Project Management

Project Scope Management

Project Scope Management

This lecture describes a disciplined, structured method for selectively collecting information to use through all phases of the project life cycle, to meet the needs of all stakeholders and to measure performance against the strategic plan of the organization. The method suggested is a selective outline of the project called Work Break down Structure (WBS). The early stages of developing the outline serve to ensure that all tasks are identified and that participants of the project have an understanding of what is to be done. Once the outline and its details are defined, an integrated information system can be developed to schedule work and allocate budgets. This baseline information is later used for control.

Project Scope Management

Project Scope Management is one of the primary function of a project manager.
It includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Project scope management is primarily concerned with defining and controlling what is and is not included in the project.

Project manager should list, in scope statement, what is explicitly included and what is explicitly excluded.
Enhancements that do not add value are known as Gold Plating and should be avoided.

Project Scope Management

Not My Project

Scope
My Project Not My Problem

My Problem

Project Scope Management

Defining a project scope sets the stage for developing a project plan. Project scope is a definition of the end result or mission of the project a product / service for your client customer. The primary purpose is to define as clearly as possible the deliverables for the end user and to focus project plans. As fundamental and essential as it appears, it is frequently overlooked by project leaders. Research clearly shows that a poorly defined scope is the most frequently mentioned barrier to project success. 50% of the planning problems relate to unclear definition of scope and goals. There is a strong correlation between project success and clear scope definition. (A study conducted by Gobeli and Larson involving more than 1400 Project Managers in US and Canada).

Project Scope Management

Strong correlation exist between project success and clear scope definition. The scope document directs focus on the project purpose throughout the life of the project for the customer and project participants.

Your project scope definition is a document that will be published and used by the project owner and project participants for planning and measuring project success. Scope describes what you expect to deliver to your customer when the project is complete. Your project scope should define the results to be achieved in specific, tangible, and measurable terms.

Project Scope Management

A clear scope definition: Ensures you will know when a change in scope occurs.

Is the primary prerequisite for development of WBS.

Provides an administrative plan that is used to develop your operational plan.

Scope Definition

If the project scope needs to change, it is critical to have a sound change control process in place that records the change and keeps a log of all project changes.

The log identifies the change, impact and those responsible for accepting / rejecting the change.

Project Scope Management

In the project context, the term scope refers to Product Scope Features and functions that characterize a product service or result. Series of statements and exhibits that define and describe the attributes of the product the project is going to provide.

Project Scope The work that needs to be accomplished to deliver a product, service or result with the specified features and functions.

Product scope will be basis of project scope.

Example: Product scope of a software package would define its functions and features, whereas, project scope will define who will write the code, what resources will be needed, etc.

Project Scope Management Processes

Defining specific details related to scope that is necessary for your project to delivery successfully.

Scope Planning Scope Definition Create Work Breakdown Structure

Ongoing activity related to ensuring that the project is delivering as per scope. Scope Verification Scope Control

Project Human Scope Management Resource Management Processes

Initiating Planning Executing Monitoring and Control Closing

Scope Planning Scope Definition Create WBS Scope Verification Scope Control

Scope Planning creating a project scope management plan that documents how the project scope will
be defined, verified, controlled, and how the Work Breakdown Structures (WBS) will be created and defined.

Scope Definition Developing a detailed project scope statement as the basis for future project
decisions.

Create WBS Subdividing the major project deliverables and project work into smaller, more manageable
components.

Scope Verification Formalizing acceptance of the completed project deliverables.

Scope Control Controlling changes to the project scope.

Project Scope Management Processes

These processes interact with each other and with processes in the other Knowledge Areas as well. Each process can involve effort from one or more persons or groups of persons based on the needs of the project. Each process occurs at least once in every project, and occurs in one or more project phases, if the project is divided into phases. Although the processes are presented here as discrete elements with well-defined interfaces, in practice they may overlap and interact.

