Defining the Project
Chapter 4
Defining the Project
Select a dream
Use your dream to set a goal
Create a plan
Consider resources
Enhance skills and abilities
Spend time wisely
Start! Get organized and go
Ref: * Roger E. Allen and Stephen D. Allen,
Winnie-the-Pooh on Success (New York:
Penguin, 1997), p. 10.
Defining the Project
Defining the project refers to the process of clearly outlining the
objectives, scope, goals, deliverables, and requirements of a project
before it begins. This step is crucial for setting a solid foundation for
successful project execution. It typically involves:
1. Understanding the purpose: What is the project meant to achieve?
What problem does it aim to solve?
2. Setting clear goals and objectives: What are the measurable outcomes
expected from the project?
3. Defining scope: What are the boundaries of the project? What will be
included and excluded?
4. Identifying stakeholders: Who will be involved or affected by the
project, and what are their expectations?
5. Budget and timeline: What are the available resources, and how much
time do we have to complete the project?
This stage ensures that everyone involved has a clear understanding of
what is expected, reducing the risk of miscommunication and helping
to steer the project towards successful completion.
Defining the Project
This chapter describes a disciplined, structured
method for selectively collecting information to use
through all phases of the project life cycle, to meet
the needs of all stakeholders (e.g., customer, project
manager), and to measure performance against the
strategic plan of the organization. The method
suggested is a selective outline of the project called
the Work Breakdown Structure (WBS).
The five generic steps described herein provide a
structured approach for collecting the project
information necessary for developing a work
breakdown structure.
Defining the 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
Step 1: Defining the Project Scope
Project Scope
A definition of the end result or mission 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.
To focus the project on successful completion of its
goals.
To be used by the project owner and participants as a
planning tool and for measuring project success.
Project Scope Checklist
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
Project Scope: Terms and Definitions
Scope Statements
Also called statements 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.
Step 2: Establishing Project Priorities
Quality and the ultimate success of a project are
traditionally defined as meeting and/or exceeding
the expectations of the customer and/or upper
management in terms of cost (budget), time
(schedule), and performance (scope) of the
project. Figure below
Project Management Trade-offs
FIGURE 4.1
Step 2: Establishing Project Priorities
Causes of Project Trade-offs
Shifts in the relative importance of criterions
related to cost, time, and performance parameters
Budget–Cost
Schedule–Time
Performance–Scope
Step 2: Establishing Project Priorities
One technique found in practice that is useful for
this purpose is completing a priority matrix for the
project to identify which criterion is constrained,
which should be enhanced, and which can be
accepted.
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.
Step 2: Establishing Project Priorities
Figure (below) displays the priority matrix for the
development of a new wireless modem. Because
time to market is important to sales, the project
manager is instructed to take advantage of every
opportunity to reduce completion time. In doing
so, going over budget is acceptable though not
desirable. At the same time, the original
performance specifications for the modem as
well as reliability standards cannot be
compromised.
Project Priority Matrix
FIGURE 4.2
Step 3: Creating the Work Breakdown
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
Best suited for design and build projects that have
tangible outcomes rather than process-oriented
projects
Hierarchical
Breakdown of
the WBS.
Figure shows
the major
groupings
commonly used
in the field to
develop
a hierarchical
WBS.
FIGURE 4.3
How WBS Helps the Project 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
Helps manage plan, schedule, and budget
Defines communication channels and assists in
coordinating the various project elements
How WBS Helps the Project Manager
Figure on next slide shows a simplified WBS for
development of a new personal computer
project.
At the top of the chart (level 1) is the project end
item — a deliverable product or service. Note
how the levels of the structure can represent
information for different levels of management.
For example, level 1 information represents the
total project objective and is useful to top
management;
Levels 2, 3, and 4 are suitable for middle
management;
Work Breakdown Structure
FIGURE 4.4
Work Packages
The lowest level of the WBS is called a work
package. Work packages are short duration tasks
that have a definite start and stop point, consume
resources, 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 technical
specifications.
Work Packages
A Work Package Is the Lowest Level of the WBS.
It is output-oriented in that it:
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 single person responsible for units of work
(who)
Step 4: Integrating the WBS with the
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
Ties the organizational units to cost control accounts
Step 4: Integrating the WBS with the Organization
As in the WBS, the OBS assigns the lowest
organizational unit the responsibility for work
packages within a cost account. Herein lies one
major strength of using WBS and OBS; they can be
integrated as shown in Figure below.
The intersection of work packages and the
organizational unit creates a project control point
(cost account) that integrates work and responsibility.
The intersection of the WBS and OBS represents the
set of work packages necessary to complete the
sub-deliverable located immediately above and the
organizational unit on the left responsible for
accomplishing the packages at the intersection.
Integration of WBS and OBS
FIGURE 4.5
Step 5: Coding the WBS for the Information 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
Step 5: Coding the WBS for the Information System
An example for the new computer project and
the “Disk storage units” in Figure is given below.
Note the project identification is 1.0.
WBS
Coding
Process Breakdown Structure
Process-Oriented Projects
Are driven by performance requirements in which the
final outcome is the product of a series of steps of
phases in which one phase affects the next phase
Process Breakdown Structure (PBS)
Defines deliverables as outputs required to move to the
next phase
Checklists for managing PBS:
Deliverables needed to exit one phase and begin the next
Quality checkpoints for complete and accurate deliverables
Sign-offs by responsible stakeholders to monitor progress
PBS for Software Project Development
FIGURE 4.8
Responsibility 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 mean 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
Responsibility Matrix for a Market Research Project
FIGURE 4.9
Responsibility Matrix for the Conveyor Belt Project
FIGURE 4.10
Project Communication Plan
What information needs to be collected?
Who will receive information?
What information methods will be used?
What are the access restrictions?
When will information be communicated?
How will information be communicated?
Communication Plan:
Key Terms
Cost account
Milestone
Organization breakdown structure (OBS)
Scope creep
Priority matrix
Responsibility matrix
Scope statement
Process breakdown structure (PBS)
Work breakdown structure (WBS)
Work package
