Defining the work budget Flashcards
what is scope management?
(BS)
the process by which deliverables and work to produce them are identified and defined.
it takes place using the following tools;
PBS
- product breakdown structure
WBS
- work breakdown structure
CBS
- cost breakdown structure
OBS
- organisation breakdown structure
when does the scope management take place?
in the definition stage, during the development of the PMP.
ANy changes to be made to the scope must be managed through a change control process.
It is ‘baselined’/’frozen’
what is scope creep
the progressive enlargement of scope as time progresses.
Mainly because of poor understanding of scope in the beginning and/or ineffective change control processes
PBS
Product Breakdown Structure = identify deliverables and break them down into manageable elements.
- sub-divides each component into optimum lowest level
Structure;
- highest level is the project (level 0 e.g. aircraft)
- lower level components are essential to their parent component
- can be list or branch diagram
- items at the bottom are those manufactured/prepared/obtained.
Items at higher levels are the result of assembly/integration
e. g. 0 Cup of tea
1. 0 Kettle
2. 0 Water
2. 1 Boiled water
3. 0 Cup
3. 1 Tea Bag
3. 2 Hot water
3. 3 Milk
WBS
Details the work to be done.
Sets out the work to be done as a hierarchy of activities organised into work packages
- not yet ordered into time sequence
- may be numbered list or diagram
- same principle as PBS; the lowest level of the WBS is the optimum for planning purposes
For each activity in WBS, a SOW is produced
CBS
shows the division of costs for the activities in the WBS by the type of resource employed (labour, equipment etc)
OBS
= the way in which activities are allocated to individuals and other organisational units, based on WBS
Work packages
it is useful to package work in the WBS into work packages . they should;
- have clear start and finish date
- assigned budget
- schedule
why is WBS so important?
- complete picture of scope of work
- checklist to ensure tasks are not missed
- basis for assigning and identifying resources
- basis for estimating costs
- foundation of schedule
Do an example WBS for planning party
0 Party
- 0 set date
- 0 book venue
- 0 make guestlist
- 0 print invitations
- 1 send invitations
- 0 order food/drinks
- 1 estimate numbers
- 2 view options
- 3 specify choice
Notes on development of WBS
- should represent entire scope of project
- symmetry between branches e.g. design-build-test
- 4-6 levels of detail, get down to make-or-buy level
distinguish between PBS and WBS
PBS shows the changes experienced/products obtained by customer whereas the WBS shows the work necessary by the supplier
project budget
= the cost view of the project and defined as part of the PMP in the definition phase of lifecycle.
Like PBS and WBS, costs must be broken down and shown in CBS
Items in the project budget should be allocated a cost description code and estimated cost which relates item to organisation’s financial system
risk can be dealt with at this point;
RAM
Responsibility Assignment Matrix = shows how each individual is related to the activities of the project WBS activities shown on left hand side of table, then individuals.
RACI responsible approval consultation inform they are useful as stakeholders can see who is responsible for each activity
Work definition sequence
objectives -> deliverables -> PBS -> WBS SOW -> CBS -> budget SOW -> Network -> milestones/gantt OBS -> RAM
