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PE 511 Project Management

‫ إدارة مشاري ع‬511 ‫ـه نف‬
Chapter Four
Defining the Project
Spring 2023

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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

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: 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
• Scope Creep
– The tendency for the project scope to expand over time due
to changing requirements, specifications, and priorities

Project Scope: Terms and Definitions

• Gold plating:
– Adding more to the system than specified in the
requirements. Gold plating is not a bargain
– It can increase operation and maintenance costs and reduce
quality
– Gold plating indicates project processes are out of control
– Gold plating can also be accomplished by adding
unnecessary requirements
– Risk adjusted cost-benefit analyses can help avoid this form
of gold plating

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Project Scope Management

4.1 Scope Planning
4.2 Scope Definition
4.3 Create WBS
4.4 Scope Verification
4.5 Scope Control

Project Scope Management (cont’d)

4.1 Scope Planning
Inputs Tools and Outputs
1. Enterprise Techniques 1. Project Scope
environmental factors 1. Expert judgment Management Plan
2. Organizational 2. Templates, forms,
process assets standards
3. Project Charter
4. Preliminary project
scope statement
5. Project
management plan

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Project Scope Management (cont’d)

4.2 Scope Definition
Inputs Tools and Outputs
1. Organizational Techniques .1 Project Scope
process assets 1. Product analysis Statement
2. Project Charter 2. Alternatives 2. Requested
3. Preliminary project identification Changes
scope statement 3. Expert judgment 3. Project Scope
4. Project 4. Stakeholder Management Plan
management plan Analysis (updates)
5. Approved change
requests

Project Scope Management (cont’d)

4.2 Scope Definition
Project Charter Elements
• Purpose
• Objectives
• Overview
• Schedules
• Resources
• Stakeholders
• Risk management plans
• Evaluation methods

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Project Scope Management (cont’d)

4.3 Create WBS
Inputs Tools and Outputs
1. Organizational Techniques 1. Project Scope
process assets 1. Work Breakdown Statement (updates)
2. Project Scope structure templates 2. Work breakdown
Statement 2. Decomposition structure
3. Project scope 3. WBS Dictionary.
management plan 4. Scope baseline
4. Approved 5. Project scope
change requests management
plan(updates)
6. Requested Changes

Project Scope Management (cont’d)

4.4 Scope Verification
Inputs Tools and Outputs
1. Project Scope Techniques 1. Accepted
Statement 1. Inspection Deliverables
2. WBS Dictionary 2. Requested
3. Project scope Changes
management plan 3. Recommended
4. Deliverables corrective actions

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Project Scope Management (cont’d)

4.5 Scope Control
Inputs Tools and Outputs
1. Project Scope Techniques 1. Project scope statement
Statement 1. Change control (updates)
2. WBS system 2. WBS (Updates)
3. WBS Dictionary 2. Variance 3. WBS Dictionary (updates)
4. Project scope Analysis 4. Scope baseline (updates)
management plan 3. Replanning 5. Requested changes
5. Performance 4. Configuration 6. Recommended corrective
reports management actions
6. Approved Change system 7. Org process assets
Requests (updates)
7. Work performance 8. Project management plan
information (updates)

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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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

Project Management Trade-offs

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Project Priority Matrix

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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Hierarchical
Breakdown of
the WBS

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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Work Breakdown Structure

Work Breakdown Structure (cont’d)

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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

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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Integration of WBS and OBS

Direct Labor Budget Sorted By WBS

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Direct Labor Budget Sorted by OBS

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

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

Direct Labor Budget

Rollup (000)

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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

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

Responsibility Matrix
for a Market Research Project

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Responsibility Matrix
for the Conveyor Belt Project

Project Communication Plan

• What information needs to be collected?
• Who will receive information?
• What information methods will be used?
• What are the access restrictions?
• When will information be communicated?
• How will information be communicated?

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Communication Plan (cont’d)

Example: Shale Oil Research Project

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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Chapter 4 Completed

HW# 2
[Due Saturday, May 20, 2023]

Problem: 4.4 [Page 123]

from “Project Management: The Managerial Process” book, by:
Erik W. Larson, Clifford F. Gray, 7th Edition, McGraw-Hill/Irwin
series, 2018. [ISBN 978-1-259-66609-4]

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