Operations and Supply Chain Management The Core

PROJECTS chapter 5 131
flexibility are greatly enhanced because one person is responsible for successful completion
of the project.
Organizing Project Tasks
A project starts out as a statement of work (SOW). The SOW may be a written description
of the objectives to be achieved, with a brief statement of the work to be done and
a proposed schedule specifying the start and completion dates. It also could contain performance
measures in terms of budget and completion steps (milestones) and the written
reports to be supplied.
A task is a further subdivision of a project. It is usually not longer than several months
in duration and is performed by one group or organization. A subtask may be used if
needed to further subdivide the project into more meaningful pieces.
A work package is a group of activities combined to be assignable to a single organizational
unit. It still falls into the format of all project management; the package provides
a description of what is to be done, when it is to be started and completed, the budget,
measures of performance, and specific events to be reached at points in time. These specific
events are called project milestones. Typical milestones might be the completion of
the design, the production of a prototype, the completed testing of the prototype, and the
approval of a pilot run.
The work breakdown structure (WBS) defines the hierarchy of project tasks, subtasks,
and work packages. Completion of one or more work packages results in the completion
of a subtask; completion of one or more subtasks results in the completion of a task;
and, finally, the completion of all tasks is required to complete the project. A representation
of this structure is shown in Exhibit 5.2.
Exhibit 5.3 shows the WBS for an optical scanner project in a slightly different format.
The WBS is important in organizing a project because it breaks down the project into
manageable pieces. The number of levels will vary depending on the project. How much
detail or how many levels to use depends on the following:
Project milestone
A specific event in a
project.
Work breakdown
structure (WBS)
The hierarchy
of project tasks,
subtasks, and work
packages.
∙ The level at which a single individual or organization can be assigned responsibility
and accountability for accomplishing the work package.
∙ The level at which budget and cost data will be collected during the project.
An Example of a Work Breakdown Structure
exhibit 5.2
Level
Program
1
Project 1 Project 2
2
Task 1.1 Task 1.2
3
Subtask 1.1.1 Subtask 1.1.2
4
Work package 1.1.1.1 Work package 1.1.1.2