Project Scope
and WBS
4–1
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
4–2
• Project Scope
– A definition of the end result or
mission of the project—a
product or service for the
STEP 1: client/customer—in specific,
tangible, and measurable terms.
DEFINING THE • Purpose of the Scope Statement
PROJECT – To clearly define the
deliverable(s) for the end user.
SCOPE – 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.
4–3
PROJECT SCOPE CHECKLIST
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
4–4
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.
4–5
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
• Managing the Priorities of Project Trade-offs
– Constrain: a parameter is a fixed requirement.
– Enhance: optimizing a criterion over others.
– Accept: reducing (or not meeting) a criterion requirement.
4–6
PROJECT MANAGEMENT TRADE-OFFS
FIGURE 4.1
4–7
PROJECT PRIORITY MATRIX
FIGURE 4.2
4–8
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 subdeliverables, and in turn,
their relationships to work packages.
– Best suited for design and build projects that have tangible outcomes
rather than process-oriented projects.
4–9
Hierarchical
Breakdown of the
WBS
* This breakdown groups work
packages by type of work within a
deliverable and allows assignment
of responsibility to an organizational
unit. This extra step facilitates a
system for monitoring project
progress (discussed in Chapter 13).
FIGURE 4.3
4–10
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.
4–11
WORK BREAKDOWN STRUCTURE
FIGURE 4.4
4–12
WORK 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.
4–13
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 organizational units to cost control accounts.
4–14
Integration
Integration of
of
WBS
WBS and
and OBS
OBS
FIGURE 4.5
4–15
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
4–16
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 an 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.
4–17
RESPONSIBILITY MATRIX FOR A
MARKET RESEARCH PROJECT
FIGURE 4.7
4–18
Thank You
4–19
