ME511 Project Study

CHAPTER 3
DEFINITION PHASE
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Definition phase

The starting point for a project group or team is the definition phase in which people get a
clear idea of the project's goal and how they will evaluate the project's success. Defining
the project is not always easy. Here are the most three common difficultes project teams
or groups face when trying to clarify the project's nature and scope.
• General objectives: The project objectives are too vague to serve as useful criteria for
success. The team simply does not know exactly what they should accomplish.
• Inadequate infor mation: T he team lacks the infor mation needed to indentify
everything that needs to be produced or accomplished.
• Limited resource identification: The team fails to identify which specific skills and
other resources are required for success.
The definition phase of project study and management answers four basic questions:
• What is the purpose of the project?
• What are its objectives?
• What results should be achieved?
• What resources are needed?
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To answer these questions and overcome the difficulties associated with project definition,
a systematic process is required. This process consists of four key steps.

The definition phase steps are:

A. State the Project
B. Develop Objectives
C. Develop Work Breakdown Structure
D. Identify Resources Requirements

A. State the Project

The first step in project study/management is to clarify the purpose. This is done by
writing a project statement. It is a concise statement of the project's purpose and helps
establish agreement on the project goal. It also gives group or team members focus and
outlines the three major dimensions within which the project's objectives and work
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breakdown structure will be developed.

An effective project statement should contain the following elements:
• an action word and an end result - performance
• a target date for completion - time
• overall project cost (optional)

In the following project example 1-1, the EVSU Or moc school wanted to move its
Engineering Services Department which maintains close contact with all of its customers
namely, the Engineering faculty members and engineering students to Brgy. Luna
S at e l l i t e a r e a . T h e d e p a r t m e n t i s o r g a n i ze d i n t o t h r e e g r o u p s : E n g i n e e r i n g ,
Legal/Financial, and Administration. All three groups deal mainly with customers and, to
varying degrees, each services the school itself.

Currently, the department is housed in an older, less desirable office building and has
outgrown the available office at the main campus at Brgy Don Felipe. The move will also
provide an oppurtunity for upgrading the work atmosphere through modern furniture and
well decorated surroundings.

The school has allocated Php100,000.00 for equipment and office furnishings, but the
cost of the move itself must be covered by the department's overhead budget, which
currently is Php15,000.00.
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The move must be completed within one month despite the fact that the school General
Services Department, which is expected to provide engineering, maintenenance, and
minor construction support, is short handed.

A team of four experienced school officers, including the Head for School Customer
Services, has been assigned to the project. One thing is already clear: moving the
Department's EVS/AX computer is the most critical part of the project.

The project team working to move the EVSU Ormoc Engineering Services Department
must move (an action word) the EVSU Ormoc Engineering Services Department (the end
result of the action). They also know the move must be completed in one month (time)
and within the Php115,000.00 budget (cost).

The following statement shows the project statement as it might be written.

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Example 1-1 Project Statement

Move the EVSU Ormoc Engineering Services Department within one month (at a cost not
to exceed Php 115,000.00)

This clear statement of purpose can guide the team's efforts in developing the project
objectives.

B. Develop Objectives
The project statement provides information on the project's overall goal by identifying
the three major elements: performance, time and cost. The objectives of the project
provide further clarification of these elements.
The project objectives identify more specific results and constraints, and provide a
charter for the period.
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Results describe what the project team expects to have at the end of the project. In
the department move example, the organization expects to have an office layout that
can be quicly revised in the future should the function or size of the department change.

As the team goes about identifying what its members expect to see when the project is
complete, success can be considered in these areas:
Business and finance
Technology
Organizational
Marketing
Other areas that affect the organization
The project team's deliberations might result in this list of project objectives as shown
in Example 1-2
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Example 1-2
Project Objectives
At the end of the project we will have:
• The ability to quicly revise future office lay-outs
• Improved information flow between department offices
• Smooth traffic flow within office areas
• Met the school requirements for minimum office floor space, lighting levels, and background noise
levels
• Provided for current and future storage needs.

Other project objectives:

• Office move cost not to exceed Php15,000.00
• Office move to be completed within one month
• Maximize effective use of existing equipment
• Current customer requirements and workload not interrupted by office move
• New equipment and office furnishings cost not to exceed Php100,000.00
• Office layouts must fit within allocated office area
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Constraints are objectives that clarify the boundaries within which the project must be
completed. The three major constraints of any project are people, money, and time, but
there are other areas that could affect success:
Legal requirements
Environmental requirements
Organizational policies
Political implications
Market impact
Other external or internal factors

In the department move example, senior management had determined that current
customer requirements and workload should not be interrupted by the move. Other
examples of constraints are shown in Example 1-2.

