TMC 470

Enterprise Planning
Module 2 – Part 3
Agenda
• Chapter 5 – Project Scope
– Work Breakdown Structure
– Organization Structure
– Resource Matrix
– Configuration Management & Control
– Statement of Work
– Work Packages
• Homework Reminders

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SCOPE MANAGEMENT

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Project Scope

Project scope is everything about a project—work content as well as

expected outcomes.
Scope management is the function of controlling a project in terms of
its goals and objectives and consists of:
1. Conceptual development
2. Scope statement
3. Work authorization
4. Scope reporting
5. Control systems
6. Project closeout
Conceptual Development

The process that addresses project objectives by finding the best ways
to meet them.
Key steps in information development:
• Problem or need statement
• Requirements gathering
• Information gathering
• Constraints
• Alternative analysis
• Project objectives
• Business case
Statement of Work (S O W)

A SOW is a detailed narrative description of the work required

for a project.
Effective SOWs contain:
1. Introduction and background
2. Technical description of the project
3. Timeline and milestones
Statement of Work Components

• Background
• Objectives
• Scope
• Task or Requirements
• Selection Criteria
• Deliverables or Delivery Schedule
• Security
• Place of Performance
• Period of Performance
Project Charter

• Many organizations establish the project charter after the SOW.

• A document issued by the project initiator or sponsor formally sanctioning
existence of the project and authorizes the project manager to begin
applying organizational resources to project activities.
• Is created once project sponsors have done their “homework” to verify
that:
– there is a business case for the project
– elements of project are understood
– company-specific information for the project has been applied
• It demonstrates formal company approval of the project.
Scope Statement
1. Establish project goal criteria to include:
a. cost
b. schedule
c. performance
d. deliverables
e. review and approval “gates”

2. Develop management plan for project

3. Establish a Work Breakdown Structure
4. Create a scope baseline
Scope Management
• Key concept – Configuration Control and Management of all
Project Details including Scope
– Remember the Constraints of the Project – Cost, Time, Performance
– Critical to manage Scope to achieve Project Objectives
– If Scope Changes – one of the other constraints most likely will change
as well

Example: Project to remodel Kitchen – Initial Scope includes refinishing

cabinets & contractor priced the job for this scope. After project
initiated, homeowner decides wants all new cabinets. Contractor issues
a Change Order with new Cost and Schedule.

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Work Breakdown Structure (WBS)

The WBS is a hierarchical decomposition of the total scope of

work to be carried out by the project team to accomplish the
project objectives and create the project deliverables. Each
deliverable is decomposed, or broken down, into specific “bite-
sized” pieces representing work to be completed.

– Similar to an OUTLINE for the project

– Taking a task and defining each step that must be accomplished to
achieve the task
– Helps with defining who, what, when, how long for each smaller task
Work Breakdown Structure Purpose

WBS serves six main purposes:

1. Echoes project objectives
2. Organization chart for the project
3. Creates logic for tracking costs, schedule, and performance
specifications
4. Communicates project status
5. Improves project communication
6. Demonstrates control structure
WBS Hierarchy

• The logic of hierarchy for the WBS follows this form:

Level WBS Term Description

Level 1 (Highest) Project The overall project under
development
Level 2 Deliverable The major project components
Level 3 Subdeliverable Supporting deliverables
Level 4 (Lowest) Work package Individual project activities
Partial Work Breakdown Structure

Each Work Package typically includes descriptive documentation.

Defining a Work Package

• Lowest level in WBS

• Deliverable result
• One owner
• Miniature projects
• Milestones
• Fits organization
• Trackable
Example: Charity Golf Tournament
Step 1 – Create your Project Plan Outline
– Identify “Level 2” Major Project Components – Deliverables
– For this project, there are 8 Major Project Components

Charity Golf
Tournament
Project

Tournament Tournament Tournament Monitor

Volunteers Decorations Food and Menus Event Day SetUp
Initiation Promotion Website Registrations

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Consider Each Level 2 Deliverable
• Determine the supporting deliverables and individual project
activities (Levels 3 and 4)
Charity Golf
Tournament
Project

