PM Chapter 06 Project Scope Management

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    Project ManagementProject Scope Management

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    Project Scope Management

    This lecture describes a disciplined, structuredmethod for selectively collecting information to

    use through all phases of the project life cycle,to meet the needs of all stakeholders and tomeasure performance against the strategic planof the organization.

    The method suggested is a selective outline ofthe project called Work Break down Structure(WBS).

    The early stages of developing the outline serveto ensure that all tasks are identified and thatparticipants of the project have anunderstanding of what is to be done.

    Once the outline and its details are defined, anintegrated information system can be developedto schedule work and allocate budgets. Thisbaseline information is later used for control.

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    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, tocomplete the project successfully.

    Project scope management is primarily concerned withdefining and controlling what is and is not included in theproject.

    Project manager should list, in scope statement, what isexplicitly included and what is explicitly excluded .

    Enhancements that do not add value are known as Gold Plating and should be avoided.

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    Project Scope Management

    Scope

    My Project

    My Problem

    Not My Project

    Not My Problem

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    Defining a project scope sets the stage for developing

    a project plan. Project scope is a definition of the endresult or mission of the project a product / service foryour client customer. The primary purpose is todefine as clearly as possible the deliverables for theend user and to focus project plans. As fundamentaland essential as it appears, it is frequently overlookedby project leaders.

    Research clearly shows that a poorly defined scope isthe most frequently mentioned barrier to projectsuccess.

    50% of the planning problems relate to uncleardefinition of scope and goals. There is a strongcorrelation between project success and clearscope definition. ( A study conducted by Gobeli andLarson involving more than 1400 Project Managers

    in US and Canada) .

    Project Scope Management

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    Strong correlation exist between project success and

    clear scope definition. The scope document directsfocus on the project purpose throughout thelife of the project for the customer and projectparticipants.

    Your project scope definition is a document that will bepublished and used by the project owner and projectparticipants for planning and measuring projectsuccess. Scope describes what you expect to deliverto your customer when the project is complete. Yourproject scope should define the results to be achievedin specific, tangible, and measurable terms.

    Project Scope Management

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    A clear scope definition:

    Ensures you will know when a change in scopeoccurs.

    Is the primary prerequisite for development of WBS.

    Provides an administrative plan that is used todevelop your operational plan.

    Project Scope Management

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    Scope Definition

    If the project scope needs to change, it iscritical to have a sound change controlprocess in place that records the change andkeeps a log of all project changes.

    The log identifies the change, impact andthose responsible for accepting / rejecting thechange.

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    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 theproject is going to provide.

    Project Scope

    The work that needs to be accomplished todeliver a product, service or result with thespecified features and functions.

    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.

    Product scope will be basis of project scope.

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    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 deliveringas per scope.

    Scope Verification Scope Control

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    Project Scope Management ProcessesProject Human Resource Management

    Initiating Planning Executing Monitoring andControl

    Closing

    ScopePlanning

    ScopeVerification

    ScopeDefinition

    CreateWBS

    ScopeControl

    Scope Planning creating a project scope management plan that documents how the project scope willbe 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 projectdecisions.

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

    Scope Verification Formalizing acceptance of the completed project deliverables.

    Scope Control Controlling changes to the project scope.

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    Project Scope Management Processes

    These processes interact with each other andwith processes in the other Knowledge Areasas well.

    Each process can involve effort from one ormore persons or groups of persons based on

    the needs of the project.

    Each process occurs at least once in everyproject, and occurs in one or more projectphases, if the project is divided into phases.

    Although the processes are presented here asdiscrete elements with well-defined interfaces,in practice they may overlap and interact.

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    Project Scope Management Processes

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    Scope Planning

    Defining and managing the project scope

    influences the projects overall success. Each project requires a careful balance oftools, data sources, methodologies,processes and procedures, and otherfactors to ensure that the effort expendedon scoping activities is commensurate withthe projects size, complexity, and importance.

    For example, a critical project could meritformal, thorough, and time intensivescoping activities, while a routine projectcould require substantially lessdocumentation and scrutiny.

