Defining (Initiating) the Project

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 Project Life cycle
• Project Life Cycle. A collection of generally sequential
project phases.
• A project phase is a set of processes to be accomplished to
produce some deliverables
• A process is a series of actions directed toward a particular
result.
• There is no agreement among industries, or even,
companies within the same industries, about life cycle
phases of a project.

Why?
Complex nature and diversity of projects 2
Common Characteristics of the Project Life Cycle

The level of uncertainty is highest and, hence, risk of failing to

achieve the objectives is highest at the start of the project.
The ability of the stakeholders to influence the final characteristics
of the project’s product and the final cost of the project is highest at
the start, and gets progressively lower as the project continues.

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Project Management Process Group
PMBOK Guide describes a logical grouping of (49) project
management processes.
The Project management process groups include:
initiating processes,
planning processes,
executing processes,
monitoring and controlling processes,
closing processes.
These five groups are required for any project, have clear
dependencies, and must be performed in the same sequence on each
project, independent of the application area.
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 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

Read Introduction on Page 1

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 1. Initiating Process Group
The Initiating Process Group consists of the processes to facilitate the
formal authorization to start the project.

INPUTS Processes OUTPUTS

Develop Stakeholder Project Charter

Product Description Analysis Preliminary Project
Historical Information Scope Statement
Develop Business Case
Develop Project Charter Business Case

Develop Preliminary PM Assignment

Project Scope Statement Constraints
Assumptions

To initiate the Just-In-Time Training project, someone must develop a

project charter and hold a kick-off meeting to officially start the project.
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 2. Planning process Group
Planning processes: to develop workable plans to ensure that
the project meets its scope, time, and cost goals as well as
organizational needs.
As part of project scope management, the project team will
develop a scope statement to plan the work that needs to be
done.
As part of project time management, the project team will
create a detailed schedule that lets everyone know when
specific work will start and end.
As part of procurement management, the project team will
plan for work that will be done by external organizations to
support the project.
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 3. Executing process Group
Executing processes: to coordinate people and other
resources to carry out the project plans and produce the
deliverables of the project or phase.
Construction of a new office building: blueprints, cost
estimates, progress reports, the building structure, windows,
plumbing, and flooring.
Just-In-Time Training project: training needs survey,
training materials, evaluation forms, and classes.

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 4. Monitoring and Controlling Process Group
Monitoring and controlling processes : to measure progress
toward achieving project goals, monitor deviation from plans,
and take corrective action to match progress with plans and
customer expectations.

If the first training course does not improve productivity or

meet other customer expectations, the project team should take
corrective action to deliver more suitable training courses.

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 5. Closing Process Group

Closing processes: to provide closure in terms of a formal

acceptance that the project has been completed satisfactorily.
Closing out contracts, documenting lessons learned,
redeployment of resources, receiving formal acceptance of
deliverables, and archiving project files.

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 Project Life cycle (Gray and Larson)

• Objectives are plans contains o The physical product is Deliver the project
established descriptions of produced. product to customers,
• Specification the required o Monitoring the project in train customers, release
are defined tasks, and terms of cost, time, resources, and reassign
estimates of the specification measures. staff
• Teams are
resources, o Revise/change plans if
formed
budgets and necessary
• Responsibilities schedules
are assigned

Normally, executing tasks require the most resources and time, followed by
planning tasks.
Initiating and closing tasks are usually the shortest (at the beginning and end of
a project or phase, respectively), and they require the least amount of resources11
and time.
 Case Study
Just-in-Time Training at Global Construction
Pre-Initiating Tasks

Read Pages 1-4

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 Initiating Process for Global Construction’s
Just-In-Time Training Project

Senior management work together to: Project managers lead efforts to:
 Determine scope, schedule, and cost constraints * Identify and understand project stakeholders
 Identify the project sponsor * Create the project charter
 Select the project manager * Hold a kick-off meeting
 Develop a business case for the project, if required
 Meet with the project manager to review
the process and expectations for managing the project
 Determine if the project should be divided
into two or more smaller projects

