Chap 4 Defining The Project

Steps in Defining Project Chap 4 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 Project scope is defined between the project manager and the customer. Customers can provide a RFP or Statement of work Priorities are also worked out with customer prior to initiation WBS is

Defining the Project Scope Chap 4 What you expect to deliver, when project is completed. Project Objective: What, when and how much Deliverables: Specific outcomes for each stage or milestone or review Milestones: Major segments of the project Technical requirements: Specific metrics which a deliverable must satisfy Limits and Exclusions: What the project will not do Reviews with Customers: Define frequency, provide direction, coincide with milestones & deliverables Acceptance of progress

Project Definition Example Chap 4 Basketball game Fashion Show Taxi Service

Project Definition in Reality Chap 4 Not well Defined the more complex typically the less defined? customer is unsure of what is possible, so they leave it general. Scope Creep adding slight changes to the project impact is perceived to be minor but can be significant especially prevalent in IT projects Change control procedure is necessary documents source of the change defines specific change defines impact on budget and time

Establishing Project Priorities Chap 4 Project objectives center around satisfying Time, Performance & Cost. These project factors can be at conflict? How? Project Priority Matrix can help a Project Manager in making tradeoffs. Time Performance Cost Constrain Enhance Accept Typically a chart is not developed but during initial discussions the project manager should pose the priority questions on what is most important. Time is when there is a time to market constraint Performance is when you are meeting a regulation or focusing on competition Cost is when competing on competition with an existing product All customers want all to be constrained but this is nor always feasible. Constrain: This factor must be meet, no compromise Enhance: Optimize but can vary Accept: Not meeting target is OK, within limits

Communication Plan How to communicate status, changes, and performance Chap 4 How to communicate status, changes, and performance Identify Stakeholders Define information required by each stakeholder What are the sources for each form of information Method of getting the information to the stakeholders Who is responsible for placing the information in the correct format and delivering it to the stakeholders. What is the frequency of the information. Boeing used intranet for each project Other methods email, Lotus Notes, Sharepoint, dedicated web page Information Status reports; changes in scope; gating decisions; action items; deliverable issues; team status meetings; accepted request changes; milestone reports Plan is created by Project Manager in the early stages after discussion with team and stakeholders, in conjunction with WBS and OBS.

What is a WBS? What the various deliverables of the project are Chap 4 A Work Breakdown Structure can show you at a glance: What the various deliverables of the project are How the necessary work is distributed between the project deliverables How the cost or budget is distributed between the project deliverables How the larger deliverables of the project are subdivided into smaller ones But it does not say anything about individual tasks or the order of execution.

Creating the Work Breakdown Structure Chap 4 Hierarchical approach of dividing the work by types; allowing a framework to track cost and work performance Deliverables Sub-deliverables : Cost Account Work Packages Costs rolled up Communication Cost Accounting: grouping of work packages to monitor progress and responsibility Work Packages: Identifiable work activities; typically short duration; 2 weeks max for me. WBS provides a means to develop a communication network by identifying who is responsible for each area and stage of the project Costs are rolled up from the work packages A Work Breakdown Structure is not a list of tasks, a schedule or an organization chart. Rather it provides the basis on which a task list and a schedule can be constructed. Tasks and schedules are better handled in other ways, for example by using Gantt charts. A Work Breakdown Structure can show you at a glance: What the various elements of the project are How the necessary work is distributed between the elements of the project How the cost or budget is distributed between the elements of the project How the larger elements of the project are subdivided into smaller ones But it does not say anything about individual tasks or the order of execution. Types: Frame, Plumbing, Electrical, Landscaping, HVAC, Drywall, Flooring WBS follows the project structure not the functional organization Output Oriented

Coding the WBS for the Information System Chap 4 Typically, WBS is coded beginning with Completed project and then indented until all Work Packages have been identified Walls work package: drywall installation; mudding, painting, trim work Each requires a different skill and a different cost account number. Testing - Engineering, test group, machinists, electricians, quality, purchasing, logistics - could be subgroups of these WP if different locations are involved and the structure of the organization Other forms of coding can be used to reflect different project structures. - Locations, functional depts, product type, customer, year, etc