A useful tecnique to develop project objectives is to ask these questions:

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• At the end of the project, what will we have?

• What other project objectives are important?
• What constraints or resource limitations need to be considered?
• What do we need to accomplish this project?
• How will we know if this project is a success?

If rephrased, these questions become the headings for the two parts of the project
objectives list shown earlier.

• At the end of the project we will have...

• Other project objectives are...

Projects in the research and development area may initially focus only on results
without considering constraints. The limitations on the project can be identified after
there is a clear definition of the results to be achieved.

The source of project objectives varies. The originator or promoter of the project
contributes initial expectations, but others in the organization can provide valuable
insights into what the project should achieve and how its success could be measured.
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Developing objectives has two main benefits for the project: it ensures that the project
will be planned and implemented according to sound criteria, and it raises the
commitment of team members and the entire organization. Project objectives provide
the foundation for success.

In addition to senior leaders or superiors and the project or affected by it. These people
may have valuable contributions to the definition phase. In some instances people
outside the organization might be involved as well.

When working with larger groups, creative techniques such as brainstorming or nominal
group technique worj well in encouraging others' involvement in establishing project
objectives.
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C. Develop work breakdown structure

The project team charged with moving the EVSU Ormoc Engineering Services
Department has presented its project charter and has received endorsement from
senior leaders or superiors. Their next job is to identify the results necessary for
meeting the project objectives.

At this point, we must identify the work that has to be done and disply it in order to
support the planning and implementation phases. The work breakdown structure
identifies and displays the deliverables to be provided and the tasks to be accomplished
for the project.

While the deliverables and accomplishments of the project clarify how the project
objectives will be achieved, initially they will be used to:
• Determine the required resources
• Facilitate assignment of responsibilities
• Help sequence and schedule project tasks
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To develop this list, the team members must rely on their experience or the experience
of others. In the department move for example, the major deliverables and
accomplishments necessary to complete the project might include:
Office layouts drawn
Office equipment obtained
Office area prepared
Office moved
Organizational manuals updated

In defining the results of the project, project leaders have come to use specific terms:
• Deliverable - a thing produced, an outcome of the project
• Accomplishment - something that has been achieved during the project

In turn, these outputs of the project may have to be broken down into sub-deliverables
or sub-accomplishments. This breakdown of deliverables and accomplishments is done
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to assist the people who will be responsible for the project. Each deliverable or
accomplishment should be equal to the sum of its sub-deliverables or sub-
accomplishments. It is necessary to breakdown work at least to where a single person
or group could be assigned responsibility for completing the task.

For example, the project deliverable, “Office lay-outs drawn,” may be broken down into
three sub-deliverables:
Relationship charts prepared
Department block layouts drawn
Department detailed layouts drawn

As a result of the three sub-deliverables being achieved, the deliverable is completed.

These lowest level sub-deliverables or sub-accomplishments are known as terminal
elements. These will become the project tasks in the planning phase.
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The work breakdown structure (WBS) is the tool used to display the deliverables,
accomplishments, sub-deliverables and sub-accomplishments. It is also a means to test
how the project objectives are being met. This total analysis of the project can be
displayed either by a simple outline (Example 1-3) or in an organization chart (Example
1-4) format

With the work breakdown structure in place, the project team has a basis for:
Establishing resource requirements
Budgeting and pricing
Controlling cost
Assigning responsibility
Sequencing and scheduling the project
Allocating resources
Reporting for project monitoring
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Modifying the project

Evaluating the project

Example 1-3
Work Breakdown Structure (WBS)
Project Statement: Move the EVSU Ormoc Engineering Services Department within one month (at a cost
not to exceed Php115,000.00)
Work Breakdown Structure:
1. Office Layouts Drawn
1.1 Relationship charts prepared
1.1.1 Interviews conducted
1.1.2 Charts prepared
1.2 Department block layouts drawn
1.3 Department detailed layouts drawn
2. Office Equipment Obtained
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2.1 Equipment to keep identified

2.1 Equipment to keep identified
2.2 Equipment to order identified
2.3 Office interior designed
2.4 Equipment and office furnishings ordered
2.5 Equipment and office furnishings received
3. Office area prepared
3.1 Electrical services installed
3.2 Telephone services installed
3.3 Computer services installed
4. Office moved
4.1 Work order submitted
4.2 Equipment moved per schedule
4.3 Equipment installed per schedule
4.4 Personal materials moved per schedule
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5. Organization manuals updated

