Define Project

Week 6

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Define project

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Steps to Define 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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Planning Process Group

Initiating Planning
Processes Processes

Executing
Controlling
Processes
Processes

Closing
Processes

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Planning Projects
Upon completion, you will be able to …

• Describe the purposes of the planning processes

• Identify the inputs and outputs of core planning processes
• Describe the function and develop sample planning deliverables such
as a scope statement, WBS, and milestone chart
• List the major tools and techniques used in the core planning
processes
• Identify the planning facilitating processes and their functions

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Purpose of Planning Processes
To develop a project plan that:
• Facilitates later accomplishment*
• Ensures project wide integration
• Monitors change effectively
• Provides decision support information to
stakeholders
• Can be updated by iterative planning activities

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 Core Processes

5.2 6.2
Scope Activity
Planning 6.1 Sequencing 6.4
Activity Schedule
Definition Development

6.3
5.3 Activity 7.3
Scope Duration Cost
Definition Estimating Budgeting
7.1
Resource
Planning 7.2
Cost
From the Estimating 4.1
Initiating Project Plan
Development To the
Processes Executing
(Figure 3–4) Processes
(Figure 3–6)

From the Facilitating Processes

Controlling
Processes
(Figure 3–7)
8.1 10.1 11.1 11.2 11.3
Quality Communications Risk Risk Risk Response
Planning Planning Identification Quantification Development

9.1 9.2 12.1 12.2

Organizational Staff Procurement Solicitation
Planning Acquisition Planning Planning

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Core Planning Processes - Scope Planning
Input Process Output
1. Product description "… the process of developing a 1. Scope statement
2. Project charter written scope statement as the 2. Supporting detail
3. Constraints basis for future project 3. Scope management plan
decisions including, in
4. Assumptions
particular, the criteria used to
determine if the project or
phase has been completed
successfully.”

Tools and Techniques

1. Product analysis
2. Cost/Benefit analysis
3. Alternative identification
4. Expert judgment

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Project Scope Statement Purpose
• To provide a general description of the sum of the products and
services to be provided by the project
• To develop a common understanding of project scope among
stakeholders
• May make explicit some exclusions that, based on the audience,
would be assumed to be part of the project

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Exercise
Scope Statement

• Using the handout in your manual, develop a project scope statement

based on the project charter developed in the initiating process
exercise

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Work Breakdown Structure (WBS)
• “A deliverable oriented grouping of project elements which organizes
and defines the total scope of the project.
• Each descending level represents an increasingly detailed definition of
a project component.
• Project components may be products or services.”

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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—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.

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Project Scope Checklist
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer

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Scope

FIGURE 4.1
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Project Scope: Terms and Definitions
• Scope Statements
• Also called statements of work (SOW)
• Project Charter
• Can contain an expanded version of scope statement
• A document authorizing the project manager to initiate and lead the project.
• Project 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
• 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 parameter over others.
• Accept: reducing (or not meeting) a parameter requirement.

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Project Priority Matrix

FIGURE 4.2
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Priority Analysis

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Step 3: Creating the Work Breakdown Structure
• Work Breakdown Structure (WBS)
• An 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 relationships to work packages.
• Best suited for design and build projects that have tangible outcomes rather
than process-oriented projects.

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What is the WBS?
⚫ Let’s get chaotic!
⚫ WBS is like a Fractal; finding
the self-affinity and
decomposing into
manageable work packages)
⚫ But WBS can not have
“hundreds of iterations”, it’s
only few levels
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Work Breakdown Structure (WBS)
• “A deliverable oriented grouping of project elements which organizes
and defines the total scope of the project.
• Each descending level represents an increasingly detailed definition of
a project component.
• Project components may be products or services.”