Tournament
Initiation

Set Tournament
Objectives

Set Tournament
Date & Time

Prepare budget

Perform Site
Inspections

Reserve Golf
Course

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Complete the plan for each deliverable
A Tournament Initiation F Monitor online registrations
A.1 Set tournament objectives G Gather items for silent auction
A.2 Set tournament date and time H Decorations
A.3 Prepare preliminary budget H.1 Flowers for 18 holes
A.4 Perform site inspections H.2 Centerpieces for banquet tables
A.5 Reserve golf course H.3 Banners for welcome & silent auction
B Tournament Promotion H.4 Order Decorations
B.1 Solicit potential tournament I Food and Menus
B.2 Select tournament sponsors I.1 Breakfast, lunch and snack menus
B.3 Solicit celebrity appearances I.2 Water & refreshments for 18 holes
B.4 Schedule celebrity appearances I.3 Banquet Menu
C Tournament Website I.4 Beverage Cart
C.1 Design tournament logo I.5 Order Food and Beverage
C.2 Create tournament website J Event Day Setup
C.3 Begin online registrations J.1 Setup silent auction tables
C.4 Accept online registrations J.2 Setup registration & payment
D Create Volunteer List J.3 Decorate
E Sign Volunteer contract agreements J.4 Refreshments placed
K Event Day

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Work Breakdown Template: WBS Template Link

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Sample WBS Development Using MS Project 2016 Charity Golf with
WBS
Sample WBS Using ProjectLibre

Charity Golf Tournament MSProject.pod

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DEFINING A WORK PACKAGE

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 Project Profile: Defining a Work Package (WP)
• WP is typically the lowest level in the WBS
• Each WP has a deliverable result. Together, WPs identify all
the work that must be finished to complete the Project
• Each WP has one owner assigned – responsible for that
project’s completion
• A WP may be considered by its owner as a project. Finite
length, finite budget and specific deliverable
• A WP may include several milestones
• A WP should fit the organizational procedures & culture
• The optimal size of a WP may be expressed in terms of labor
hours, calendar time, cost, report period, and risks. Should be
trackable to monitor progress in measurable terms (cost &
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Project Task Description
• For each work package, complete all analysis of work to be
executed, what resources are required, time/duration
required for each resource, constraints
• Provides initial scope definition to manage all changes
requested
• Figure 5.5 in Textbook – good example

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Figure 5.5 WBS Project Task Description

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ORGANIZATION BREAKDOWN
STRUCTURE (OBS)

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Organizational Breakdown Structure
Organizational Breakdown Structure (OBS) allows
• work definition
• owner assignment of work packages
• budget assignment to departments

OBS links cost, activity, and responsibility.

The Intersection of the WBS and OBS
Cost Account Rollup Using OBS
RESPONSIBILITY ASSIGNMENT
MATRIX
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Responsibility Assignment Matrix
Work Authorization
The formal “go ahead” to begin work.
Contractual documentation possesses some key identifiable features:
• Contractual requirements
• Valid consideration
• Contracted terms

Contracts range from:

Scope Reporting

Determines what types of information reported, who receives

copies, and when and how information is acquired and
disseminated.
Typical project reports contain:
1. Cost status
– S-curves: graphical display of actual cost versus schedule relative to
“baseline”
– Earned Value: actual value versus budgeted value
– Variance or exception reports
2. Schedule status
3. Technical performance status
Types of Control Systems
• Configuration control
• Design control
• Trend monitoring
• Document control
• Acquisition control
• Specification control
Configuration Management
Configuration management is defined as:
A collection of formal documented procedures used to apply
technical and administrative direction and surveillance to: identify
and document the functional and physical characteristics of a
product, result, service, or component; control any changes to such
characteristics; record and report each change and its
implementation status; and support the audit of the products,
results, or components to verify conformance to requirements.
Baseline is defined as:
The project’s scope fixed at a specific point in time—for example, the
project’s scheduled start date.
Project Changes

Occur for one of several reasons:

• Initial planning errors, either technological or human
• Additional knowledge of project or environmental conditions
• Uncontrollable mandates
• Client requests
Project Closeout
The job is not over until the paperwork is done . . .
Closeout documentation is used to:
• Resolve disputes
• Train project managers
• Facilitate auditing

Closeout documentation includes:

• Historical records
• Post-project analysis
• Financial closeout
STATEMENT OF WORK

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 Statement of Work (SOW)
• Detailed narrative description of the work required for the
project
• SOW’s contain
– Key Objectives for the Project
– Brief and general description of the Work to be Performed
– Expected Project Outcomes
– Any Funding or Schedule Constraints
• Some SOW’s are developed by Customers to receive Project
Proposals
– Department of Defense – SOW’s are very descriptive – example, a
Army field communication device that is “no greater than 15”L X 15”W
X 9”D, can weigh no more than 12 lbs, etc.”