Banquet Example Chap 4 The 100% Rule...states that the WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management. The 100% rule is one of the most important principles guiding the development, decomposition and evaluation of the WBS. The rule applies at all levels within the hierarchy: the sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project, that is, it cannot include more than 100% of the work… It is important to remember that the 100% rule also applies to the activity level. The work represented by the activities in each work package must add up to 100% of the work necessary to complete the work package. Practice Standard for Work Breakdown Structures (Second Edition), published by the Project Management Institute, ISBN 1933890134, page 8

Product Development WBS Example Chap 4

Project Definition Example Chap 4 Basketball game Fashion Show Taxi Service

A Work Breakdown Structure is not: Chap 4 A Work Breakdown Structure is not an exhaustive list of work A WBS is neither a project plan, a schedule, nor a chronological listing. It is considered poor practice to construct a project schedule (e.g. using project management software) before designing a proper WBS. A WBS is not an organizational hierarchy. Some practitioners make the mistake of creating a WBS that shadows the functional organizational chart. WBS updates, other than progressive elaboration of details, require formal change control. This is another reason why a WBS should be outcome-oriented and not be prescriptive of methods. A WBS is not a logic model. Nor is it a strategy map. This would be similar to scheduling the activities of home construction before completing the house design. Without concentrating on planned outcomes, it is very difficult to follow the 100% Rule at all levels of the WBS hierarchy. While it is common for responsibility to be assigned to organizational elements, a WBS that shadows the organizational structure is not descriptive of the project scope and is not outcome-oriented. See also: responsibility assignment (RACI) matrix (also called a Staffing Matrix). Methods can, and do, change frequently, but changes in planned outcomes require a higher degree of formality. If outcomes and actions are blended, change control may be too rigid for actions and too informal for outcomes.

The 100% Rule Chap 4 WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management. One of the most important principles guiding the development, decomposition and evaluation of the WBS. Applies at all levels within the hierarchy: The sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project, that is, it cannot include more than 100% of the work… It is important to remember that the 100% rule also applies to the activity level. The work represented by the activities in each work package must add up to 100% of the work necessary to complete the work package. Practice Standard for Work Breakdown Structures (Second Edition), published by the Project Management Institute, ISBN 1933890134, page 8

Integrating the WBS with the Organization Chap 4 Organizational Breakdown structure: Describes how the firm has assigned the work responsibility. - results from assigning of work packages responsibilities, made in WBS When a dedicated project management structure is not used the OBS can: help define and group the Cost Accounts by function promotes communication of reporting and project changes A Work Breakdown Structure is not an exhaustive list of work. It is instead a comprehensive classification of project scope. A WBS is neither a project plan, a schedule, nor a chronological listing. It is considered poor practice to construct a project schedule (e.g. using project management software) before designing a proper WBS. This would be similar to scheduling the activities of home construction before completing the house design. Without concentrating on planned outcomes, it is very difficult to follow the 100% Rule at all levels of the WBS hierarchy. A WBS is not an organizational hierarchy. Some practitioners make the mistake of creating a WBS that shadows the organizational chart. While it is common for responsibility to be assigned to organizational elements, a WBS that shadows the organizational structure is not descriptive of the project scope and is not outcome-oriented. See also: responsibility assignment (RACI) matrix (also called a Staffing Matrix). WBS updates, other than progressive elaboration of details, require formal change control. This is another reason why a WBS should be outcome-oriented and not be prescriptive of methods. Methods can, and do, change frequently, but changes in planned outcomes require a higher degree of formality. If outcomes and actions are blended, change control may be too rigid for actions and too informal for outcomes. A WBS is not a logic model. Nor is it a strategy map. Same as WBS with the addition of functional departments matrices to WPs

Organizational Breakdown Structure (OBS) Chap 4 Project Mgr Structural Concrete Framing Masonry Interior Drywall Mudders Finishing flooring Plumbing Water/Sewer Gas Electrical Hookup Outlets Wiring Fixtures Info Tech Accounting Marketing Purchasing Trucking Project Oriented Structure

