1. Chap 4
Defining
The
Project

2. Steps in Defining Project
Chap 4
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
Project scope is defined between the project manager and the customer.
Customers can provide a RFP or Statement of work
Priorities are also worked out with customer prior to initiation
WBS is

3. Defining the Project Scope
Chap 4
What you expect to deliver, when project is completed.
Project Objective: What, when and how much
Deliverables: Specific outcomes for each stage or milestone or review
Milestones: Major segments of the project
Technical requirements: Specific metrics which a deliverable must satisfy
Limits and Exclusions: What the project will not do
Reviews with Customers: Define frequency, provide direction, coincide with
milestones & deliverables
Acceptance of progress

4. Project Definition Example
Chap 4
Basketball game
Fashion Show
Taxi Service

5. Project Definition in Reality
Chap 4
Not well Defined
the more complex typically the less defined?
customer is unsure of what is possible, so they leave it general.
Scope Creep
adding slight changes to the project
impact is perceived to be minor but can be significant
especially prevalent in IT projects
Change control procedure is necessary
documents source of the change
defines specific change
defines impact on budget and time

6. Establishing Project Priorities
Chap 4
Project objectives center around satisfying Time, Performance & Cost.
These project factors can be at conflict? How?
Project Priority Matrix can help a Project Manager in making tradeoffs.
Time
Performance
Cost
Constrain
Enhance
Accept
Typically a chart is not developed but during initial discussions the project manager should pose the priority questions on what is most important.
Time is when there is a time to market constraint
Performance is when you are meeting a regulation or focusing on competition
Cost is when competing on competition with an existing product
All customers want all to be constrained but this is nor always feasible.
Constrain: This factor must be meet, no compromise
Enhance: Optimize but can vary
Accept: Not meeting target is OK, within limits

7. Communication Plan How to communicate status, changes, and performance
Chap 4
How to communicate status, changes, and performance
Identify Stakeholders
Define information required by each stakeholder
What are the sources for each form of information
Method of getting the information to the stakeholders
Who is responsible for placing the information in the correct format and delivering it to the stakeholders.
What is the frequency of the information.
Boeing used intranet for each project
Other methods , Lotus Notes, Sharepoint, dedicated web page
Information
Status reports; changes in scope; gating decisions; action items; deliverable issues; team status meetings; accepted request changes; milestone reports
Plan is created by Project Manager in the early stages after discussion with team and stakeholders, in conjunction with WBS and OBS.

8. What is a WBS? What the various deliverables of the project are
Chap 4
A Work Breakdown Structure can show you at a glance:
What the various deliverables of the project are
How the necessary work is distributed between the project deliverables
How the cost or budget is distributed between the project deliverables
How the larger deliverables of the project are subdivided into smaller ones
But it does not say anything about individual tasks or the order of execution.

9. Creating the Work Breakdown Structure
Chap 4
Hierarchical approach of dividing the work by types;
allowing a framework to track cost and work performance
Deliverables
Sub-deliverables :
Cost Account
Work Packages
Costs rolled up
Communication
Cost Accounting: grouping of work packages to monitor progress and responsibility
Work Packages: Identifiable work activities; typically short duration; 2 weeks max for me.
WBS provides a means to develop a communication network by identifying who is responsible for each area and stage of the project
Costs are rolled up from the work packages
A Work Breakdown Structure is not a list of tasks, a schedule or an organization chart. Rather it provides the basis on which a task list and a schedule can be constructed. Tasks and schedules are better handled in other ways, for example by using Gantt charts. A Work Breakdown Structure can show you at a glance:
What the various elements of the project are
How the necessary work is distributed between the elements of the project
How the cost or budget is distributed between the elements of the project
How the larger elements of the project are subdivided into smaller ones
But it does not say anything about individual tasks or the order of execution.
Types: Frame, Plumbing, Electrical, Landscaping, HVAC, Drywall, Flooring
WBS follows the project structure not the functional organization
Output Oriented

10. Coding the WBS for the Information System
Chap 4
Typically, WBS is coded beginning with Completed project and then indented until all Work Packages have been identified
Walls work package: drywall installation; mudding, painting, trim work
Each requires a different skill and a different cost account number.
Testing
- Engineering, test group, machinists, electricians, quality, purchasing, logistics
- could be subgroups of these WP if different locations are involved and the structure of the organization
Other forms of coding can be used to reflect different project structures.
- Locations, functional depts, product type, customer, year, etc

