PM Session 4

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PM Session 4

  1. 1. Project Management Session 4 Project Definition
  2. 2. Session Outcomes <ul><li>Following completion of the session the delegate should: </li></ul><ul><ul><li>Understand the rationale and format of the SOW, WBS and OBS; </li></ul></ul><ul><ul><li>Understand how the above relate to resource allocation. </li></ul></ul><ul><li>In addition the delegate should be able to develop a basic SOW and WBS, using an appropriate case study. </li></ul>
  3. 3. Preamble
  4. 4. Defining the Project <ul><li>One of the best ways to meet the needs of stakeholders is through an integrated, planning and control system; </li></ul><ul><li>Essentially breaking down of final deliverable, into the work that need to be performed; </li></ul><ul><li>Further outlining the boundaries of what must be delivered and done and who is responsible. </li></ul>
  5. 5. Defining the Project
  6. 6. Defining the Project <ul><li>Step 1: Defining the Project Scope; </li></ul><ul><li>Step 2: Establishing Project Priorities; </li></ul><ul><li>Step 3: Creating the Work Breakdown Structure; </li></ul><ul><li>Step 4: Integrating the WBS with the Organization; </li></ul><ul><li>Step 5: Coding the WBS for the Information System. </li></ul>
  7. 7. Step 1: Defining the Project Scope <ul><li>Project Scope: </li></ul><ul><ul><li>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; </li></ul></ul><ul><li>Purpose of the Scope Statement: </li></ul><ul><ul><li>To clearly define the deliverable's for the end user; </li></ul></ul><ul><ul><li>To focus the project on successful completion of its goals; </li></ul></ul><ul><ul><li>To be used by the project owner and participants as a planning tool and for measuring project success; </li></ul></ul><ul><ul><li>Draws boundaries for the project. </li></ul></ul>
  8. 8. Project Scope Checklist <ul><li>Project objective </li></ul><ul><ul><li>End customer’s needs drive the objective; </li></ul></ul><ul><ul><li>A project makes a “promise” – value proposition; </li></ul></ul><ul><li>Deliverables </li></ul><ul><ul><li>Practically the final deliverable and the deliverable that directly link to this ; </li></ul></ul><ul><li>Milestones </li></ul><ul><ul><li>Major events ; </li></ul></ul><ul><li>Technical requirements </li></ul><ul><ul><li>Key technical requirements; </li></ul></ul><ul><li>Limits and exclusions </li></ul><ul><ul><li>What is clearly inside and outside the scope of the project ; </li></ul></ul><ul><ul><li>What are the assumptions; </li></ul></ul><ul><ul><li>What are the constraints or limitations ; </li></ul></ul><ul><li>Reviews with customer </li></ul><ul><ul><li>Reporting and review of deliverables, budgets etc. </li></ul></ul>
  9. 9. Project Scope: Terms and Definitions <ul><li>Scope Statement: </li></ul><ul><ul><li>Also called statements of work (SOW); </li></ul></ul><ul><li>Project Charter: </li></ul><ul><ul><li>Can contain an expanded version of scope statement; </li></ul></ul><ul><ul><li>A document authorizing the project manager to initiate and lead the project; </li></ul></ul><ul><li>Project Creep: </li></ul><ul><ul><li>The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities. </li></ul></ul>
  10. 10. Project Scope: Example of Charter
  11. 11. Project Scope: Example of Charter
  12. 12. Project Scope: Example of Charter
  13. 13. Project Scope: Example of Charter
  14. 14. Project Scope: Example of Charter <ul><li>Individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion </li></ul>Project Manager The individual responsible for managing the work Customer The individual or organization who will use the product “ customer is always right” Performing Organization The enterprise whose employees are most likely directly involved in doing the work of the project Sponsor The individual or group within the performing organization who provides the financial resources, in cash or in kind, for the project
  15. 15. Project Scope: Example of Charter Interest in the project Ability to influence the outcome Low High High Inform Consult Negotiate Enable
