SG5010 Project Management
Lecture 4: Defining the Project- Scope
Management
Learning Objectives
After completing this session, students will be able to:
Identify key elements of a project scope statement and understand why a
complete scope statement is critical to project success.
Describe the causes of scope creep and ways to manage it.
Demonstrate the importance of a work breakdown structure (WBS) to the
management of projects and how it serves as a database for planning and
control.
Demonstrate how the organization breakdown structure (OBS)
establishes accountability to organization units.
Describe a process breakdown structure (PBS) and when to use it.
Create responsibility assignment matrix (RAM) for projects.
Understand the elements of scope management.
Project Scope
Project scope is everything about a project –
work content as well as expected outcomes.
Defining the Project Scope
Project Scope Defined
Is a definition of the end result or mission of your project—a product or service
for your client/customer.
Defines the results to be achieved in specific, tangible, and measurable terms.
Purposes of the Project Scope Statement
To clearly define the deliverable(s) for the end user
To direct focus on the project purpose throughout the life of the project for the
customer and project participants
To be published and used by the project owner and project participants for
planning and measuring project success
Project Scope: Terms and Definitions
Scope Statements
Is a short, one- to two-page summary of key elements of the scope, followed
by extended documentation of each element.
Is also referred to as “statements of work (SOWs)”
Project Charter
Is a documentation that authorises the project manager to initiate and lead the
project.
Often includes a brief scope description as well as such items as risk limits,
business case, spending limits, and even team composition.
Scope Creep
Scope Creep
Is the tendency for the project scope to expand over time—usually by
changing requirements, specifications, and priorities
Five of the Most Common Causes of Scope Creep
Poor requirement analysis
Not involving users early enough
Underestimating project complexity
Lack of change control
Gold plating
Understanding Scope Changes
Regardless of what people think, scope changes,
if approved, will result in:
Elongation of the schedule
An increase in the cost baseline
Possibly unhappy stakeholders
Sequential Contractors: Scope Changes
Contractor
Contractor
A
A
Contractor
Contractor
B
B
Contractor
Contractor
C
C
Time
Overlapping Contractors: Scope Changes
Contractor
Contractor A
A
Information Exchange
Contractor
Contractor B
B
Information Exchange
Contractor
Contractor C
C
Time
Scope Changes
Many scope changes should be avoided if they
have an unfavorable impact on:
Product liability
Safety
Reputation
Image
Market share
Other factors
Factors to consider for Scope Changes
Revenues
Revenues or
or
Profit
Profit
Process
Process Scope
Scope Customers’
Customers’
Improvement
Improvement Changes
Changes Requests
Requests
Changes
Changes in
in
Technology
Technology
Rationale for Not Approving a Scope
Change
Typical rationalisation for termination or not approving a scope
change includes:
The cost of the scope change is excessive and the final cost of
the deliverable may make us noncompetitive
The return on investment may occur too late
The competition is too stiff and not worth the risks
There are insurmountable obstacles and technical complexity
There are legal and regulatory uncertainties
The scope change may violate the company’s policy on
nondisclosure, secrecy and confidentiality agreements
Creating the Work Breakdown Structure
(WBS)
Work Breakdown Structure (WBS)
Is a hierarchical outline of the project with different levels of detail.
Identifies the products and work elements involved in a project.
Defines the relationship of the final deliverable (the project) to its
sub-deliverables, and, in turn, their relationships to work packages.
Serves as a framework for tracking cost and work performance.
WBS
A process that sets a project’s scope by breaking down its
overall mission into a cohesive set of synchronous,
increasingly specific tasks.
What does WBS accomplish?
Echoes project objectives
Offers a logical structure
Establishes a method of control
Communicates project status
Improves communication
Demonstrates control structure
Work Breakdown Structure (WBS)
‘Breaking down large activities into comprehensible
or manageable units
Gives people responsibility for each manageable part
Facilitates financial control, individual parts can have their
consumption of resources tracked
Bottom level will be a list of work packages
Types of WBS:
Activity breakdown
Functional breakdown
Physical grouping
WBS- Activity breakdown
WBS- Functional breakdown
WBS- Physical breakdown
Coding the WBS for the Information
System
WBS Coding System
Defines
Levels and elements in the WBS
Organization elements
Work packages
Budget and cost information
Allows reports to be consolidated at any level in the structure.
