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Chapter5.ScopeManagement.pptx

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Project Management: Achieving Competitive Advantage

Fifth Edition

Chapter 5

Scope Management

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Learning Objectives (1 of 2)

5.1 Understand the importance of scope management for project success.

5.2 Understand how conceptual development serves as a critical first stage in scope management.

5.3 Identify the steps in developing the scope statement.

5.4 Identify the elements in the work authorization phase of scope development.

Learning Objectives (2 of 2)

5.5 Identify the various types of information available for scope reporting.

5.6 Demonstrate how control systems and configuration management relate to scope development.

5.7 Discuss why effective scope management includes a project closeout stage.

5.8 Understand how project practices can support the critical goal of sustainability.

P M B o K Core Concepts

Project Management Body of Knowledge (P M B o K) covered in this chapter includes:

Develop Project Charter (P M B o K 4.1)

Plan Scope Management (P M B o K 5.1)

Collect Requirements (P M B o K 5.2)

Define Scope (P M B o K 5.3)

Create W B S (P M B o K 5.4)

Validate Scope (P M B o K 5.5)

Control Scope (P M B o K 5.6)

Project Scope

Project scope is everything about a project—work content as well as expected outcomes.

Scope management is the function of controlling a project in terms of its goals and objectives and consists of:

Conceptual development

Scope statement

Work authorization

Scope reporting

Control systems

Project closeout

Conceptual Development

The process that addresses project objectives by finding the best ways to meet them.

Key steps in information development:

Problem or need statement

Requirements gathering

Information gathering

Constraints

Alternative analysis

Project objectives

Business case

Statement of Work (S O W)

A S O W is a detailed narrative description of the work required for a project.

Effective S O W s contain:

Introduction and background

Technical description of the project

Timeline and milestones

Statement of Work Components

Background

Objectives

Scope

Task or Requirements

Selection Criteria

Deliverables or Delivery Schedule

Security

Place of Performance

Period of Performance

Project Charter

Many organizations establish the project charter after the S O W.

A document issued by the project initiator or sponsor formally sanctioning existence of the project and authorizes the project manager to begin applying organizational resources to project activities.

Is created once project sponsors have done their “homework” to verify that:

there is a business case for the project

elements of project are understood

company-specific information for the project has been applied

It demonstrates formal company approval of the project.

Scope Statement

Establish project goal criteria to include:

a. cost

b. schedule

c. performance

d. deliverables

e. review and approval “gates”

Develop management plan for project

Establish a Work Breakdown Structure

Create a scope baseline

Work Breakdown Structure (W B S)

The W B S is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the project deliverables. Each deliverable is decomposed, or broken down, into specific “bite-sized” pieces representing work to be completed.

Work Breakdown Structure Purpose

W B S serves six main purposes:

Echoes project objectives

Organization chart for the project

Creates logic for tracking costs, schedule, and performance specifications

Communicates project status

Improves project communication

Demonstrates control structure

W B S Hierarchy

The logic of hierarchy for the W B S follows this form:

Level	W B S Term	Description
Level 1 (Highest)	Project	The overall project under development
Level 2	Deliverable	The major project components
Level 3	Subdeliverable	Supporting deliverables
Level 4 (Lowest)	Work package	Individual project activities

Defining a Work Package

Lowest level in W B S

Deliverable result

One owner

Miniature projects

Milestones

Fits organization

Trackable

Figure 5.3 Partial Work Breakdown Structure

Figure 5.6 Sample W B S Development Using M S Project 2016

Organizational Breakdown Structure

Organizational Breakdown Structure (O B S) allows

work definition

owner assignment of work packages

budget assignment to departments

O B S links cost, activity, and responsibility.

Figure 5.7 The Intersection of the W B S and O B S

Figure 5.9 Cost Account Rollup Using O B S

Figure 5.10 Responsibility Assignment Matrix

Defining a Project Work Package

Work package forms lowest level in W B S.

Work package has a deliverable result.

Work package has one owner.

Work package may be considered by its owner as a project in itself.

Work package may include several milestones.

Work package should fit organizational procedures and culture.

The optimal size of a work package may be expressed in terms on labor hours, calendar time, cost, reporting period, and risks.

Work Authorization

The formal “go ahead” to begin work.

Contractual documentation possesses some key identifiable features:

Contractual requirements

Valid consideration

Contracted terms

Contracts range from:

Scope Reporting

Determines what types of information reported, who receives copies, and when and how information is acquired and disseminated.

Typical project reports contain:

Cost status

Schedule status

Technical performance status

Reasons Why Projects Fail

Politics

Naïve promises

Naïve optimism of youth

Startup mentality of fledgling entrepreneurial companies

“Marine Corps” mentality

Intense competition caused by globalization

Intense competition caused by appearance of new technologies

Intense pressure caused by unexpected government regulations

Unexpected and/or unplanned crises

Types of Control Systems

Configuration control

Design control

Trend monitoring

Document control

Acquisition control

Specification control

Configuration Management

Configuration management is defined as:

A collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each change and its implementation status; and support the audit of the products, results, or components to verify conformance to requirements.

Baseline is defined as:

The project’s scope fixed at a specific point in time—for example, the project’s scheduled start date.

Project Changes

Occur for one of several reasons:

Initial planning errors, either technological or human

Additional knowledge of project or environmental conditions

Uncontrollable mandates

Client requests

Project Closeout

The job is not over until the paperwork is done . . .

Closeout documentation is used to:

Resolve disputes

Train project managers

Facilitate auditing

Closeout documentation includes:

Historical records

Post-project analysis

Financial closeout

Sustainability

Sustainable development involves efforts to promote harmony among human beings and between humanity and nature.

Sustainability involves efforts to promote the triple bottom line of social sustainability, environmental sustainability, and economic sustainability.

Figure 5.12 The Triple Bottom Line of Sustainability

Sustainability Concepts

Sustainability is about:

Harmonizing the triple bottom line

Integrating short-term and long-term

Consuming income, not capital

Including local and global perspectives

Values and ethics

Transparency and accountability

Stakeholder participation

Risk reduction

Waste elimination

Sustainable Project Management Practices

Project management sustainable practices include:

Engaging in sustainable projects that will not cause harm to the planet or its inhabitants

Employing sustainable practices while undertaking the projects themselves

Developing sustainable supplier practices

Emphasizing sustainability in project design

Sustainable project management practices require organizations to pay attention to all aspects of the project life cycle from conceptualization through termination.

Summary (1 of 2)

Understand the importance of scope management for project success.

Understand how conceptual development serves as a critical first stage in scope management.

Identify the steps in developing the scope statement.

Identify the elements in the work authorization phase of scope development.

Summary (2 of 2)

Identify the various types of information available for scope reporting.

Demonstrate how control systems and configuration management relate to scope development.

Discuss why effective scope management includes a project closeout stage.

Understand how project practices can support the critical goal of sustainability.