1 Project Management C13PM Session 5 Introducing Breakdown Structures Russell Taylor Business Department Staff Workroom

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Presentation transcript:

1 Project Management C13PM Session 5 Introducing Breakdown Structures Russell Taylor Business Department Staff Workroom

Business Department 2 Session 3 Breakdown Structures Organisational Breakdown Structures –Functional –Project –Matrix Work Breakdown Structures Cost Breakdown Structures

Business Department 3 Project stakeholders

Business Department 4 Project Organisation Understand participating organisation –Project team –Key stakeholders –External organisations Participation mix –Internal, External or Internal & External Levels of authority Communication channels Contractual links Define the project boundary

Business Department 5 Organisation Breakdown Structure (OBS) 3 types –Functional –Product / Project –Matrix

Business Department 6 Functional OBS Chairman Operations Director Development Manager Materials Manager Production Manager Team Leader Team Leader Operative Financial Director Administration Manager Marketing Director Marketing Manager Sales Director Sales Manager Project Champion

Business Department 7 Functional OBS Advantages –Efficient use of collective experience & facilities –Institutional framework for planning & control –All activities receive benefit from most advanced technology –Allocate resources in future anticipation of business –Effective use of common elements –Career continuity & growth for personal development –Well suited for mass production of items

Business Department 8 Functional OBS Disadvantages –No central project authority –Little or no project planning & reporting –Weak interface with customer –Poor horizontal communications across functions –Difficult to integrate multidisciplinary tasks –Tendency of decision to favour strongest functional group

Business Department 9 Product/Project Structure Director Manager Product A Marketing Manager Operator Development Manager Operator Materials Manager Operator Manager Product B Marketing Manager Development Manager Materials Manager Product C Marketing Manager Development Manager Materials Manager

Business Department 10 Product/Project OBS Advantages –Strong control by single project authority –Rapid reaction time –Encourages performance, schedule and cost tradeoffs –Personal loyalty to a single project –Interfaces well with outside units –Good interface with customer

Business Department 11 Product/Project OBS Disadvantages –Inefficient use of resources –Does not develop technology with eye on the future –Does not prepare for future business –Less opportunity for technical interchange among projects –Minimal career continuity for project personnel –Difficulty in balancing workloads as projects phase in & out

Business Department 12 Matrix / Project OBS Director Operational Manager Project Manager A Financial Manager Marketing Manager Project Manager B Project Manager C Projects Director

Business Department 13 Matrix Project OBS Advantages –Combines strengths of functional and project-oriented organisation –Good interface with outside contacts –Effective multidisciplinary task integration –Effective use of production resources –Effective project control –Career continuity and professional growth –Perpetuates technology

Business Department 14 Matrix Project OBS Disadvantages –Profit-and-loss accountability difficult –Dual accountability of personnel –Conflicts between project & functional managers

Business Department 15 Matrix / Project OBS Director Operational Manager Project Manager A Financial Manager Marketing Manager Project Manager B Project Manager C Projects Director

Business Department 16 Weak –project managers have little or no executive authority –cannot make decisions concerning functional resources –are largely dependent on the goodwill and co-operation of the functional managers to achieve success Strong –traditional boundaries have diminished importance –the dominant focus is the business processes and the customer –projects deliver end products and services to customers and so are given priority over functional managers Two Possible Matrix Outcomes

Business Department 17 Development Planning Generate Activities –Work Breakdown Structures Define Resources Determine Responsibilities –Responsibility Assignment Developing Project Budget

Business Department 18 Work Breakdown Structure - 1 A WBS identifies the total scope of the project broken down into manageable work packages and tasks –Project Chunking Impossible to manage the “whole” –Groups those tasks into a logical hierarchy. Often shown in two different forms: –Chart form –Tabular form

Business Department 19 Work Breakdown Structure - 2 Progress of each activity can be monitored and charted –Can be used to curb any unrealistic expectation that the sponsor may have –Can also be used for cost accounting –Allows for development of project schedules First stage in identification of activities, schedules & budgets

Business Department 20 WBS Party Party Venue DecorationFurniture Entertainment LiveDJ Refreshments Food HotCold Drink

Business Department 21 Work Breakdown Structure Level 1 House Refurbishment 2.0 Services1.0 Management3.0 Decorating4.0 Fixtures Level Planning 1.2 Costing 1.3 Specify 2.1 Electrical 2.2 Plumbing 3.1 Floors 3.2 Walls 4.1 Kitchen 4.2 Bathroom Level Programme Resource Budget Specification New wire Re wire Water Gas Carpets Laminate Paper Paint Appliances Units Suite Fixtures Level 4

Business Department 22 WBS CODE Generates a logical directory order 1.1 Main Activity 1.1.2Sub activity Sub-sub Activity Sub activity Sub-sub Activity Sub-sub Activity Creates Project plan index page Provides template for cost spreadsheet Provides template fore resource assignment Provides template for specification

Business Department 23 Responsibility Chart (Responsibility Assignment Matrix)Responsibility Assignment Matrix

Business Department 24 Integrating OBS & WBS Software Development 1.0 Programming 1.1 Activity Activity1.1.3 Activity 1.2 Activity 2.0 Technical Data 3.0 Packaging 3.1 Activity YK2 Plc Design Team Technical writers Marketing Control Account

Business Department 25 Cost Breakdown Structures Labour Total Cost MaterialEquipment YK2 Plc Design Team Technical writers Marketing Cost Breakdown Structure (CBS)

Business Department 26 Work breakdown structure 4.0 Fixtures 1 week £ Living Bedroom Bedroom Bathroom Kitchen Hall 5.1 Rooms 2 weeks £ Decoration 2 weeks £600 HOUSE REFURBISHMENT 7 weeks £18,000

Business Department 27 Integrating the OBS & WBS WBS CodeCostSub-totalTotalResource 2.0SERVICES 2.1ElectricalElectrician 2.1.2New Wire Lounge£ Garage£ £ Re-wire Kitchen£ Bedroom£ £ £

Business Department 28 Take a break