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WBS Purpose
• To define:
◼ Solution strategy or general approach
◼ Implementation tactics

• To support more accurate estimates of project duration and cost than

can be made at the project level
• To provide a basis for estimating project resources:
◼ Departmental or subcontractor support
◼ Vendors and their products
◼ Services
◼ Any other identifiable resource

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WBS
The smallest level of
WBS is called work
package

Activities are set

under work
packages

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 Aircraft
System

Project Air Support Test and

Training Data Facilities
Management Vehicle Equipment Evaluation

Systems Technical Organizational

Engineering Equipment Construction Mock-ups
Orders Level
Management

Supporting Engineering Intermediate Operational

PM Activities Facilities Data Level Maintenance Test

Management Depot Developmental

Services Data Level Test

Test

Airframe Engine Communication Navigation Fire Control

This WBS is illustrative only. It is not intended to represent the full project scope of any specific
project, nor to imply that this is the only way to organize a WBS on this type of project.

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 Waste Water
Treatment Plant

Earlier Later
Phases Design Construction Phases

Project Management Project Management

Civil Drawings Headworks

Architectural Drawings Aeration Basin

Structural Drawings Effluent Pumping Station

Mechanical Drawings Air Handling Building

HVACDrawings Sludge Building

Plumbing Drawings

Instrumentation Drawings

Electrical Drawings

This WBSis illustrative only. It is not intended to represent the full project scope of any specific
project, nor to imply that this is the only way to organize a WBSon this type of project.

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Using the WBS to Estimate Cost
• Project manager establishes work requirements by defining the
◼ What—“shalls” and “wills”
◼ When—sequence
◼ Why—dependencies

• Functional managers estimate cost by determining

◼ How—equipment and methods
◼ Who—type and level of expertise
◼ Where—location, department

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Exercise 4-2
Work Breakdown Structure

• Using “Post-it® Notes,” construct a WBS for your project or subproject

• Apply the WBS validation criteria
• Discuss any learning or insights with a classmate, including any
learning from applying the WBS test criteria

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Core Planning Processes
Activity DefinitionInput Process Output
1. WBS “Identifying the specific 1. Activity list
2. Scope statement activities that must be 2. Supporting detail
3. Historical information performed to produce the 3. WBS updates
various project deliverables.”
4. Constraints
5. Assumptions

Tools and Techniques

1. Decomposition
2. Templates

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Project Management - Copyright Pejvak Kokabian 29
Core Planning Processes Activity Sequencing
Input Process Output
1. Activity list “… identifying and 1. Project network
2. Product description documenting interactivity 2. Activity list updates
3. External dependencies dependencies.”
4. Mandatory dependencies
5. Discretionary dependencies
6. Constraints
7. Assumptions

Tools and Techniques

1. Precedence diagramming
method
2. Arrow diagramming method
3. Conditional diagramming
method
4. Network templates

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Work Packages
• A work package is the lowest level of the WBS.
• It is output-oriented in that it:
• 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)
• Identifies a single person responsible for units of work (who)
• Identifies monitoring points (milestones) for measuring success.

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WBS to WP

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 Defining a Project Work Package
1. Work package forms lowest level in WBS.
2. Work package has a deliverable result.
3. Work package has one owner.
4. Work package may be considered by its owner as a project in itself.
5. Work package may include several milestones.
6. Work package should fit organizational procedures and culture.
7. The optimal size of a work package may be expressed in terms on
labor hours, calendar time, cost, reporting period, and risks.

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Sample WBS (in Project Libre)

Level 1
Level 2

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Partial WBS
Deliverables
are major
project
components

Work Packages are

individual project
activities (lowest
level in WBS)

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Project Schedule Management
• Definition
◼ A subset of project management that includes the processes required to ensure timely
completion of the project

• Processes
◼ Activity definition
◼ Activity sequencing
◼ Activity duration estimating
◼ Schedule development
◼ Schedule control

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Purpose of Scheduling Processes
• Illustrates interdependence of project activities, work packages, and
work units
• Monitors and controls timing of project work
• Guides the allocation of resources
• Drives personnel availability issues and activities

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Remodel Kitchen WBS
Remodel Kitchen

