LIUC11 - 1 - Scope management e WBS [modalità compatibilità]
Transcript of LIUC11 - 1 - Scope management e WBS [modalità compatibilità]
Project ManagementScope Management e WBS
Eng. Giorgio Locatelli
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Agenda
•Introduction
•Scope management
•WBS
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•WBS
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Project management definition
Turner “A project is an endeavor in which human, (ormachine), material and financial resources are organized in anovel way, to undertake unique scope of work, of givenspecification, within constraints of cost and time, so as todeliver beneficial change defined by quantitative andqualitative objectives”
Burke “ The project manager is the single point of
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Burke “ The project manager is the single point of
responsibility, it is the project manager job to set up a
structure which meets the needs of the project, the needs of
the organization, the needs of the stakeholders and the
needs of the individuals working on the project”.
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Project management definition
SCOPE
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If anyone of the three factors changes at least oneother factor is likely to be affected
ProjectCOSTTIME
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Project management body of knowledge
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Project Management Instruments
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Project Life Cycle
Strategic
PlanningFeasibility Contract Realization Exercise Close Out
Corporate Investment Life Cycle
Plant Life Cycle
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Project Exercise Dismantling
Concept Design Implementation Commission
Project Life Cycle
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Project Life Cycle
LEVEL OF INFLUENCE VS COST OF CHANGES (front-end importance)
Cost of making any changes due to design errors or the clientchanging the scope, were recognized as becoming increasingly moreexpensive as the project progressed
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Project Life Cycle
LEVEL OF DETAIL
The PM philosophy of sub-dividing the scope of work into a numberof smaller units to increase the level of detail and control can alsobe applied to the project life cycle.
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Project management body of knowledge
Scope Management
As the RFP requested it As the work statement specified it
As it was negotiated
As engineering designed it As it was built What the customer wanted
Swings, a classic revisited10Mauro Mancini ©
Scope management
Scope management is defined as; ‘… the process required to ensure
that the project includes all the work required, and only the workrequired, to complete the project successfully. It is primarily
concerned with defining and controlling what is or is not included
in the project.’
Since most projects seem to be riddled with fuzzy definitions, scopeSince most projects seem to be riddled with fuzzy definitions, scope
management takes on a greater importance to avoid scope creep,
and avoid adding features and functionality to the product that are
not part of the original project contract without an appropriate
increase in time and budget
Scope Management is centered around:
– Defining the Scope
– Controlling Changes to the defined requirements of the project
– Managing Scope Creep 1111Mauro Mancini ©
Scope Creep and Gold Plating
Scope Creep
– Efforting work not under contract or identified within the WBS
– Typically initiated by the client
– Impacts cost and schedule performance, and profitability
(depending on the contract type)
– Combat by creating a Change Order and rebaseline (EVMS)
Gold-platingGold-plating
– IT/Systems version of Scope Creep characterized by the inclusion of
additional function points within a specific release
– Typically initiated by the contractor
– Impacts cost performance, and profitability (depending on the
contract type)
– Combat by requirements matrices auditing and compliance
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What impacts on the Scope
Requirements
– the ultimate objectives of the project
Constraints
– limitations such as: time, resource dependency, business, legal,
organizational, technology, offsets and management
Assumptions
– facts for planning purposes (e.g. a new system will not require to– facts for planning purposes (e.g. a new system will not require to
develop new software)
Risks
– any business or technical factor that has reasonable potential to
impact the project
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Project Charter
• It is a tool that formally authorizes a project, also
called terms of reference or project mission
• It is especially important when project managers have
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• It is especially important when project managers have
no direct authority over project team members and other
resources, but bear the responsibility for delivery of the
project
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Project Charter
• It should be a tightly worded document outlining what is
to be done and the boundaries of the project
• It should also include:
�Background to the project
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�Background to the project
�Key assumptions
�Business commercial needs
�Scope of work
�Identify key activities, budgets and dates
�Comment on how the project is to be managed
�Role of the project manager
�Reporting structure
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Project Charter
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Scope Statement
• It is a written narrative of the goals, work and products of
the project
• “What do we produce in this project?”
The answer thus creates a big-picture view of what
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The answer thus creates a big-picture view of what
the project is all about
• What is within these boundaries is the solution space
within which the project team can operate
• There are many version of the scope statement
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Main phases
Scope Planning – creating a project scope management plan that
documents how the project scope will be defined, verified, controlled,
and how the work breakdown structure (WBS) will be created and
defined.
Scope Definition – developing a detailed project scope statement as the
basis for future project decisions.
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Create WBS – subdividing the major project deliverables and project work
into smaller, more manageable components.
