Defining the
Project
Chapter 4
Erick W. Larson, “Project Management: The Managerial
Process”
Steps in defining the project
1. Defining the Project Scope
2. Establishing Project Priorities
3. Creating the Work Breakdown
Structure
4. Integrating the WBS with the
Organization
5. Coding the WBS for the Information
System
1. Defining the Project
➢ 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 S cope S tatement
○ 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.
Project Scope Check-list
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
Project scope term and definition
● 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.
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.
Project
Management Trade-
off
Project
Priority
Matrix
3. Creating the Work-breakdown Structure (WBS)
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 sub-
deliverables, and in turn, their relationships to work packages.
❏ Best suited for design and build projects that have tangible outcomes rather
than process-oriented projects.
* 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).
- Product Breakdown Structure
4. Integrating WBS with 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 the organizational units to cost control
accounts.
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
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.
Focus and clear sight
More manageable
And focus!
what work is or is not included
in a project
Unclear scope leads to conflict
Unsatisfaction and fail
the same
understanding of
what products
what processes
How??
Plan Scope
Collect Requirement
Define Scope (sort and balance )
Create WBS
Validate Scope (signed acceptance)
Control Scope (Measure & adjust)
Monitoring &
Controlling Processes
Planning
Processes
Enter phase/ Initiating Closing Exit phase/
Start project Processes Processes End project
Executing
Processes
Knowledge
Process
Area Monitoring &
Initiating Planning Executing Closing
Control
Plan Scope
Collect Requirements Verify Scope
Scope Define Scope Control Scope
Create WBS
feasibility initiation Release release Close -out
planning
I P I P I P I P
E E E
E iteration
C C C C
M M M I P M
& E &
& &
C C C C C
M
&
C
On change driven project, requirements are identified
and documented at a sufficient level of detail
the work is broken into releases and iteration
“Define the process create how the
project and product scope will be
defined, validated and controlled.”
Inputs Tools & Outputs
1. Project Charter Techniques 1. Scope
2. Project Management Plan
Management Plan
1. Expert Judgement
2. Data Analysis 2.Requirements
4. EEF Management Plan
3. Meetings
5. OPA
Scope Management Plan
Product scope (Feature)
Process making product
Scope Management Plan
How to achieve scope
What tools to use to plan how
the project will acccomplish
the scope
How to create WBS
How scope will be managed
and controlled
How to obtain acceptance of
deliverables
Requirement Management Plan
Process how the requirement wil be
elaborated, ranked and measured
“Determining, documenting and
managing stakeholder needs and
requirements to meet objectives"
Inputs Tools &
Techniques Outputs
1. Project Charter
1. Expert Judgment 1.Requirements
2.Project
Management Plan 2. Data Gathering Documentation
3. Project Documents 3. Data Analysis 2.Requirements
4. Business 4. Decisions Making Traceability
Documents 5.Data Matrix
Representations
5. Agreements
6. EEF 6. Interpersonal and
Team Skills
7. OPA
7. Context Diagram
8. Prototypes
Brainstorming
Encourage participants to
build on each other ideas
INTERVIEW
Expert interview, elicit the
project requirement
FOCUS GROUP DISCUSSION
Interactive discussion with
qualified Stakeholders & Subject
matter experts
FACILITATED WORKSHOP
Bring together stakeholder with different
perspective such as product designer and end
user define the product. E.g: QFD, JAD
Facilitated Workshop
• Stakeholder may develop user stories:
As a <role>, I want <functionality/goals> so that
<business benefit/motivation>
Ex:
As a “student”, I want co-working space around
campus so that we can finish group assignment
brainstorming
Voting / ranking
Group
creativity Delphi technique
technique
Mind mapping
Afinity diagram
Multicriteria Decision
Delphi Technique
Some expert answer
questionnaire and
give anonimity
feedback
Afinity diagram
Sort idea into grou
Multicriteria analysis
Criteria Weight score
score score
40%
20%
10%
10%
10%
10%
total 100%
GROUP DECISION TECHNIQUE
•Unanimity DELPHI TECHNIQUE
•Majority (>50%),
•Plurality, the largest block
•Dictatorship
“something that is
not related to the
reason of project
created or Project
charter should be
rejected!”
Balancing the requirement
Project scope
Business Case
statement
Project charter
Project constraints
REQUIREMENT DOCUMENTATION
The requirements clear
and unambiguous.
Specific (Unambiguous)
Measurable (How will we
know we have finished?)
Achievable (Can we do it?)
Relevant (Is it the right thing
to do?)
Timed (When will we do it?)
•Stakeholder
requirement
•Solution
requirement
•Project
requirement
REQUIREMENT DOCUMENTATION
REQUIREMENT TRACEABILITY MATRIX
Linking requirement to the project objectives
It is helpful to elicit requirement on large project
“Concerned with what is and is
not included in the project and
its deliverable”
Inputs Tools & Outputs
1. Project Charter Technique
s 1.Scope
2.Project Management
Management 1. Expert judgment
Plan
Plan 2. Data Analysis
2.Project
3.Project 3. Decision Making
Documents
Documents 4.Interpersonal and Updates
4. EEF Team Skills
5. OPA 5. Product Analysis
PRODUCT ANALYSIS
• Description of the
product stated by the
customer/sponsor and turn
them into tangible
deliverables.
