Chapter 4 Defining the Project NEED FOR DEFINING

Chapter 4 Defining the Project

NEED FOR DEFINING PROJECTS • One Project, small • Many small projects, or large one – Yes

Steps for a Project • • Step 1 - Defining the Project Scope Step 2 -Establishing Project Priorities Step 3 -Creating the WBS Step 4 – • Step 5 - Coding the WBS for the Information System

Project Scope Terms and Definitions • Scope Statements –Also called –Project Charter –Expanded scope statement –Project manager Authorization • Project Creep – The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.

Step 1: Defining the Project Scope • Project Scope –End result or mission of the project • specific, tangible, measurable terms. • Purpose of the Scope Statement –Define customer deliverables –Project focus • Planning tool –Project measurement

Step 1 Defining the Project Scope (cont’d) See Text book Page 101 Example: Page 104 • Project Scope Checklist 1. Project objectives – What, Where, When, How Much 2. Deliverables – Major Output(s) of the Project 3. Milestones – Significant events that occur at specific times in the project 4. Technical requirements 5. Limits and exclusions 6. Reviews with Customer

Step 2 Establishing Project Priorities

Step 2: Establishing Project Priorities • Project Trade-offs • Budget • Schedule • Performance • Management of Trade-offs • Constrain: fixed requirement • Enhance: optimize over other parameters • Accept:

Step 2 Establishing Project Priorities (Cont’d) Performance (Scope) Quality Cost Time

Step 2 Establishing Project Priorities (Cont’d) Objectives • COST • TIME • QUALITY Performance minimization assure that product performs to specifications

Step 2 Establishing Project Priorities (Cont’d) • Management of Tradeoff’s – Primary Job of PM – A Tool • Priority Matrix – Constrain – Enhance

Step 2 Establishing Project Priorities (Cont’d) Project Priority Matrix Text Example of a Project – High Speed Modem: Time Constrain Enhance Accept Performance Cost

Work Breakdown Structure • • WBS Disciplined Structured Selective collection of information

Step 3 Creating the WBS • Map of the Project • Divides Project in Smaller Elements – – Element Identity Project / Organization Integration Basis for Control Project Structure • With Different Levels of Detail – Allows for: • Planning, scheduling and budgeting • Cost roll-up

Step 3 Creating the WBS Cont’d • WBS Elements – Deliverables (The output, not functions) • Nouns – Prototype – Mouse – Engine • If Functional

Step 3 Creating the WBS Cont’d Hierarchical Breakdown of the WBS Level 1 2 3 4 5 Irwin/Mc. Graw-Hill Hierarchical breakdown Project Deliverable Subdeliverable Lowest subdeliverable Cost account* Description Complete project Major deliverables Supporting deliverables Lowest management responsibility level Grouping of work packages for monitoring progress and responsibility Work package Identifiable work activities *This breakdown groups work packages by type of work within a deliverable and allows assignment of responsibility to an organizational unit. This extra step facilities a system for monitoring project progress (discussed in Chapter 12).

WBS / Project Manager • Helps to: –Facilitate/Plan –Provide information appropriate to each function –develop of organization breakdown structure (OBS) • Assigns responsibilities –Define communication

Step 3 Creating the WBS Cont’d Work Breakdown Structure Personal computer prototype Level 1 2 Vendor, software, applications ~ 3 Mouse, keyboard, voice ~ Floppy ~ Microprocessor unit Disk storage units Optical Hard 5 Motor Internal memory unit ~ 4 Lowest manageable subdeliverables Circuit board More items Chassis frame BIOS (basic input/output system) ROM RAM I/O File ~ ~ Read/write head Utilities ~

Step 3 Creating the WBS Cont’d • Work Packages (WP) – Lowest level of the WBS – Short Duration Tasks • Action Verb – Noun – Design Prototype – Build Mouse – Test Engine

Step 3 - Creating the WBS Cont’d • Work Package (WP) Continued 1. Defines Work – (What) 2. Identifies time to complete a WP – (How Long) 3. Identifies a time-phased budget to complete a WP – (Cost) 4. Identifies resources needed to complete a WP – (How Much) 5. Identifies a single person responsible for units of work – (Who)

Step 3 - Creating the WBS Cont’d Work Breakdown Structure Personal computer prototype Level 1 2 Vendor, software, applications ~ 3 Mouse, keyboard, voice ~ Floppy ~ Microprocessor unit Disk storage units Optical Hard 5 Internal memory unit ~ 4 Lowest manageable subdeliverables More items Motor Circuit board Chassis frame WP-1 M WP-1 CB WP-2 CB WP-3 CB WP-4 CB WP-5 CB WP-6 CB WP-7 CB WP-1 CF WP-2 CF WP-3 CF BIOS (basic input/output system) ROM RAM I/O File ~ ~ Utilities Read/write head WP-1 RWH WP-2 RWH WP-3 RWH WP-4 RWH WP-5 RWH Work packages ~

Step 3 - Creating the WBS Cont’d • Work Package (WP) Continued – WP manager responsible for • WP schedule – Should not exceed 10 days (on average) » If it Does: » Monitor Points every three to five days • WP budget • WP performance (Quality) – Several WP’s rolled together can constitute sub-deliverable • From Different functional areas – Can organize WP’s for function, but must be deliverable oriented WBS

Example Work Package

Step 4 Integrating the WBS with the organization • Defines responsibility – OBS • Lowest org. unit for responsibility of WP’s within cost accounts

Step 4 Integrating the WBS with the organization • Intersection of WBS and OBS – Creates a project control point

Step 4 - Integration of WBS and OBS Personal computer prototype Level 1 More items 1. 0 1. 3 1. 2 2 Vendor, software, applications 1. 1 Mouse, keyboard, voice 3 Floppy ~ Microprocessor unit Disk storage units ~ 1. 1. 1 ~ 1. 4 1. 1. 2 Optical 1. 4. 1 1. 1. 3 Internal memory unit Hard ~ 1. 4. 1. 1 4 5 Lowest manageable subdeliverables 1. 1. 3. 1 Motor Production Test Purchasing Software Circuit board Cost account Design Manufacturing Organization 1. 1. 3. 2 Cost account BIOS (basic input/output system) 1. 4. 1. 2 1. 4. 2. 1 1. 4. 2. 2 ROM RAM I/O File ~ ~ 1. 1. 3. 3 Chassis frame 1. 4. 2. 3 Utilities ~ 1. 1. 3. 4 Read/write head 1. 1. 3. 4. 1 Cost account number Work packages WP 1. 1. 3. 4. 2. 1 WP 1. 1. 3. 4. 2. 2 WP 1. 1. 3. 4. 2. 3 Budget by period Time

Step 4 - Integration of WBS and OBS Read/Write Head Design Work package cost estimate

Step 5 Coding the WBS for the Information System • Used to Define – – levels and elements in the WBS Organization elements Work Packages Budget – Allow reports to be consolidated at any level in the structure – Most common system –

WBS Coding

Project Roll-up • Cost Account –Intersection of • WBS and • budgetary control point for work packages (WP). –Roll-up Capability

Direct Labor Budget Rollup (000) FIGURE 4. 7