Where

Where We
WeAre
Are Now
Now

4–1
 Defining
Defining the
the Project
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

4–2
 Step
Step 1:
1: Defining
Defining the
the Project
Project Scope
Scope
• Project Scope
– A definition of the end result of the project—a product or service
for the client/customer—in specific, tangible, and measurable
terms.
• Purpose of the Scope Statement
– To clearly define the deliverable(s) for the end user (in specific,
tangible, and measurable terms).
– To focus the project on successful completion
of its goals.
– Most frequent barrier to success
• 50% of projects problems relate to unclear definition of scope and
goals
– To be used by the project owner and participants
as a planning tool and for measuring project success.

4–3
 Step
Step 1:
1: Defining
Defining the
the Project
Project Scope
Scope (Con’t)
(Con’t)
• Project Scope
– Should be developed under the direction of the project manager
and customer.
– PM is responsible for ensuring agreement on
• Objectives of the project.
• Deliverables at each stage (Spec, Prototype, quantity for
initial market entry, Training)
• Technical requirements / Performance Specifications

4–4
 Project
Project Scope
Scope Checklist
Checklist
• Project objective
• Deliverables
• Milestones
• Technical requirements
• Limits and exclusions
… and then, finally…
• Review[s] with customer
 Project
Project Objective
Objective
• Defining the overall objective to meet the
customer’s needs

• Answers the following questions

1. What?
2. When?
3. How Much?

• One possible sample format:

– We will deliver____ by date _____ (or within ____
weeks) at a cost of _____ (because of _____)
 Project
Project Scope
Scope Checklist
Checklist (Con’t)
(Con’t)
2. Deliverables
• Expected outputs over the life of the project

3. Milestones
• Significant event in the project that occurs at a point in time
• E.g: Final Inspection - June 30
• Identifies major segments of work
• Important control points in the project

4. Technical Requirements
• Requirements to ensure proper performance
• Eg: Speed and capacity of database systems

4–7
 Project
Project Scope
Scope Checklist
Checklist (Con’t)
(Con’t)
5. Limits and exclusions
• Limits: Service, maintenance, guarantee
• Exclusions: Further define the project boundary by stating
what’s not included.
• E.g: house will be built, but no landscaping

6. Review[s] with the customer

• Understanding and agreement of expectations
• It needs to be iterative.

4–8
 Project
Project Scope:
Scope: Terms
Terms and
and Definitions
Definitions
• Scope Statements
– Also called statements of work (SOW)
• Project Charter
– Can contain an expanded version of scope statement
– May include risk statements, project team composition
– Also an internal document authorizing the project
manager to initiate and lead the project.

4–9
4–10
 Test
Test Yourself
Yourself -- Scope
Scope Statement
Statement

Yanbu University College wants to upgrade its

facilities to build a new stadium for sports and
games. This project will offer students, faculty,
and staff the facility to play various games like
football and to conduct the sports competitions.
The project will be completed before the
beginning of academic year 2020 – 2021.
Not exceed 1 million SR

Write a Scope statement for the project above.

4–11
 Project
Project Scope:
Scope: Terms
Terms and
and Definitions
Definitions
(Cont’d)
(Cont’d)
• Scope Creep
– The tendency for the project scope to expand over
time due to changing requirements, specifications, and
priorities.
– Results in added costs and project delays
– If the project scope needs to change, it is critical to
have a good change control process in place.

4–12
 priority
priority matrix
matrix for
for the
the project
project

Scope, time, cost

• Constrain. The original parameter is fixed.
The project must meet the completion date,
specifications and scope, or budget.
• Enhance. Given the scope of the project,
which criterion should be optimized? In the
case of time and cost, this usually means taking
advantage of opportunities to either reduce
costs or shorten the schedule.
• Accept. For which criterion is it tolerable not
to meet the original parameters?
4–13
 Step
Step 3:
3: Creating
Creating the
the Work
Work
Breakdown
Breakdown Structure
Structure

• Work Breakdown Structure (WBS)

