Order 1328631: Project Management
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Project Management Class – 4
Project Scope
Learning Outcomes
Ø Establishing project objective and defining project scope.
Ø Prepare a project scope document
Ø What is scope creep and how to deal with it
Ø The basis of project plan – “project charter”
Ø How to define what activities need to be done, and who will be responsible for them? (Develop a work breakdown structure)
Ø Mind mapping for project planning
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Establish Project Objective
Ø The planning process is based on the project objective, which establishes what is to be accomplished.
Ø The project objective is stated in the project charter that comes from request for proposal (RFP).
Ø The project objective is usually defined in terms of the end product or deliverable, schedule, and budget.
Ø It requires completing the project work scope and producing all the deliverables by a certain time and within budget.
Establish Project Objective (Cont.)
Ø The project objective should include the following elements:
1. Expected benefits that will result from implementation of the project and define success. It establishes why the project is being done and may include verbs such as “to increase”, “to expand”, “to reduce”, “to save”, ”to establish”, etc.: § To increase sales volume by 5,000 units annually § To expand customer base in European markets by 60 percent § To double the number of donors § To reduce annual overhead costs by $150,000
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Establish Project Objective (Cont.)
2. Primary project end product or deliverable, such as a mobile app with shopping capability, a nationwide marketing campaign, a dormitory complex, or a medical monitoring device.
3. Date by which the project is required to be completed, such as by June 30, 2017, or in 18 months.
4. Budget within which the project must be completed.
Establish Project Objective Examples
§ To increase emergency room capacity by 20% and reduce average patient waiting time by 50% through a reconfiguration, and process improvement project to be completed in 12 months and with a budget of $400,000.
§ To expand market share by 3% by introducing a new portable food preparation appliance within 10 months with a budget of $2 million.
§ To meet new environmental regulatory requirements by installing a new filtration system within 15 months and with a budget of $3.2 million.
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Defining Project Scope
Ø The project scope defines what needs to be done: § All the work to produce all the project deliverables to meet the
acceptance criteria § Accomplish the project objectives
Ø The project scope document usually contains the following sections:
1. Customer requirements: § The functional, operational, and performance specifications or
capabilities that must be met for the project deliverables. § May include specifications regarding size, color, weight, or performance
parameters such as speed, processing time.
Defining Project Scope (Cont.)
2. Statement of the work (SOW): describes the work to be done in detail.
3. Deliverables are the products or outputs that the project team or contractor will produce and provide to the client during and at the completion of the performance of the project.
4. Acceptance criteria § All project deliverables must be described in great detail including the
quantitative measures or references to specifications, standards, or codes § It helps assure the quality of the deliverable and avoid misunderstanding § The criteria will be the basis for the client agreeing that a deliverable is
acceptable
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Project Scope Creep
Ø Scope creep refers to uncontrolled changes or continuous growth in a project’s scope.
Ø This can occur when the scope of a project is not properly defined, documented, or controlled.
Ø If budget, resources, and schedule are increased along with the scope, the change is usually considered an acceptable addition to the project, and the term "scope creep" is not used.
Sources of scope creep
1. Vagueness: When there is no clearly-defined and controlled project scope, the project will mutate.
§ Combat it: Lay out all project boundaries in the Project Scope Statement that goes into the Project Initiation Document.
2. Weak Leadership: Stakeholders may try to change the scope to suit their needs if they sense that you lack experience, or are not a strong project manager.
§ Combat it: ü Stand your ground when people demand to inflate the scope. ü Communicate strongly through body language during meetings.
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Sources of scope creep (Cont.)
3. Differing Stakeholder opinions: While stakeholders may want the same end product, their motivations vary wildly.
§ Combat it: ü Limit the number of stakeholders. ü When demands increase, determine their motivations to arrive at
a common ground. 4. Late involvement: If you involve your customers late in the process,
they will give you feedback you didn’t anticipate. Instant scope creep. § Combat it: Collaborate with your clients early and often, so you deliver
exactly what they need and want.
Dealing with Scope Creep Get Approval before stuck with Scope Creep! Hi Client Awesome,
Thanks so much for the ideas on adding “X” to our project. We’re glad you’re happy with our work so far and that you’re trusting us to get even more involved in your brand’s success. We’d be happy to add “stuff not in scope of work” to the project scope. We’ll send over a revised scope of work for your approval. Once we have that, we’ll send you estimated delivery times and add the additional work to the project’s final billing installment.
You’ll receive that revised scope shortly.
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Project Scope and Project Charter
Ø Project scope and project charter can seem like one and the same sometimes.
Ø They are both usually contained early in the project management plan. Ø They have a slight difference in purpose:
§ Project charter contains the rationale for the project, the reasons for its existence, who initiated it, and why.
§ Project charter serves the PM as a map of the route from project start to finish.
§ Project scope is very much a secondary function of the project charter. § Project scope tries to encompass the full scope of the project in a
paragraph or two without elaboration on project risk management, resource requirements, constraints, etc.