Project Scope Management Processes

Scope Planning
Defining and managing the project scope influences the projects overall success. Each project requires a careful balance of tools, data sources, methodologies, processes and procedures, and other factors to ensure that the effort expended on scoping activities is commensurate with the projects size, complexity, and importance. For example, a critical project could merit formal, thorough, and time intensive scoping activities, while a routine project could require substantially less documentation and scrutiny.

Scope Planning
The project management team documents these scope management decisions in the project scope management plan.

The project scope management plan is a planning tool describing how the team will define the project scope, develop the detailed project scope statement, define and develop the work breakdown structure, verify the project scope, and control the project scope.
The development of the project scope management plan and the detailing of the project scope begin with the analysis of information contained in the project charter, the preliminary project scope statement, the latest approved version of the project management plan, historical information contained in the organizational process assets, and any relevant enterprise environmental factors.

Scope Planning

Scope Definition
The preparation of a detailed project scope statement is critical to project success and builds upon the major deliverables, assumptions, and constraints that are documented during project initiation in the preliminary project scope statement. During planning, the project scope is defined and described with greater specificity because more information about the project is known. Stakeholder needs, wants, and expectations are analyzed and converted into requirements. The assumptions and constraints are analyzed for completeness, with additional assumptions and constraints added as necessary. The project team and other stakeholders, who have additional insight into the preliminary project scope statement, can perform and prepare the analyses.

Project Scope Management Processes

Project Scope Statement

The project scope statement describes, in detail, the projects deliverables and the work required to create those deliverables. The project scope statement also provides a common understanding of the project scope among all project stakeholders and describes the projects major objectives. It also enables the project team to perform more detailed planning, guides the project teams work during execution, and provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the projects boundaries.

Project Scope Statement

The degree and level of detail to which the project scope statement defines what work will be performed and what work is excluded can determine how well the project management team can control he overall project scope. Managing the project scope, in turn, can determine how well the project management team can plan, manage, and control the execution of the project.

Project Scope Statement

Benefits Allows for more accurate estimates of cost, schedule, resource allocation, and dependencies. Allows for advanced measuring and control using tools such as earned value analysis. Provide a tool for ensuring that all interested parties understand what is being produced. Allows for roles and responsibilities to be assigned. Can be used to further refine the scope management plan to avoid undesirable changes.

Project Scope Statement

The detailed project scope statement includes, either directly or by reference to other documents: Project objectives
Product scope description Project requirements Project boundaries Project deliverables Product acceptance criteria Project constraints Product assumptions Initial project organization Initial defined risk Schedule milestones Fund limitations Cost estimate Project configuration management requirements Project specifications Approval requirements

Must be signed by you and your customers.

Project Scope Statement Constraint

Imposed by others. List and describes the specific project constraints associated with the project scope that limit the teams options. For example a predefined budget or any imposed dates that are issued by the customer / performing organization.

Assumptions

Define your limits on the scope. List and describe the specific project assumptions associated with project scope and the potential impact of those assumptions if they have to be false. Project teams frequently identify, document and validate assumptions as part of their planning process.

Create Work Breakdown Structure (WBS)

Deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables. Organizes and defines the total scope of the project.

Subdivides the project work into smaller, more manageable pieces of work, with each descending level of the WBS representing an increasingly detailed definition of the project work.
The planned work contained within the lowestlevel WBS components, which are called work packages, can be scheduled, cost estimated, monitored, and controlled.

Create Work Breakdown Structure (WBS)

Create Work Breakdown Structure (WBS)

Work Breakdown Structure Templates

Although each project is unique, a WBS from a previous project can often be used as a template for a new project, since some projects will resemble another prior project to some extent.
For example, most projects within a given organization will have the same or similar project life cycles and, therefore, have the same or similar deliverables required from each phase. Many application areas or performing organizations have standard WBS templates.

Create Work Breakdown Structure (WBS)

Sample WBS with Some Branches Decomposed Down Through Work Packages

Create Work Breakdown Structure (WBS)

Decomposition Subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. The work package level is the lowest level in the WBS, and is the point at which the cost and schedule for the work can be reliably estimated. The level of detail for work packages will vary with the size and complexity of the project.

