1. Chapter 4 Defining the Project

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

3. 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

4. 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.

5. 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

6. 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

7. Step 2 Establishing Project Priorities

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

9. Step 2 Establishing Project Priorities (Cont’d) Performance (Scope) Quality CostTime

10. Step 2 Establishing Project Priorities (Cont’d) COSTminimization TIMEminimization QUALITYassure that product Performance performs to specifications Objectives

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

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

13. Work Breakdown Structure WBS Disciplined Structured Selective collection of information

14. 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

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

16. Hierarchical Breakdown of the WBS Irwin/McGraw-Hill 1 2 3 4 Project Deliverable Subdeliverable Lowest subdeliverable Cost account* Work package 5 Complete project Major deliverables Supporting deliverables Lowest management responsibility level Grouping of work packages for monitoring progress and responsibility Identifiable work activities LevelHierarchical breakdownDescription *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). Step 3 Creating the WBS Cont’d

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

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

19. Work Packages (WP) –Lowest level of the WBS –Short Duration Tasks Action Verb – Noun –Design Prototype –Build Mouse –Test Engine

20. 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)

21. Work Breakdown Structure Personal computer prototype Vendor, software, applications Mouse, keyboard, voice Disk storage units Microprocessor unit More items FloppyHardOptical Internal memory unit BIOS (basic input/output system) ROM RAM I/OFileUtilities MotorCircuit board Chassis frame Read/write head WP-1MWP-1 CBWP-1 CFWP-1 RWH WP-2 CBWP-2 CFWP-2 RWH WP-3 CBWP-3 CFWP-3 RWH WP-4 CBWP-4 RWH WP-5 CBWP-5 RWH WP-6 CB WP-7 CB ~~~~~ ~ ~ ~ ~ Work packages Lowest manageable subdeliverables Level 1 2 3 4 5 Step 3 - Creating the WBS Cont’d

22. 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

23. Example Work Package

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

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

26. Step 4 - Integration of WBS and OBS Time

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

28. 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 –

29. WBS Coding

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

31. Direct Labor Budget Rollup (000) FIGURE 4.7