Define Project

Where We Are Now
Defining the Project Scope
Establishing Project Priorities
Project Creating the Work Breakdown Structure

Definition
WBS & Organization Integration
Coding WBS for Information System

Step 1: Defining the Project Scope
• Project Scope
• Detailed Project Plan
• A definition of the end result or mission of the project—a product or service for
the client/customer—in 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.
Project Scope Checklist
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
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.
• Includes risk limits, business case, spending limits and even team composition.
• Scope Creep
• The tendency for the project scope to expand over time due to changing requirements,
specifications, and priorities.
• Means added costs and possible project delays.
Step 2: Establishing Project Priorities
• Causes of Project Trade-offs
• Shifts in the relative importance of criterions related
to cost, time, and performance parameters
• Budget–Cost
• Schedule–Time
• Performance–Scope
• 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.
PROJECT MANAGEMENT Project Priority Matrix
TRADE-OFFS
Step 3:Creating the WorK Breakdown
Structure
• Work Breakdown Structure (WBS)
• A 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.
Hierarchical
Breakdown of the
WBS
* This breakdown groups

work packages by type of
work within a deliverable and
allows assignment of
responsibility to an
organizational unit. This extra
step facilitates a system for
monitoring project progress
(discussed in Chapter 13).
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.
Work Breakdown Structure
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.
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.
Integration of WBS and OBS
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
Coding
the WBS
PBS for Software Development Project
WBS: Responsibility Matrix
Step 1: List all project tasks and deliverables
Step 2: Identify all project stakeholders
Step 3: Determine responsibility and accountability level for each task and deliverable
Step 4: Assign stakeholders to each task
Step 5: Assign overall stakeholder
Step 6: Ensure all stakeholder know their responsibility

Responsibility Matrix for a Market Research Project
Responsibility Matrix for the Conveyor Belt Project
FIGURE 4.8
Project Communication Plan
• Project communication plans address the following questions:
• 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?

Steps for Developing a Communication Plan
1. Stakeholder analysis—identify the target groups.
2. Information needs—project status reports, deliverable issues, changes in scope, team

status meetings, gating decisions, accepted request changes, action items, milestone
reports, etc.
3. Sources of information—where does the information reside?
4. Dissemination modes—hardcopy, e-mail, teleconferencing, SharePoint, and a variety

of database sharing programs.
5. Responsibility and timing—determine who will send out the formation and when.
Stakeholder Communications
• FI
Shale Oil Research Project Communication Plan
• FIG
Case 3: Manchester United Soccer Club (P-
192)

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Where We Are Now

Defining the Project Scope

Establishing Project Priorities

Project Creating the Work Breakdown Structure

Coding WBS for Information System

* This breakdown groups

• A work package is the lowest level of the WBS.

Step 1: List all project tasks and deliverables

Step 2: Identify all project stakeholders

Step 4: Assign stakeholders to each task

Step 5: Assign overall stakeholder

Step 6: Ensure all stakeholder know their responsibility

• Project communication plans address the following questions:

• What information needs to be collected and when?

• Who will receive the information?

• What methods will be used to gather and store information?

• When will the information be communicated?

• How will it be communicated?

1. Stakeholder analysis—identify the target groups.

2. Information needs—project status reports, deliverable issues, changes in scope, team

3. Sources of information—where does the information reside?

4. Dissemination modes—hardcopy, e-mail, teleconferencing, SharePoint, and a variety

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