Create Work Breakdown Structure (WBS)

Decomposition Decomposition may not be possible for a deliverable or subproject that will be accomplished far into the future. The project management team usually waits until the deliverable or subproject is clarified so the details of the WBS can be developed. This technique is sometimes referred to as rolling wave planning.

Create Work Breakdown Structure (WBS)

Decomposition Different deliverables can have different levels of decomposition. To arrive at a manageable work effort (i.e., a work package), the work for some deliverables needs to be decomposed only to the next level, while others need more levels of decomposition. As the work is decomposed to lower levels of detail, the ability to plan, manage, and control the work is enhanced. However, excessive decomposition can lead to non-productive management effort, inefficient use of resources, and decreased efficiency in performing the work. The project team needs to seek a balance between too little and too much in the level of WBS planning detail.

Create Work Breakdown Structure (WBS)

Decomposition Decomposition of the total project work generally involves the following activities: Identifying the deliverables and related work Structuring and organizing the WBS Decomposing the upper WBS levels into lower level detailed components Developing and assigning identification codes to the WBS components

Verifying that the degree of decomposition of the work is necessary and sufficient.

Create Work Breakdown Structure (WBS)

Approaches to Creating WBS Using the major deliverables and subprojects as the first level of decomposition. Using subprojects, where the subprojects may be developed by organizations outside the project team. Using the phases of the project life cycle as the first level of decomposition, with the project deliverables inserted at the second level. Using different approaches within each branch of the WBS, where test and evaluation is a phase, the air vehicle is a product, and training is a supporting service.

Create Work Breakdown Structure (WBS)

Sample WBS Organized by Phase

Create Work Breakdown Structure (WBS)

Sample WBS Organized by Using Different Approach

Create Work Breakdown Structure (WBS)

Build a House

1.0. Design

2.0. Permitting

3.0. Financing

4.0. Construction

1.1. Structure

1.2. Interior

1.3. Landscape

1.1.1. Foundation

1.1.2. Walls

1.1.3. Roof

1.1.1.1. Footing

1.1.1.2. Block Walls

1.1.1.1.1 Calculate Load

1.1.1.1.2. Design Reinforcing

Partial WBS for Building a House

Create Work Breakdown Structure (WBS) The Work Breakdown Structure

The key document generated by the Create WBS process is the actual WBS.
Each WBS component, including work package and control accounts within a WBS, is generally assigned a unique identifier from a code of accounts. These identifiers provide a structure for hierarchical summation of costs, schedule, and resource information

Create Work Breakdown Structure (WBS) The Organizational Breakdown Structure (OBS)
Provides a hierarchically organized depiction of the project organization arranged so that the work packages can be related to the performing organizational units.

Create Work Breakdown Structure (WBS) Bill of Material (BOM)

Presents a hierarchical tabulation of the physical assemblies, subassemblies, and components needed to fabricate a manufactured product.

Create Work Breakdown Structure (WBS) Risk Breakdown Structure

A hierarchically organized depiction of the identified project risks arranged by risk category.

Create Work Breakdown Structure (WBS) Resource Breakdown Structure

A hierarchically organized depiction of the resources by type to be used on the project.

Create Work Breakdown Structure (WBS) WBS Dictionary

It is used to document project assignments. The document generated by the Create WBS process that supports the WBS is called the WBS dictionary and is a companion document to the WBS. The detailed content of the components contained in a WBS, including work packages and control accounts, can be described in the WBS dictionary.

Create Work Breakdown Structure (WBS) WBS Dictionary

For each WBS component, the WBS dictionary includes: A code of account identifier a statement of work Responsible organization A list of schedule milestones Other information for a WBS component can include: Contract information Quality requirements Technical references to facilitate performance of the work Other information for a control account would be a charge number.

Create Work Breakdown Structure (WBS) WBS Dictionary

Other information for a work package can include: A list of associated schedule activities Resources required An estimate of cost Each WBS component is cross-referenced, as appropriate, to other WBS components in the WBS dictionary.