11. Banquet Example
Chap 4
The 100% Rule...states that the WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management. The 100% rule is one of the most important principles guiding the development, decomposition and evaluation of the WBS. The rule applies at all levels within the hierarchy: the sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project, that is, it cannot include more than 100% of the work… It is important to remember that the 100% rule also applies to the activity level. The work represented by the activities in each work package must add up to 100% of the work necessary to complete the work package.
Practice Standard for Work Breakdown Structures (Second Edition), published by the Project Management Institute, ISBN , page 8

12. Product Development WBS Example
Chap 4

13. Project Definition Example
Chap 4
Basketball game
Fashion Show
Taxi Service

14. A Work Breakdown Structure is not:
Chap 4
A Work Breakdown Structure is not an exhaustive list of work
A WBS is neither a project plan, a schedule, nor a chronological listing.
It is considered poor practice to construct a project schedule (e.g. using project management software) before designing a proper WBS.
A WBS is not an organizational hierarchy.
Some practitioners make the mistake of creating a WBS that shadows the functional organizational chart.
WBS updates, other than progressive elaboration of details, require formal change control.
This is another reason why a WBS should be outcome-oriented and not be prescriptive of methods.
A WBS is not a logic model. Nor is it a strategy map.
This would be similar to scheduling the activities of home construction before completing the house design. Without concentrating on planned outcomes, it is very difficult to follow the 100% Rule at all levels of the WBS hierarchy.
While it is common for responsibility to be assigned to organizational elements, a WBS that shadows the organizational structure is not descriptive of the project scope and is not outcome-oriented. See also: responsibility assignment (RACI) matrix (also called a Staffing Matrix).
Methods can, and do, change frequently, but changes in planned outcomes require a higher degree of formality. If outcomes and actions are blended, change control may be too rigid for actions and too informal for outcomes.

15. The 100% Rule
Chap 4
WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management.
One of the most important principles guiding the development, decomposition and evaluation of the WBS.
Applies at all levels within the hierarchy:
The sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project, that is, it cannot include more than 100% of the work…
It is important to remember that the 100% rule also applies to the activity level. The work represented by the activities in each work package must add up to 100% of the work necessary to complete the work package.
Practice Standard for Work Breakdown Structures (Second Edition), published by the Project Management Institute, ISBN , page 8

16. Integrating the WBS with the Organization
Chap 4
Organizational Breakdown structure:
Describes how the firm has assigned the work responsibility.
- results from assigning of work packages responsibilities, made in WBS
When a dedicated project management structure is not used the OBS can:
help define and group the Cost Accounts by function
promotes communication of reporting and project changes
A Work Breakdown Structure is not an exhaustive list of work. It is instead a comprehensive classification of project scope.
A WBS is neither a project plan, a schedule, nor a chronological listing. It is considered poor practice to construct a project schedule (e.g. using project management software) before designing a proper WBS. This would be similar to scheduling the activities of home construction before completing the house design. Without concentrating on planned outcomes, it is very difficult to follow the 100% Rule at all levels of the WBS hierarchy.
A WBS is not an organizational hierarchy. Some practitioners make the mistake of creating a WBS that shadows the organizational chart. While it is common for responsibility to be assigned to organizational elements, a WBS that shadows the organizational structure is not descriptive of the project scope and is not outcome-oriented. See also: responsibility assignment (RACI) matrix (also called a Staffing Matrix).
WBS updates, other than progressive elaboration of details, require formal change control. This is another reason why a WBS should be outcome-oriented and not be prescriptive of methods. Methods can, and do, change frequently, but changes in planned outcomes require a higher degree of formality. If outcomes and actions are blended, change control may be too rigid for actions and too informal for outcomes.
A WBS is not a logic model. Nor is it a strategy map.
Same as WBS with the addition of functional departments matrices to WPs

17. Organizational Breakdown Structure (OBS)
Chap 4
Project
Mgr
Structural
Concrete
Framing
Masonry
Interior
Drywall
Mudders
Finishing
flooring
Plumbing
Water/Sewer
Gas
Electrical
Hookup
Outlets
Wiring
Fixtures
Info Tech
Accounting
Marketing
Purchasing
Trucking
Project Oriented Structure