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    Scope Planning

    The project management team documents thesescope management decisions in the project scope

    management plan.

    The project scope management plan is aplanning tool describing how the team will definethe project scope, develop the detailed projectscope statement, define and develop the work

    breakdown structure, verify the project scope,and control the project scope.

    The development of the project scopemanagement plan and the detailing of the projectscope begin with the analysis of informationcontained in the project charter, the preliminaryproject scope statement, the latest approvedversion of the project management plan,historical information contained in theorganizational process assets, and any relevantenterprise environmental factors.

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    Scope Planning

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    Scope Definition

    The preparation of a detailed project scope statement iscritical to project success and builds upon the majordeliverables, assumptions, and constraints that aredocumented during project initiation in the preliminaryproject scope statement.

    During planning, the project scope is defined anddescribed with greater specificity because moreinformation about the project is known.

    Stakeholder needs, wants, and expectations are analyzedand converted into requirements. The assumptions and

    constraints are analyzed for completeness, with additionalassumptions and constraints added as necessary.

    The project team and other stakeholders, who haveadditional insight into the preliminary project scopestatement, can perform and prepare the analyses.

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    Project Scope Management Processes

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    Project Scope Statement

    The project scope statement describes, in detail, the

    projects deliverables and the work required to create those deliverables. The project scopestatement also provides a common understandingof the project scope among all project stakeholdersand describes the projects major objectives. It also enables the project team to perform more detailedplanning, guides the project teams work during execution, and provides the baseline for evaluatingwhether requests for changes or additional work arecontained within or outside the projects boundaries.

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    Project Scope Statement

    The degree and level of detail to which the

    project scope statement defines what work willbe performed and what work is excluded candetermine how well the project managementteam can control he overall project scope.Managing the project scope, in turn, candetermine how well the project managementteam can plan, manage, and control theexecution of the project.

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    Project Scope Statement

    Benefits

    Allows for more accurate estimates of cost,schedule, resource allocation, anddependencies.

    Allows for advanced measuring and controlusing tools such as earned value analysis.

    Provide a tool for ensuring that all interestedparties understand what is being produced.

    Allows for roles and responsibilities to beassigned.

    Can be used to further refine the scopemanagement plan to avoid undesirable

    changes.

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    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.

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    Project Scope Statement

    Constraint

    Imposed by others. List and describes the specific project constraints

    associated with the project scope that limit theteams options.

    For example a predefined budget or any imposeddates that are issued by the customer / performingorganization.

    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 theyhave to be false.

    Project teams frequently identify, document and validate assumptionsas part of their planning process.

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    Create Work Breakdown Structure (WBS)

    Deliverable-oriented hierarchical decompositionof the work to be executed by the project team,to accomplish the project objectives and createthe required deliverables.

    Organizes and defines the total scope of theproject.

    Subdivides the project work into smaller, moremanageable pieces of work, with eachdescending level of the WBS representingan increasingly detailed definition of the project

    work.

    The planned work contained within the lowest-level WBS components, which are called workpackages, can be scheduled, cost estimated,

    monitored, and controlled.

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    Create Work Breakdown Structure (WBS)

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    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 willresemble another prior project to some extent.

    For example, most projects within a given organization will have the sameor similar project life cycles and, therefore, have the same or similardeliverables required from each phase.

    Many application areas or performing organizations have standardWBS templates.

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    Create Work Breakdown Structure (WBS)

    Sample WBS with Some Branches Decomposed Down Through Work Packages

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    Create Work Breakdown Structure (WBS)

    Decomposition

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

    k kd ( )

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    Create Work Breakdown Structure (WBS)

    Decomposition

    Decomposition may not be possible for adeliverable or subproject that will be accomplishedfar into the future. The project management teamusually waits until the deliverable or subproject isclarified so the details of the WBS can bedeveloped. This technique is sometimes referred toas rolling wave planning .

    k kd ( )

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    Create Work Breakdown Structure (WBS)

    Decomposition

    Different deliverables can have different levels ofdecomposition. To arrive at a manageable work effort(i.e., a work package), the work for somedeliverables needs to be decomposed only to thenext level, while others need more levels of

    decomposition. As the work is decomposed to lowerlevels of detail, the ability to plan, manage, andcontrol the work is enhanced. However, excessivedecomposition can lead to non-productivemanagement effort, inefficient use of resources, and

    decreased efficiency in performing the work. Theproject team needs to seek a balance between toolittle and too much in the level of WBS planning detail.