Create Work Breakdown Structure (WBS) WBS Dictionary

Control Account Id # Work Package # Date of Update Responsible Organization / Individual

Work Package Description

Acceptance Criteria Deliverables / Assumptions Resources Assigned Duration Scheduled Milestone Cost Due Date Interdependencies Before this Work Package Approved by Project Manager Dated After this Work Package

Scope Verification
Process of obtaining the stakeholders formal acceptance of the completed project scope and associated deliverables.

Verifying the project scope includes reviewing deliverables to ensure that each is completed satisfactorily.
If the project is terminated early, the project scope verification process should establish and document the level and extent of completion. Scope verification differs from quality control in that scope verification is primarily concerned with acceptance of the deliverables, while quality control is primarily concerned with meeting the quality requirements specified for the deliverables. Quality control is generally performed before scope verification, but these two processes can be performed in parallel.

Scope Verification
It is done throughout the project for each deliverable in the WBS. You should develop a formal procedure for scope verification and have a sign-off where everyone agree that the deliverable is complete. Define timeline for acceptance of deliverables. Insist on single set of comments (in case of multiple approvers) and interim acceptance process.

Scope Verification

Scope Verification

Inspection
Includes activities such as measuring, examining and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Variously called reviews, product reviews, audits and walkthroughs. Scope verification is done through inspection.

Scope Control
Project scope control is concerned with influencing the factors that create project scope changes and controlling the impact of those changes.

Scope control assures all requested changes and recommended corrective actions are processed through the project Integrated Change Control process. Project scope control is also used to manage the actual changes when they occur and is integrated with the other control processes.
Uncontrolled changes are often referred to as project scope creep. Change is inevitable, thereby mandating some type of change control process.

Scope Control
Scope Creep Many projects suffer from scope creep. Tendency for the project scope to expand over time usually by changing requirements, specifications and priorities. Can be reduced by carefully writing your scope statement. A scope statement that is too broad is an invitation for scope creep. Can have positive or negative effect on the project but in most cases scope creep means added costs and possible project delays. Changes in requirements, specifications, and priorities frequently result in cost overruns and delays

Scope Control
Plan for scope changes. They are inevitable. Reasons may be: Actual errors and omissions that are required to allow the project to meet its objectives. New regulations Additional requirements discovered after the project has begun Enhancements that will make the project more successful. Manage scope changes Integrate scope changes deal with impact of change on cost, resources, etc. Update plan, schedule and budget Report to stakeholders on change

Scope Control
Formal change process should be in place. Document acceptance change.

Scope Control

Scope Control
Scope Change Request Form
Scope Change Request Requested Change Date of Request Business Reason for Change Project Name Project Manager S. No.

Change Request Log

Change Request Log Change Request Date Status

Analysis of Change Status can be initiated, under review, accepted, rejected, etc.

Project Impact of Change Scope impact

Schedule impact

Budget impact

Risk impact

Other project impact

Acceptance Business Sponsor Project Manager

Employing a Project Scope Checklist

Project scope is a keystone interlocking all elements of a project plan. To ensure that scope definition is complete you may wish to use the following checklist.

Project Objective Deliverables Milestones Technical Requirements Limits and Exclusions Reviews with Customers

Employing a Project Scope Checklist Project Objective

The first step of project scope definition is to define the overall objective to meet customer needs.
Answers the questions of: What? When? How much?

Employing a Project Scope Checklist Deliverables

The next step is to define major deliverables the expected output over the life of the project.

Employing a Project Scope Checklist Milestones

Significant event in the project that occurs at a point in time. The milestone schedule shows only major segments of work. It represents first rough cut estimates of time, cost and resources of the project. Milestone schedule is built using the deliverables as a platform to identify major segments of work and an end date.

Should be natural, important control points in the project.

Should be easy for all project participants to recognize.

Employing a Project Scope Checklist Technical Requirements

More frequently than not, a product or service will have technical requirements to ensure proper performance.

