Managing

Triple Constraint
Project Scope Management
Project Cost Management
Project Time Management

Syed Shofiul Alom

Sr. Project Manager

Ektoo Limited

Project Scope Management

The processes required to ensure that the project

includes all the work required, and only the work

required, to complete the project successfully

Why Do We Manage Scope?

Cant manage schedule and budget if scope is out of

control (Triple Constraint)

Scope docs are used to manage expectations

Scope Management Key Points

What is scope management
Checking to ensure that one is completing work
Saying No to additional work not in the charter
Preventing extra work

Work Breakdown Structure (WBS)

Foundation of the project, all planning and controlling

is based on the WBS
Identifies all work to be performed, if it is not in the
WBS it does not need to be done
Graphical picture of work

Scope Management Key Points

TIME

Estimatin
g

Staffin
g

Quality

SCOPE

COST

WBS

Network
Diagrams

Risk

How Do We Manage Scope?

Five processes
Scope Planning
Scope Definition
Create WBS
Scope Verification
Scope Control

Scope
Planning

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Planning
Enterprise
Environmental
Factors

Inputs

Tools & Techniques

Expert judgment

Organizational
Process Assets

Templates, forms, standards

Outputs

Project Charter
Preliminary
Project Scope
Statement
Project
Management
Plan

Scope
Planning

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Definition
Organizational
Process Assets

Inputs

Product analysis

Outputs

Alternatives identification

Project Charter

Expert judgment

Project Scope
Statement
Requested
Changes

Stakeholder analysis

Preliminary
Project Scope
Statement
Project Scope
Management
Plan
Approved
Change
Requests

Scope
Planning

Tools & Techniques

Project Scope
management plan
updates

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Management Plan

Guidance on how scope will be defined, documented, verified,
managed, and controlled
Usually contained in project management plan
Identifies processes to manage scope, other tools used to
manage scope (i.e. WBS, Scope statement, etc)
Project Scope Statement

Project objective
Product scope description
Project requirements
Project boundaries
Project deliverables
Product acceptance criteria
Project constraints

Project assumptions
Initial project organization
Initial risks
Schedule milestones
Funding limitations
Cost estimate
Project specifications
Configuration Mgmt System
Approval requirements

Remember the difference between product and project?

Create WBS
Organizational
Process Assets

Inputs

Tools & Techniques

Outputs

Work breakdown structure

templates

Project Scope
Statement

Project Scope
Statement
Work Breakdown
Structure

Decomposition

Project Scope
Management
Plan
Approved
Change
Requests

WBS Dictionary
Scope Baseline
Project Scope
management plan
updates
Requested
Changes

Scope
Planning

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Verification
Project Scope
Statement

Inputs

Tools & Techniques

Inspection

Outputs

WBS Dictionary

Requested
Changes

Project Scope
Management
Plan
Deliverables

Scope
Planning

Accepted
Deliverables

Recommended
Corrective Actions

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Control
Project Scope
Statement

Outputs
Tools & Techniques

Inputs
Change control system
Variance analysis

Work Breakdown
Structure
WBS Dictionary

Project Scope
Statement
Updates
Work Breakdown
Structure Updates

Replanning

WBS Dictionary
Updates

Configuration management
system

Scope Baseline
Updates

Project Scope
Management
Plan
Performance
Reports

Requested
Changes

Approved
Change
Requests
Work
Performance
Information

Organizational
Process Assets
Update
Project
Management Plan
Update

Scope
Planning

Recommended
Corrective Action

Scope
Definition

Create
WBS

Scope
Verification

Scope
Control

Scope Definition
Change Control System

Documentation, tracking, and approvals

required to change project scope

Configuration Management System

Documentation, tracking, and approvals
required to change product scope

Management by Objectives (MBO)

Establish unambiguous and realistic
objectives
Periodically evaluate if objectives are being
met
Take corrective action

Case Studies
One Bank upcoming Project
Cost of Project/Expense = Cost of goods +

Human Resource Cost+ Infrastructure cost +

Carrying cost+ Employee Convenience
Profit = Total Revenue Expense
=

????

Project Time Management

The processes required to accomplish timely

completion of the project

Why Time Management?

1. Part of triple constraint, cant manage one
without the others (scope, time, and quality)
2. Second hardest section on the test behind
integration

How Do We Manage Time?

