Week 4 Lecture Global Project Management PDF

SG7004: Global Project Management in Practice Lecture 4: Scope Management Dr Manish Unhale 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....

SG7004: Global Project Management in Practice Lecture 4: Scope Management Dr Manish Unhale 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. Create responsibility assignment matrix (RAM) for projects. Demonstrate how the organisation breakdown structure (OBS) establishes accountability to organisation units. Describe a process breakdown structure (PBS) and when to use it. 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 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 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 (RAM)  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. 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  Work authorization Establish the project goal  Scope reporting criteria (cost, schedule, performance, deliverables),  Project closeout develop WBS and review gates. The job is not over until the The formal is paperwork “go ahead” to begin done… work. determines what types of information reported, whodocumentation Closeout receives copies, when, and how information is includes: Historical records, Post acquired and disseminated. It has ‘Cost’, ‘Schedule’ project analysis and Financial and ‘Technical Performance’ status. closeout Thank you & any Questions? Next Week: Planning and Managing Independent constraint Manish Unhale Email:[email protected] Lecture slides adopted from: Maylor, H. (2017) Project management. 4th edn. Harlow: FT Prentice Hall Pinto, J.K. (2013), Project management: achieving competitive advantage, 3rd Edn. Harlow: Pearson Larsen, E. & Gray, C. (2021), Project Management: The Managerial Process, 8th Edition, McGraw Hill Pictures are taken from Google image.