Chapter 4

1. Chapter 4 Defining the Project

2. Brief Content • Work breakdown structure（WBS）. • Organization breakdown structure（OBS） • Process breakdown structure (PBS) • Responsibility Matrices (RM)

3. Work breakdown structure • WBS is an integrated information system to schedule work and allocate budgets. WBS is a map of project. • Steps of building WBS: Step 1：Defining Project Scope Step 2: Establishing Project Priorities Step 3: Creating Work Breakdown Structure Step 4: Integrating WBS with Organization Step 5: Coding WBS for Information System

4. Step 1： Defining Project Scope • Project scope is a definition of end result of your project--a product or service for client/customer. • Project scope definition is a document that will be published and used for planning and measuring project. • Project scope should define the results to be achieved in specific, tangible, and measurable terms.

5. Project Scope Checklist 1. Project objectives 2. Deliverables 3. Milestones 4. Technical requirements 5. Limits and exclusions 6. Reviews with customer

6. 项目范围陈述示例 • 项目目标：5个月内、成本不超过15万元的情况下建造高质量定制房屋。 • 可交付物：一座2200平方英尺、2个浴室和3个房间；车库；厨房用具包括：烤箱、微波炉和洗碗机、高性能燃气灶。 • 里程碑：3月5日批准许可；3月14日浇灌地基；5月25日框架、加顶、水管、电路等通过验收；6月7日最后检查。 • 技术要求：房屋必须满足地方建筑标准；外墙、天花板、地板绝缘必须满足标准；车库必须可以容纳两辆大型汽车；结构必须通过地震稳定性标准。 • 限制和排除：业主负责风景；冰箱不包括在厨房设备中；放必须按照客户提供的规格和原始设计建造…….. • 客户检查：约翰和玛丽。

7. Step 2: Establishing Project Priorities • Quality of a project are defined as meeting or exceeding expectations of customer in terms of cost (budget), time (schedule), and performance (scope) of project ( Figure 4.1). • One of primary jobs of a project manager is to manage trade-offs among time, cost, and performance. • One technique is a priority matrix.

8. Project Management Tradeoffs( Figure 4.1).

9. Project Priority Matrix

10. Project Priority Matrix • Constrain. Project must meet completion date, specifications and scope of project, or budget. • Enhance: means taking advantage of opportunities to either reduce costs or shorten schedule. Enhancing performance means adding value to the project. • Accept: tolerable not to meet original parameters.

11. Step 3: Creating Work Breakdown Structure • Work of project can be successively subdivided into smaller work elements. Outcome of this hierarchical process is called work breakdown structure (WBS). • WBS begins with project as final deliverable. Major deliverables are identified first; then sub-deliverables. Sub-deliverable is further divided into work packages. • Lowest sub-deliverable usually includes several work packages.

12. Hierarchical Breakdown of the WBS

13. How WBS Helps Project Manager • Evaluating of cost, time, and technical performance at all levels in organization. • Assigning responsibility for accomplishment of work packages (organization breakdown structure ,OBS ). • Providing opportunity to "roll up" (sum) budget and actual costs of smaller work packages into larger work elements. • Level 1 information is useful to top management; Levels 2, 3, and 4 are suitable for middle management; level 5 is for first-line managers

14. Work Breakdown Structure

15. What is work package • Work package is basic unit used for planning, scheduling, and controlling project. • Each work package: 1. Defines work (what). 2. Identifies time (how long). 3. Identifies a time-phased budget (cost). 4. Identifies resources (how much). 5. Identifies a single person responsible for units of work (who). 6. Identifies monitoring points for measuring progress.

16. Work packages • The lowest level of WBS is called work package. Each work package is a control point. • Practice suggests a work package should not exceed 10 workdays or one reporting period. Check or monitoring points should be established every three to five days. • WBS should be end-item, output oriented, in order to concentrate on concrete(具体的) deliverables. • Don’t attempt to follows organization structure-design, marketing, production, finance.

17. Step 4: Integrating WBS with Organization • Defining organizational units responsible for performing work is OBS.Traditional organization structure can be used. • Intersection of WBS and OBS represents a control point, called a cost account by project managers. • Progress can be tracked vertically on deliverables and horizontally by organization responsibility . • “Cost account" is focal point. All budgets, work assignments, time, cost, and technical performance come together at this point.

18. Integration of WBS and OBS

19. Step 5: Coding WBS for Information System • The most commonly used codes scheme in practice is numeric indention(锯齿状). • Each successive indention represents a lower element. Ultimately numeric scheme reaches down to work package level. • all tasks and elements have an identification code.

20. An example for new computer project and "Disk storage units" in Figure 4.5 1.0 Computer project 1.1 Disk storage units 1.1.1 Floppy 1.1.2 Optical 1.1.3 Hard 1.1.3.1 Motor 1.1.3.1.1 Sourcing work package 1.1.3.4 Read/write head 1.1.3.4.1 Cost account 1.1.3.4.2 Cost account 1.1.3.4.2.1 WP 1.1.3.4.2.2 WP 1.1.3.4.2.3 WP 1.1.3.4.3 Cost account etc.

21. Work Package Estimates (Figure 4.6 )

22. Project Rollup（累积） • Each work package has time, budget, resource, responsibility. • Figure 4.6 shows an example of a work package with a time-phased budget. • Using direct labor cost, you can get an overview of how it is possible to roll up project costs for circuit board. • Figure 4.7 shows hypothetical labor costs and work packages for hard disk storage.

23. Direct Labor Budget Rollup( Figure 4.7)

24. Process Breakdown Structure (PBS) • WBS is best suited for tangible outcomes. It is more difficult to apply to less tangible. • Process-oriented projects’ final outcome is a series of steps or phases. Some practitioners utilize process breakdown structure (PBS) instead of WBS（Figure 4.8）. • People can be assigned to specific activities, and OBS can be created.

25. PBS for Software Development Project

26. Responsibility Matrices • Simplest form of an responsibility matrix (RM) consists of a chart listing all project activities and participants responsible for each activity (Figure 4.9). • R is responsible for coordinating efforts of other team members assigned to task and making sure that the task is completed. • S is support or assist the individual responsible. • Simple RMs are useful not only for assigning responsibilities for small projects but also for subprojects of large, more complex projects.

27. Responsibility Matrix for a Market Research Project (Figure 4.9)

28. Responsibility Matrices (cont’) • Figure 4.10 is an RM for a larger, more complex project. Within each cell a numeric coding scheme is used to define nature of involvement on specific task. • RM extends WBS /OBS and provides a clear method for depicting responsibility, authority, and communication channels.

29. Responsibility Matrix for the Conveyor Belt Project( Figure 4.10)

30. Summary • Scope definition provides focus on end of project. The structure helps ensure all tasks are identified and provides two views of project---deliverables and responsibility. • WBS avoids having project driven by organization function or by a finance system. It forces attention to personnel, hardware, and budgets. • WBS, OBS, and cost account provide discipline, structured approach. • PBS is often used for process-based projects. • In small projects, responsibility matrices may be used to clarify individual responsibility.

31. Key Terms • cost account • priority matrix • work breakdown structure (WBS) • responsibility matrix • organization breakdown structure (OBS) • scope statement • work package • process breakdown structure (PBS)