Business Project Management

MGT 172
Chapter 4:
Defining The Project

UCSD MGT 172 - Business Project Management

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Slide 1

Class Roadmap

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Slide 2

Defining the Project

Step 1:

Defining the Project Scope and Requirements

Step 2:

Establishing Project Priorities

Step 3:

Creating the Work Breakdown Structure

Step 4:

Coding the WBS for the Information System

Step 5:

Integrating the WBS with the Organization

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Slide 3

Step 1: Defining the Project Scope

Project Scope
A definition of the end result or mission of the projecta product
or service for the customerin specific, tangible, and
measurable terms.

Purpose of the Scope Statement

To clearly define the deliverable(s) for the customer.
To focus the project on successful completion of its goals.
To be used by the project manager and team as a planning tool
and for measuring project success.

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Slide 4

Project Scope: Terms and Definitions

Scope Statement
Also called Statement 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.

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Slide 5

Project Scope Checklist

1. Project objective
2. Deliverables
3. Milestones
4. Requirements
5. Limits and exclusions (Ts&Cs)
6. Reviews with customer

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Slide 6

Goal of Requirements
Communicate the customers needs, wants, and
expectations to system stakeholders
Define what must be developed
Represents the contractual agreement between the buyer
and project team
Requirements drive the structure of the project through the
Work Breakdown Structure (WBS)

Poorly
Poorlydefined
definedrequirements
requirementsincrease
increasethe
therisk
riskof
ofproject
project
failure.
failure.
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Slide 7

Scope Statement and Requirements

Scope

Requirements

Cut the lawn and trim the

trees in front of my house

Cut the lawn high enough

so that it does not kill the
underlying grass roots,
place the trimmings in the
trash can, fertilize the
grass, and trim the trees
severely for the winter
rest period (40% cut
back)

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Slide 8

Requirements Analysis
Understand all project requirementsreview all documentation
Technical, Schedule, Cost, Contractual

Clearly document the deliverables and requirements

Possible sources of requirements include:

Project objectives
Statement of Work (SOW)
Terms and Conditions (Ts&Cs)
Schedule
Budget Constraints
Internal Project Charter
Company Management/Board
Venture Capital Company
Deliverables
Customer Reviews
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Slide 9

Requirements

Contract
Intellectual property
Warranty
Penalties
International law
Acceptance criteria
Schedule
Project milestones
Payment schedule
Deliverables
Service levels
Help desk response time
Cost
Budget
Funding

Technical
System capabilities
Interfaces
Performance
Throughput, sizing, response
time, service levels, productivity

Data
Sources and uses

Operational scenarios, states, and

modes
The ilities
Availability, maintainability,
portability, reliability, usability,
quality, etc.

Other
Safety, security, installation,
foreign language

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Slide 10

Attributes of Good Requirements

Complete
Consistent
Correct
Unambiguous
Measurable/verifiable
Traceable
Design-free
Necessary

They
Theyaddress:
address:
Capabilities
Capabilities
Limitations
Limitations
Performance
Performance
Interfaces
Interfaces
Quality
Quality

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Slide 11

Exercise : Requirements Definition (1 of 4)

Scenario
Your team has just received a Request for Proposal
(RFP) and specification for a bid with the U.S. Federal
Government for the delivery of a first-of-a-kind system.
You have been asked to review the specification from a
requirements perspective in order to develop the
proposal.
1. Review the specification and identify any aspects of the
wording you believe to be ambiguous, incomplete, too vague or
contradictory, and unverifiable to permit development.
2. Identify problem areas and items where clarification should be
requested from the customer.

