MGT400 1
MGT400 – Project Management
Chapter 4: Defining the project
Lecture Content • Defining the Project Scope
• Employing Checklists (six check items). • Establishing Project Priorities
• Priority Matrix: Constrain, Enhance, and Accept. • Creating the Work Breakdown Structure (WBS)
• WBS definition. • How WBS help Project Managers • Simple WBS Development (Examples)
• Coding the WBS for the Information System • Integrating the WBS with the Organization:
• Organization Breakdown Structure (OBS). • Cost accounts
• Control: Outcomes and responsibilities.
• Process Breakdown Structure (PBS): • Definition. • Difference from WBS. • Example of PBS.
• Responsibility Metrics • Project Communication Plan
• Two supporting diagrams. 2MGT 400 - Project Management
Step 1: Defining Project Scope
• What is a Project Scope?
• 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.
(Larson & Gray, 2014, p.104)
• What to do mean? What is in the project and what is not in the project.
3MGT 400 - Project Management
Step 1: Defining Project Scope
• 50% of the planning problems are reported to be as result of unclear definition of scope and goals.
• Who defines the Project Scope? • The Project Manager, Customer, and important stakeholders. • Requires approval of owner of the project.
• 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.
4MGT 400 - Project Management
Step 1: Defining Project Scope
• Project Scope Checklist
1. Project objective (to meet customer’s need)
2. Deliverables (expected output over the life of the project)
3. Milestones(significant event in a project occurs @ time)
4. Technical requirements (to ensure proper performance)
5. Limits and exclusions (should be defined)
6. Reviews with customer (internal or external)
• You should study these in details from the book.
5MGT 400 - Project Management
Step 1: Defining Project Scope
• Few more points about project scope: • Keep it brief: No more than two pages.
• Some contract companies create: Statement of work (SOW) which is similar.
• Some companies use term “Project Charter”, which allows project manager more Flexibility to budget and use resources as they need fit.
• This is specially useful when these resources cannot be predicted.
• Project Creep happens when scope of project gets expanded (usually by project owner) .
• Expanding the scope almost always address cost and delays to the project.
6MGT 400 - Project Management
What is a project objective? It is a statement that clearly states what you want to achieve. How long it will take you to achieve it. How much it will cost.
7MGT 400 - Project Management
Step 2: Determine Project Priorities
• Determining priorities of a project helps to measure the success of a project!
• Did we achieve everything? (total success)
• Did we just achieve the important outcomes? (Some success).
• Did we fail to achieve all the important outcomes? (Failure)
• Did we fail to achieve any of the important outcomes? (Disaster!!)
8MGT 400 - Project Management
Step 2: Determine Project Priorities
• Priority Matrix is a tool used to help agree the priorities in a project for: Time, Performance, and Cost.
• It is allocated one of three categories: • Constrain (Fixed)
• Enhance (try to improve)
• and Accept (If it has to run behind, never mind).
9MGT 400 - Project Management
Step 2: Determine Project Priorities
10
Priority Matrix
MGT 400 - Project Management
Step 3: Creating the Work Breakdown Structure. • What is a Work Breakdown Structure (WBS)?
•“…it is an outline of the project with different levels of detail.” (p.108)
•It is breaks the project into:
Product (Level 1)
major deliverables (level 2)
Sub deliverables (level 3) o Lowest deliverables (level 4)
Cost accounts (level 5) • Work package (Final level)
11MGT 400 - Project Management
Step 3: Creating Work Breakdowns Structure (WBS)
12MGT 400 - Project Management
Step 3: Creating the Work Breakdown Structure.
• Work Packages • A work package is the lowest level of the WBS. • Each work output would:
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.
(p. 111)
13MGT 400 - Project Management
• Organization Breakdown Structure (OBS) depicts how the firm has organized to distribute work responsibilities.
• OBS also indicates: • Who (person or department) is responsible for what.
• Cost control accounts.
• Business tend to like to integrate OBS with WBS.
14
Step 4: Integrating the WBS with the Organization
MGT 400 - Project Management
15
Step 5: Coding the WBS for the Information System
MGT 400 - Project Management
16
Step 5: Coding the WBS for the Information System
MGT 400 - Project Management
WBS is product oriented but some projects do not have tangible product outcome.
Process Breakdown Structure (PBS):
• For process-oriented projects in which phases are linked and phases have a specific sequence.
• Example: Creating website:
• Planning, Analysis, Design, Building, testing, implementing, delivery…etc.
• All have to be done in specific sequence.
• Lets look at the book’s example on page 117.
17
Step 5: Coding the WBS for the Information System
MGT 400 - Project Management
Process Breakdown Structure (PBS):
18
Step 5: Coding the WBS for the Information System
MGT 400 - Project Management
19
Step 6: Responsibility Matrices
MGT 400 - Project Management
20
Step 6: Responsibility Matrices
1 = Responsible 3 = Consult 5 = Approval 2 = Support/assists 4 = Notification
MGT 400 - Project Management
21
Step 7: Project Communication Plan
MGT 400 - Project Management
Important terms to review from book • Project Scope, Project Scope Checklist, Statement of Work, Project
Charter, Scope Creep, Priority Matrix, Work Breakdown Structure (WBS), WBS hierarchy, Work Packages, Organization Breakdown Structure (OBS), Cost Account, Coding in WBS, Process Breakdown Structure (PBS), Simple Responsibility Matrix, Complex Responsibility Matrix, Project Communication Plan, Two supporting diagrams for Project Communication Plan.
22MGT 400 - Project Management