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 Summary Information for the Just-In-
Time Training Phase I Project
Scope Goals
Investigate and document the training taken in the last two years by all
internal employees.
Determine what courses were taken, the cost of all training, the
process for approving/assigning training, and the evaluation of the
training by participants, if available.
Survey employees to get their input on what training they believe
they'll need in the next two years, and how they want to receive that
training (instructor-led in-house; instructor-led through a local college,
university, or training company; Web-based; CD-ROM). Also hold
focus groups to verify training needs.
Recommend how to provide the most valuable training for Global
Construction employees in the next two years.
Determine the scope, time, and cost goals for the following project to
develop and implement a Just-In- Time Training Phase II project. 14
 Summary Information for the Just-In-
Time Training Phase I Project
Time Goals: Three months
Cost Goals: $50,000
Approach/Assumptions:
All of the costs would be for internal labor.
All managers and employees would receive information about this
study project.
A response rate of 30 percent would be acceptable for the survey.
The team would also provide detailed monthly reports and
presentations to a steering committee.
The final deliverables would include a one-hour final presentation
and a comprehensive project report documenting all of the
information and recommendations.

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 Initiating Tasks
Identify and understand project stakeholders.
Prepare a business case for the project (if needed).
Create the project charter.
Hold a kick-off meeting.
Develop a project management plan
Develop a preliminary scope statement.

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 Stakeholder Analysis
The goal of a stakeholder analysis is to identify, understand, and manage
relationships with all project stakeholders.

Includes the following information:

Names and organizations of key stakeholders
Their roles on the project
Unique facts about each stakeholder
Their levels of interest in the project
Their influence on the project
Suggestions for managing relationships with each stakeholder

Because a stakeholder analysis often includes sensitive

information, it should not be part of the official project
documents, which are normally available for all stakeholders
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to
review. Its distribution should be strictly limited
 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

Read Section 2.3.1 on Pages 7-10

Stakeholder Register
Stakeholder Analysis
Stakeholder Engagement Plan

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Preparing a Business Case
for the Project
Business Case establishes whether the project is worth the investment.
Business Analysts are the key group to perform the Cost Benefit Analysis
(CBA) of the project based on the stakeholder inputs
It is a good idea to have one of the company’s financial managers review the
information for accuracy
Contents of a Business Case
Introduction/Background Preliminary Project Requirements
Business Objective Budget Estimate and Financial
Current Situation and Analysis
Problem/Opportunity Statement Schedule Estimate
Critical Assumptions and Potential Risks
Constraints
Exhibits
Analysis of alternatives and 19
Recommendation
 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

• Global Construction believed they could reduce training costs and

improve productivity by successfully implementing a project to
provide just-in-time training on key topics.

Read Section 2.2 on Pages 4-7

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 Creating a Project Charter

• A project charter is a document that formally recognizes

the existence of a project and provides a summary of the
project’s objectives in terms of scope, schedule, budget, and
quality standards.
• It authorizes the project manager to use organizational
resources to complete the project.

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 Content of a Project Charter
• Project Title and Date of Authorization
• Project Start Date
• Project Finish Date
• Other Schedule Information (if available)
• Budget Information
• Project Manager (Name and contact information)
• Project Objectives (brief description of what the main objectives are
for the project)
• Approach (description of how the project objectives will be met, list
of important assumptions, and often references to related documents)
• Roles and Responsibilities (names, roles, positions, and contact
information)
• Sign-off
• Comments (allows stakeholders to document important information 22
they want to add)
 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

Read Section 2.3.2 on Pages 10-12

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 Holding a Project Kick-off Meeting

• A kick-off meeting is a meeting held at the

beginning of a project so that stakeholders can meet
each other, review the goals of the project, and
discuss future plans.
• Used to get support for a project and clarify roles
and responsibilities.

