Project Management Session 7 Project Scope Management Work Breakdown Structure (WBS) Burke Chapter 7 & 8 Kerzner Ch. 3 PMBOK 5

Project Phases & Knowledge Areas Initiating Closing Controlling Executing Planning Integration Scope Management Time Management Cost Management Quality Management Human Resources Communication Risk Management Procurement

Project Management Processes by Body of Knowledge area

Project Management Processes by Body of Knowledge area and Project Phase

Project Scope Scope refers to all the work involved in creating the products of the project and the processes used to create them. Product scope – the features and functions that characterize a product or service. Project Scope – the work must be done to deliver a result/product with the specified features and functions.

Scope Management The processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It is primarily concerned with defining and controlling what is or is not included in the project.

Scope Management Scope Planning – developing a written scope statement as the basis for future projects. Scope Definition – subdividing the major project deliverables into smaller, more manageable components. Create WBS – creating a structure for work division for a project to show elements. Scope Verification – formalizing acceptance of the project scope. Scope Change Control – controlling changes to project scope.

Scope Planning Scope planning is the process of progressively elaborating and documenting the project work (scope) that produces the product.

Scope Statement It provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among the stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project. The scope statement includes, either directly or by reference to other documents : Project justification (business need) Project’s product Requirements or specifications Project deliverables Project objectives Assumptions Cost and time estimates Constraints

Scope Definition Scope definition involves subdividing the major project deliverables (as identified in scope statement) into smaller, more manageable components to: Improve the accuracy of cost, duration, and resource estimates. Define baseline for performance measurement/control. Facilitate clear responsibility assignment. Proper scope definition is critical to project success. When there is poor scope definition, final project costs will be higher

Scope Definition

Scope Definition Output (WBS)

Scope Definition – Tools and Techniques (Decomposition) Decomposition involves subdividing the major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities (planning, executing, controlling and closing). Decomposition involves the following major steps: 1. Identify the major deliverables of the project, including project management (dependant on the project organization). 2. Decide if adequate cost and duration estimates can be developed at this level of detail for each deliverable. 3. Identify constituent components of the deliverable. Constituent components should be described in terms of tangible, verifiable results to facilitate performance measurement.

Scope Definition –Tools and Techniques (Decomposition) 4. Verify the correctness of the decomposition: Are the lower-level items both necessary and sufficient for completion of the decomposed item? If not, the constituent components must be modified (added to, deleted from, or redefined). Is each item clearly and completely defined? If not, the description must be revised or expanded. Can each item be appropriately scheduled? Budgeted? Assigned to a specific organizational unit who will accept responsibility for satisfactory completion of the item? If not, revisions are needed to provide adequate management control.

Scope Definition – Tools and Techniques (Decomposition)

Scope Definition – Outputs Work Breakdown Structure (WBS) is a deliverable-oriented grouping of project elements that organizes and defines the total work scope of the project. Each descending level represents an increasingly detailed definition of the project work. Work Package. A deliverable at the lowest level pf the WBS, when that deliverable may be assigned to another project manager to plan and execute. This may be accomplished through the use of a subproject where the work package may be further decomposed into activities.

Scope Definition – Tools and Techniques (Decomposition)

Work Breakdown Structure (WBS) The total program can be described as a summation of subdivided elements. Planning can be performed. Costs and budgets can be established. Time, cost, and performance can be tracked. Objectives can be linked to company resources in a logical manner. Schedules and status-reporting procedures can be established. Network construction and control planning can be initiated. The responsibility assignments for each element can be established.

In work breakdown structure, the activities must: Have clearly defined start dates Have clearly defined end dates Must be able to be used as a communicative tool in which you can communicate the expected results Be estimated on a “total time duration” not when the individual activities start or end Be structured so that a minimum of project office control and documentation (i.e. forms) are necessary

Most common type: Six-Level Indentured Structure Work breakdown structure (WBS) LEVEL DESCRIPTION 1 Total Program 2 Project(s) 3 Task(s) 4 Subtask(s) 5 Work Package(s) 6 Level of Effort Most common type: Six-Level Indentured Structure

WBS: Six-level structure The WBS breaks work down into smaller activities thus reducing the risk that any major or minor item will be omitted WBS: Six-level structure LEVELS RESPONSIBILITY 1 2 3 4 5 6 Usually specified by the client and managed the project manager. Generated by contractor for in-house control and managed by the functional manager(s). Planning accuracy is dependent on the WBS level selected. The lower the level the greater is the planning accuracy but the higher the management cost.