Level 1 Design Purchase Carpentry Electrical

Purchase Purchase
Level 2
Appliances Fixtures

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Kitchen Remodeling
Precedence Relationships
ID Task Name Dur -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
1 1 DESIGN 10d

2 1.1 SELECT DESIGNER 3d

3 1.2 CREATE PLANS 5d

4 1.3 SELECT CONTRACTOR 2d

5 2 PURCHASING 6d

6 2.1 PURCHASE APPLIANCES 6d

7 3 CARPENTERS 15d

8 3.1 TEAR OUT 3d

9 3.2 CHANGE WALLS 4d

10 3.3 INSTALL NEW CABINETS 3d

11 3.4 INSTALL SINK 1d

12 3.5 INSTALL DISHWASHER 2d

13 3.6 INSTALL FLOOR 2d

14 3.7 FINISH AND CLEANUP 1d

15 4 ELECTRICAL 3d

16 4.1 WIRING 2d

17 4.2 INSTALL LIGHTS 1d

18 5 MECHANICAL 2d

19 5.1 INSTALL PIPING 2d

20 6 READY FOR DINNER 1d

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Kitchen Remodeling
Forward Pass - Early Dates

Feb 28, '99 Mar 7, '99 Mar 14, '99 Mar 21, '99
ID Task Name Dur ES Date EF Date S S M T W T F S S M T W T F S S M T W T F S S M T W T F
1 DESIGN 10d

2 SELECT DESIGNER 3d

3 CREATE PLANS 5d

4 SELECT CONTRACT OR 2d

5 PURCHASING 6d

6 PURCHASE APPLIANCES 6d

7 CARPENTERS 15d

8 TEAR OUT 3d

9 CHANGE WALLS 4d

10 INSTALL NEW CABINETS 3d

11 INSTALL SINK 1d

12 INSTALL DISHWASHER 2d

13 INSTALL FLOOR 2d

14 FINISH AND CLEANUP 1d

15 ELECTRICAL 3d

16 WIRING 2d

17 INSTALL LIGHTS 1d

18 MECHANICAL 2d

19 INSTALL PIPING 2d

20 READY FOR DINNER 1d

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Kitchen Remodeling
Backward Pass - Late Dates
Feb 28, '99 Mar 7, '99 Mar 14, '99 Mar 21, '99 Mar
ID Task Name Dur LS Date LF Date F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S
1 DESIGN 10d

2 SELECT DESIGNER 3d

3 CREATE PLANS 5d

4 SELECT CONTRACT OR 2d

5 PURCHASING 6d

6 PURCHASE APPLIANCES 6d

7 CARPENTERS 15d

8 TEAR OUT 3d

9 CHANGE WALLS 4d

10 INSTALL NEW CABINETS 3d

11 INSTALL SINK 1d

12 INSTALL DISHWASHER 2d

13 INSTALL FLOOR 2d

14 FINISH AND CLEANUP 1d

15 ELECTRICAL 3d

16 WIRING 2d

17 INSTALL LIGHTS 1d

18 MECHANICAL 2d

19 INSTALL PIPING 2d

20 READY FOR DINNER 1d

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Kitchen Remodeling
Total Float

Feb 28, '99 Mar 7, '99 Mar 14, '99 Mar 21, '99 Ma
ID Task Name Dur ES Date EF Date LS Date LF Date T Float T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S
1 DESIGN 10d

2 SELECT DESIGNER 3d

3 CREATE PLANS 5d

4 SELECT CONTRACT OR 2d

5 PURCHASING 6d

6 PURCHASE APPLIANCES 6d

7 CARPENTERS 15d

8 TEAR OUT 3d

9 CHANGE WALLS 4d

10 INSTALL NEW CABINETS 3d Total Float = Late Finish Date – Early Finish Date
11 INSTALL SINK 1d

12 INSTALL DISHWASHER 2d

13 INSTALL FLOOR 2d

14 FINISH AND CLEANUP 1d

15 ELECTRICAL 3d

16 WIRING 2d

17 INSTALL LIGHTS 1d

18 MECHANICAL 2d

19 INSTALL PIPING 2d

20 READY FOR DINNER 1d

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Kitchen Remodeling
Summary
ID Task Name Dur ES Date EF date LS Date LF Date T Float 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
1 DESIGN 10d 1 10 1 10 0d