Employing a Project Scope Checklist Limits and Exclusions

Limits of scope should be defined. Failure to do so can lead to false expectations and to expending resources and time on wrong problem.

Employing a Project Scope Checklist Reviews with customers

Completion of the scope check list ends with a review with customer. Main concern should be understanding and agreement of expectations.

Clear communication is necessary to avoid misunderstanding.

Establishing Project Priorities

One of the primary jobs of a project management is to manage the trade-offs among time, cost and performance.

To do so the project manager must define and understand the nature of the priorities of the project.
They need to have a candid discussion with the customer and upper management to establish the relative importance of each criterion. One technique that is useful for this purpose is completing a priority matrix for the project that identifies which criterion is constrained, which should be enhanced, and which can be accepted.

Establishing Project Priorities

Constraint The original parameter is fixed. The project must meet the completion date, specification and scope of the project or budget. Enhance Given the scope of the project, which constraint should be optimized? In the case of cost and time, this usually means taking advantage of opportunities to either reduce costs or shorten the schedule. Conversely, with regards to performance, enhancing means adding value to the project. Accept For which criteria is it tolerable not to meet the original parameters? When trade-offs have to be made, is it permissible for the schedule to slip, to reduce the scope and performance of the project or to go over budget?

Scope

Quality Cost Time

Establishing Project Priorities Project Priority Matrix for a Cable Modem

Time to market is important to sales, the project manager is instructed to take advantage of every opportunity to reduce the completion time.
Constraint

Time

Performance

Cost

In doing so, going over the budget is acceptable. At the same time, the original performance specifications as well as reliability standards cannot be compromised.

Accept

Enhance

Establishing Project Priorities

Developing a decision priority matrix for a project is useful exercise. It provides a forum for clearly establishing priorities with customers and top management so as to create shared expectations and avoid misunderstandings. Matrix is useful for midway in the project for approaching the problem that must be solved. However, during the course of the project, priorities may change. Thus customer may suddenly need the project completed one month sooner, or new directives from top management may emphasize cost saving initiatives. Project manager needs to be vigilant in order to anticipate and confirm changes in priorities and make appropriate adjustments.

Scope

Quality Cost Time

Time Enhance Constraint

Perf.

Cost

Accept

Creating the WBS

Once the scope and deliverables have been identified, the work of the project can be successively subdivided into smaller and smaller work elements. The outcome of this hierarchical process is called the WBS. WBS is the map of the project. Use of the WBS helps to assure Project Managers that all products and work elements are identified, to integrate the project with the current organization, and to establish a basis for control. WBS is an outline of the project with different levels of details. Creating a WBS from the scratch is complex task. Project managers should take advantage of relevant examples from previous projects to begin the process. Typically a group effort is required.

Creating the WBS

WBS defines all elements of a project in a hierarchical framework and establishes their relationship to the project end items.

Think of the project as a large work package that is successively broken down into smaller work packages: the total project is a summation of all smaller work packages.
Hierarchical structure facilitate evaluation of cost, time and technical performance at all levels in the organization over the life of the project. WBS also provides management with information appropriate to each level. relevant stakeholders (most notably customers) should be consulted to confirm agreement and revise when appropriate.

Creating the WBS

As WBS is developed, organizational units and individuals are assigned responsibility for accomplishment of work packages. This integrates the work and the organization. In practice, this process is sometimes called Organizational Breakdown Structure (OBS). WBS also makes it possible to plan, schedule and budget. It gives a framework for tracking cost and work performance. Use of the structure provides the opportunity to roll-up the budget and actual costs of the smaller work packages into larger work elements so that the performance can be measured by organizational units and work accomplishments. WBS also defines communication channels and assist in understanding and coordinating many parts of the project.

Creating the WBS

Hierarchical Breakdown of the WBS
Project

Complete project

Deliverables

Major deliverables

Subdeliverables

Supporting deliverables

Lowest Subdeliverable

Lowest management responsibility level

Cost Account

Grouping of work packages for monitoring progress and responsibility.