    C W k B kd S (WBS)

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    Create Work Breakdown Structure (WBS)

    Decomposition

    Decomposition of the total project work generallyinvolves 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.

    C W k B kd S (WBS)

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    Create Work Breakdown Structure (WBS)

    Approaches to Creating WBS

    Using the major deliverables and subprojects asthe first level of decomposition.

    Using subprojects, where the subprojects may bedeveloped by organizations outside the project

    team.

    Using the phases of the project life cycle as thefirst level of decomposition, with the projectdeliverables inserted at the second level.

    Using different approaches within each branch ofthe WBS, where test and evaluation is a phase, theair vehicle is a product, and training is a supportingservice.

    C W k B kd S (WBS)

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    Create Work Breakdown Structure (WBS)

    Sample WBS Organized by Phase

    C t W k B kd St t (WBS)

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    Create Work Breakdown Structure (WBS)

    Sample WBS Organized by Using Different Approach

    C t W k B kd St t (WBS)

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    Create Work Breakdown Structure (WBS)

    Partial WBS for Building a House

    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

    1.1.1.1.1Calculate Load

    1.1.1.1.2.Design Reinforcing

    C t W k B kd St t (WBS)

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    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 controlaccounts within a WBS, is generally assigned a unique identifier froma code of accounts. These identifiers provide a structure for hierarchicalsummation of costs, schedule, and resource information

    Create Work Breakdo n Str ct re (WBS)

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    Create Work Breakdown Structure (WBS)

    The Organizational Breakdown Structure (OBS)

    Provides a hierarchically organized depiction of theproject organization arranged so that the workpackages can be related to the performingorganizational units.

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    Bill of Material (BOM)Presents a hierarchical tabulation of the physicalassemblies, subassemblies, and componentsneeded to fabricate a manufactured product.

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    Risk Breakdown Structure

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

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    Resource Breakdown Structure A hierarchically organized depiction of the resources by type to beused on the project.

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    WBS Dictionary It is used to document project assignments.

    The document generated by the Create WBS processthat supports the WBS is called the WBS dictionaryand is a companion document to the WBS.

    The detailed content of the components contained in aWBS, including work packages and control accounts,can be described in the WBS dictionary.

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    WBS Dictionary

    For each WBS component, the WBS dictionaryincludes:

    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 acharge number.

    Create Work Breakdown Structure (WBS)

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    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, asappropriate, to other WBS components in the WBSdictionary.

    Create Work Breakdown Structure (WBS)

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    Create Work Breakdown Structure (WBS)

    WBS DictionaryControl 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 After this Work Package

    Approved by

    Project Manager Dated

    Scope Verification

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    Scope Verification

    Process of obtaining the stakeholders formalacceptance of the completed project scope and

    associated deliverables. Verifying the project scope includes reviewing

    deliverables to ensure that each is completedsatisfactorily.

    If the project is terminated early, the project scopeverification process should establish and documentthe level and extent of completion.

    Scope verification differs from quality control in thatscope verification is primarily concerned with

    acceptance of the deliverables, while quality control isprimarily concerned with meeting the qualityrequirements specified for the deliverables.

    Quality control is generally performed before scopeverification, but these two processes can be performed

    in parallel.

    Scope Verification

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    Scope Verification

    It is done throughout the project for each deliverablein the WBS.

    You should develop a formal procedure for scopeverification and have a sign-off where everyoneagree that the deliverable is complete.

    Define timeline for acceptance of deliverables.

    Insist on single set of comments (in case of multipleapprovers) and interim acceptance process.

    Scope Verification

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    Scope Verification

    Scope Verification

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    Scope Verification

    Inspection

    Includes activities such as measuring, examining and verifying todetermine whether work and deliverables meet requirements andproduct acceptance criteria.