  16. 16. Practical Exercise <ul><li>Write a project scope statement for the following project (see video clip) </li></ul>
  17. 17. <ul><li>Step 1: Defining the Project Scope; </li></ul><ul><li>Step 2: Establishing Project Priorities; </li></ul><ul><li>Step 3: Creating the Work Breakdown Structure; </li></ul><ul><li>Step 4: Integrating the WBS with the Organization; </li></ul><ul><li>Step 5: Coding the WBS for the Information System. </li></ul>Defining the Project
  18. 18. Step 2: Establishing Project Priorities <ul><li>Causes of Project Trade-offs: </li></ul><ul><ul><li>Shifts in the relative importance of criteria related to cost, time, and performance parameters: </li></ul></ul><ul><ul><ul><li>Budget –Cost; </li></ul></ul></ul><ul><ul><ul><li>Schedule –Time; </li></ul></ul></ul><ul><ul><ul><li>Performance –Scope; </li></ul></ul></ul><ul><li>Managing the Priorities of Project Trade-offs: </li></ul><ul><ul><li>Constraint : a parameter is a fixed requirement; </li></ul></ul><ul><ul><li>Enhance: optimizing a parameter over others; </li></ul></ul><ul><ul><li>Accept: reducing (or not meeting) a parameter requirement. </li></ul></ul>
  19. 19. Project Management Trade-offs
  20. 20. Project Priority Matrix
  21. 21. Time Limited (Constrained) Project Time Resources (Inc Cost)
  22. 22. Resource Limited (Constrained) Project Resources (Inc Cost) Time
  23. 23. Over Determined Project Resources (Inc Cost) Time Scope
  24. 24. <ul><li>Step 1: Defining the Project Scope; </li></ul><ul><li>Step 2: Establishing Project Priorities; </li></ul><ul><li>Step 3: Creating the Work Breakdown Structure; </li></ul><ul><li>Step 4: Integrating the WBS with the Organization; </li></ul><ul><li>Step 5: Coding the WBS for the Information System. </li></ul>Defining the Project
  25. 25. Step 3: Creating the Work Breakdown Structure <ul><li>Work Breakdown Structure (WBS): </li></ul><ul><ul><li>A hierarchical outline (map) that identifies the products ( deliverables ) and work elements involved in a project; </li></ul></ul><ul><ul><li>Defines the relationship of the final deliverable (the project) to its sub deliverables, and in turn, their relationships to work packages (collection of elements related to work that must be done); </li></ul></ul><ul><ul><li>Best suited for design and build projects that have tangible outcomes rather than process-oriented projects. </li></ul></ul>
  26. 26. Step 3: Creating the Work Breakdown Structure <ul><li>Very important for understanding the WBS: </li></ul><ul><ul><li>Aim is to break down (decompose): </li></ul></ul><ul><ul><ul><li>Final deliverable; to </li></ul></ul></ul><ul><ul><ul><li>Sub deliverables; to </li></ul></ul></ul><ul><ul><ul><li>Work package; </li></ul></ul></ul><ul><ul><li>Deliverable – already delivered, past tense, does not consume resources; </li></ul></ul><ul><ul><li>Work package – doing, verb, consume resources and time. </li></ul></ul>
  27. 28. How WBS Helps the Project Manager <ul><li>WBS: </li></ul><ul><ul><li>Facilitates evaluation of cost, time, and technical performance of the organization on a project; </li></ul></ul><ul><ul><li>Provides management with information appropriate to each organizational level ; </li></ul></ul><ul><ul><li>Helps in the development of the organization breakdown structure (OBS ). which assigns project responsibilities to organizational units and individuals; </li></ul></ul><ul><ul><li>Helps manage plan, schedule, and budget; </li></ul></ul><ul><ul><li>Defines communication channels and assists in coordinating the various project elements. </li></ul></ul>
  28. 29. Work Breakdown Structure
  29. 30. Work Packages <ul><li>A work package is the lowest level of the WBS ; </li></ul><ul><ul><li>It is output-oriented (not output in itself) in that it: </li></ul></ul><ul><ul><ul><li>Defines work (what); </li></ul></ul></ul><ul><ul><ul><li>Identifies time to complete a work package (how long); </li></ul></ul></ul><ul><ul><ul><li>Identifies a time-phased budget to complete a work package (cost – linked to a cost centre); </li></ul></ul></ul><ul><ul><ul><li>Identifies resources needed to complete a work package (how much); </li></ul></ul></ul><ul><ul><ul><li>Identifies a single person responsible for units of work (who); </li></ul></ul></ul><ul><ul><ul><li>Identifies monitoring points (milestones) for measuring success; </li></ul></ul></ul><ul><ul><ul><li>Roughly 10 days maximum (80 hours) – experience shows. </li></ul></ul></ul>
