Product breakdown structure for fitting out and marketing a new factory

Management Structure Factory

Table S.10 Product deliverables

Title

Purpose

Composition

Project

To describe

Sponsor

outline

the idea of the

Title

project such

Objective

that a decision

Benefits

may be made

Scope

to fund the

Key products

initiation

Timescale

stage

Investment

Investment needed for

next stage

Planning assumptions

Risks

Business

To confirm the

Opportunity or problem

case

commercial

Strategic fit

viability of

Interdependencies

the project so

Success criteria

that a go/no-

Options considered

go decision

Selected option

may be made

- Risks

to fund its

- Benefits

continuation

- Costs

- Cost/benefit

analysis

- Deliverables and

timescales

- Planning assumptions

- Benefits realisation plan

- Management by objectives

Quality criteria

Does the document provide sufficient information from which to make a funding decision?

Have the benefits been quantified in commercial terms?

Are the expressions of timescale and cost consistent with each other?

Are the estimates quoted each supported by planning assumptions?

Has a specific figure been included for the funding needed for the next stage?

Does the document provide sufficient information from which to make a go/no-go decision? Has the margin between the costs and benefits been explicitly identified?

Have all calculations been subjected to discounted cash low analysis?

Are all success criteria measurable?

Has it been made clear why options have been discounted?

Have all risks been evaluated for likelihood and effect?

Are the estimates quoted each supported by planning assumptions?

Is there clear evidence to support the chosen option?

Title

Purpose

Composition

Quality eriteria

Project governance report

To describe the management environment of the project such that it may be managed to a planned conclusion

Organisation

- Organisation chart

- Roles and responsibilities

- Communications plan

Project plan

- Quality plan

- Deliverables

- Responsibilities

- Standards

- Planning assumptions

- Time schedule

- Resource plan

- Risks Project controls

- Control cycle

- Escalation management

- Change control

- Configuration control

- Quality control

- Risk and issue management

Does the document clearly show whether and how the targets for time, cost and quality set in the business case can be met? Are all risks supported by a mitigation plan? Have all risk mitigations been assessed for their effect on the plan?

Have all key deliverables been described by means of a product description?

Are all incumbents identified in the organisation section aware of their responsibilities? Are the plans for time, cost and quality consistent with each other? Are the project controls adequate for the type, size and criticality of project?

end product. This is one way of describing the scope of the project and the product breakdown structure from Chapter 6 (reproduced here as Figure 8.5 on page 150) helps to illustrate it.

Each deliverable must be described so that those investing in the project can see what they will get for their investment. This is best described through product descriptions. However, since there may be many of them, they can be put in an appendix, or better still, included in the main document but tabulated to make them more palatable (see Table 8.10 above).

This section can also benefit from showing the order in which the deliverables must be produced. Although this will not include a timescale,

Product flow diagram

Product Breakdown Structure

it will show the internal and external dependencies in the project. This is best shown as the product flow diagram developed in Chapter 6 and reproduced here as Figure 8.6 (page 153).

Quality plan: responsibilities

This section describes who will be responsible for which aspects of quality management within the project. It is not a regurgitation of the roles and responsibilities section but specifically identifies the things that named individuals must do to ensure that quality is:

E

specified;

E

planned;

E

built;

E

tested;

E

accepted.

Consequently, this section may contain statements such as the following:

e The project steering group will agree a set of success criteria from which all expressions of quality will be derived. e The sponsor will approve time, cost and benefit expectations throughout the project. e The customer representative will approve the user requirements document on behalf of all end users of the key deliverable. e The development team representative will approve the solution design document on behalf of the development team(s). e The project manager will make sure that all key deliverables have been defined in a product description. e The project steering group will approve all product descriptions before development work starts. e The project manager will co-ordinate activity according to the plan, taking account of all quality standards to be applied. e The project manager will make sure that all key deliverables are tested against their quality criteria and according to the method identified in the product description. e The project steering group will approve all key deliverables once evidence of a satisfactory quality review has been established. e The customer and developer representatives will decide how many levels of testing are desirable.

Table 8.11 Sample estimating sheet

Product

Tasks

Resources

Cost

Assumptions

Product 1

Develop

PR

O.8

PR took this long on previous project

Review

ST/MW

O.5/O.5

Constrained to half-day as slot for teleconference is already booked

Amend

PR

O.25

PR took this long on prev'ous project

Approve

PSG

O.1

Assuming PSG w'II approve wa e-mail

Product 2

Develop

AK

O.B

Based on 0.1 per item x 4 items, plus contingency of 0.1

Review

PR/MW

O.1/O.1

Estimate based on MW experience

Amend

AK

O.2B

Based on need to rework half original

Approve

PSG

O.1

Assuming PSG w'II approve wa e-mail

Product 3

Develop

PR

O.8

PR took this long on previous project

Review

ST/MW

O.5/O.5

Constrained to half-day as slot for teleconference is already booked

Amend

PR

O.2B

Assuming quarter of product to be reworked, plus contingency

Approve

PSG

O.1

Assuming PSG w'II approve via e-mail

Product 4

Develop

AK

O.8

AK estimate based on experience

Train fare

S1OO

Costs to visit trade show

Review

ST/MW

0.25/0.25 ST estimate based on experience

Amend

AK

O.25

Assuming quarter of product to be reworked, plus contingency

Approve

PSG

O.1

Assuming PSG w'll approve via e-mail

Note: Costs are in person-days when not monetary.

Note: Costs are in person-days when not monetary.

e The project manager will accommodate the desired level of testing in the project plan. e The developer representative will approve the completion of all specialist testing.

e The customer representative will approve the completion of user acceptance testing. e The project steering group will approve the completion of the project and the release of its deliverable into the operational environment.

Quality plan: standards

In any project, there may be prescribed standards that must be met. These may include documentary or procedural standards for:

e specifying the outcome; e designing the outcome; e building the outcome; e testing the outcome; e operating the outcome; e managing the project.

This section must describe the standards that must be met for this project.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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