    Variously called reviews, product reviews, audits and walkthroughs.

    Scope verification is done through inspection.

    Scope Control

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    Scope Control

    Project scope control is concerned with influencingthe factors that create project scope changes andcontrolling the impact of those changes.

    Scope control assures all requested changes andrecommended corrective actions are processedthrough the project Integrated Change Controlprocess.

    Project scope control is also used to manage theactual changes when they occur and is integratedwith the other control processes.

    Uncontrolled changes are often referred to as projectscope creep.

    Change is inevitable, thereby mandating some type ofchange control process.

    Scope Control

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    Scope Control

    Scope Creep

    Many projects suffer from scope creep. Tendency for the project scope to expand over time

    usually by changing requirements, specifications andpriorities.

    Can be reduced by carefully writing your scopestatement.

    A scope statement that is too broad is an invitationfor scope creep.

    Can have positive or negative effect on the projectbut in most cases scope creep means added costsand possible project delays.

    Changes in requirements, specifications, andpriorities frequently result in cost overruns and delays

    Scope Control

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    Scope Control

    Plan for scope changes. They are inevitable. Reasons maybe:

    Actual errors and omissions that are required to allow theproject 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 oncost, resources, etc. Update plan, schedule and budget Report to stakeholders on change

    Scope Control

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    Scope Control

    Formal change process should be in place.

    Document acceptance change.

    Scope Control

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    Scope Co t o

    Scope Control

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    p

    Scope Change Request

    Requested ChangeDate of Request

    Project Name

    Business Reason for Change

    Scope impact

    Schedule impact

    Budget impact

    Risk impact

    Other project impact

    Scope Change Request Form

    Project Manager

    Analysis of Change

    Project Impact of Change

    Acceptance

    Business Sponsor Project Manager

    Change Request Log

    S. No.

    Change Request Log

    Change Request Date Status

    Status can be initiated, under review, accepted, rejected, etc.

    Employing a Project Scope Checklist

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    p y g j p

    Project scope is a keystone interlocking allelements of a project plan.

    To ensure that scope definition is complete youmay wish to use the following checklist.

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

    Employing a Project Scope Checklist

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    p y g j p

    Project Objective

    The first step of project scope definition is todefine the overall objective to meet customerneeds.

    Answers the questions of:

    What? When? How much?

    Employing a Project Scope Checklist

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    p y g j p

    Deliverables

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

    Employing a Project Scope Checklist

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    p y g j p

    Milestones

    Significant event in the project that occurs at apoint in time.

    The milestone schedule shows only majorsegments of work.

    It represents first rough cut estimates of time,cost and resources of the project.

    Milestone schedule is built using thedeliverables as a platform to identify majorsegments of work and an end date.

    Should be natural, important control points inthe project.

    Should be easy for all project participants torecognize.

    Employing a Project Scope Checklist

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    p y g j p

    Technical Requirements

    More frequently than not, a product or servicewill have technical requirements to ensureproper performance.

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    Employing a Project Scope Checklist

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    Reviews with customers

    Completion of the scope check list ends with areview with customer.

    Main concern should be understanding andagreement of expectations.

    Clear communication is necessary to avoidmisunderstanding.

    Establishing Project Priorities

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    One of the primary jobs of a project

    management is to manage the trade-offs amongtime, cost and performance.

    To do so the project manager must define andunderstand the nature of the priorities of theproject.

    They need to have a candid discussion withthe customer and upper management toestablish the relative importance of eachcriterion.

    One technique that is useful for this purposeis completing a priority matrix for the projectthat identifies which criterion is constrained ,which should be enhanced , and which can beaccepted .

    Establishing Project Priorities

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    Scope 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 thecase of cost and time, this usually means takingadvantage of opportunities to either reducecosts or shorten the schedule. Conversely, withregards to performance, enhancing meansadding value to the project.

    Accept For which criteria is it tolerable not tomeet the original parameters? When trade-offshave to be made, is it permissible for theschedule to slip, to reduce the scope andperformance of the project or to go over budget?