WBS Tasks Have clearly defined start and end dates Be usable as a communications tool in which results can be compared with expectations Be estimate on a “total” time duration, not when the task must start or end Be structured so that a minimum of project office control and documentation (i.e., forms) is necessary

DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS) UTILITY CAR (1.00.00) PROTOTYPE DEVELOPMENT (1.1.0) ADVANCED DEVELOPMENT (1.2.0) PRE-PRODUCTION QUALIFICATION (1.3.0) FINAL PRODUCTION (1.4.0)

WBS Example 1.00.00 1 PROGRAM 2 PROJECT 1.1.0 1.2.0 1.3.0 1.4.0 3 TASK WBS LEVELS 1.00.00 1 PROGRAM 2 PROJECT 1.1.0 1.2.0 1.3.0 1.4.0 3 TASK 1.2.1 1.2.2 1.2.3 4 SUBTASK 1.2.2.1 1.2.2.2 1.2.2.3 WORK 5 1.2.2.1.1 1.2.2.1.2 1.2.2.1.3 1.2.2.1.4 PACKAGE

Scope Definition – WBS Organized by Product

Scope Definition – WBS Organized by Phase

Scope Definition - WBS in Tabular Form

Scope Definition - WBS and Gantt Chart in MS Project

Scope Definition - WBS and Gantt Chart Organized by Process Groups

Approaches to Developing WBS Using guidelines. The analogy approach uses a similar project‘s WBS as a starting point. 􀂄 The top-down approach starts with the largest items of the project and breaks them into their subordinate items. The process involves refining the work into greater and greater levels of detail.

Advice for Creating a WBS A unit of work should appear at only one place in the WBS. The work content of a WBS item is the sum of the WBS items below it. A WBS item is the responsibility of only one individual, even though many people may be working on it. The WBS must be consistent with the way in which work is actually performed, serve the project team first and other purposes if practical. Project team members should be involved in developing the WBS to ensure consistency and buy-in. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. The WBS must be flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project.

PURPOSE OF WBS It is to structure an assigned project into various activities in order that: Detailed planning can be performed Costs and budgets can be established Objectives can be linked to available resources in a logical manner Specific authority and responsibility can be assigned

WORK BREAKDOWN STRUCTURE Can be developed using a top-down or bottom-up approach Can be hardware-related, function-related, or a combination Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control) For accuracy purposes the WBS should be taken down several levels The WBS must be structured for objective control & evaluation

WBS Interfacing Benefits The responsibility assignment matrix Network scheduling Costing Risk analysis Organizational structure Coordination of objectives Control (including contract administration)

WBS Controls SCHEDULES DECISION TREES MGT. COORDIN. ORGANIZ. CHARTS WORK BREAKDOWN STRUCTURE ORGANIZ. CHARTS ACCOUNT- ABILITY COSTS

Work Package Control Point WBS WORK PACKAGES FUNCTIONAL ORGANIZATION

WBS Work Packages Represents units of work at the level where the work is performed Clearly distinguishes one work package from all others assigned to a single functional group Contains clearly defined start and end dates representative of physical accomplishment Target is 80 hours and about two weeks, but depends on size/nature of the project. Specifies a budget in terms of dollars, man-hours, or other measurable units Limits the work to be performed to relatively short periods of time

Scope Verification Scope verification involves formal acceptance of the project scope by the stakeholders. To receive formal acceptance of the project scope, the project team must develop clear documentation of the project‘s products and procedures for evaluating if they were completed correctly and satisfactorily.

Scope Change Control Scope change control involves controlling changes to the project scope. In order to minimize scope change control, it is crucial to do a good job of verifying project scope.