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MANAGEMENT OF ENGINEERING PROJECT MANAGEMENT. Work breakdown structure (WBS). Terms and Definitions. Project Charter A document authorizing the project manager to initiate and lead the project. Project Creep

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  2. Terms and Definitions • Project Charter • A document authorizing the project manager to initiate and lead the project. • Project Creep • The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.

  3. Establishing Project Priorities • Causes of Project Trade-offs • Shifts in the relative importance of criterions related to cost, time, and performance parameters. Also, called triple constraint • Budget– Cost • Schedule– Time • Performance– Scope

  4. Project Management Trade-offs

  5. The Work Breakdown Structure (WBS) • The WBS picture a project subdivided into hierarchical units of tasks, subtasks, work packages, etc. • The outcome of this hierarchical process is called the work breakdown structure (WBS). • The WBS is a map of the project.

  6. Creating the WBS • Work Breakdown Structure (WBS) • Defines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packages. • Basically, the WBS is an outline of the project with different levels of detail.

  7. Hierarchical Breakdown of the WBS

  8. subdeliverable is further divided into work packages. Because the lowest subdeliverable usually includes several work packages. • the work packages are grouped by type of work—for example, hardware, programming, testing. • These groupings within a sub deliverable are called cost accounts. This grouping facilitates a system for monitoring project progress by work, cost, and responsibility.

  9. The Work Breakdown Structure • The WBS is an important document and can be tailored for use in a number of different ways • It may illustrate how each piece of the project contributes to the whole in terms of performance, responsibility, schedule, and budget • It may list the vendors or subcontractors associated with specific tasks

  10. The Work Breakdown Structure • It may serve as the basis for making cost estimates or estimates of task duration • It may be used to document that all parties have signed off on their various commitments to the project

  11. Deliverables • There are many deliverables in a project. • Well defined deliverables eliminate scope creep.

  12. Deliverables • Deliverables are the results produced by tasks. • For example, in house constructions deliverables could be the house foundation, walls, roof, and electrical work, etc.

  13. WBS of PC • simplified WBS for development of a new personal computer project. • See page 112

  14. Work Breakdown Structure

  15. Integrating WBS with the organization • Organizational Breakdown Structure (OBS) • Depicts how the firm is organized to discharge its work responsibility for a project. • Identifies organization units responsible for work packages. • Ties the organizational units to cost control accounts.

  16. Integration of WBS and OBS

  17. 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 • The most commonly used scheme in practice is numeric indention.

  18. WBS Coding

  19. WBS badly designed • Possible reasons

  20. WBS A badly designed WBS can result in: • Incomplete project definition. • Missed deadlines on deliverables or timeline slippage. • Budget cost overruns. • Frequently changing scope • Unusable product • Failure to deliver on some aspects of project scope

  21. New electric car

  22. Electric car –WBS - coding

  23. Electric car –WBS

  24. Electric car –OBS -Coding

  25. Electric car –

  26. Develop a WBS for a project in which you are going to build a bicycle. Try to identify all of the major components and provide three levels of detail. (Exercise- Page -122)

  27. In class exercise • Few more exercises in tutorial

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