2 SELECT DESIGNER 3d 1 3 1 3 0d

3 CREATE PLANS 5d 4 8 4 8 0d

4 SELECT CONTRACTOR 2d 9 10 9 10 0d Float

5 PURCHASING 6d 9 14 12 17 3d

6 PURCHASE APPLIANCES 6d 9 14 12 17 3d

7 CARPENTERS 15d 11 25 11 25 0d

8 TEAR OUT 3d 11 13 11 13 0d

9 CHANGE WALLS 4d 14 17 14 17 0d

10 INSTALL NEW CABINETS 3d 18 20 18 20 0d

11 INSTALL SINK 1d 21 21 22 22 1d

12 INSTALL DISHWASHER 2d 21 22 21 22 0d

13 INSTALL FLOOR 2d 23 24 23 24 0d

14 FINISH AND CLEANUP 1d 25 25 25 25 0d

15 ELECTRICAL 3d 18 20 20 22 2d

16 WIRING 2d 18 19 20 21 2d

17 INSTALL LIGHTS 1d 20 20 22 22 2d

18 MECHANICAL 2d 18 19 19 20 1d

19 INSTALL PIPING 2d 18 19 19 20 1d

20 READY FOR DINNER 1d 26 26 26 26 0d

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Step 4: Integrating the WBS
with the Organization
• Organizational Breakdown Structure (OBS)
• Depicts how the firm is organized to discharge its work responsibility for a
project.
• Provides a framework to summarize organization work unit performance.
• Identifies organization units responsible for work packages.
• Ties the organizational units to cost control accounts.

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 Organizational Breakdown Structure
• Organizational Breakdown Structure (OBS) allows
• Work definition
• Owner assignment of work packages
• Budget assignment to departments

• OBS links cost, activity & responsibility

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Cost Account Rollup Using OBS

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Intersection of
the WBS and OBS
WBS

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Integration of
WBS and OBS

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Direct Labor Budget Sorted By WBS

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Step 5: Coding the WBS
for the Information System
• WBS Coding System

• Defines:
• Levels and elements of the WBS
• Organization elements
• Work packages
• Budget and cost information
• Allows reports to be consolidated at any level in the organization structure

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 WBS Coding

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Direct Labor Budget Sorted by OBS

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Work Package Estimates

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Project Roll-up
• Cost Account
• The intersection of the WBS and the OBS that is a budgetary control point for
work packages.
• Used to provide a roll-up (summation) of costs incurred over time by a work
package across organization units and levels, and by deliverables.

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Process Breakdown Structure
• Process-Oriented Projects
• Are driven by performance requirements in which the final outcome is the
product of a series of steps of phases in which one phase affects the next
phase.
• Process Breakdown Structure (PBS)
• Defines deliverables as outputs required to move to the next phase .
• Checklists for managing PBS:
• Deliverables needed to exit one phase and begin the next.
• Quality checkpoints for complete and accurate deliverables.
• Sign-offs by responsible stakeholders to monitor progress.

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PBS for Software Project Development

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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.
• Clarifies critical interfaces between units and individuals that need coordination.
• Provide an means for all participants to view their responsibilities and agree on their
assignments.
• Clarifies the extent or type of authority that can be exercised by each participant.

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Responsibility Matrix for a Market Research
Project

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 Responsibility Assignment Matrix (RAM)

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Direct Labor Budget Rollup (000)

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Responsibility Matrix for the Conveyor Belt
Project

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Key Terms
Cost account
Milestone
Organization breakdown structure (OBS)
Scope creep
Priority matrix
Responsibility matrix
Scope statement
Process breakdown structure (PBS)
Work breakdown structure (WBS)
Work package

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Thank you
For your feedback

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