    Cost Time

    Quality

    Establishing Project Priorities

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    Project Priority Matrix for a Cable Modem

    C o n s

    t r a

    i n t

    E n h a n c e

    A c c e p

    t

    Time Performance Cost

    Time to market is important to sales, theproject manager is instructed to takeadvantage of every opportunity toreduce the completion time.

    In doing so, going over the budget isacceptable.

    At the same time, the originalperformance specifications as well as

    reliability standards cannot becompromised.

    Establishing Project Priorities

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    Developing a decision priority matrix for aproject is useful exercise. It provides a forum for

    clearly establishing priorities with customers andtop management so as to create sharedexpectations and avoid misunderstandings.

    Matrix is useful for midway in the project forapproaching the problem that must be solved.

    However, during the course of the project,priorities may change. Thus customer maysuddenly need the project completed onemonth sooner, or new directives from topmanagement may emphasize cost savinginitiatives.

    Project manager needs to be vigilant in order toanticipate and confirm changes in priorities and

    make appropriate adjustments.

    Scope

    Cost Time

    Quality

    C o n s

    t r a

    i n t

    E n

    h a n c e

    A c c e p

    t

    Time Perf. Cost

    Creating the WBS

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    Once the scope and deliverables have beenidentified, the work of the project can besuccessively subdivided into smaller and smallerwork 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 elementsare identified, to integrate the project with thecurrent organization, and to establish a basisfor control.

    WBS is an outline of the project with differentlevels of details.

    Creating a WBS from the scratch is complex task.Project managers should take advantage ofrelevant examples from previous projects to beginthe process.

    Typically a group effort is required.

    Creating the WBS

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    WBS defines all elements of a project in ahierarchical framework and establishes theirrelationship to the project end items.

    Think of the project as a large work packagethat is successively broken down into smallerwork packages: the total project is a summation

    of all smaller work packages.

    Hierarchical structure facilitate evaluation ofcost, time and technical performance at all levelsin 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 andrevise when appropriate.

    Creating the WBS

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    As WBS is developed, organizational units andindividuals are assigned responsibility foraccomplishment of work packages.

    This integrates the work and the organization.In practice, this process is sometimes calledOrganizational Breakdown Structure (OBS).

    WBS also makes it possible to plan, schedule

    and budget. It gives a framework for tracking costand work performance.

    Use of the structure provides the opportunityto roll-up the budget and actual costs of thesmaller work packages into larger work elementsso that the performance can be measured byorganizational units and work accomplishments.

    WBS also defines communication channels andassist in understanding and coordinating manyparts of the project.

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    Creating the WBS

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    Each subdeliverable requires work packages thatwill be completed by an assigned organizationalunit. Each deliverable will be successively dividedin this manner. It is not necessary to divide allelements of the WBS to the same level.

    The lowest level of WBS is called the workpackage. Work packages are short direction tasks

    that have a definite start and stop point, consumeresources, 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 orone reporting period. Otherwise, monitoring pointsshould be established within the duration.

    Creating the WBS

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    Each work package of the WBS should be as

    independent of other packages of the project aspossible.

    No work package is described in more than onesub deliverable of the WBS.

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    Creating the WBS

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    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.

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    Integrating WBS and OBS

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    PC Prototype(1)

    Optical(1.1.2)

    Hard(1.1.3)

    External USB(1.1.1)

    Chassis Frame(1.1.3.3)

    R/W Head(1.1.3.4)

    Circuit Board1.1.3.2)

    Motor(1.1.3.1)

    Design

    Production

    Test

    Purchasing

    Software

    Mfg.

    O r g .

    Vendor S/W Apps.(1.2.)

    Mouse, Keyboard,Voice (1.3.)

    Disk StorageSybsystem (1.1.)

    Microprocessor(1.4)

    More

    Lowest manageableSub-deliverables

    Control A/C 1.1.3.4.1

    Work PackagesWP 1.1.3.4.2.1WP 1.1.3.4.2.1WP 1.1.3.4.2.1

    (Budget by Period)

    See (A)

    (A)

    One cost accountrefers to multiplework packages.

