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