Organizational Breakdown Structure (OBS) Chap 4 Project Mgr Accounting Concrete Framing Masonry Info Tech Marketing Trucking Hookup Outlets Wiring Fixtures Interior Structural Plumbing Electrical Roofing Engineering Drywall Mudders Finishing flooring Water/Sewer Gas Functional Structure

Project Definition Example Chap 4 Basketball game Fashion Show Taxi Service

Responsibility Activity Matrix (RAM) Chap 4 RAM is used to integrate the Work Breakdown Structure (WBS) and the Organizational Breakdown Structure (OBS). RAM output is Work Packages. WBS x OBS

Work Package A work package at the activity level is a task that: Chap 4 A work package at the activity level is a task that: can be realistically and confidently estimated; makes no sense practically to break down any further; can be completed in accordance with one of the heuristics defined above; produces a deliverable which is measurable; and forms a unique package of work which can be outsourced The activities listed in the work package are the activities listed in the MS Project plan. allows user to estimate costs for each task

Creating a Work Package Chap 4 Lowest unit of WBS; This is where all the tasks are accomplished Define work Detail events Specific deliverable(s) Identify time to complete Identify a time phased budget to complete Identify a single person responsible for unit of work Identify monitoring points for measuring progress How to measure a successful deliverable The first is the "80 hour rule" which means that no single activity or group of activities to produce a single deliverable should be more than 80 hours of effort. The second rule of thumb is that no activity or series of activities should be longer than a single reporting period. Thus if the project team is reporting progress monthly, then no single activity or series of activities should be longer than one month long. The last heuristic is the "if it makes sense" rule. Applying this rule of thumb, one can apply "common sense" when creating the duration of a single activity or group of activities necessary to produce a deliverable defined by the WBS. A work package at the activity level is a task that: can be realistically and confidently estimated; makes no sense practically to break down any further; can be completed in accordance with one of the heuristics defined above; produces a deliverable which is measurable; and forms a unique package of work which can be outsourced or contracted out.

Level of Detail Chap 4 The “80 hour rule“: no single activity or group of activities to produce a single deliverable should be more than 80 hours of effort. Single Reporting Period: no activity or series of activities should be longer than a single reporting period. The "if it makes sense" rule. Applying this rule of thumb, one can apply "common sense" when creating the duration of a single activity or group of activities necessary to produce a deliverable defined by the WBS.

Responsibility Activity Matrix (RAM) Chap 4 RAM output is Work Packages. WBS $580 $300 $210 $600 $900 $950 $750 $450 $1860 $100 OBS Helps understand resource capacity requirements, helps in defining budget at all levels. Rent Tables $250 Rent glass ware $200 Rent silverware $200 Setup 4 hrs $160 Create Menu 2 hrs $200 Shop 4 hrs $250 Prep 1 hrs $150 Cook 3 hrs $ 200 Serve 2 hrs $250 WP 1.2.3 WP 1.2.4

Assignment Read and answer questions regarding Chap 4 Read and answer questions regarding Manchester United Soccer Club case study.

Questions

Aircraft Example Chap 4

WBS Dictionary (First Level) Chap 4 1          Support This WBS element includes all management activities that typically span the entire project and are estimated in terms of level of effort rather than by reference to the specific work products produced. These include Program Management, Implementation (Release) Management, Logistics Management, and Technical Management.   11        Program Management This WBS element includes all management tasks at the level of the entire project including organizing, directing, coordinating, and controlling all of the resources required to accomplish project objectives, cost/schedule performance management, subcontractor management, and quality management. 12        Implementation (Release) Management This WBS element includes all of the effort to plan, control, and execute the implementation of all releases. 13        Logistics Management This WBS element includes all of the effort to establish and maintain a logistics support and provisioning program, including, for example, supplies, storage, spares, and repairs of material used by the project.  Material includes commercial off-the-shelf (COTS) software, and other tangible supplies. 14        Technical Management This WBS element includes all of the effort to direct and control the technical engineering effort to transform the operational needs into a specification of requirements and an optimum configuration, including risk and issue management and configuration management.