PROJECT SCOPE &

WORK BREAKDOWN
STRUCTURE (WBS)__
LECTURE 2
DR. NOR KHAIRUSSHIMA
 PROJECT SCOPE

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 DEFINING THE PROJECT
Coding WBS for the
Information System

Creating the Work 5

design structure
Establishing
4
project priorities.
Defining the 3 Integrating the WBS
project scope with the organisation
2
1
STEP

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 1 DEFINING THE
PROJECT SCOPE

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 PROJECT SCOPE MANAGEMENT
• Project Scope:
‒ A definition of the end result or mission of the project – a
product or service for the client/customer

• Purposes of the Project 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 tools and for measuring project success

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 PROJECT 1. 2. 3.
SCOPE Project Deliverables Milestones
objective
CHECKLISTS
This checklist
is generic!
Different industries
and companies will 4. 5. 6. Reviews
develop unique Technical Limits and with
checklists and requirements exclusions customer
templates to fit their
needs and specific
kinds of projects.

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 EXAMPLE OF PROJECT SCOPE
MANAGEMENT

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 SCOPE PROJECT
SCOPE
PROJECT STATEMENTS CHARTER
• Can contain an CREEP
Also called
SCOPE statements of expanded
version of scope
The tendency for
the project scope
work (SOW)
statement. to expand over
time due to
• A document changing
TERM & authorizing the requirements,
project manager specifications
DEFINITION. to initiate and and priorities
lead the project

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 2 ESTABLISHING
SCOPE PRIORITY

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 PROJECT PRIORITIES – TRADE-OFFS
• Managing the priorities-Trade-offs

CONSTRAIN : Original parameter is a fixed requirement

ENHANCE : Optimizing a criterion over others

ACCEPT : Reducing (or not meeting) a criterion requirement

One technique for this purpose is completing a priority

matrix

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Priority matrix for the project to identify which
criterion is constrained, which should be
EducationPROJECT enhanced and which can be accepted
Plan
PRIORITY
MATRIX 1 CONSTRAIN

Time Performance Cost

CONSTRAIN 2 ENHANCE
ENHANCE
ACCEPT

3 ACCEPT
 PROJECT PRIORITY MATRIX

Time Performance Cost

CONSTRAIN

ENHANCE

ACCEPT

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 EducationPROJECT
Plan
PRIORITY CONSTRAIN
1
MATRIX
Time Performance Cost • The original parameter is fixed.
CONSTRAIN

ENHANCE • The project must meet the completion

ACCEPT
date, specifications and scope of the
project, or budget

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 ENHANCE
EducationPROJECT 2
Plan
PRIORITY
• Given the scope of the project, which
MATRIX criterion should be optimized

Time Performance Cost • In the case of time and cost, this usually
CONSTRAIN means taking advantage of opportunities
ENHANCE either reduce costs or shorten the schedule
ACCEPT

• Conversely, with regard to performance,

enhancing means adding value to the
project.
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 ACCEPT
EducationPROJECT 3
Plan
PRIORITY
MATRIX • For which criterion is it tolerable not to meet
the original parameters?
Time Performance Cost

CONSTRAIN • When trade-offs have to be made, is it

ENHANCE
permissible for the schedule to slip, to
ACCEPT
reduce the scope and performance of the
project, or to go over budget?

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Example of Priority Matrix for the Development of a
New Wireless Modem

Time Performance Cost

CONSTRAIN

ENHANCE

ACCEPT

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Example of Priority Matrix for the Development of a
New Wireless Modem

Time Performance Cost

CONSTRAIN

ENHANCE

ACCEPT

Because time to market is important to sales, the project manager is instructed to take
advantage of every opportunity to reduce completion time
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Example of Priority Matrix for the Development of a
New Wireless Modem

Time Performance Cost

CONSTRAIN

ENHANCE

ACCEPT

In doing so, going over budget is acceptable through not desirable

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Example of Priority Matrix for the Development of a
New Wireless Modem

Time Performance Cost

CONSTRAIN

ENHANCE

ACCEPT

At the same time, the original performance specifications for the modem as well as
reliability standards cannot be compromised
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Your Picture Here and Sent to Back

EXERCISE
In small groups, identify real life examples of a project
that would fit each of the following priority scenarios:

1. Time-constrain, Scope-enhance, Cost-accept

PRIORITY
MATRIX
2. Time-accept, Scope-constrain, Cost-accept
3. Time-constrain, Scope-accept, Cost-enhance

Time performance cost

Constrain
Enhance
Accept
Submit in report format

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Your Picture Here and Sent to Back

Responsibility
matrix

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Your Picture Here and Sent to Back

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 3 WORK BREAKDOWN
STRUCTURE (WBS)

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WORK BREAKDOWN STRUCTURE (WBS)

• Definition
• A Project made more manageable by breaking it down into
individual components that together are known as Work
Breakdown Structure or WBS

• The lowest level called work package which is the basis for the
budget estimation

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WORK BREAKDOWN STRUCTURE (WBS)

• A hierarchical outline (map) that identifies the products and work

elements involved in a project

• Defines the relationship of the final deliverable (the project) to its

subdeliverables, and in turn their relationship to work packages.

• Best suited for design and build projects that have tangible outcomes
rather than process-oriented projects.