–An hierarchical outline (map) that identifies the
products and work elements involved in a project
–Defines the relationship of the final deliverable (the
project) to its sub-deliverables, and in turn, their
relationships to work packages
– Helps to assure all work elements are identified
and to establish a basis for control
 Sorting
Sorting Out
Out the
the Project
Project
• Hierarchical Planning:- A planning approach that
breaks the planning task down into the activities .
• Level1 :- List of major activities
• Level2:- each level task into sub tasks
• Level3 :- broken down into more detail

1- Develop proposal 2- Survey

1.1 Analyze activity 2.1 Prepare Questionnaire
1.1.1List Activity 2.1.1 Visit specific place
2.1.1.1 Conduct Interview
 Example
Example
1PROJECT MANAGEMENT
1.1 Theory Class
1.2 ASSIGNMENT
1.3 Attend Class Activity
1.4 Hand in lab exercise
1.5 PROJECT ACTIVITY
1.5.1 Attend group meeting
1.5.2 Divide up tasks
1.5.3 Complete assigned task
1.5.4 Attend meeting
1.5.5 Produce final report
1.5.6 Present report to Class
1.5.9 Hand in Report
 Hierarchical
Hierarchical
Breakdown
Breakdown ofof
the
the WBS
WBS

FIGURE 4.3
 WBS
WBS
• WBS is a method for analysing activities . With WBS, you break each
activity into sub activity, work packages

1. Program

1.1 Project A

activity 1.1.1 Develop P roposal

1. 1.1.1 A nalyze A ct ivi ties

1.1.2 Proposal Acceptance

1. 1.1. 2 A ssign Resources

sub activity

¨ work packages
 Work
Work Packages
Packages
• A work package is the lowest level of the WBS.
– It is output-oriented in that it:
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 (how well).

4–19
 How
How WBS
WBS Helps
Helps the
the Project
Project Manager
Manager
• WBS
–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
– It helps in defining and managing the plan, schedule,
and budget
–Defines communication channels and assists in
coordinating the various project elements
 WBS-
WBS- Example
Example
• Develop a WBS for a project in which you are
going to build a bicycle. Try to identify all of the
major components and provide three levels of
details.

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nsQ1xWGwkdk/Td1HTAz7G7I/AAAAAAAABd4/C5yiy5o_BLs/s1600/Bicycle.jpg]

4–21
 Step
Step 4:
4:Integrating
Integrating the
the WBS
WBS
with
with the
the Organization
Organization
• Organizational Breakdown Structure (OBS)
– Depicts how the firm is organized to discharge its
work responsibility for a project.
• Provides a framework to summarize
organization work unit performance.
• Identifies organization units responsible
for work packages.

4–22
 Step
Step 5:
5: Coding
Coding the
the WBS
WBS for
for
the
the Information
Information System
System

• WBS Coding System

– Defines:
• Levels and elements of the WBS
• Organization elements
• Work packages
• Budget and cost information
– Allows reports to be consolidated at
any level in the organization structure

4–23
WBS
WBS Coding
Coding
 Responsibility
Responsibility Matrices
Matrices
• Responsibility Matrix (RM)
–Also called a linear responsibility chart
–Summarizes the tasks to be accomplished and
who is responsible for what on the project
• Lists project activities and participants
• Clarifies critical interfaces between units and individuals
that need coordination
• Provide a means for all participants to view their
responsibilities and agree on their assignments
• Clarifies the extent or type of authority that can be
exercised by each participant
Example:
Example: Responsibility
Responsibility Matrix
Matrix for
for aa Market
Market
Research
Research Project
Project

FIGURE 4.9
Responsibility
Responsibility Matrix
Matrix for
for the
the Conveyor
Conveyor Belt
Belt
Project
Project

FIGURE 4.10
 Key
Key Terms
Terms

Deliverables
Milestone
Scope creep
Responsibility matrix
Scope statement
Work breakdown structure (WBS)
Organization breakdown structure (OBS)
Work package

4–28
 Building
Building aa house:
house: WBS
WBS Example
Example

• You :
–

Example of WBS when building a House. 4–29