MODULE 7 Part A

Project Management and Economy-

– established the project
Expected Outcomes
After completing this module, you should be able to describe: the project base on
engineering term
 Established the project

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

2
 Step 1: Defining the 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
3
 Step 1: Defining the project scope

To clearly define the

deliverable(s) for the end
user

Purpose
of the
Scope To be used by the
project owner and
To focus the project on participants
successful completion as a planning tool
of its goals and for measuring
project success

4
 Step 1: Project Scope Checklist

Project
objective

Reviews
with Deliverables
customer
Step 1:
Project
Scope
Checklist
Technical
Milestones
requirements

Limits and
exclusions
5
 Step 1: 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.
• Scope Creep
– The tendency for the project scope to expand over time due to
changing requirements, specifications, and priorities.
6
 Step 2: Establishing Project Priorities

• Priorities - causes of Project Trade-offs

– Shifts in the relative importance of criterions related to cost, time,
and performance parameters
– Delivery;
• Budget–Cost
• Schedule–Time
• Performance–Scope

7
 Step 2 : Example of priority matrix/ trade off

• Time wise, Apple is committed to launching its new iPhone versions

each September to take advantage of the new academic season, but not
only. Apple has many other products: Apple Watch, MacBook Air and
MacBook Pro, Ipad, and many other innovations that it brings into the
market each year.
8
 Step 2 : Example of priority matrix/ trade off

• Many customers are waiting for the new iPhone, Apple creates a buzz around the product
and many speculations on what new features it will bring are already on the various blogs
and rumours start spreading fast (before organized mega event)
• So it is imperative that the company sticks to its announced deadline, especially that
customers will start placing their orders shortly after, manufacturers will start receiving their
respective part orders, and the complex chain will be on the move. Therefore, time is a
constraint.
9
 Step 2 : Example of priority matrix/ trade off

• Cost wise, we have seen how the new iPhone X is being sold
at unprecedented price levels. This is especially true given
the marketing policy of Apple to sell its new iPhone at a
premium thus targeting customers with higher purchasing
power. Apple places itself at the top of innovation
technology leaders and underlines this position with new
smartphone features that customers are willing to pay for.
Therefore, if cost is exceeded is will be accepted.
10
 Step 2 : Example of priority matrix/ trade off

• Finally, performance (scope) wise, the iPhone has long had a reputation of bringing
new technologies into the market, cameras, applications, iOs functionalities and
parallel tasking. Therefore, it is needed to keep its leasing marketing position to be
ready to enhance the existing features.
• The established market’s levels of smartphone incorporated features are constantly
on the rise, and customer expectations are continuously getting higher, therefore
performance has to be enhanced.
11
How to integrate scope and priority? Develop the WBS

12
 Step 3a:Creating the Work Breakdown Structure – outline the
hierarchy
• Work Breakdown Structure (WBS)
– An hierarchical outline (map) that
identifies the products and work
elements involved in a project.

13
 Step 3b:Creating the Work Breakdown Structure – define the
relationship
• Work Breakdown Structure (WBS)
– Defines the relationship of the final
deliverable (the project) to its sub-
deliverables, and in turn, their
relationships to work package

14
Step 3b:Creating the Work Breakdown Structure - responsibility
Manager

Engineer

Supervisor

Foreman /
charge man

Fabricator, welder, electrician,

mechanic, fitter

Management responsibility level

15
 Step 3c:Creating the Work Breakdown Structure – setting the
outcome
• Work Breakdown Structure
(WBS)
– Best suited for design and build
projects that have tangible
outcomes rather than process-
oriented projects

16
Step 3c:Creating the Work Breakdown Structure – setting the outcome
• 3 Units of pressure boiler,
• 1 unit pressure reducing BASF 5 MWatt power plant
valve,
• 2 units of turbin 2 MW
each,
• a unit of electrical converter

Each of valve, safety

mechanism, locking, busbar,
contactor, motorized system,
feeder system etc

Main components which suit

to manufacture internally,
outsource externally,
purchase (Scott English,
Mechmar, Nadrowski etc.)
17
 Summary
• WBS help to facilitates the project organization

18