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Slide 12

Exercise : Requirements Definition (2 of

4)
SIGNAL CORPS SPECIFICATION, NO. 486
ADVERTISEMENT AND SPECIFICATION FOR A HEAVIER-THAN-AIR FLYING MACHINE

To The Public
Sealed proposals, in duplicate, will be received at this office until 12 o'clock noon on February 1, 1908, on behalf of the Board of Ordnance
and Fortification for furnishing the Signal Corps with a heavier-than-air flying machine. All proposals received will be turned over to the
Board of Ordnance and Fortification at its first meeting after February 1 for its official action.
Persons wishing to submit proposals under this specification can obtain the necessary forms and envelopes by application to the Chief
Signal Officer, United States Army, War Department, Washington, D.C. The United States reserves the right to reject any and all proposals.
Unless the bidders are also the manufacturers of the flying machine they must state the name and place of the maker.
Preliminary. - This specification covers the construction of a flying machine supported entirely by the dynamic reaction of the atmosphere
and having no gas bag.
Acceptance. - The flying machine will be accepted only after a successful trial flight, during which it will comply with all requirements of this
specification. No payments on account will be made until after the trial flight and acceptance.
Inspection. - The Government reserves the right to inspect any and all processes of manufacture.
GENERAL REQUIREMENTS
The general dimensions of the flying machine will be determined by the manufacturer, subject to the following conditions:
1. Bidders must submit with their proposals the following:
(a) Drawings to scale showing the general dimensions and shape of the flying machine which they propose to build under this
specification.
(b) Statement of the speed for which it is designed.
(c) Statement of the total surface area of the supporting planes.
(d) Statement of the total weight
(e) Description of the engine which will be used for motive power.
(f) The material of which the frame, planes, and propellers will be constructed. Plans received will not be shown to other bidders.

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Slide 13

Exercise : Requirements Definition (3 of

4)

2. It is desirable that the flying machine should be designed so that it may be quickly and easily assembled and taken apart
and packed for transportation in army wagons. It should be capable of being assembled and put in operating condition in
about one hour.
3. The flying machine must be designed to carry two persons having a combined weight of about 350 pounds, also sufficient
fuel for a flight of 125 miles.
4. The flying machine should be designed to have a speed of at least forty miles per hour in still air, but bidders must submit
quotations in their proposals for cost depending upon the speed attained during the trial flight, according to the following
scale:
40 miles per hour, 100 per cent
Less than 36 miles per hour rejected.
39 miles per hour, 90 percent
41 miles per hour, 110 percent
38 miles per hour, 80 percent
42 miles per hour, 120 percent
37 miles per hour, 70 percent
43 miles per hour, 130 percent
36 miles per hour, 60 percent
44 miles per hour, 140 percent
5. The speed accomplished during the trial flight will be determined by taking an average of the time over a measured
course of more than five miles, against and with the wind. The time will be taken by a flying start, passing the starting
point at full speed at both ends of the course. This test subject to such additional details as the Chief Signal Officer of the
Army may prescribe at the time.
6. Before acceptance a trial endurance flight will be required of at least one hour during which time the flying machine must
remain continuously in the air without landing. It shall return to the starting point and land without any damage that would
prevent it immediately starting upon another flight. During this trial flight of one hour it must be steered in all directions
without difficulty and at all times under perfect control and equilibrium.
7. Three trials will be allowed for speed as provided for in paragraphs 4 and 5. Three trials for endurance as provided for in
paragraph 6, and both tests must be completed within a period of thirty days from the date of delivery. The expense of
the tests to be borne by the manufacturer. The place of delivery to the Government and trial flights will be at Fort Myer,
Virginia.
8. It should be so designed as to ascent in any country which may be encountered in field service. The starting device must
be simple and transportable. It should also land in a field without requiring a specially prepared spot and without
damaging its structure.
9. It should be provided with some device to permit of a safe descent in case of an accident to the propelling machinery.
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Slide 14

Exercise : Requirements Definition (4 of

4)

10. It should be sufficiently simple in its construction and operation to permit an intelligent man to become proficient in its use
within a reasonable length of time.
11. Bidders must furnish evidence that the Government of the United States has the lawful right to use all patented devices or
appurtenances which may be a part of the flying machine, and that the manufacturers of the flying machine are
authorized to convey the same to the Government. This refers to unrestricted right to use the flying machine sold to the
Government, but does not contemplate the exclusive purchase of patent rights for duplicating the flying machine.
12. Bidders will be required to furnish with their proposal a certified check amounting to ten percent of the price stated for the
40 mile speed. Upon making the award for this flying machine these certified checks will be returned to the bidders and
the successful bidder will be required to furnish a bond, according to the Army Regulations of the amount equal to the
price stated for the 40 mile speed.
13. The price quoted in proposals must be understood to include the instruction of two men in the handling and operation of
this flying machine. No extra charge for this service will be allowed.
14. Bidders must state the time which will be required for delivery after receipt of order.
JAMES ALLEN,
Brigadier General, Chief Signal Officer of the Army
SIGNAL OFFICE
WASHINGTON, D.C., December 23, 1907.

