PROJECT

MANAGEMENT
INSTRUCTOR: DR. NGUYEN THI HOA HONG
FACULTY OF BUSINESS ADMINISTRATION
EMAIL: HONGNTH@FTU.EDU.VN
PHONE NUMBER: 0936831031

3-1
SCOPE MANAGEMENT
CHAPTER 3

3-2
Chapter Objectives
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 statement
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

3-3
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:

1) Conceptual development 4) Scope reporting

2) Scope statement 5) Control systems
3) Work authorization 6) Project closeout

3-4
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

3-5
Statement of Work (SOW)
A SOW is a detailed narrative description of the work required for a project.

Effective SOWs contain

1. Introduction and background
2. Technical description
3. Timeline and milestones

3-6
Statement of Work Components
▪ Background
▪ Objectives
▪ Scope
▪ Task or Requirements
▪ Selection Criteria
▪ Deliverables or Delivery Schedule
▪ Security
▪ Place of Performance
▪ Period of Performance

3-7
Project charter
▪ Many organizations establish the project charter after the SOW.
▪ 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.

3-8
Project Charter
-Project objectives:
-Deliverables
-Milestones
-Technical requirements
-Limitations (scope)
-Approach
-Constraints
Signed by Sponsor, Project manager, Customer..

3-9
Project objectives
- Project objectives: define the overall objective to meet your customer’s need(s).
- The project objective answers the questions of what, when, and how much.
For example, to design and produce a completely portable, hazardous waste, thermal
treatment system in 13 months at a cost not to exceed $13 million.

3-10
Project Objectives

3-11
Project deliverables
Expected outputs over the life of the project.
Tangible things that the project produces to enable the objectives to be achieved.
May be Product/service realization outputs – Supporting documentation –
Project management outputs
For example: Developing a software
- Design phase: a list of specifications
-software coding and a technical manual
-test prototypes
-final tests and approved software.

3-12
Project milestones
A milestone is a significant event in a project that occurs at a point in time.
The milestone schedule shows only major segments of work.

3-13
Project limitations/scope/boundaries
What project does (in scope) and what it doesn’t do (out of scope) - avoid false assumption

3-14
Project constraints
Budget
Human resources
Technical issues
Time frame

3-15
Project approach
Assumptions: predetermined agreement
Principles: technological/managerial requirements
Guidelines how the task objectives will be pursued

3-16
Sample Project Charter

INFORMATION TECHNOLOGY PROJECT MANAGEMENT,

FIFTH EDITION, COPYRIGHT 2007

3-17
3-18
The Scope Statement Process
1. Establish the project goal criteria
a) cost
b) schedule
c) performance
d) deliverables
e) review and approval “gates”
2. Develop the management plan for the project
3. Establish a Work Breakdown Structure
4. Create a scope baseline

3-19
Work Breakdown Structure
The WBS 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.

WBS serves six main purposes:

❖Echoes project objectives
❖Organize chart for the project
❖Creates logic for tracking costs, schedule, and performance specifications
❖Communicates project status
❖Improves project communication
❖Demonstrates control structure

3-20
WBS Hierarchy
The logic of hierarchy for the W B S follows this form:

Level WBS 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

3-21
Work Breakdown Structure and Codes
Project A
1 2
The project is the
overall project under
3 development

Deliverables are
1.1 2.1
major project
components Mutually
1.2 2.2 Exclusive
Completely
1.3 Subdeliverables are Exhaustive
supporting deliverables
1.3.1
Work Packages are individual
1.3.2
project activities

3-22
Partial Work Breakdown Structure

3-23
Sample WBS in MS Project

3-24
3-25
Defining a Work Package
Lowest level in WBS

Deliverable result

One owner

Miniature projects

Milestones

Fits organization

Trackable

3-26
Organizational Breakdown Structure
Organizational Breakdown Structure (OBS) allows:
Work definition
Owner assignment of work packages
Budget assignment to departments

OBS links cost, activity & responsibility

3-27
3-28
Figure 1: The Intersection
of the WBS and OBS

3-29
3-30
Figure 2: Cost Account
Rollup Using OBS

3-31
3-32
Responsibility Assignment Matrix
LEAD PROJECT PERSONNEL
Task Ann
Dave Sue Jim Bob
Deliverable & Code IS HR R&D R&D IS
Match IT to Problem
Org. Tasks Analysis 1.1.1
1.1
Develop
info 1.1.2
Identify IS Interview
user needs users 1.2.1
1.2
Develop
1.2.2
show
Gain user
“buy in” 1.2.3
Prepare Find cost/ 1.3.1
proposal 1.3 benefit info
Notification Responsible Support Approval

3-33
Work Authorization
The formal “go ahead” to begin work

Follows the scope management steps of:

1. scope definition
2. planning documents
3. management plans
4. contractual documents

3-34
Contractual Documentation
Most contracts contain:
Requirements (term of performance)
Valid consideration
Contracted terms (excusable days, allowable cost, liquidated damages,
inspection, correction of errors,resolve disputes…)

Contracts range from:

Lump Sum Cost Plus

also called
“Turnkey”

3-35
Scope Reporting
determines what types of information reported, who receives copies, when, and how
information is acquired and disseminated.

Typical project reports contain

1. Cost status
2. Schedule status
3. Technical performance

3-36
Types of Control Systems
o Configuration (emerging scope against original baseline scope)

o Design (monitoring the scope, schedule, cost during design stage)

o Trend monitoring (tracking cost, schedule, resources against planned)

o Document (ensure documents compiled timely and orderly)

o Acquisition (equipment, materials, services)

o Specification ( prepared clearly, well-understood and changed only with authorisation)

3-37
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

3-39