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UNIVERSITY OF FINANCE - MARKETING CHAPTER 4: DEFINING THE PROJECT

FACULTY OF BUSINESS ADMINISTRATION

CHAPTER 4:
DEFINING THE PROJECT

Course ID number: 010808

QUẢN TRỊ DỰ ÁN ĐẦU TƯ

Lecturer: Dr. PHAM HAI CHIEN

January, 2024
Faculty of Business Administration
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LEARNING OBJECTIVES CHAPTER OUTLINE

1. Identify key elements of a project scope statement and

understand why a complete scope statement is critical to project 1. Step 1: Defining the Project Scope
success.
2. Step 2: Establishing Project Priorities
2. Understand why it is important to establish project priorities in
terms of cost, time, and performance. 3. Step 3: Creating the Work Breakdown Structure

3. Demonstrate the importance of a work breakdown structure (WBS) 4. Step 4: Integrating the WBS with the Organization
to the management of projects and how it serves as a data base
5. Step 5: Coding the WBS for the Information System
for planning and control.
4. Demonstrate how the organization breakdown structure (OBS) 6. Process Breakdown Structure
establishes accountability to organizational units. 7. Responsibility Matrices
5. Describe a process breakdown structure (PBS) and when to use it.
8. Project Communication Plan
6. Create responsibility matrices for small projects.
9. Summary
7. Create a communication plan for a project.
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1. DEFINING THE PROJECT SCOPE 1. DEFINING THE PROJECT SCOPE

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1. DEFINING THE PROJECT SCOPE 1. DEFINING THE PROJECT SCOPE

 Your project scope definition is a document that will be Employing a Project Scope Checklist:
published and used by the project owner and project
1. Project objective
participants for planning and measuring project success.
2. Deliverables
 Scope describes what you expect to deliver to your
customer when the project is complete. 3. Milestones

 Your project scope should define the results to be achieved 4. Technical requirements
in specific, tangible, and measurable terms. 5. Limits and exclusions
6. Reviews with customer

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1. DEFINING THE PROJECT SCOPE 2. ESTABLISHING PROJECT PRIORITIES

Scope Statement example:

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2. ESTABLISHING PROJECT PRIORITIES 3. CREATING THE WORK BREAKDOWN STRUCTURE

One of the primary jobs of a project manager is to manage

the trade-offs among time, cost, and performance.
Technique in practice:
1. Constrain
2. Enhance
3. Accept

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3. CREATING THE WORK BREAKDOWN STRUCTURE 3. CREATING THE WORK BREAKDOWN STRUCTURE

Create Work Breakdown Structure (WBS) is the process of

subdividing project deliverables and project work into smaller,
more manageable components.
Major Groupings Found in a WBS:
1. By work packages
2. By phase
3. By deliverables

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3. CREATING THE WORK BREAKDOWN STRUCTURE 3. CREATING THE WORK BREAKDOWN STRUCTURE

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3. CREATING THE WORK BREAKDOWN STRUCTURE
WBS Decomposed Down by Work Packages
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3. CREATING THE WORK BREAKDOWN STRUCTURE
WBS with Major Deliverables
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3. CREATING THE WORK BREAKDOWN STRUCTURE
WBS Organized by Phase
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3. CREATING THE WORK BREAKDOWN STRUCTURE
The lowest level of the WBS is called a work package
To review, each work package in the WBS:
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 single person responsible for units of work
(WHO)
6. Identifies monitoring points for measuring progress (HOW
WELL)
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4. INTEGRATING THE WBS WITH THE ORGANIZATION 4. INTEGRATING THE WBS WITH THE ORGANIZATION

 The WBS is used to link the organizational units

responsible for performing the work, which is the
Organization Breakdown Structure (OBS).
 As in the WBS, the OBS assigns the lowest organizational
unit the responsibility for work packages within a cost
account.
 The intersection of work packages and the organizational
unit creates a project control point (cost account) that
integrates work and responsibility

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4. INTEGRATING THE WBS WITH THE ORGANIZATION 5. CODING THE WBS FOR THE INFORMATION SYSTEM

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5. CODING THE WBS FOR THE INFORMATION SYSTEM 5. CODING THE WBS FOR THE INFORMATION SYSTEM

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6. PROCESS BREAKDOWN STRUCTURE 6. PROCESS BREAKDOWN STRUCTURE

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7. RESPONSIBILITY MATRICES 7. RESPONSIBILITY MATRICES

Example: Responsibility Matrix for a Market Research Project

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7. RESPONSIBILITY MATRICES 7. RESPONSIBILITY MATRICES

RACI Matrix
Example: Responsibility Matrix for the Conveyor Belt Project

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8. PROJECT COMMUNICATION PLAN 8. PROJECT COMMUNICATION PLAN

The communication plan is usually created by the project

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manager and/or the project team in the early stage of project
planning.
Project communication plans address by core questions:
1. What information needs to be collected and when?
2. Who will receive the information?
3. What methods will be used to gather and store information?
4. What are the limits, if any, on who has access to certain
kinds of information?
5. When will the information be communicated?
6. How will it be communicated?
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8. PROJECT COMMUNICATION PLAN 8. PROJECT COMMUNICATION PLAN

Example: Shale Oil Research Project Communication Plan

Developing a communication plan entails the following basic
steps:
1. Stakeholder analysis
2. Information needs
3. Sources of information
4. Dissemination modes
5. Responsibility and timing

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8. PROJECT COMMUNICATION PLAN
Example: Stakeholder Communications
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8. CHAPTER SUMMARY
1. The project scope definition, priorities, and breakdown
structure are the keys to nearly every aspect of managing
the project.
2. The WBS structure helps ensure all tasks of the project are
identified and provides two views of the project—one on
deliverables and one on organization responsibility.
3. PBS is often used for process-based projects with
deliverables. In small projects responsibility matrices may
be used to clarify individual responsibility.
4. Follow-up with a clear communication plan for coordinating
and tracking project progress will help keep important
stakeholders informed and avoid some potential problems.
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