Work Package

Identifiable work activities

Activity

WBS Dictionary

Creating the WBS

Each subdeliverable requires work packages that will be completed by an assigned organizational unit. Each deliverable will be successively divided in this manner. It is not necessary to divide all elements of the WBS to the same level. The lowest level of WBS is called the work package. Work packages are short direction tasks that have a definite start and stop point, consume resources, and represent cost. Each work package is a control point. A work package manager is responsible for seeing that the package is completed on time, within budget and according to specifications. Work package should not exceed 10 workdays or one reporting period. Otherwise, monitoring points should be established within the duration.

Creating the WBS

Each work package of the WBS should be as independent of other packages of the project as possible. No work package is described in more than one sub deliverable of the WBS.

Creating the WBS

PC Prototype

Level 1 More

Vendor S/W Apps.

Mouse, Keyboard, Voice

Disk Storage Sybsystem

Microprocessor

Level 2

External USB

Optical

Hard

Level 3

Lowest manageable Sub-deliverables

Motor

Circuit Board

Chassis Frame

R/W Head

Level 4

WP-1M

Work Packages

WP-1CB WP-2 CB WP-3 CB WP-4 CB

WP-1 CF WP-2 CF WP-3 CF

WP1-RWH WP2-RWH WP3-RWH WP4-RWH

Creating the WBS

Each Work Package in a WBS Defines work (what) Identifies time to complete a work package (how long) Identified a time phased budget to complete a work package (cost) Identifies resources needed to complete a work package (how long) Identifies a single person responsible for units or work (who) Identifies monitoring points for measuring progress.

Integrating WBS and OBS

An integral part of the WBS is to define the organizational units responsible for performing the work. In practice, the outcome of this process is organizational breakdown structure. The OBS depicts how the firm has organized to discharge work responsibility. The purpose of OBS are to provide a framework to summarize organizational unit work performance, identify organizational units responsible for work packages and tie the organizational units to cost control accounts. As in the WBS, OBS assign the lowest organization unit the responsibility for work packages within a cost account. Hence, WBS and OBS can be integrated the intersection of work packages and organizational units create a control point that integrates work and responsibility.

Integrating WBS and OBS

PC Prototype (1)

(A) One cost account refers to multiple work packages.

Work Packages WP 1.1.3.4.2.1 WP 1.1.3.4.2.1 WP 1.1.3.4.2.1 (Budget by Period) Vendor S/W Apps. (1.2.) Mouse, Keyboard, Voice (1.3.) Disk Storage Sybsystem (1.1.)

More
Microprocessor (1.4)

External USB (1.1.1)

Optical (1.1.2)

Hard (1.1.3)

Lowest manageable Sub-deliverables

Design Mfg.

Motor (1.1.3.1)

Circuit Board 1.1.3.2)

Chassis Frame (1.1.3.3)

R/W Head (1.1.3.4)

Control A/C Control A/C Control A/C Control A/C Control A/C Control A/C

1.1.3.4.1 See (A) Control A/C

Production
Org. Test Purchasing Software

Integrating WBS and OBS

Sorted by WBS
Direct Labor Budget (000) 1.1.3. 1.1.3.1. 1.1.3.2. Hard drive Motor Purchasing Circuit Board Design Production Testing Software Chassis Frame Production Read Write Head Design Production Testing $1,660 $10 $10 $1000 $300 $400 $120 $180 $50 $50 $600 $300 $200 $100

1.1.3.3. 1.1.3.4.

Integrating WBS and OBS

Sorted by OBS
Direct Labor Budget (000) Design 1.1.3.2. 1.1.3.4. $600 Circuit Board Read Write Head $650 $400 $50 $200 $650 Circuit Board Read Write Head $10 $10 $180 Software $660 $180 $120 $100 $300 $300

Production 1.1.3.2. Circuit Board 1.1.3.3. Chassis Frame 1.1.3.4. Read Write Head Testing 1.1.3.2. 1.1.3.4.

