ISIBP01 – Project Management
Midterm
Chapter(4) – Defining the project
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WBS Vs. PBS
• WBS (Work Breakdown Structure): it is the
method suggested for selecting outline of the
project.
• PBS (Process Breakdown Structure): it is
matrix of responsibilities which are used for
design and build projects.
• Assignment due date: Thursday 21/11/2013
Developing WBS
• The five general steps to provide a structure
approach for collecting the project information
for developing a work breakdown structure:
1. Defining the project scope
2. Establishing project priorities
3. Creating the work breakdown structure
4. Integrating the WBS with the organization
5. coding the WBS for the information system
Step 1: Defining the project scope
• It is the definition of the end result or mission of the
project- a product or service for the client/customer.
• Directs focus on the project purpose throughout the life of
the project for the customer and project participants.
• Scope describes what can expect to deliver to the customer
when the project is complete.
• Scope should define the results to be achieved in specific,
tangible and measurable terms.
• Project scope is a document that will be published and
used by the project owner and project participants for
planning and measuring project success.
• Project scope must be as brief as possible but complete.
Project Scope Checklist
• It is used as steps to ensure that scope definition
is complete.
1. Project objective: define a project overall steps to
meet customer’s needs within specific time and
within a specific cost.
2. Deliverables: the expected outputs over the life of
the project as design phase, software coding and
technical manual and test prototype.
3. Milestones: is a significant event in a project that
occurs at a point in time. It shows only major
segments of work.
Project Scope Checklist
4.
5.
6.
Technical requirements: It is important to ensure proper
performance as the required voltage for Computer must be 240
Volts as to be accepted. Additional for that, speed and capacity.
Limits and exclusions: Limits the scope will save the project to
avoid false expectations and expending resources and time as an
example, system maintenance and repair will be done only up to
one month after final inspection. Exclusions also define the
boundary of the project by stating what is not included as an
example, house will be built but no land spacing or security
devices added.
Reviews with customer: it is to understand agreement of
expectations as if the customers getting his desires in deliverables
then review if the project definition is done as accomplishments,
budgets, and timing and performance (scope) requirements and if
project’s limitation and exclusion is covered.
Milestones characteristics
1. It represents Estimates of time, cost and
resources for the project.
2. It is built using the deliverables as a platform
to identify major segments of work and an
end date.
3. Should be natural, important control points
in the project.
4. Should be easy for all project participants to
recognize.
Step 2: Establishing project priorities
• Establishing project priorities : can be done through
two techniques:
1. Project management trade-offs:
• Project managers have to discuss the importance of
each criterion (Scope, Cost and Time) with the project
customer and upper management to establish the
relative importance of each of them.
• Because the longer a project takes, the more
expensive it becomes; a +ve correlation between cost
and schedule may not always be true; the cheaper
equipment used with less efficient labor may extend
the duration of the project.
Establishing project priorities
Establishing project priorities
2. Project Priority Matrix: by identifying which
criterion (scope, cost or time) is constrained, or
should be enhanced and which can be
accepted?
• It is useful midway in the project for approaching
a problem that must be solved.
• It’s decision must be developed for a project
before the project begins by sharing expectations
with customers and top management to avoid
misunderstandings.
Establishing project priorities
• There are three choices in this technique:
a) Constrain: the original parameter is fixed that the
project must meet the completion date, specifications
and scope of the project or budget.
b) Enhance: Given the scope of the project, which
criterion should be optimized? In case of time and
cost that mean to take opportunities to either shorten
the schedule or reduce the cost then in case of
performance means, adding value to the project.
c) Accept: which criterion is it tolerable not to meet the
original parameters? Is that will go over budget?
Establishing project priorities
Step 3: Creating the work breakdown structure
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1.
2.
3.
4.
5.
WBS (Work breakdown Structure): It is a map or an outline of the project with
different levels of detail.
Purpose of WBS: it 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.
How WBS helps Project Manager?
It defines all the elements of the project in a hierarchical framework and
establishes their relationships to the project end items.
So the large work package is broken down into smaller work packages that the
total project is the summation of all the smaller work packages.
WBS facilitates evaluation of cost, time and technical performance at all levels in
the organization over the life of the project.
