1. You have been hired to lead a complex, two-year project (the project of your choice). As the Project Manager, you know it is important get the project off to a good start. Using the tools provided in the required readings (See attached), provide a quick summary of your project, including the scope and at least three goals and objectives of your project.

Chapter 4

Defining the Project

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Where We Are Now

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Learning Objectives (1 of 2)
Identify key elements of a project scope statement and understand why a complete scope statement is crucial to project success
Understand why it is important to establish project priorities in terms of cost, time, and performance
Demonstrate the importance of a work breakdown structure (WBS) to the management of projects and how it serves as a data base for planning and control

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Learning Objectives (2 of 2)
Demonstrate how the organization breakdown structure (OBS) establishes accountability to organizational units
Describe a process breakdown structure (PBS) and when to use it
Create responsibility matrices for small projects
Create a communication plan for a project

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Chapter Outline
4.1 Step 1: Defining the Project Scope
4.2 Step 2: Establishing Project Priorities
4.3 Step 3: Creating the Work Breakdown Structure
4.4 Step 4: Integrating the WBS with the Organization
4.5 Step 5: Coding the WBS for the Information
System
4.6 Process Breakdown Structure
4.7 Responsibility Matrices
4.8 Project Communication Plan

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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

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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
Purposes of the Project 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

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

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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

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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: original parameter is a fixed requirement.
Enhance: optimizing a criterion over others
Accept: reducing (or not meeting) a criterion requirement

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FIGURE 4.1 Project Management Trade-offs
Quality
Scope
Time
Cost

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FIGURE 4.2 Project Priority Matrix

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Step 3: Creating the Work Breakdown Structure
Work Breakdown Structure (WBS)
A 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

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FIGURE 4.3 Hierarchical Breakdown of the WBS (1 of 2)
Level Hierarchical breakdown Description
1 Project Complete project
2 Deliverable Major deliverables
3 Subdeliverable Supporting deliverables
4 Lowest subdeliverable Lowest management responsibility level
5 Cost account* Grouping of work packages for monitoring progress and responsibility
6 Work package Identifiable work activities

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FIGURE 4.3 Hierarchical Breakdown of the WBS (2 of 2)
*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).

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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.

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FIGURE 4.4 Work Breakdown Structure

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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 for measuring success (how well).

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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 unit work performance.
Identifies organization units responsible
for work packages.
Ties organizational units to cost control accounts.

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FIGURE 4.5 Integration of WBS and OBS

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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
WBS Dictionary
Provides detailed information about each element in the WBS.

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EXHIBIT 4.1 Coding the WBS

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FIGURE 4.6 Process Breakdown Structure (PBS) for Software Development Project

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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 responsible for each activity.
Clarifies critical interfaces between units
and individuals that need coordination.
Provide a 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.

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FIGURE 4.7 Responsibility Matrix for a Market Research Project
Task Project team: Richard Project team: Dan Project team: Dave Project team: Linda Project team: Elizabeth
Identify target customers R S   S  
Develop draft questionnaire R S S    
Pilot-test questionnaire   R   S  
Finalize questionnaire R S S S  
Print questionnaire         R
Prepare mailing labels         R
Mail questionnaires         R
Receive and monitor returned questionnaires       R S
Input response data     R    
Analyze results   R S S  
Prepare draft of report S R S S  
Prepare final report R   S    

R = Responsible
S = Supports/assists

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FIGURE 4.8 Responsibility Matrix for the Conveyor Belt Project (1 of 3)
Deliverables Organization:
Design Organization: Development Organization: Documentation Organization: Assembly
Architectural designs 1 2
Hardware specifications 2 1
Kernel specifications 1 3
Utilities specifications 2 1
Hardware design 1 3
Disk drivers 3 1 2
Memory management 1 3
Operating system documentation 2 2 1
Prototypes 5 4 1
Integrated acceptance test 6 2 2

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FIGURE 4.8 Responsibility Matrix for the Conveyor Belt Project (2 of 3)
Deliverables Organization: Testing Organization: Purchasing Organization: Quality Assur. Organization: Manufacturing
Architectural designs 2 3 3
Hardware specifications 2 3
Kernel specifications 3
Utilities specifications 3
Hardware design 3 3
Disk drivers
Memory management 3
Operating system documentation 3
Prototypes 3 3 3 4
Integrated acceptance test 1 5 5

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FIGURE 4.8 Responsibility Matrix for the Conveyor Belt Project (3 of 3)
Responsible
Support
Consult
Notification
Approval

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Project Communication Plan
What information needs to be collected
and when?
Who will receive the information?
What methods will be used to gather
and store information?
What are the limits, if any, on who has access to certain kinds of information?
When will the information be communicated?
How will it be communicated?

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Developing a Communication Plan
Stakeholder analysis
Information needs
Sources of information
Dissemination modes
Responsibility and timing

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FIGURE 4.9 Stakeholder Communications

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Information Needs
Project status reports
Deliverable issues
Changes in scope
Team status meetings
Gating decisions
Accepted request changes
Action items
Milestone reports

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FIGURE 4.10 Shale Oil Research Project Communication Plan
What information Target Audience When? Method of Communication Provider
Milestone report Senior management and project manager Bimonthly E-mail and hardcopy Project office
Project status reports & agendas Staff and customer Weekly E-mail and hardcopy Project manager
Team status reports Project manager and project office Weekly E-mail Team recorder
Issues report Staff and customer Weekly E-mail Team recorder
Escalation reports Staff and customer When needed Meeting and hardcopy Project manager
Outsourcing performance Staff and Customer Bimonthly Meeting Project manager
Accepted change requests Project office, senior mgmt., customer, staff, and project mgr. Anytime E-mail and hardcopy Design department
Oversight gate decisions Senior management and project manager As required E-mail meeting report Oversight group or
project office

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Key Terms
Cost account
Milestone
Organization breakdown structure (OBS)
Priority matrix
Process breakdown structure (PBS)
Project charter
Responsibility matrix
Scope creep
Scope statement
WBS dictionary
Work breakdown structure (WBS)
Work package

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End of Presentation

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