Scope Verification – formalizing acceptance of the completed project
deliverables.
Scope Control – controlling changes to the project scope.
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Project Scope Management Overview
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Scope Change Control
Even if you defined the scope properly and the customer validated it….
…this does not mean that there will not be Change !
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Scope Change Control
Change Control is a huge responsibility of a Project Manager. PMs must
control changes to the project’s Schedule, Scope, and the impact on
its Resources
Scope Creep is the tendency for the requirements of a project to grow
past the initial Scope Statement
Scope Creep is one of the reasons why a PM must:
– spend the necessary time in the definition of the project’s scope
– verify the scope with the stakeholders
– Define with the customer a Scope Baseline through Scope
Statement signoff
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Systemic impact of cost change
Two important notes:
– You cannot have a change in Scope without some kind of impact on
Cost and Time.
– It is much easier to implement a change earlier in the Project Life
Cycle than it is in the later stages
SYSTEMIC THOUGHT IS THE KEY!
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The cost of scope change
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Change Request
Using a numbered change request form is the preferred method of motivating
a scope change. The form should describe the scope change, list associated
drawings and documented, together with the reason for the change.
CHANGE REQUEST
NUMBER: DATE RAISED:
INITAITED BY:
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INITAITED BY:
CHANGE REQUIRED (related drawings/work packages)
REASON FOR CHANGE:
APPROVAL:
NAME POSITION APPROVAL DATE
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Project Communication
Then project communication form enable any stakeholders working on the
project, to make a formal statement. This could be a question, identifying a
problem or making a suggestion. Once the document has entered the system
the configuration management system will ensure that is acknowledged and
auctioned
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Different typologies of Scope Change
Priority:
CRITICAL – project cannot proceed because the change is critical for
project success
IMPORTANT –significant negative impacts or major opportunities missed if
the change is not made
DESIRABLE – benefits outweigh costs, but project can succeed without the
changechange
POST-LIVE - the change should be evaluated for inclusion on the project
evolution plan
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Work Breakdown Structure
The purpose of the WBS is to sub divide the scope of workinto manageable work packages which can be estimated,planned and assigned to a responsible or department.
It is the best tool for quantifying the scope of work as a listof work packages since is a hierarchical form of mind mapwhich helps to break complexity down to simple
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which helps to break complexity down to simplemanageable components.
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Work Breakdown Structure
It is not the activities needed to create the project
deliverables; it's the stuff that the activities create.
A WBS is not the work, but the deliverables. Microsoft
Project suggests WBS as the activity list, but it isn't so. A WBS
is not the activities but the actual deliverables that the
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is not the activities but the actual deliverables that the
customer expects from the project work.
The project scope must be decomposed into things that the
customer will get as a result of the project. Stuff, not
activities. The end result of the WBS is a clear picture of
what the customer will and won't get as part of the project.
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Work Breakdown Structure
A Work Breakdown Structure is a deliverable-oriented
grouping of project elements that organizes and defines the
total scope of the project: work not in the WBS is outside the
scope of the project.
As with the scope statement, the WBS is often used to
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As with the scope statement, the WBS is often used to
develop or confirm a common understanding of project
scope. Each descending level represents an increasingly
detailed description of the project elements.
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Work Breakdown Structure
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Work Decomposition
Decomposition may not be possible for a deliverable that must be
accomplished far into the future.
The Project team usually waits until the deliverable is clarified to best
develop the WBS.
Different deliverables can have different level of detail:
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Different deliverables can have different level of detail:
– excessive decomposition can lead to non productive management
effort and inefficient use of resources
– not exhaustive level of detail reduces the possibility of best
managing and control.
For practical purposes 3 or 4 level of detail should be sufficient to reach
the desired planning and control approach.
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Work Decomposition
The number of levels can be influenced by:
Level of detail
Level of risk
Level of control
Estimate accuracy
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Estimate accuracy
Work package value
Work package dimension (cost, manhours, duration)
Except for E&C companies with more than 4 levels, sub-
project are used, where the lowest level of WP of a project
constitutes the highest level of another one.
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Work Decomposition
So how far should you break down the project deliverables?
You can follow the "8/80 Rule" the work package equates to
no more than 80 hours of work and no fewer than 8 hours of
work to create that deliverable. You don't want to get so
granular or so vague with your WBS that it's uncontrollable
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granular or so vague with your WBS that it's uncontrollable
and useless.
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WBS example
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WBS example
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WBS development methods
― TOP-DOWN APPROACH
― BOTTOM-UP APPROACH
― WBS (ORGANIZATIONAL) STANDARDS
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― WBS (ORGANIZATIONAL) STANDARDS
― WBS TEMPLATES
What development method to use?
