1. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Chapter 3 Defining the Project

2. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-1 Project Management Trade-Offs Performance Quality CostTime

3. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-2 Project Priority Matrix Constrain Enhance Accept TimePerformanceCost

4. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-3 Hierarchical Breakdown of the WBS 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).

5. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-4 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

6. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-5 Integration of WBS and OBS Time

7. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-8 Read/Write Head Design Work package cost estimate

8. Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000 Figure 3-9 Three Views of Cost Project Duration Committed Actual cost Scheduled budget Costs $6,000 5,000 4,000 3,000 2,000 1,000

9. Summary Guidelines for Work Package Estimating Time and resource estimates should be made by those most familiar with the task Estimates should be based on“normal” conditions Time units employed should be consistent. Work task estimates should be treated as independent estimates and not influenced by other project tasks. Contingencies should not be built into estimates. Top management will have a contingency fund to use if necessary. Remember, these are estimates. Errors and mistakes should be allowed and not punished.