Defining The Project: Chapter Four

CHAPTER FOUR
Defining
the Project
Copyright 2014 McGraw-Hill Education.

All Rights Reserved.
PowerPoint Presentation by Charlie Cook
Where We Are Now
42
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
43
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/customerin
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.
44
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.
45
Step 2: Establishing Project Priorities

Causes of Project Trade-offs
Shifts in the relative importance of criterions related
to cost, time, and performance parameters
BudgetCost
ScheduleTime
PerformanceScope
Managing the Priorities of Project Trade-offs

Constrain: a parameter is a fixed requirement.
Enhance: optimizing a criterion over others.
Accept: reducing (or not meeting) a criterion
requirement.
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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.
47
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.
48
Work Packages
A work package is the lowest level of the WBS.
It is output-oriented in that it:
1.
Defines work (what).
2.
Identifies time to complete a work package (how

long).
3.
Identifies a time-phased budget to complete

a work package (cost).
4.
Identifies resources needed to complete

a work package (how much).
5.
Identifies a person responsible for units of work

(who).
6.
Identifies monitoring points (milestones)

for measuring success.
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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 organizational units to cost control
accounts.
410
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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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.
412
Project Communication Plan

What information needs to be collected
and when?
Who will receive the information?
What methods will be used to gather
and store information?
What are the limits, if any, on who has
access to certain kinds of information?
When will the information be communicated?
How will it be communicated?
413
Information Needs
Project status reports
Deliverable issues
Changes in scope
Team status meetings
Gating decisions
Accepted request changes
Action items
Milestone reports
414
Key Terms
Cost account
Milestone
Organization breakdown structure (OBS)
Priority matrix
Process breakdown structure (PBS)
Project charter
Responsibility matrix
Scope creep
Scope statement
WBS dictionary
Work breakdown structure (WBS)
Work package
415

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CHAPTER FOUR

Copyright 2014 McGraw-Hill Education.

Where We Are Now

Defining the Project

Step 1: Defining the Project Scope

Purpose of the Scope Statement

Project Scope: Terms and Definitions

Step 2: Establishing Project Priorities

Managing the Priorities of Project Trade-offs

Step 3: Creating the Work

How WBS Helps the Project Manager

Defines work (what).

Identifies time to complete a work package (how

Identifies a time-phased budget to complete

Identifies resources needed to complete

Identifies a person responsible for units of work

Identifies monitoring points (milestones)

Step 4: Integrating the WBS

organization work unit performance.

for work packages.

Step 5: Coding the WBS for

and individuals that need coordination.

their responsibilities and agree on their

can be exercised by each participant.

Project Communication Plan

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