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Level Hierarchical breakdown Description

1 project Complete project

HIERARCHICAL
Education
Plan 2
BREAKDOWN Deliverable Major deliverables

OF WBS Supporting
Subdeliverable deliverables
3

• This breakdown groups work

packages by type of work 4 Lowest management
Lowest subdeliverable
responsibility level
within a deliverable and allows
assignment of responsibility to
an organizational unit. This 5 Grouping of work packages
Cost account for monitoring progress
extra step facilitates a system and responsibility
for monitoring project progress
(discussed in Chapter 13) Work package Identifiable work
activities

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 HOW WBS HELPS THE PROJECT
MANAGER
Facilitates evaluation of cost,
time and technical performance
of the organization on a project
Provides management with
information appropriate to
each organizational level
Helps manage plan,
schedule and budget
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH
01
05
Defines communication channels
02
and assists in coordinating the
various project elements
Helps in the development of the
03 04 organization breakdown (OBS)
which assigns project
responsibilities to organizational
units and individuals
MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WORK PACKAGE IN WBS
The lower level in the WBS that can be used for estimate the time and cost

1 What 2 How long 3 Cost

Defines work Identifies time to Identifies a time-phased
complete a work budget to complete a work
package. package

4 How much 5 Who 6 How well

Identifies resources Identifies a single Identifies monitoring
needed to complete a person responsible points for measuring
work package. for units of work progress

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Education ACCEPT
PlanEXAMPLE OF
WBS

BICYCLE

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WBS CREATION METHODS

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 TOP DOWN

• Define the final product:

• starting from the high level scope in the project charter

• Define the major deliverables

• Decomposed major deliverables

• Review and refine until stakeholder agree that the project will be
successfully completed based on the current WBS

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 BOTTOM UP
• Identify all the deliverables (work packages) involved in the project

• Logically group the work packages together

• Aggregate the deliverables to the next level (the sum should include the 100%
RULE

• Analyze to ensure that the main component is containing the 100%

• Repeat until all supplements have been aggregated to a single parent

representing the project

• Repeat and review until the stakeholders agree with the final WBS will be
successfully completely
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WBS ORGANIZATION STANDARD
• An organizational WBS standard is a set of principles for constructing WBS and
might include a format, numbering scheme, naming convention, or required
elements.

• WBS standards are common in many organizations with a high level of project
management maturity.

• These standards help ensure consistency and completeness in WBSs throughout

the organization.

• Examples of WBS standards include:

 Project management must be a Level 2 WBS element
 Graphical and textual WBS views must be developed and maintained
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WBS TEMPLATE
• A WBS template
• A sample WBS with hierarchical elements filled in to some level of details, or
• A generic WBS ‘container’ that is customizes with project-specific information

• An organization can have templates for different types of projects and different life cycles

• The use of WBS standard and WBS templates helps promote consistency through reuse of
WBSs or WBS components

• When reusing existing components, be sure to customize (fill) the WBS to the specific
needs and requirements of the project

• Any non-required wok or deliverables should be removed so that the WBS is aligned with
the project scope.

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 4 INTEGRATING WBS
WITH ORGANIZATION

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 ORGANIZATION BREAKDOWN STRUCTURE (OBS)
OBS depicts how the firm is organized
A hierarchical
to discharge its work responsibility for
representation of the
a project.
project organization that
illustrates the relationship Provides a framework
to summarize Identifies organization
between project activities and units responsible for
organization unit work
performance work packages
the organizational units that
will perform those activities.
Ties organization
. units to cost control
accounts

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 INTEGRATION OF WBS AND OBS

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 WBS AND OBS

While the WBS shows a breakdown of project deliverables, the organizational breakdown structure
(OBS) is arranged according to an organization’s existing departments, units, or teams with the
project activities or work packages listed under each department
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 5
CODING THE WBS
FOR INFORMATION
SYSTEM

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Defines
- Levels and elements of the WBS
Education - Organization element
Plan - Work packages
- Budget and cost .
WBS
INFORMATION
SYSTEM WBS
WBS CODING
DICTIONARY SYSTEM

Provides detailed Allows reports to be

about each consolidated at any level
element in the WB in the organization
information structure
 CODING THE WBS

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 RESPONSIBILITY MATRICES (RM)
Also called a linear responsibility chart
Summarizes the tasks to be accomplished and who is responsible for what on the project.

i pa nts t ion
t ic i na
n d par c oord
i t ie s a ity n eed
iv iv t
c t act ch act l s t ha
p r oje for ea i vidua
s
List onsible nd ind
esp u n its a
r
t w een
ce s be t h eir
t e r fa v iew nts t hat
al in s to ignme rity
iti c a n t t h o
e s cr rt i c ip ir ass of au nt
r if i p a h e e i pa
Cla r all o nt o r typ partic
nf o re e en t ch
e a a g e x t ea
d e a m s and s t he
e d by
vi iti e rifie xercis
Pro onsibil C la
e sp n b ee
r ca
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 EXAMPLE: RM FOR A MARKET RESEARCH
PROJECT

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 EXAMPLE: RM FOR THE CONVEYOR BELT
PROJECT

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 PROJECT COMMUNICATION PLAN

• What information needs to be collected and when?

• Who will receive the information?
• What methods will be used to gather and store information?
• What are the limits, if any, on who has access to certain kinds of information?
• When will the information be communicated?
• How will it be communicated?

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 DEVELOPING A COMMUNICATION PLAN

Stakeholde Information Sources of Dissemination Responsibility

r needs information modes and timing

Typical group: Who will

customer, Determine send the
Information is the sources
sponsor, project Usually project informatio
required so that of
team, project management n
the can make information
office or anyone feed the
strategic
that need the information into
decisions and
info to make Company Web
manage the
decision to portfolio of
project project
progress

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
 Your Picture Here and Sent to Back

EXAMPLE
CASE STUDY

• Develop a WBS for producing WBS

personal computer

DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT
DR. NOR KHAIRUSSHIMA MUHAMAD KHAIRUSSALEH MANU 3314 PROJECT AND OPERATION MANAGEMENT