Six processes
Activity Definition
Activity Sequencing
Activity Resource Estimating
Activity Duration Estimating
Schedule Development
Schedule Control

Activity
Definition

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Schedule
Development

Schedule
Control

Activity Definition
Enterprise
Environmental
Factors

Inputs

Tools & Techniques

Decomposition

Organizational
Process Assets

Templates

Project Scope
Statement

Expert judgment

Rolling wave planning

Planning component

Work
Breakdown
Structure
WBS Dictionary

Activity List

Activity Attributes

Milestone List
Requested
Changes

Project
Management
Plan

Activity
Definition

Outputs

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Schedule
Development

Schedule
Control

Activity Definition

Rolling Wave Planning Progressive planning

where near term work is broken down in detail
and distant work is kept at a higher WBS level

Planning Component WBS items that cannot

be broken down into work packages are put in
a:
Control Account High level planning dates for the scope to
be defined
Planning Package Package includes scope to be completed
but no activities

Activity Sequencing
Project Scope
Statement

Inputs

Tools & Techniques

Precedence diagramming
method (PDM)

Activity List

Arrow diagramming method

(ADM)

Activity
Attributes

Schedule network templates

Milestone List

Applying leads and lags

Dependency determination

Project Schedule
Network
Diagrams
Activity List
Updates
Activity Attributes
Updates
Requested
Changes

Approved
Change
Requests

Activity
Definition

Outputs

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Schedule
Development

Schedule
Control

Precedence Diagramming Method (PDM)

Commonly called Activity on Node (AON), most
commonly used sequencing method
Boxes are used to represent tasks with arrows
used for dependencies
Four types of dependencies

Finish to Start Task must finish before next one

can start
Finish to Finish One task must finish before the
other can finish
Start to Start One task must start before the
other can start
Start to Finish One task must start before the
other can
finish
Activity
Activity
A

B
Dependenc

Node

Arrow Diagramming Method (ADM)

Commonly called Activity on Arrow (AOA)
Boxes are used to represent dependencies with arrows used for
Task
tasks
Activity
Only Finish to Start relationships
Can use dummy activities
A
Used for CPM and PERT estimating methods
Method Comparison
PDM
(AON)
Method
ADM
(AOA)
Method

Start

Start

Dependenc
y

Install
Grass
Build
Foundatio
n

Build
Foundatio
n

Build
Walls

Build
Roof

Build
Walls

Build
Roof

Install
Grass

Finish

Finish

Activity Resource Estimating

Enterprise
Environmental
Factors

Inputs

Tools & Techniques

Expert judgment

Organizational
Process Assets

Alternatives analysis

Activity List

Project management
software

Published estimating data

Bottom-up estimating

Activity
Attributes
Resource
Availability

Activity Resource
Requirements
Activity Attributes
Updates
Resource
Breakdown
Structure
Resource
Calendar Updates

Project
Management
Plan

Activity
Definition

Outputs

Requested
Changes

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Schedule
Development

Schedule
Control

Activity Duration Estimating

Tools & Techniques

Enterprise
Environmental
Factors
Organizational
Process Assets
Project Scope
Statement

Expert judgment
Analogous estimating

Inputs

Parametric estimating
Three-point estimates
Reserve Analysis

Activity List
Activity Attributes

Outputs
Activity Duration
Estimates
Activity attributes
updates

Activity Resource
Requirements
Resource Calendar
Project Management
Plan
Risk Register
Activity Cost
Estimates
Activity
Definition

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Schedule
Development

Schedule
Control

Schedule Development
Tools & Techniques

Enterprise
Environmental
Factors
Organizational
Process Assets
Project Scope
Statement

Schedule network analysis

Critical path method

Inputs

Schedule compression
What-if analysis

Activity List

Resource leveling

Activity Attributes

Critical chain method

Activity Resource
Requirements

Project management
software

Resource Calendar

Applying calendars

Project Management
Plan
Risk Register
Activity Cost
Estimates

Adjustable leads and lags

Activity
Definition

Project schedule

Activity
Sequencing

Schedule model

Activity
Resource
Estimating

Activity
Duration
Estimating

Outputs

Schedule model
data
Schedule baseline
Resource
requirements
updatesattributes
Activity
updates
Project calendar
updates
Requested
changes
Project
management plan
updates
Schedule
managemen
t plan
updates