  30. 31. Practical Exercise <ul><li>Develop a WBS for an Airbus 340 passenger aircraft – see Google Video. </li></ul>
  31. 32. <ul><li>Step 1: Defining the Project Scope; </li></ul><ul><li>Step 2: Establishing Project Priorities; </li></ul><ul><li>Step 3: Creating the Work Breakdown Structure; </li></ul><ul><li>Step 4: Integrating the WBS with the Organization; </li></ul><ul><li>Step 5: Coding the WBS for the Information System. </li></ul>Defining the Project
  32. 33. Step 4: Integrating the WBS with the Organization <ul><li>Organizational Breakdown Structure (OBS): </li></ul><ul><ul><li>Depicts how the firm is organized to discharge its work responsibility for a project: </li></ul></ul><ul><ul><ul><li>Provides a framework to summarize organization, work unit performance; </li></ul></ul></ul><ul><ul><ul><li>Identifies organization units responsible for work packages; </li></ul></ul></ul><ul><ul><ul><li>Ties the organizational units to cost control accounts. </li></ul></ul></ul>
  33. 35. Direct Labor Budget Sorted By WBS
  34. 36. <ul><li>Step 1: Defining the Project Scope; </li></ul><ul><li>Step 2: Establishing Project Priorities; </li></ul><ul><li>Step 3: Creating the Work Breakdown Structure; </li></ul><ul><li>Step 4: Integrating the WBS with the Organization; </li></ul><ul><li>Step 5: Coding the WBS for the Information System. </li></ul>Defining the Project
  35. 37. Step 5: Coding the WBS for the Information System <ul><li>WBS Coding System </li></ul><ul><ul><li>Defines: </li></ul></ul><ul><ul><ul><li>Levels and elements of the WBS; </li></ul></ul></ul><ul><ul><ul><li>Organization elements; </li></ul></ul></ul><ul><ul><ul><li>Work packages; </li></ul></ul></ul><ul><ul><ul><li>Budget and cost information; </li></ul></ul></ul><ul><ul><li>Allows reports to be consolidated at any level in the organization structure </li></ul></ul>
  36. 38. Practical Demonstration
  37. 40. Work Package Estimates
  38. 41. Project Roll-up <ul><li>Cost Account: </li></ul><ul><ul><li>The intersection of the WBS and the OBS that is a budgetary control point for work packages; </li></ul></ul><ul><ul><li>Used to provide a roll-up (summation) of costs incurred over time by a work package across organization units and levels, and by deliverables. </li></ul></ul>
  39. 43. Process Breakdown Structure <ul><li>Process-Oriented Projects: </li></ul><ul><ul><li>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; </li></ul></ul><ul><li>Process Breakdown Structure (PBS): </li></ul><ul><ul><li>Defines deliverables as outputs required to move to the next phase </li></ul></ul><ul><ul><li>Checklists for managing PBS: </li></ul></ul><ul><ul><ul><li>Deliverables needed to exit one phase and begin the next; </li></ul></ul></ul><ul><ul><ul><li>Quality checkpoints for complete and accurate deliverables; </li></ul></ul></ul><ul><ul><ul><li>Sign-offs by responsible stakeholders to monitor progress. </li></ul></ul></ul>
  40. 44. PBS for Software Project Development
  41. 45. Responsibility Matrices <ul><li>Responsibility Matrix (RM): </li></ul><ul><ul><li>Also called a linear responsibility chart; </li></ul></ul><ul><ul><li>Summarizes the tasks to be accomplished and who is responsible for what on the project: </li></ul></ul><ul><ul><ul><li>Lists project activities and participants; </li></ul></ul></ul><ul><ul><ul><li>Clarifies critical interfaces between units and individuals that need coordination; </li></ul></ul></ul><ul><ul><ul><li>Provide an means for all participants to view their responsibilities and agree on their assignments; </li></ul></ul></ul><ul><ul><ul><li>Clarifies the extent or type of authority that can be exercised by each participant. </li></ul></ul></ul>
  42. 46. Responsibility Matrix for a Market Research Project

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