HOW TO MAKE SCOPE STATEMENT??
DESCRIBE THE PRODUCT AND THE PROCESS
Feature
material
Pull system or
push system
...
...
etc
Measure the acceptance criteria
Functionality test, safety test etc
WHAT IS NOT PART OF THE PROJECT?
Customization, upgradable?
malfunction
Additional risk??
CONST
RAINT
S AND
ASSUM
PTION
S
Pertamax? Premium?
“Subdividing project deliverables
and project work into smaller, more
manageable components.”
Inputs Tools & Outputs
1.Project Techniques 1.Scope
Management 1. Expert Baseline
Plan Judgment 2.Project
2.Project Documents
2. Decomposition
Documents Updates
3. EEF
4. OPA
•WBS does not show dependencies
•Work package: lowest level WBS
•WBS is not a list! Its graphical view of the project
• wbs is created with input from the team and stakeholder
WBS Structure can be organized by
• Phases
• Major deliverables
• Subprojects e.g. contracted
work
Decomposition :
1. Top down approach
2. Bottom up approach
initiating planning executing testing
feasibility design ...........
safety
...........
prototype
........... ...........
functionality
WBS grouped by phases ...........
Electrical machine chasis mechanical
Engine
accu design transmision
type
...........
........... ...........
Gear ratio
WBS grouped by deliverable ...........
Comp. A Comp B Comp. C Comp. D
design electrical chasis mechanical
...........
........... ........... ...........
WBS grouped by sub. contractor
WBS dictionary
activity description responsible cost
1. ELectrical
1.1...
1.2 .....
2. Chasis
2.1. ....
2.2. ...
3. machine
more detailed components, e.g. description of work,
responsible organization, acceptance criteria
Beware of
excessive
decomposition!
It can lead to
non-productive,
inefficient use
of resources
WBS prevents work
from slipping to the
crack,
Help to identify risk,
basis estimate for cost,
resource and
schedule, prevent
form changes, get
team-buy in
Project
control
procurement Activity list
Risk Network
management diagram
WBS
Quality
Resources
management
Budgeting estimating
scheduling
Scope Baseline
Project Scope statement
Baseline are
WBS simply the
final and
Work Package approved
version of
Planning Package project mgt
plan
WBS dictionary
“Formalizing acceptance of the
completed project deliverables
during monitong and controlling
phase. ”
Inputs Outputs
Tools & 1. Accepted
1.Project Techniques Deliverables
Management
Plan 2.Work
1. Inspection Performance
2.Project
Documents 2. Decision Making Information
3. Change
3.Verified Requests
Deliverables
4.Project
4.Work Document
Performance Updates
Data
Inspection
Measuring, examining, and validating to
determine work and deliverables are
meet requirement & product
acceptance criteria with OWNER
Work must be
completed before
each meeting with
customer. So you
must have what are
called verified
deliverables form the
control quality
Relationship between Validate Scope
and Control Quality
Complete deliverables
(part of direct and
Manage project Work)
Changes request are
Perform Control evaluated through
Changes are Integrated change control
Quality Inspection
requested and approved change may
(verify deliverables)
lead to replanning
Meet with the
customer Customer accepts
(validate scope deliverables
process)
“Measuring and assessing work performance
data against the scope baseline and manage
scope baseline changes”
Outputs
Inputs
Tools & 1. Work performance
1.Project Techniques Information
Management Plan 2. Change Requests
2.Project 1. Data 3.Project
Management Plan
Documents Analysis Updates
3.Work 4. Project Document
Performance Data Updates
4. OPA
Beware of
SCOPE CREEP!
AND GRANDIOSE
SCOPE
It can lead to
PROJECT FAIL
In 2001, McDonald initiated
intranet project connect its
headquarters
$170 million on
consultants and initial
implementation planning,
McDonald’s realized that the
project was too much to
handle and terminated it
BEST
PRACTICE
MAKING
GOOD
SCOPE
KEEP
THE SCOPE
REALISTIC
DONT TOO
LARGE
ASSIGNED
KEY USER
IN SCOPE
PLAN
PRIORITIZE
BUSINESS
NEED THAN
IT NEED
FOLLOW
GOOD
PROJECT
PRACTICE
Summary
• You must plan how you will determine the scope as
well as you will manage and control scope
• Scope must be clearly defined and formally
approved before start
• Requirement elicitation may take longer time
especially on larger project
• Requirement must be evaluated against the
business case, ranked and prioritized to determine
what is and out of scope
• WBS is used on all projects
• WBS is not a list!
Summary
• While the project is being completed, you must
check to make sure all the work is included in the
PMP– and only that work
• Gold plating is not allowed
• Any changes should be evaluated for its effect on
time, cost, risk, quality, resources and customer
satisfaction
• Change to scope require an approved change
request
• Scope changes should not approved if they are
not fit in project charter