Purchasing 1.1.3.1. Motor Software 1.1.3.2. Total

Coding the WBS for Information System

Gaining the maximum usefulness of breakdown structure depends on a coding system. The codes are used to define levels and elements in a WBS organizational elements, work packages, and budget and cost information.
The codes allow reports to be consolidated at any level in the structure. The most commonly used scheme is the numeric indentation.
1.0 Computer Project 1.1. Disk Storage Unit 1.1.1. External USB 1.1.2. Optical 1.1.3. Hard 1.1.3.1. Motor 1.1.3.1.1. Sourcing : : 1.1.3.2. Circuit Board 1.1.3.3. Chassis Frame 1.1.3.4. R/W Head : :

Coding the WBS for Information System

Work Package Estimates
WP Description: Final Version Page: 1 of 1

WP Id: 1.1.3.2.

Project: PC Prototype

Deliverable: Circuit Board

Date: 7th July 2007

Original Unit: Software

Estimator: RMG

WP Duration: 3 work weeks

Total Budget: 265

Direct Costs Code Document Publish Total Labor Materials Equipment Total Direct

Rate $ xx / hr. $ xx / hr. $ xx / hr. $ $

1 50 $ $

2 30 10 $ $ $

3 20 15 5 40

5 $ $ $ $ $

Total 100 25 5 130 20 115 265

50

$ $

40 20 15 75

$ xx / hr.

$ $

50 100

$ $

$ $

50 90

$ $

Coding the WBS for Information System

Direct Labor Budget Rollup (000)
Disk Storage Units ($5,160)

External USB ($500)

Optical ($3000)

Hard ($1,660)

Motor ($10) Design ($600) Production ($650) Org. ($1660) Test ($220) Purchasing ($10) Software ($180)

Circuit Board ($1000)

Chassis Frame ($50)

R/W Head ($600) Summarize by deliverables

Mfg. ($1250)

$300 $400 $120 $10 $180 $50

$300 $200 $100

Summarize by organizational units

Process Breakdown Structure (PBS)

The WBS is best suited for design and build projects that have tangible outcomes such as an off-shore mining facility or a new car prototype.

The project can be decomposed into major deliverables, sub-deliverables, further sub-deliverables, and ultimately to work packages.
It is more difficult to apply WBS to less tangible process-oriented projects in which the final outcome is a product of a series of steps or phases. Here the big difference is that the project evolves over time with each phase affecting the next phase.

Process Breakdown Structure (PBS)

I.T. projects typically fall into this category for example creating an external website or database system Process projects are driver by performance requirements, not by plans blueprints. Some practitioners choose to utilize what we refer to as PBS instead of WBS.

Process Breakdown Structure (PBS)

PBS for a software development project
Software Development Project

Level 1 Major Phases Level 2 Activities

Analysis

Design

Construct

Test

Rollout

Define User Interface

Develop Technical Design

Establish Quality Requirements.

Develop Detailed Design

Level 3 Activities

Define Application Architecture

Define Processing Flow

Design Logical Database Structure

Design System Interfaces

Outputs

Design Phase Deliverables

Design Document Application architecture Application flow Database design End user interface design Workflow diagram User Documentation Outline

Process Breakdown Structure (PBS)

Instead of being organized around deliverables, the project is organized around phases. Each of the five major phases can be divided into more specific activities until a sufficient level of detail is achieved to communicate what needs to be done to complete that phase.

People can be assigned to specific activities, and a complementary OBS can be created just as is done for the WBS. Deliverables are not ignored but are defined as outputs required to move to the next phase.

Process Breakdown Structure (PBS)

Checklists that contain the phase exist requirements are developed to manage project progress. These checklists provide the means to support phase walkthroughs and reviews. As long as exit requirements and deliverables for each phase are well defined, the PBS provides a suitable alternative to the WBS for projects that involve extensive development work.

WBS and Other Processes

Project Control

Activity List

Network Diagram

Risk Management

WBS

Staffing

Budgeting

Scheduling

Estimating