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Slide 15

Project Management Trade-offs

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Slide 16

Step 2: Establishing Priorities within a Project

Causes of Project Trade-offs
Shifts in the relative importance of criteria related to
cost, time, and performance parameters
BudgetCost
ScheduleTime
PerformanceScope

Managing the Priorities of Project Trade-offs

Constrain: a parameter is a fixed requirement.
Enhance: optimizing a parameter over others.
Accept: reducing (or not meeting) a parameter
requirement.

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Slide 17

The Work Breakdown Structure

Definition: A deliverable oriented hierarchical decomposition
of the work to be executed by the project team to accomplish
the project objectives and create the required deliverables. It
organizes and defines the total scope of the project*.
Decomposes the work into manageable tasks which can be
defined, scheduled, budgeted, organized, statused, and
controlled
May be deliverable or functionally (process) oriented
depending on the nature of the work to be performed
Typically:
Completion type project would be deliverable oriented
Services type project would be functionally oriented
*A Guide to the Project Management Body of Knowledge (PMBOK Guide - 4th Edition)
Project Management Institute, 2009
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Slide 18

How the WBS Helps the Project Manager

Facilitates evaluation of cost, time, and technical
performance of the organization on a project
Provides management with information appropriate to
each organizational level
Helps in the development of the organization breakdown
structure (OBS), which assigns project responsibilities to
organizational units and individuals
Helps manage plan, schedule, and budget
Defines communication channels and assists in
coordinating the various project elements

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Slide 19

Hierarchical Breakdown of the WBS

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Slide 20

Develop a WBS for a Barn

Design and build a 24 x 60 x16 barn

Stalls for five horses

Work room
Office
Defense system
Utilities (electric, water, telephone)

Located in fire prone area; needs to be fire resistant

Sloping property
Road to barn and fence need to be built
Permitting required
What are the
deliverables?
Barn raising party

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Slide 21

Step 3: Creating the Work

Breakdown Structure (1)

Label the top level of the WBS with the name of

the end product or service that is being
delivered on the project (Only one box exists at
the top level)

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Slide 22

Step 3: Creating the Work

Breakdown Structure (2)

Label each box at the second level with

the products or phases that are necessary to
meet the requirements defined at the first level
of the WBS

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Slide 23

Step 3: Creating the Work

Breakdown Structure (3)

Label the lowest

level with the
activities to be
performed
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Slide 24

Lower Levels of the WBS

Functional elements may be decomposed into lower levels of
activities
Decomposition under functional elements may still be productoriented
Activities need not be in a particular order among their siblings, as
long as they are under the correct parent

WBS will transition from nouns (deliverables) to verbs

(activities required to complete the deliverables)
Materials and Subcontracts
May be separate elements, added at the level to which they apply

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Slide 25

How Low Do You Go?

To the level of management visibility required
Lowest level to develop accurate estimates
Lowest level to manage cost, schedule, and technical risks
All activities do not usually end up at the same level
throughout the Work Breakdown Structure (WBS)

Ensure
Ensurethat
thatthe
theproject
projectteam
teamhas
hasaaclear
clearunderstanding
understandingof
ofwho
who
isisdoing
doingwhat
what
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Slide 26

Step 5: Work Breakdown Structure Coding

Project End
Product
or System

Level 1

Level 2

1.1
Assembly
A-1

Level 3

Level 4

Level 5

1.1.1
Sub Assy
A-1.1

1.1.1.1
Work

1.1.1.2
Work

2.1
Assembly
B-1

1.2
Assembly
A-2

1.1.2
Sub Assy
A-1..2

1.1.2.1
Work

1.1.2.2
Work

3.0
Proj Mgmt

2.0
Subsystem
B

1.0
Subsystem
A

1.2.1
Sub Assy
A-2.2

1.2.1.1
Work

1.2.2
Work

2.1.1
Work

2.1.2
Work

4.0
Sys Eng

5.0
Sys Intg Test

2.2
Assembly
B-2

2.2.1
Work

2.2.2
Work

1.2.1.2
Work

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Slide 27

WBS Examples-Graphic and List Form

ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

WBS
1
1.1
1.1.1
1.1.2
1.1.3
1.2
1.3
1.3.1
1.4
1.4.1
1.4.2
1.4.3
1.4.4
1.4.5
1.4.6
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.6.1
1.6.2
1.6.3
1.6.4
1.6.5
1.7
1.7.1
1.7.1.1
1.7.1.2
1.7.1.3
1.7.1.4
1.7.1.5
1.7.1.6

