Scope Management

05-01
 Chapter 5 Learning Objectives
After completing this chapter, students will be able to:
 Understand the importance of scope management for
project success.
 Understand the significance of developing a scope
statement.
 Construct a Work Breakdown Structure for a project.
 Develop a Responsibility Assignment Matrix for a
project.
 Describe the roles of changes and configuration
management in assessing project scope.

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 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

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

Key steps in information development:

Problem/need statement
Information gathering
Constraints
Alternative analysis
Project objectives
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 Problem Statements
Successful conceptual development requires:

 Reduction of overall project complexity

Goals and objects are clearly stated

Reference points are provided

Complete understanding of the problem

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 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
4. Client expectations

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 Statement of Work Components
 Background
 Objectives
 Scope
 Task or Requirements
 Selection Criteria
 Deliverables or Delivery Schedule
 Security
 Place of Performance
 Period of Performance

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 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

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 Goal Setting With and Without
Work Breakdown Structures (WBS)
Figure 5.2

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 Work Breakdown Structure (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

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 Work Breakdown Structure and Codes
1.0 The project is the
overall project under
1.2 1.3 1.4
development

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
1.2.3.2
individual project activities

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 Sample WBS in MS Project 2010

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Figure 5.7 05-12
 Defining a Work Package
Lowest level in WBS
Deliverable result
One owner
Miniature projects
Milestones
Fits organization
Trackable

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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 14
 Organizational Breakdown Structure
 An additional benefit of creating a comprehensive WBS for
a project is the ability to organize the work needed to be
performed into cost control accounts that are assignable
to various units engaged in performing project activities
within the company.
 The outcome of organizing this material is the
Organization Breakdown Structure (OBS). In short, the
OBS allows companies to define the work to be
accomplished and assign it to the owners of the work
packages. The budgets for these activities are then directly
assigned to the departmental accounts responsible for the
project work.
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 Organizational Breakdown Structure
Organizational Breakdown Structure (OBS) allows
 Work definition
 Owner assignment of work packages
 Budget assignment to departments

OBS links cost, activity &

responsibility

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 Intersection of the WBS and OBS

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Figure 5.8 05-17
 Cost Account Rollup Using OBS

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 Responsibility Assignment Matrix

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Figure 5.11 05-19
 Defining a Project Work Package
1. Work package forms lowest level in WBS.
2. Work package has a deliverable result.
3. Work package has one owner.
4. Work package may be considered by its owner as a
project in itself.
5. A work package may include several milestones.
6. A work package should fit organizational procedures and
culture.
7. The optimal size of a work package may be expressed in
terms on labor hours, calendar time, cost, reporting
period, and risks.

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 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

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 Contractual Documentation
Most contracts contain:
Requirements
Valid consideration
Contracted terms

Contracts range from:

Lump Sum Cost Plus

also called
“Turnkey”

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 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

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 Reasons Why Projects Fail
 Politics
 Naïve promises
 Naïve optimism of youth
 Startup mentality of fledging entrepreneurial companies
 “Marine Corps” mentality
 Intensive competition caused by globalization
 Intense competition caused by appearance of new
technologies
 Intense pressure caused by unexpected government
regulations
 Unexpected and/or unplanned crises

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 Types of Control Systems
o Configuration

o Design

o Trend monitoring

o Document

o Acquisition

o Specification

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 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
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 Summary
1. Understand the importance of scope management
for project success.
2. Understand the significance of developing a scope
statement.
3. Construct a Work Breakdown Structure for a project.
4. Develop a Responsibility Assignment Matrix for a
project.
5. Describe the roles of changes and configuration
management in assessing project scope.

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 05-27

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 05-28