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 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

Read Section 2.3.3 on Pages 12-13

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 Developing a Project Management Plan
 A project management plan is a document used to integrate and
coordinate all project planning documents and to help guide a
project’s execution, monitoring and control, and closure.
 Project management plans facilitate communication among
stakeholders and provide a baseline for progress measurement and
project control.
 A baseline is a starting point, a measurement, or an observation that is
documented so that it can be used for future comparison.
 The project management plan briefly describes the overall scope,
schedule, and cost baselines for the project. For example, the project
management plan might provide a high-level budget baseline for the
entire project, whereas the cost baseline prepared as part of the project
cost management knowledge area provides detailed cost projections 26
by WBS by month.
 Project Management Plan
There are common elements to most project management plans, as follows:
 Introduction/overview of the project
 Project organization
 Management and technical processes (including project lifecycle description
and development approach, as applicable)
 Work to be performed (scope)
 Schedule and budget information
 References to other project planning documents

Inputs Tools & Techniques Outputs

• Project Charter • Project

• Outputs From • Expert Judgment Management
Other Processes • Facilitation Plan
• Enterprise Techniques
Environmental
Factors
• Organizational
Process Assets
 Case Study
Just-in-Time Training at Global Construction
Source: Schwalbe, Introduction to project Management

Project Management Plan

Read Pages 14-16

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 Developing a Preliminary Scope Statement

• Project Scope Management includes the processes required

to ensure that the project includes all the work required
• A scope statement describes in detail the work to be
accomplished. It is an important tool for preventing scope
creep—the tendency for project scope to continually
increase.
• It is helpful to create a preliminary, or initial, scope
statement during project initiation so that the entire project
team can start important discussions and work related to the
project scope.
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 3. Defining Scope
• Contents and length will vary based on the project.
• Typical contents include:
– The product or service requirements and characteristics
– A summary of all deliverables
– The project success criteria
– References to related documents

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 Case Study
Just-in-Time Training at Global Construction

Scope Statement
Read Pages 17-19

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 A structured approach for collecting
project information
Step 1: Defining the Project Scope: Objectives, deliverables,
milestones, technical requirements, constraints, assumptions

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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 Example of project scope
Project Objective:
To construct a high-quality, custom home within five months at a cost not to exceed
$150,000

Deliverables:
A 2,200 square feet finished home
An insulated finished garage
Kitchen appliances to include oven, microwave, and dishwasher
High-efficiency gas furnace with programmable thermostat

Milestones:
Permits approved- March 5
Foundation poured-March 14
Drywall in, framing, sheathing, plumbing, electrical and mechanical inspections passed
– May 25
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Final inspection – June 7
 Example of project scope
Technical requirements
Home must meet local building codes
All windows and doors must pass NFRC class 40 energy ratings
Exterior wall insulation must meet an “R” factor of 21
Ceiling insulation must meet and “R” factor of 38
Floor insulation must meet and “R” factor of 25
Garage will accommodate two large size cars
Structure must pass seismic stability codes

Constraints and Assumptions

The home will be built to the specifications and design of the original blueprints provided by the
customer
Owner responsible for landscaping
Contractor reserves the right to contract out services
Air conditioning is not included but pre-wiring is included
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Customer Review: John and Joan Smith
 Step 2: Establishing Project
Priorities
Time, cost, and scope are the three
principal aspects of a project.
The project manager’s job is to
keep these three aspects in
balance.
• If time is short,
the resources (cost) must increase or scope must decrease, or both.

• If funds are short,

the time can be extended or scope must decrease, or both.

• If the scope is large,

the cost will be greater or the time must be extended, or both. 35

 Project Priority Matrix

Constrain: a parameter
is a fixed requirement.

Enhance: optimizing a
parameter over others.

Accept: reducing (or

not meeting) a
parameter
requirement.

Special event project (conference, tournament, ..)  constrain time

Time to market is critical  enhance time 36
 4. Creating the Work Breakdown Structure (WBS)
Your boss

Q- How long will your project take? A- Between one and two years

With hard work you can do it in one I don’t know if it is possible at all
year

• How can you manage that issue? Solution : Use divide and conquer
• You need to decompose your project into manageable tasks for which you try to get timing and
cost estimates
 Creating WBS is the process of subdividing project deliverables and project work into
smaller, more manageable components.
 The key benefit of this process is that it provides a framework of what has to be
delivered.

dividing and subdividing the

project scope and project
deliverables into smaller,
more manageable parts. 37
 Work Breakdown
Structure (WBS)

The Project team must structure the work into small elements
(work-package) that are:
•Manageable, in that specific authority and responsibility can
be assigned
•Integratable so that the total package can be seen.
•Measurable in terms of progress.