Task Name
Ninja Softw are Developm ent Project
Project Managem ent
Project Mgt Support
Contract Aw ard
Project Completion
System Engineering
System Support
Netw ork Operations
Softw are Developm ent
Perform Requirements Analysis
Develop Preliminary Design
Preliminary Design Review
Develop Final Design
Critical Design Review
Code Softw are
Security
Requirements Analysis
Develop Security Design
Customer Review of Design
Implement Security Solution
System Test & Evaluation
Perform System Test
Correct Deficiencies
Perform Retest
Install at Customer Site
Perform Site Acceptance Test
Docum entation
Interface Control Docum ent
Develop Draft ICD
Review Draft ICD
Develop Final ICD
Review Final ICD
Incorporate Comments
ICD Complete

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Slide 28

Control Accounts
Focal point for data collection and comparisons of work
performed against the plan
Contains a specified scope of work, detailed schedule, and
time-phased budget
Integrates work and responsibility
Assigned to a person who monitors and controls the
technical, schedule, and cost of the defined scope
Control Account Manager (CAM) (or Task Manager)
Composed of:
Work packages
Planning packages
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Slide 29

Work Packages
Basic unit used for planning, scheduling, and controlling the
project
Lowest level of the WBS

Used to further define the Control Account, work scope,

budget, schedule
Defines
Defines work (what)
Identifies time to complete a work package (how long)
Identifies a time-phased budget to complete
a work package (cost)
Identifies resources needed to complete
a work package (how much)
Identifies a person responsible for units of work (who)
Identifies monitoring points (milestones)
for measuring success
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Slide 30

Organizational Breakdown Structure (OBS)

Defines the organizational unit responsible for
performing the work
Provides a framework to summarize organization work
performance
Identifies the organization responsible for performance of the
work
Breaks down the team structure for assigning responsibility for
budgets, time, and technical performance.
W. George (PM)
B. Raines (Deputy PM)

Raines
Smith
Duke

Kyle

Perkins

Parrish
Simpson
Berries

Cox
Davis

Kemp
Harris

Longfellow

Leach

Wilson
Rader
Thomas

Dawson

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Slide 31

Step 4: Integration of the WBS and OBS

Responsibility Assignment Matrix (RAM): A structure that
relates the project OBS to the WBS to help ensure that
each component of the projects scope of work is
assigned to a person or team.*
Creates a project control point (control account) that
integrates work and responsibility
Especially useful for:
Large or complex projects
Projects with distributed teams
Teams with many partners

*A Guide to the Project Management Body of Knowledge (PMBOK Guide - 4th Edition)
Project Management Institute, 2009
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Slide 32

Responsibility Assignment Matrix (RAM)

Defines a single person with authority and accountability
for accomplishing the work
Intersection points are Control Accounts

W. George

B. Raines

Raines
Kyle
Perkins
Kemp
Longfellow
Leach

1.1
X

1.2

1.3

1.4

1.5

D o cu m en tatio n

S ystem Test &

E valu atio n

S ecu rity

S o ftw are
D evelo p m en t

S ystem S u p p o rt

S ystem
E n g in eerin g

WBS/
CAM

P ro ject
M an ag em en t &
O versig h t

Ninja Project

1.6

1.7

X
X
X
X

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Slide 33

Classroom Exercise: Develop a WBS

(1) Develop a top level Work
Breakdown Structure for the
Heavier Than Air Flying Machine.
(2) Place the other elements on the
right column in the WBS. (3) Break
out Propellers to the work
package level.
Top level:
1. Flying Machine
i.
Project Management
ii.
Aircraft
a.
Airframe
b.
Engine
c.
Controls
d.
Aircraft Integration
iii.
Acceptance Tests
iv.
Training and Documentation

Fuselage
Fuel storage and delivery
Wings
Propellers
Instruments
Landing Gear/Wheels
Cockpit
Control Surfaces
Steering Assembly
Engine Integration
Airframe Integration
Controls Integration
Speed Trial
Endurance Trial
Final Tests
Speed Flights
Endurance Flights
Disassembly, Storage, Assembly

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Slide 34

Homework for next session

Read Chapter 5
Read Case: Sharp Printing, AG on pages 149-151 and
answer questions #1 3.

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Slide 35