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Statement of Work (continued)
• Important component for the Conceptual Development
• SOW’s Include
– Introduction & Background – a brief history of the organization or the
root needs that led to the need to initiate the project. Should include
the Problem Statement
– Technical Description of the Project
– Time Line and Milestone
• ALL PROJECT PLANS should include Revision History
– Identify the Revision # and Date
– For each new Revision, what has changed in the document

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Elements in a Comprehensive SOW (Table 5.2)
1. Description and Scope
– Summary of Work requested
– Background
– Description of major elements (deliverables)
– Expected benefits
2. Approach
– Major milestones/key events anticipated (use table)
– Assumptions, impacts, procedures
– How to manage scope changes
3. Resource Requirements (use table) – all resources (people, material, outside
contractors)
4. Risks and Concerns
5. Acceptance Criteria
6. Estimated Time and Costs
7. Outstanding Issues

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PROJECT CHARTER

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 Sample Project Charter – Appendix 5.1 page 196 5 th
Edition

• A project charter is typically completed after the SOW is

developed
• Issued by the Sponsor of the Project to formally launch the
project and authorize the Project Manager to begin execution
• In the Integrated Project Plan, the Project Charter is the
identification of the Sign-off (Approval) for the Project
• For your Group Projects, Section 1.0 is your SOW and Project
Charter, Section 1.7 (see Appendix C), is the Project Manager
Responsibilities, Authority Statement and the Approvals
Required (See Appendix 5.1)

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Useful Guidelines for Integrated Project Plan
• Developing a Work Breakdown Structure
– See example on page 199, 5th Edition
• Tutorial for MS Project 2016
– See page 529, 5th Edition
– Kinser, Workbook on MS Project 2016
• Appendix C, Project Plan Template
– See page 539, 5th Edition
– Canvas, Group Project Guidance, Canvas Link for Group Project Guidance

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HOMEWORK REMINDERS

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Homework for Module 2
• Individual Homework Assignment (PM1) – due 9/17/19 EoD
(30 Points)
– Homework instructions on Canvas
– Exercises 3.21, 3.25, 5.3
• Group Project - PT2 – Project Overview (Section 1.0) – due
9/19/19 (25 Points)

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Group Project PT2 Assignment
Assignment Overview
Section 1.0 Project Overview:  This section is intended to provide a brief background
description of the project.  Guidance for this section is provided in Appendix C, page
539, 5th edition of the textbook.  The Group completes Section 1.0 with all sub-
sections.
Assignment Guidance
• First Page of document - Include Title of Project, Group # and Team Member
Names
• 2nd Page - Team Assignment & Evaluation Cover Sheet  
• 3rd Page - Table of Contents with page numbers
• Section 1.0
• References
• Save Document in PDF Format with File Name: PT2-Group #.pdf.  (example: PT2-
Group 1.pdf)

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Group Assignment & Evaluation Page
TEAM ASSIGNMENT & EVALUATION COVER SHEET

This cover sheet documents all team member’s accountability and acceptance for this work. In
PT#

addition, the team provides an overall Team Evaluation for each assignment.
The following team members for Group #, certify that the following document is our work and
that all material drawn from other sources has been fully acknowledged. Each team member
certifies that he/she possesses a copy of the att ached work and has contributed to its content.

PRINTED NAME SIGNATURE DATE

TEAM EVALUATION FOR GROUP PROJECT ASSIGNMENT – PT#

Each team member identifies the overall rating of this assignment based on the Group Contract
signed at the beginning of the semester. The rating scale is 5 (Highest) to 0 (Lowest). Please
add actions required to improve group teamwork.

OVERALL
GROUP
CONTRACT
NAME COMPLIANCE ACTIONS REQUIRED TO IMPROVE
(0 – 5 SCALE) PERFORMANCE OF GROUP
PROJECT LEADER

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QUESTIONS?

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