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Work Breakdown Structure (WBS)
Graphical Tree Format
Project A

Level 1

Level 2

Level 3

Level 4

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 Outline (text) Format

0.0 Web Site Development

1.0 Project Management
2.0 Requirements Gathering
3.0 Analysis & Design
4.0 Site Software Development
4.1 HTML Design and Creation
4.2 Backend Software
4.2.1 Database Implementation
4.2.2 Middleware Development
4.2.3 Security Subsystems
4.2.4 Catalog Engine
4.2.5 Transaction Processing
4.3 Graphics and Interface
4.4 Content Creation
5.0 Testing and Production
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 Work Breakdown Structure

External
USB

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 Importance of (WBS)
WBS is the most important tool in defining the project
because it provides a common framework from which.
• Network Planning, scheduling, and control can be initiated
• Facilitates evaluation of cost, time, and technical
performance of a project.
• Helps in the development of the organization breakdown
structure (OBS) which assigns project responsibilities to
organizational units and individuals

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 When do We Stop Breaking the
activities
Stop breaking down an activity if the following is true:
– Some person (or group for a larger project) can take
responsibility for the activity, or accomplish the activities
involved.
– You can get a rough estimate of the effort (Person-days)
needed to perform the activity involved.

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 Work Packages
• A work package is the lowest level of the WBS (the
“leaves” on the tree)
• The “one-to-two” rule
• Often at: 1 or 2 persons for 1 or 2 weeks
• 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
(how much)
• Identifies resources needed to complete a work package
(what is needed). 44
 Work Packages
• Identifies a single person responsible for units of work (who).
The WP manager is responsible for seeing that the package is
completed on time, within budget and according to technical
specifications

• Identifies monitoring points (milestones) for measuring success.

– WP’s are grouped by type of work to form cost accounts in

order to facilitate the control of project progress.

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 Bottom up 1.Create the “to-do” Review/Discuss “WHAT” is to be
delivered. Brainstorming
list of work.
WBS
Take very detailed tasks and name
Development them as WPs
2. Organize the
Group WPs by type of work and
“to-dos”.
group them as cost accounts...

3.Review and Adjust Go through structure, fix and

confirm groupings. Adjust names.
with group. Add additional forgotten WPs, cost
accounts, sub-deliverables,..
No
At the lowest level you should be able to .
4. Correct Name all the deliverables
and Indicate Dependencies.
Complete? Estimate duration and cost
Assign a resources and responsibilities;
Yes
WBS Complete 46
 Top Down WBS
Development
1. Verify highest level
Phases/Deliverables.

2. Can
accurate Yes 4. Confirm lowest
WBS Complete
estimates be made level.
at this level?

No
3. Review, Verify and
or modify the
next subsequent level.
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 Which one you use depends on

• how familiar you and your team are with the project,
• whether similar projects have successfully been
performed in the past
• how many new methods and technologies will be used.

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 WBS Exercise
You are driving a car and have just had a “blow-out”. Your
problem/objective is to FIX THE FLAT (change the tire) and continue on
your journey safely.
Given the individual tasks listed below, develop a work breakdown
structure to accomplish your objective.
stop car put flat in trunk
get spare tire remove hub cap replace hub cap
replace lugs jack up car get lug wrench
open trunk remove tire remove jack
get jack put on spare close trunk
loosen lugs lower car remove lugs
position jack drive off safely replace wrench
tighten lugs

