Project Definition: Creating and Using the Work Breakdown Structure

1. Project Definition: Creating and Using the Work Breakdown Structure

2. Learning Objectives • To identify components of a Project Charter • To illustrate a good scope statement and describe its importance • To explain what a WorkBreakdown Structure (WBS) tool is and Prepare a WBS given a project scope statement • To identify and define milestones • To construct and calculate a Gantt Chart

3. 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. Project Plan Development Other information Performance measurement baselines Major milestones and target dates Subsidiary management plans Ex. Procurement plan Project Charter • Project description • Business case or need • Problem statement • Owner • Scope statement • Goals • Results (deliveriables) • Risks

6. Project Charter continued • PROJECT NAME: Use a few words to describe the project. Should start with a verb (e.g., build, design, reduce, improve, create) • BUSINESS/LOCATION: where the project will be executed. • TEAM LEADER: person who is accountable for the project; TELEPHONE NUMBER: self explanatory • MENTOR: May not be know at this time or may not pertain to the project. Person who will support project and help with the politics, communication, negotiations, etc.; TELEPHONE NUMBER: self explanatory • OWNER OF PROCESS: if this is a process improvement project then this is the supervisor/manager responsible for the process; if not then this is the Client. TELEPHONE NUMBER: self explanatory. • START DATE: When the project starts TARGET END DATE: When project is estimated to be completed

8. 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.

9. Scope Checklist • Project objective • Deliverables • Milestones • Technical requirements • Limits and exclusions • Reviews with customer

10. Project Scope Specific - be precise as possible what the boundaries of your project will be. For example: design information system that integrates with all offices in the organization. Measurable - can you measure how well the project is doing and meeting your scope statement. For example: conduct a test every office to see if it's integrated with the new system. Attainable - is everyone on board for this project and willing to work to get it done. Is it a reasonable and have a possibility of achieving that objective. Relevant - ask yourself "can you get there"; why are we doing this project?. Does the objective relate back to the goal. If not then the project may lead to "scope creep ". Time Bound - have a timeframe and deadline and know what are your milestones.

11. Issue (scope statement) Who - Customers? Suppliers? Who else is involved? What- Nature of the problem? -what happens? -what do we know about it? When- -day, time, shift, month? -when is the problem greatest? Where- Does the problem occur? -at what step in the process? -location? • Focus a scope statement by answering who, what, when, and where.

12. 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.

13. Project Priorities Time Cost Tasks took longer than planned Initial time estimates were optimistic Performance • Unexpected tech. problems • Insufficient resources • Quality problems • Client changes in specs • Scope of work increases • Initial bids were too low • Poor reporting or untimely • Corrective control not exercised in time

14. 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.

15. 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.

16. Your WBS design should try to achieve certain goals: • Be compatible with how the work will be done and how costs and schedules will be managed • Give visibility to important or risky work efforts • Allow mapping of requirements, plans, testing, and deliverables • Foster clear ownership by managers and task leaders • Provide data for performance measurement and historical databases • Make sense to the workers and accountants

17. Steps for Constructing a WBS • Divide project into major objectives (Nouns). For example: • Design stage • Construction stage • Closure • Partition Each objective into activities or tasks • Divide each activity into sub activities • Repeat step 3 until all sub activities have characteristics desired • Lowest-level sub activities will be basis of work packages that must be done in order to complete project

18. Accounting System Upgrade WBS

19. 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 person responsible for units of work (who). • Identifies monitoring points (milestones) for measuring success.

20. Mind Mapping Approach to building a WBS • Advantage • Stimulates creative thinking about activities • Engages the team • Helps to generate enthusiasm and commitment to project • Gives the power of the pen to ALL team mbrs • Is a fast way to build a WBS • Disadvantage • Can run into resistance • Some people are uncomfortable with this non linear approach

21. Example: (“managing projects” by Brown andHyer) • Background • Preston Co. is sponsoring a community service effort aimed at aiding homeless people in the area. As part of this initiative, a fund-raising team has been chartered to stage a 10K run. • Objectives • Raise $50,000 for the shelter and enhance the company’s public image. • Question • What are all of the things we need to do to complete the charity run?

22. Example con’t. • Step 1: what are the high-level deliverables that represent major project components. • Use Nouns! • Step 2: Identify low level activities required for each high level deliverable • Use phrases that start with verbs! • Let’s Try It!!!!

23. 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

24. WBS Coding

25. Resource Planning • Project goal • Technical • Resource availability • Project schedule • Contingency plan and replanning • Project policy • Project procedure • Performance standard • Tracking, reporting, and auditing

26. 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.

27. Responsibility Matrix for a Market Research Project

28. Gantt Chart Construction and example

29. Gantt Chart • A Gantt Chart is a graphical tool with horizontal bars are drawn for each activity along a time line. Time is indicated either at the top of the chart or bottom. As the activity progresses, horizontal bars are filled in. One can incorporate downtime of any kind on the chart as well. In addition, baseline or original schedule can be depicted along with actual progress for comparison.

30. Constructing a Gantt Chart • Put a list of the tasks (activity) down the left hand side of the chart with time (in weeks, days, or hours) along the x axis. • The very first task/activity(s) are the ones that can be started first without any task/activity(s) done before it. • The length of the horizontal bars indicates the task/activity duration (ie, how long that task/activity takes to get done). • The start of the bar should follow whether it can be done while another one is started or only after it is completed. (this is the precedence relationship to each task/activity).

31. Example from textbook Building a Gantt Chart

32. Any Questions?