Work Breakdown Structure and Codes
1.0 The project is the
overall project under
development
1.2 1.3 1.4
Deliverables are
1.2.1 1.3.1 major project
components
1.2.2 1.3.2
1.2.3 Sub-deliverables are
supporting deliverables
1.2.3.1
Work Packages are
individual project activities
1.2.3.2
Example: Cross Rail WBS
A Work Package
Is the lowest level of the WBS and it has a deliverable result.
Is a short-duration task that has a definite start and stop point, has an owner,
consumes resources, and represents cost.
Work package may be considered by its owner as a project in itself and it should
not exceed 10 workdays or one reporting period.
The optimal size of a work package may be expressed in terms on labor hours,
calendar time, cost, reporting period, and risks
Should be as independent of other work packages of the project as possible and
may include several milestones .
Is the basic unit used for planning, scheduling, and controlling the project and it
should fit organizational procedures and culture.
Each Work Package in the WBS
Defines work (what).
Identifies time to complete a work package (how long).
Identifies a time-phased budget to complete a work package (cost).
Identifies resources needed to complete a work package (how much).
Identifies a single person responsible for units of work (who).
Identifies monitoring points for measuring progress (how well).
Responsibility Assignment Matrix
Is also called a linear responsibility chart.
Summarizes the tasks to be accomplished and who is responsible for
what on the project.
Lists all the project activities and the participants responsible for each
activity.
Clarifies interfaces between units and individuals that require coordination.
Provides a mean for all participants in a project to view their
responsibilities and agree on their assignments.
Clarifies the extent or type of authority exercised by each participant.
RAM for a Market Research Project
RAM for the Conveyor Belt Project
Integrating the WBS with the Organisation
Organisation Breakdown Structure (OBS)
Depicts how the firm has organised to discharge work
responsibility.
Provides a framework to summarise organisation unit work
performance (work definition).
Identifies the organisation units responsible for work
packages (owner assignment of work packages)
Ties the organisational unit to cost control accounts (budget
assignment to departments).
The intersection of work packages and the organisation unit
creates a project cost point or cost account that integrates
work and responsibility.
OBS links cost, activity & responsibility
Work Breakdown Structure
Integration of WBS and OBS
Process Breakdown Structure
Process Breakdown Structure (PBS)
Is used for process-oriented projects.
Is often referred to as the “waterfall method” in the software industry.
Process-oriented project
Is a project that the final outcome is a product of a series of steps and
phases.
Is a project that evolves over time with each phase affecting the next
phase and
Is a project that is driven by performance requirements.
PBS for Software Development Project
How WBS Helps the Project Manager
Assures project managers that all products and work elements are identified, to integrate
the project with the current organization, and to establish a basis for control.
Facilitates the evaluation of cost, time, and technical performance at all levels in the
organization over the life of the project.
Provides management with information appropriate to each organizational level.
Helps project managers to plan, schedule, and budget the project.
Helps in the development of the organization breakdown structure (OBS), which assigns
project responsibilities to organization units and individuals.
Provides the opportunity to “roll up” (sum) the budget and actual costs of the smaller work
packages into larger work elements.
Defines communication channels and assists in understanding and coordinating many
parts of the project.
Scope Management
Scope Management is the function of controlling a
project in terms of its goals and objectives and consists
of: The process that addresses
project objectives by finding
Conceptual development the best ways to meet them.
Scope statement
Establish the project goal
Work authorization criteria (cost, schedule,
Scope reporting performance, deliverables),
Project closeout develop WBS and review
gates
.
The job is not over until the
The formalis“go
paperwork ahead” to begin
done…
work.
determines what types of information reported,
Closeout documentation
who receives copies, when, and how information
includes:isHistorical records,
acquired and disseminated. It has ‘Cost’,Post project analysis and
‘Schedule’ and ‘Technical Performance’ status.
Financial closeout
Thank you & any Questions?
Next Week:
Estimating Project Times
and Costs
Lecture slides adapted from:
Larsen, E. & Gray, C. (2021), Project Management: The Managerial Process, 8th
Edition, McGraw Hill
Pinto, J.K. (2013), Project management: achieving competitive
advantage, 3rd Edn. Harlow: Pearson
Pictures are taken from Google image