18. Organizational Breakdown Structure (OBS)
Chap 4
Project
Mgr
Accounting
Concrete
Framing
Masonry
Info Tech
Marketing
Trucking
Hookup
Outlets
Wiring
Fixtures
Interior
Structural
Plumbing
Electrical
Roofing
Engineering
Drywall
Mudders
Finishing
flooring
Water/Sewer
Gas
Functional Structure

19. Project Definition Example
Chap 4
Basketball game
Fashion Show
Taxi Service

20. Responsibility Activity Matrix (RAM)
Chap 4
RAM is used to integrate the Work Breakdown Structure (WBS) and the Organizational Breakdown Structure (OBS).
RAM output is Work Packages.
WBS x
OBS

21. Work Package A work package at the activity level is a task that:
Chap 4
A work package at the activity level is a task that:
can be realistically and confidently estimated;
makes no sense practically to break down any further;
can be completed in accordance with one of the heuristics defined above;
produces a deliverable which is measurable; and
forms a unique package of work which can be outsourced
The activities listed in the work package are the activities listed in the MS Project plan.
allows user to estimate costs for each task

22. Creating a Work Package
Chap 4
Lowest unit of WBS; This is where all the tasks are accomplished
Define work
Detail events
Specific deliverable(s)
Identify time to complete
Identify a time phased budget to complete
Identify a single person responsible for unit of work
Identify monitoring points for measuring progress
How to measure a successful deliverable
The first is the "80 hour rule" which means that no single activity or group of activities to produce a single deliverable should be more than 80 hours of effort.
The second rule of thumb is that no activity or series of activities should be longer than a single reporting period. Thus if the project team is reporting progress monthly, then no single activity or series of activities should be longer than one month long.
The last heuristic is the "if it makes sense" rule. Applying this rule of thumb, one can apply "common sense" when creating the duration of a single activity or group of activities necessary to produce a deliverable defined by the WBS.
A work package at the activity level is a task that:
can be realistically and confidently estimated;
makes no sense practically to break down any further;
can be completed in accordance with one of the heuristics defined above;
produces a deliverable which is measurable; and
forms a unique package of work which can be outsourced or contracted out.

23. Level of Detail
Chap 4
The “80 hour rule“: no single activity or group of activities to produce a single deliverable should be more than 80 hours of effort.
Single Reporting Period: no activity or series of activities should be longer than a single reporting period.
The "if it makes sense" rule. Applying this rule of thumb, one can apply "common sense" when creating the duration of a single activity or group of activities necessary to produce a deliverable defined by the WBS.

24. Responsibility Activity Matrix (RAM)
Chap 4
RAM output is Work Packages.
WBS
$580
$300
$210
$600
$900
$950
$750
$450
$1860
$100
OBS
Helps understand resource capacity requirements, helps in defining budget at all levels.
Rent Tables $250
Rent glass ware $200
Rent silverware $200
Setup hrs $160
Create Menu 2 hrs $200
Shop hrs $250
Prep hrs $150
Cook hrs $ 200
Serve hrs $250
WP 1.2.3
WP 1.2.4

25. Assignment Read and answer questions regarding
Chap 4
Read and answer questions regarding
Manchester United Soccer Club case study.

26. Questions

27. Aircraft Example
Chap 4

28. WBS Dictionary (First Level)
Chap 4
1          Support
This WBS element includes all management activities that typically span the entire project and are estimated in terms of level of effort rather than by reference to the specific work products produced. These include Program Management, Implementation (Release) Management, Logistics Management, and Technical Management.
11        Program Management
This WBS element includes all management tasks at the level of the entire project including organizing, directing, coordinating, and controlling all of the resources required to accomplish project objectives, cost/schedule performance management, subcontractor management, and quality management.
12        Implementation (Release) Management
This WBS element includes all of the effort to plan, control, and execute the implementation of all releases.
13        Logistics Management
This WBS element includes all of the effort to establish and maintain a logistics support and provisioning program, including, for example, supplies, storage, spares, and repairs of material used by the project.  Material includes commercial off-the-shelf (COTS) software, and other tangible supplies.
14        Technical Management
This WBS element includes all of the effort to direct and control the technical engineering effort to transform the operational needs into a specification of requirements and an optimum configuration, including risk and issue management and configuration management.