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 Solution
0.0 Fix Flat 2.4 Replace with Spare
1.0 Stop Car 2.4.1 Put on Spare
2.0 Change Tire 2.4.2 Replace Lugs
2.1 Get Tools and Spare 2.4.3 Tighten Lugs
2.1.1 Open Trunk 2.5 Lower Car
2.1.2 Get Jack 2.5.1 Lower Car
2.1.3 Get Lug wrench 2.5.2 Replace Hubcap
2.1.4 Get Spare 2.6 Replace Tools/Spare
2.2 Jack up Car 2.6.1 Put Flat Tire Away
2.2.1 Position Jack 2.6.2 Replace Wrench
2.2.2 Remove Hubcap 2.6.3 Replace Jack
2.2.3 Loosen Lugs 2.6.4 Close Trunk
2.2.4 Jack up Car 3.0 Drive Off
2.3 Remove Flat 3.1 Drive off Safely
2.3.1 Remove Lugs
2.3.2 Remove Tire 50
 WBS for AMS Project

AMS Project

Definition Analysis Design Programming System test Acceptance Operation

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 WBS for Definition

AMS Project

Definition Analysis Design Programming System test Acceptance Operation

Document Feasibility Risk Preliminary Proposal Negotiate

requirements study analysis project plan Proposal

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 WBS for Analysis

AMS Project

Definition Analysis Design Programming System test Acceptance Operation

Interviews Analyze Define new Write Negotiate

existing system functional functional
systems functions specifications specifications

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 WBS for Interviews
AMS Project

Definition Analysis Design Programming System test Acceptance Operation

Interviews Analyze Define new Write Negotiate

existing system functional functional
systems functions specifications specifications

Material Warehouse Record Purchasing Accountants

manager supervisor keeper

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 WBS for Analysis Existing Systems

AMS Project

Definition Analysis Design Programming System test Acceptance Operation

Interviews Analyze Define new Write Negotiate

existing system functional functional
systems functions specifications specifications

Recording Warehouse Purchasing Accountants Documents Data

system system business Flows
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 Estimates on WBS for Interviews

Interviews

Material Warehouse Record Purchasing Accountants

manager supervisor keeper
Estimated 1.5 days 3 days
1.5 days 2 days 4 days
Total: 12
days

56
 Estimates WBS for Analysis Existing Systems

Analysis Existing Systems

Recording Warehouse Purchasing Accountants Documents Data

system system business Flows
Estimate 1 day 3 days
2 days 2 days 1 days 2 days
d Total:
11 days

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Total Estimates for WBS for AMS Project

Activity Effort Precedents

Definition 20 -------
Analysis 35 Definition
Design 25 Analysis
Program A (control) 20 Design
Program B (Registration) 25 Design
Program C (Warehouse) 25 Design
System Test 10 Programs A, B, and C
Documentation 20 Design
Acceptance 5 System test and documentation
Training 10 Documentation
Operation 10 Acceptance
Total 210 day

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 Step 4: Integrating the WBS
with the Organization
• Organizational Breakdown Structure (OBS)
• Identifies organization units responsible for work
packages.
• Ties the organizational units to cost control accounts.

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Integration
External
of WBS USB

and OBS

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Direct Labor Budget Sorted By WBS

61
Direct Labor Budget Sorted by OBS

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 Step 5: Coding the WBS
for the Information System
The usefulness of a WBS depends on the coding system used
• WBS Coding System
– Defines:
• Levels and elements in the WBS
• Organization elements
• Work packages
• Budget and cost information
– Most commonly used system in practice is numeric
indention (decimal points)
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 WBS
Coding

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 Shutdown and maintenance project

3R-237A-P2-E5-33.6
3R identifies the facility
237A represents location
P2 represents pipe 2 inches wide
E5 represents the engineer
33.6 represent the work package number

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Work Package Estimates

66
Direct Labor Budget
Roll-up

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 Responsibility Matrix (RM)
– Lists project activities and
participants.
– Provide 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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Responsibility Matrix for a Market
Research Project

69
 Responsibility Matrix for a Conveyor Belt Project

The numeric coding scheme is used to define the nature of

involvement of the person/team/department of the task.
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• Defining the project (initiation phase) is the first
and most important step in planning.
• The use of WBS, OBS, and RM depend
primarily of the size of the project.

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 Case Study
Just-in-Time Training at Global Construction

WBS
Read Page 19-22

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