    Control A/C

    Control A/C

    Control A/C

    Control A/C

    Control A/C

    Control A/C

    Integrating WBS and OBS

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    Sorted by WBS

    Direct Labor Budget (000)

    1.1.3. Hard drive $1,660

    1.1.3.1. Motor $10Purchasing $10

    1.1.3.2. Circuit Board $1000

    Design $300Production $400Testing $120Software $180

    1.1.3.3. Chassis Frame $50Production $50

    1.1.3.4. Read Write Head $600Design $300Production $200Testing $100

    Integrating WBS and OBS

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    Sorted by OBS

    Direct Labor Budget (000)

    Design $6001.1.3.2. Circuit Board $3001.1.3.4. Read Write Head $300

    Production $6501.1.3.2. Circuit Board $400

    1.1.3.3. Chassis Frame $501.1.3.4. Read Write Head $200

    Testing $6501.1.3.2. Circuit Board $1201.1.3.4. Read Write Head $100

    Purchasing $101.1.3.1. Motor $10

    Software $1801.1.3.2. Software $180

    Total $660

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    Coding the WBS for Information System

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    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 Rate 1 2 3 4 5 Total

    Code $ xx / hr. $ 50 $ 30 $ 20 $ 100

    Document $ xx / hr. $ 10 $ 15 $ 25

    Publish $ xx / hr. $ 5 $ 5

    Total Labor $ 50 $ 40 $ 40 $ 130

    Materials $ 20 $ 20

    Equipment $ xx / hr. $ 50 $ 15 $ 50 $ 115

    Total Direct $ 100 $ 75 $ 90 $ 265

    Work Package Estimates

    Coding the WBS for Information System

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    Disk Storage Units($5,160)

    Direct Labor Budget Rollup (000)

    Optical($3000)

    Hard($1,660)

    External USB($500)

    Chassis Frame($50)

    R/W Head($600)

    Circuit Board($1000)

    Motor($10)

    Design($600)

    Production($650)

    Test

    ($220)

    Purchasing($10)

    Software($180)

    Mfg.($1250)

    O

    r g .

    ( $ 1 6 6 0 )

    $300

    $400

    $120

    $180

    $10

    $50

    $300

    $200

    $100 S u m m a r i z e

    b y

    d e

    l i v e r a

    b l e

    s

    Summarize by organizational units

    Process Breakdown Structure (PBS)

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    The WBS is best suited for design and build projects that have tangibleoutcomes 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 projectsin 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 eachphase affecting the next phase.

    Process Breakdown Structure (PBS)

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    I.T. projects typically fall into this category for example creating anexternal website or database system

    Process projects are driver by performance requirements, not by plansblueprints. Some practitioners choose to utilize what we refer to as PBSinstead of WBS.

    Process Breakdown Structure (PBS)

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    PBS for a software development projectSoftware Development

    Project

    Analysis Design Construct Test RolloutLevel 1Major Phases

    Define

    UserInterface

    Develop

    TechnicalDesign

    Establish

    QualityRequirements.

    Develop

    DetailedDesign

    Level 2

    Activities

    DefineApplicationArchitecture

    DefineProcessing

    Flow

    Design LogicalDatabaseStructure

    DesignSystem

    Interfaces

    Level 3Activities

    Outputs Design Document

    Application architecture Application flow Database design End user interface design Workflow diagram

    User Documentation Outline

    Design Phase Deliverables

    Process Breakdown Structure (PBS)

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    Instead of being organized around deliverables, the project is organized

    around phases.

    Each of the five major phases can be divided into more specific activitiesuntil a sufficient level of detail is achieved to communicate what needsto be done to complete that phase.

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

    Process Breakdown Structure (PBS)

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    Checklists that contain the phase exist requirements are developed tomanage project progress. These checklists provide the means to supportphase 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 projectsthat involve extensive development work.

    WBS and Other Processes

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    WBS

    Budgeting Scheduling Estimating

    ProjectControl

    Activity List NetworkDiagram

    RiskManagement

    Staffing