fit into specific elements at level 4, and so do all
specific departments. Organization Breakdown Structure (OBS)
Level 1
Level 2
Level 3
Level 4
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Housing Corporation
1.1 New Home Construction
1.1.1 Concrete
1.1.1.1 Pour Foundation
1.1.1.2 Install Patio
1.1.1.3 Pour Stairway
1.1.2 Framing
1.1.2.1 Frame Exterior Walls
1.1.2.2 Frame Interior Walls
Tree 1.1.2.3 Install Roofing Trusses
1.1.3 Plumbing
Format 1.1.3.1 Install Water Lines
1.1.3.2 Install Gas Lines
1.1.3.3 Install B/K Fixtures
1.1.4 Electrical
1.1.4.1 Install Wiring
1.1.4.2 Install Outlets/Switches
1.1.4.3 Install Fixtures
1.1.5 Interior
1.1.5.1 Install Drywall
1.1.5.2 Install Carpets
1.1.5.3 Install Painting
1.1.6 Roofing
1.1.6.1 Install Felt
1.1.6.2 Install Shingles
1.1.6.3 Install Vents
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36
Responsibility Matrices
4–37
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.
4–38
Responsibility Matrix for a Market Research Project
FIGURE 4.7
4–39
Example of Responsibility Matrix
FIGURE 4.8
4–40
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