Each item in the WBS needs a time and cost estimate. Also problems can be
quickly addressed and coordinated because the structure integrates work and
responsibility.
WBS provides the opportunity to “roll up” (Sum) the budget and actual costs of
the smaller work packages into larger work elements so the performance can be
measured by organizational units and work accomplishment.
Step 3: Creating the work breakdown
structure
Step 3: Creating the work breakdown
structure
Step 3: Creating the work breakdown
structure
Step 3: Creating the work breakdown
structure
• Level 1: Represents the total project objective and it is
useful to top management.
• Level 2, 3 and 4: shows the partial list of a deliverables
necessary to develop the personal computer as disk storage
unit which is made up of three sub- deliverables that are
external USB, optical and hard disks. Finally, hard disks
require four sub- deliverables that are motor, circuit board,
chassis frame and read/write head. That is suitable for
middle management.
• Level 5: represents the lowest manageable level of subdeliverables that is controlled by first-line managers.
Step 3: Creating the work breakdown
structure
• Work packages: is the lowest level of the WBS.
They are short-duration tasks that have a definite
start and stop point, consume resources and
represent cost. A work packages manager is
responsible for seeing that the package is
completed on time, within budget, and according
to technical specifications.
• Practice suggests a work package should not
exceed 10 workdays or one reporting period.
Step 4: Integrating the WBS with the organization
• WBS is used to link organizational units
responsible for performing the work.
• So OBS (Organization Breakdown Structure)
provides a framework to summarize organization
unit work performance through sub-deliverables
patterns in smaller and smaller units.
• OBS assigns the lowest organizational unit the
responsibility for work packages within a cost
account.
Step 4: Integrating the WBS with the organization
• Cost account: it is a project control point
which a result of intersection of work
packages and organizational unit. It integrates
work and responsibility.
• Cost account is the focal point because all
budgets, work assignments, time, cost, and
technical performance come together at this
point.
Step 4: Integrating the WBS with the organization
Step 5: coding the WBS for the
information system:
• The codes are used to define levels and
elements in the WBS, organization elements,
work packages and budget and cost
information for gaining the maximum useful
of a breakdown structure.
• Process Breakdown Structures (PBS): Which
the final outcome is a product of a series of
steps or phases.
Step 5: coding the WBS for the
information system:
Responsibility Matrices (RM) or
Linear Responsibility Chart
• It summarizes the tasks to be accomplished and
who is responsible for what on a project.
• In its simplest form an RM consists of a chart
listing all the project activities and participants
responsible for each activity.
• It is useful for small projects and subprojects of
large and more complex projects.
• More complex RMs clarifies critical interfaces
between units and individual require
coordination.
Responsibility Matrices (RM) or
Linear Responsibility Chart
Responsibility Matrices (RM) or
Linear Responsibility Chart
Project Communication Plan
• It is usually created by the project manager and/
or the project team in the early stage of the
project planning.
• It’s out the flow of information to different
stakeholders (project manager, sponsor, project
team, project office customer)
• It becomes an integral part of overall project
plan.
• It is important in coordinating, project schedules,
issues, and action items.
Purpose of Project Communication
Plan
• The main purpose is controlling the flow of
information by expressing what, who, how
and when information will be transmitted to
project stakeholders.
• So schedules, issues, and action items can be
tracked.
Steps of developing a Communication plan:
1. Stakeholder analysis: identify the target groups who
needs project information to make decisions and /or
contribute to project progress.
2. Information needs: what information is needed to
stakeholders to know as milestone reports, team
status meetings, accepted request changes, action
items, gating decisions and project status reports.
3. Sources of information: Where does the information
reside? How will be collected? It’s would be found in
minutes and reports of various groups.
Steps of developing a Communication plan:
4. Dissemination modes: Normally, Traditional status
report meetings are being supplemented by e-mail,
lotus notes, SharePoint and different database sharing
programs. In particular, others are using the web to
create a “virtual project office” to store project
information. Project management software feeds
information directly to the web site so different
people have immediate access to the relevant
information.
5. Responsibility and timing: Determine who will send
out the information to the appropriate stakeholder.
Sometimes responsibility lies with project manager or
project officer.
WBS Example – Chart Format
WBS Example – Outline Format
WBS Example – Tabular with cost
WBS Question
Construct the WBS for the following table using
codes and costs