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WBS development methods
― TOP-DOWN APPROACH
� If the project manager and the project management
team have little to no experience in developing WBSs
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� If the nature of the project’s products or services is
note well understood
� If the nature of the project life cycle is not familiar or
well known
� If no appropriate WBS templates are available.
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WBS development methods
― BOTTOM-UP APPROACH
� If the nature of the project’s products and services is
well understood [For example, if the organization has
developed very similar products or services on previous
projects]
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projects]
� If the nature of the project life-cycle is well known. [If
the organization use always the same project life-cycle]
� Appropriate WBS templates are available. [If the
organization has WBSs from projects with similar
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WBS development methods
― WBS STANDARDS AND TEMPLATES
� In general, if WBS standards or WBS templates are
available, they can be used, but the choice to use a
sample WBS as template must be made carefully. If
there aren’t similarity between the new project and
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there aren’t similarity between the new project and
projects already performed, the WBS must be
developed with the top-down approach.
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Work Package (WP)
• It is the elementary unit of the project planning and
control
• It constitutes of more elementary activities interrelated,
with objectives and constraints univocally defined
• It is defined in relation with Product Breakdown Structure
(PBS), Activity Breakdown Structure (ABS), and
Organizational Breakdown Structure (OBS)Organizational Breakdown Structure (OBS)
• For every WP, start/finish and available resource are
defined
• Time, cost and quality objectives are measurable to
control them
• A Description is associated to every WP (objectives,
responsibility, authorized budget, start/finish,
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Work Package (WP)
Crossing a WBS element and an OBS one, a WP it is
obtained as elementary unit of project management
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WBS development rules
RULE 1 (100% RULE)
The sum of the work at the “child” level must equal 100% of the
work represented by the “parent” and the WBS should not include
any work that falls outside the actual scope of the project, that is,
it cannot include more than 100% of the work
RULE 2
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RULE 2
Every breakdown level must be developed adoptin a single
rationale
RULE 3
Different level of the WBS can be developed according to
differente rationale
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WBS development rules
RULE 4
Every WBS level and every part of it must be coded to allow WP
research/aggregation useful to planning and control
RULE 5
To choose WP dimension it is necessary consider that at the
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To choose WP dimension it is necessary consider that at the
diminishing of these dimensions, it increase:
• managerial capacities of the single responsible
• WP number with control complications
RULE 6
WBS is the base to highlight interfaces among WPs, so the
necessity of interactions among the correspondent organizational
units that are the responsible of them
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WBS development rules
RULE 7
WBS may be developed according to specific needs of the project
considered (WBS ad hoc) or according to a standardized reference
scheme
RULE 8
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It is possible to aggregate elements of WBS according to different
ways respect to those of the WBS hierarchical structure. For
example: activities that determine jointly incomes and cash flow;
materials that belongs to different part of the WBS but are
transported on the same date through the same transport means;
project aspects that involve different sub-systems of the plant.
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Other Breakdown Structure
Cost Breakdown Structure (CBS), which represents the
financial breakdown of the project into budgets per work
packages.
Location Breakdown Structure (LBS), which is used to show
the location of the work and would be appropriate for a
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the location of the work and would be appropriate for a
project which as pockets of work dotted all over the place.
Transport Breakdown Structure (TBS), which is used in
projects characterised by large loads that may find transport
and cranage limitations critical for the breakdown.
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Other Breakdown Structure
Resource breakdown structure (RBS), which is a variation of
the OBS and is typically used when work elements are
assigned to individuals.
Bill of materials (BOM), which presents a hierarchical view of
the physical assemblies, subassemblies, and components
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the physical assemblies, subassemblies, and components
needed to fabricate a manufactured product. Also called
Product Breakdown Structure.
Project breakdown structure (PBS), which is fundamentally
the same as a properly done WBS. The term PBS is widely
used in application areas where the term WBS is incorrectly
used to refer to a BOM.
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Other Breakdown Structure
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Other Breakdown Structure
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WBS example
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WBS example
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WBS advantages
1. To identify the Project independently on who participates
it
2. To clearly identify project objectives
3. To provide a scheme that guarantee objectives
achievement through inferior objective most controllable
4. To obtain a “different levels” visibility4. To obtain a “different levels” visibility
5. To univocally identify reference sectors of the documents
relative to monitoring, controlling and reporting activities
of the project
6. To highlight interactions rationale among project
elements
7. To identify WP to assign responsibilities and resources
8. To identify innovative and repetitive components
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