Project Charter
Ø Once a project is selected, it is formally authorized using a document referred to as a project charter, sometimes called a project authorization or project initiation document.
Ø This document serves a number of purposes § Provides sponsor approval to go forward with the project § Commits the funding for the project § Summarizes the key conditions and parameters for the project § Establishes the framework for further elaboration of the project
scope.
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Categories of Elements Required in the Project Charter
1. Purpose 2. Objectives 3. Overview 4. Schedules 5. Resource requirements 6. Personnel and stakeholders 7. Risk management 8. Evaluation methods
Purpose
Ø It describes the Business Case for the project § Strategic reasons for the project § Expected profitability § Competitive effects § Desired scope § Any other technical results
Ø The intent of business case is to communicate to project team members and stakeholders the reasons for the project
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Objectives
Ø Another name is project mission statement Ø A detailed description of the… § Primary end product/service and deliverables § Due date § Budget
Ø Communicate to project team members what will be done to achieve the overall project objectives “To expand market share by 3% by introducing a new portable food preparation appliance within 10 months with a budget of $2 million”
Overview
Ø It is intended for senior management Ø Brief description of the project together with
§ Deliverables § List of major Milestones and significant events in the project schedule § Any constraints on the project scope § Expected profitability and competitive effects § Technological and managerial approaches § Agreements with the client or any third party including
ü Reporting requirements ü Technical specifications of deliverables (e.g., acceptance criteria) ü Delivery date ü Any incentives (due to quick delivery) or penalty (due to default in delivery)
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Schedule and Resource Requirements
Ø Schedule § Summary of schedules and milestones § The major tasks in the project listed in Work breakdown structure (WBS) § Time to complete each task § Detailed discussion in next class
Ø Resource requirements § Estimates of project expenses (both Capital and operating) § Costs associated with each task § Overhead and fixed charges § Appropriate account numbers to be charged with the relevant cost items § Detailed discussion in next class
Personnel and Stakeholders
This section describes:
Ø Stakeholders, sponsor, project manager, and some team members
Ø It notes any special skill requirements and necessary training
Ø Special legal arrangements § Security clearance § Non-disclosure agreements
Ø Combined with the schedule, it may also note the time-phasing of personnel requirements
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Risk Management
Ø Listing of potential disasters (major and minor): § Late subcontractor deliveries
§ Bad weather
§ Unreasonable deadlines
§ Equipment failure
§ Changes in project scope by client
Ø Contingency plans are described § Does not stop disasters
§ Softens the impact
Evaluation Methods
Ø Project evaluation procedures and quality standards Ø Project evaluation criteria in different dimensions:
1. Project efficiency in meeting the budget and schedule 2. Customer satisfaction 3. Business success related to external projects in measuring commercial success
and market share 4. Future potential for the sponsor/client (e.g., new market, developing new
technology, etc.) Ø At the end of the project, the evaluation appraises and audits the project against
the goals and objectives set for it during the selection process. Ø It is useful to conduct an evaluation at a number of crucial points during the
project life cycle, specially for multi-phase projects.
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The Planning Process
Ø Techniques to develop project plan and project charter are fundamentally similar. All of them § Use a systematic analysis to identify and list the things that must be
undertaken in order to achieve the project’s objectives § Test and validate the plan § Deliver it to the user
Ø Depending on end product/service and project objectives the procedure to prepare project charter may differ § An R&D project would need a more extensive risk analysis comparing to
planning process for computer software § New pharmaceutical project would need extensive testing (toxicity and
efficacy)
The Planning Process Example Planning Process for a Computer Software
1. Develop and evaluate the concept of the project 2. Carefully identify what project deliverables must have to be successful 3. Create a system – Build a prototype deliverable 4. Test the prototype – If necessary, cycle back and modify the prototype 5. Integrate the deliverable into target system 6. Validate the deliverable 7. Let client test it 8. Make sure client understands operating and maintenance
requirements
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Sorting Out the Project The Work Breakdown Structure (WBS)
Ø Failing to identify all important tasks is a primary contributor to the failure of a project to achieve its cost and time objectives.
Ø WBS is a hierarchical decomposition of the project work scope into work packages that produce the project deliverables. § A primary purpose of the WBS is to ensure that no task is overlooked § Every task, no matter how small, should be listed along with material and
human resources § The major work tasks defined in the SOW section along with the detailed
list of deliverables provide the basis for creating a WBS.
Create Work Breakdown Structure
Ø PM starts with the major activities that must be completed to achieve the project objective(s). Usually between 5 and 15. We call these Level 1 activities.
Ø Each Level 1 activity would be delegated to an individual or functional group. PM may also take one or more Level 1 tasks.
Ø The delegatee deals with the task as if it is itself a project and lists a specific set of Level 2 tasks required to complete each Level 1 task.
Ø The process continues; someone or some group is delegated responsibility to prepare an action plan of Level 3 subtasks.