Schedule
Development

Schedule
Control

Schedule Control
Tools & Techniques
Schedule
Management Plan

Inputs

Schedule network analysis

Critical path method
Schedule compression
What-if analysis

Schedule Baseline

Resource leveling
Performance
reports
Approved Change
Requests

Critical chain method

Project management
software
Applying calendars
Adjustable leads and lags
Schedule model

Activity
Definition

Activity
Sequencing

Activity
Resource
Estimating

Activity
Duration
Estimating

Outputs

Schedule model
data updates
Schedule baseline
updates
Performance
measurements
Requested
changes
Recommended
corrective actions
Organizational
process assets
updates
Activity list
updates
Activity attribute
updates
Project
Management Plan
updates

Schedule
Development

Schedule
Control

Other Important Terms

Lag Inserted waiting time between tasks
Free Slack Available delay time without
impacting start of successor
Total Slack Amount of time a task can be
delayed without delaying project completion
date
Project Slack Amount of time a project can be
delayed without impacting completion dates
imposed by client
Crashing Adding resources to critical path
items to shorten schedule
Fast Tracking Performing critical path tasks in
parallel rather than series
Resource Leveling Adjusting completion dates
of tasks

Project Cost Management

Cost is a resource sacrificed or foregone to achieve a specific
objective, or something given up in exchange.
Costs are usually measured in monetary units, such as dollars or
Takas.
Project Cost Management includes the processes required to
ensure that the project is completed within an approved budget.
Project Cost Management Processes
Cost estimating: Developing an approximation or estimate of the
costs of the resources needed to complete a project.
Cost budgeting: Allocating the overall cost estimate to individual
work items to establish a baseline for measuring performance.
Cost control: Controlling changes to the project budget.

Basic Principles of Cost Management

Most members of an executive board have a better understanding
and are more interested in financial terms than IT terms, so IT
project managers must speak their language.
Profits are revenues minus expenses.
Life cycle costing considers the total cost of ownership, or
development plus support costs, for a project.
Cash flow analysis determines the estimated annual costs and
benefits for a project and the resulting annual cash flow.
Tangible costs or benefits are those costs or benefits that an
organization can easily measure in dollars.
Intangible costs or benefits are costs or benefits that are difficult
to measure in monetary terms.
Direct costs are costs that can be directly related to producing
the products and services of the project.
Indirect costs are costs that are not directly related to the
products or services of the project, but are indirectly related to
performing the project.
Sunk cost is money that has been spent in the past; when
deciding what projects to invest in or continue, you should not

Earned value Management

The earned value Management involves developing these key values for each schedule
activity, work package, or control account:
Planned value (PV). PV is the budgeted cost for the work scheduled to be completed on
an activity or WBS component up to a given point in time.
Earned value (EV). EV is the budgeted amount for the work actually completed on the
schedule activity or WBS component during a given time period.
Actual cost (AC). AC is the total cost incurred in accomplishing work on the schedule
activity or WBS component during a given time period. This AC must correspond in
definition and coverage to whatever was budgeted for the PV and the EV (e.g., direct hours
only, direct costs only, or all costs including indirect costs).
Cost variance (CV). CV equals earned value (EV) minus actual cost (AC). The cost
variance at the end of the project will be the difference between the budget at completion
(BAC) and the actual amount spent. Formula: CV= EV - AC
Schedule variance (SV). SV equals earned value (EV) minus planned value (PV).
Schedule variance will ultimately equal zero when the project is completed because all of
the planned values will have been earned. Formula: SV = EV - PV
These two values, the CV and SV, can be converted to efficiency indicators to reflect the
cost and schedule performance of any project.
Cost performance index (CPI). A CPI value less than 1.0 indicates a cost overrun of the
estimates. A CPI value greater than 1.0 indicates a cost underrun of the estimates. CPI
equals the ratio of the EV to the AC. The CPI is the most commonly used cost-efficiency
indicator. Formula: CPI = EV/AC
Schedule performance index (SPI). The SPI is used, in addition to the schedule status to
predict the completion date and is sometimes used in conjunction with the CPI to forecast
the project completion estimates. SPI equals the ratio of the EV to the PV. Formula: SPI =

Questions ?

Thank You !!