5.1 Customer notices distributed
5.2 Personnel data base updated
5.3 Telephone directory revised
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Example 1-4
Work Breakdown Structure (WBS)
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D. Identify resource requirements

Earlier, the three major dimensions in the definition of a project were described as:
• Performance
• Time
• Cost

The performance dimension is covered when we state the project, develop project
objectives, and develop the work breakdown structure. The targeted completion date
and time dimension are described in the project statement. The detailed allocation of
time will be covered in the planning phase. The cost element, or resource requirements,
is addressed as the fourth step in the definition phase.

For projects where pricing and cost control are paramount, identifying resource
requirements must be complete and accurate. For projects where cost control is not
critical, these resource requirements serve as a practical checklist to identify any
unusual resource needs.

Identifying resource requirements is the determination of the inputs (resources)

necessary to provide the project deliverables and accomplishments (i.e., the work
breakdown structure).
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The resource requirements step is used to identify the type, amount and cost of the
resources required for project success and to facilitate later assignment of project
responsibilities. Each work breakdown structure element (including sub-deliverables
and sub-accomplishments) must be considered to identify the:
• Type
• Amount
• Estimated cost of resources required

For these categories:

Human Resources
Knowledge and skills required
Person-hours (or days) required for each knowledge or skill
Estimated cost of human resources
Facilities
Types of buildings or work areas needed
Space and hours or days required
Estimated cost of facilities
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Equipment
Types of equipment
Hours or days for each
Estimated cost of equipment
Materials/supplies
Types of materials/supplies required
Quantity of each
Estimated cost of materials/supplies
Any special requirements (and their costs)
Natural resources
Scarce resources
Unique skills
Unusual energy sources
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The resources required for project success can be arrayed in a matrix by listing the
lowest (or terminal) level elements of the work breakdown structure vertically, and
identifying related resources horizontally. This matrix permits a horizontal summary of
the cost of each breakdown structure element and is a key tool in communicating with
superiors or management. The partial resource requirements for the department move
project is shown in Example 1-5.

Example 1-5
Project Statement: Move the EVSU Ormoc Engineering Services Department within one month (at a cost
not to exceed Php115,000.00)
Resource Requirements
Work Breakdown
Structure Knowledge/Skills Facilities Equipment Matrerials Special
1. Office layouts drawn
1.1 Relationship charts
charts prepared
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Structure Knowledge/Skills Facilities Equipment Materials Special

1.1.1 Interviews Interviewing skills Interview areas None None None
Conducted (3 person-days) (as required)
1.1.2 Charts Relationship chart skills None None Blank charts None
prepared (2 person-days) (1-3 charts)
1.2 Department School guidelines None EVS/AX Lay-out paper EVS/AX
block layouts knowledge and layout terminal with (as required) Computer
drawn preparation skills plotter (1) aided
(2 person-days) design skills
1.3 Department Dep't job & equip'mt None EVS/AX Layout paper EVS/AX
detailed layouts requirements knowledge terminal with (as required) computer-
drawn and detailed layout plotter (1) aided
preparation skills design
(4 person-days) skills
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Identifying resource requirements provides the information for the project budget,
which becomes the basis for project cost control. In large projects, several cost
estimate may be prepared as the project evolves. Initially, “ball park” estimates may be
prepared to help determine the project's potential viability. These estimates are
probably accurate within +/- 40 - 50%. Preliminary estimates may then be prepared by
examining the project's major components and making assumptions about factors such
as project design and resource utilization. These estimates may be accurate within +/-
20 - 25% and are often used to evaluate alternative project designs. Finally, detailed
estimates may be developed be examining all project elements in detail. These
estimates are typically accurate within +/- 5 - 10% and are used to monitor the project's
cost performance.

The project leader/manager is ultimately responsible for estimating project cost and
managing the project within its budget. However, specialists are often available to
assist the project leader/manager.
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These estimates - ball park, preliminary or detailed - are often used to help decide
whether to undertake or continue a project. This decision making process has many
names, such as conducting a cost/benefit analysis, conducting a feasibility study, or
examining the business case. The basic process involves calculating the benefits of the
project, based on the project objectives, and comparing the benefits with estimated
cost of the project. Ideally this analysis results in a numerical cost / benefit ratio, but in
practice the qualitative judgement of the project leader/manager and project sponsors
is used to make the final decision whether to proceed with the project.