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Create Work Breakdown Structure (Cont.)
Ø Create a WBS in graphic chart format for a community festival project.
Ø The PM is Lynn who breaks the project to 7 Level 1 activities. § Promoting the festival (kept to Lynn) § Finding volunteers (delegated to Beth) § Preparing games (delegated to Steve) § Offering rides to guests (delegated to Pat) § Entertainment (delegated to Jeff) § Food (delegated to Bill) § Services to guests (delegated to Jack)
WBS for Consumer Market Study Project Graphic Chart Format
Source: Successful Project Management
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WBS for Consumer Market Study Project Indentured List Format
WBS # DESCRIPTION RESPONSIBLE DELIVERABLES Consumer Market Study Jim
1.0 Questionnaire Susan 1.1 Design Susan Questionnaire approved 1.2 Responses Steve All completed responses received
2.0 Report Jim 2.1 Software Andy Application software working 2.1 Report Jim Final report
Ø What task in what level does WBS number “7.5.4” refer to?
Extensions of the Everyday WBS
Ø WBS generally oriented towards deliverables Ø It can be reshaped with some additional data often not included in
the WBS 1. Estimates of resources required for each task 2. The estimated time required to accomplish each task 3. The information about who has the responsibility for the task 4. Data that will allow tasks to be sequenced so that the set may be
completed in the shortest possible time. Ø We refer it as “modified WBS” which increases its orientation toward
planning and administration
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The Importance of Activity Sequence
Ø The first step to calculate the project completion time is defining the sequence of activities.
Ø Activity “A” is predecessor of activity “B” (or “B” is successor activity for “A”) when working on “B” cannot be started unless “A” has been completed.
Ø All the following activities are predecessor for activity “Paint the walls”: § Clear the floor area near the wall and cover it § Remove pictures from the wall § Clean dirt, oil, stain from the wall § Fill and smoothen any cracks or holes in the wall § Mask any surrounding areas where this paint is not wanted
A Modified WBS for Improving Staff Orientation
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RACI Matrix
Ø RACI Matrix is a table to help organize the project team Ø Project tasks derived from the WBS listed in rows and departments and
individuals in the columns § Responsible: Completes the task (does the work). The responsible person
can be thought of as the task worker. § Accountable: Manages the task. This can include tracking progress,
escalating issues and signing off on deliverables. § Consult: The individual or department who should be consulted about the
task. § Inform: The individual (or group) who should be informed about the
progress/completion of the task.
RACI Matrix Example
Ø There must be at least one “A” in every row. Ø A particular individual/department can be assigned multiple
responsibility links (e.g., being both accountable and responsible).
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A Whole-Brain Approach to Project Planning
Ø Mind mapping is a visual approach that closely mirrors the way the human brain records and stores information
Ø It helps tap the creative potential of entire project team, which helps increase both the quantity and quality of ideas generated.
Ø It helps team members get involved in the planning process.
Ø Example: Consider a project launched at a graduate business school to improve its part-time evening MBA program for working professional. § The mind mapping exercise is initiated by taping a large sheet of
paper on a wall.
Whole-Brain Approach to Project Planning Example
b) Team members can brainstorm to identify the major tasks that must be done to accomplish the goal. 1. Define the role of Working Professional Programs (WPPs) 2. Generate ideas for improving current programs 3. Generate ideas for diversification 4. Evaluate the ideas generated
GENERATE IDEAS FOR BREAKTHROUGH
PERFORMANCE IN PART- TIME PROGRAM
a) The process begins by writing the project goal in the center of the page.
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Whole-Brain Approach to Project Planning Example (Cont.) Ø Major tasks branch off from project goal.
Generate ideas for improving
current program
Define role of WPPs
Generate ideas for
diversification
Evaluate ideas
GENERATE IDEAS FOR BREAKTHROUGH
PERFORMANCE IN PART- TIME PROGRAM
Whole-Brain Approach to Project Planning Example (Cont.)
Ø Components in the mind map are continuously broken into more detailed tasks.
Ø See how the “define role of WPPs” task was broken down into more detailed tasks.
Ø It simplifies creating the WBS!
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An IS Example: Internet Applications Development for ABC Office Designs
ABC Office Designs
§ Large number of sales representatives § Sell office furniture to major corporations
§ State assignments in four regions § Management monitor state and regional sales
§ Build Web-based IS system to track prices, inventory, and competition
Project
§ Project manager identified (Beth) § Characterizing WBS § Responsibility assignment matrix completed
§ List of tasks compiled and predecessors identified (next class)
§ Network diagram created (next class)
IS Example: WBS
Source: Successful Project Management, Gido
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IS Example: Task List and Predecessors
Source: Successful Project Management, Gido
Next Class IS Example: Network Diagram Ø In the next class we discuss how to use the precedence relationships
between activities and depict a network diagram; the first step for project scheduling and budgeting.
Source: Successful Project Management, Gido