Introduction to Project Management

Dr. Chenglong LI

School of Management
Northwestern Polytechnical University
 Chapter 5

Scope Management
 ＊ 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 development.
? Identify the various types of information available for scope reporting.
? Demonstrate how control systems relate to scope development.
» Introduction

• 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 through the processes of conceptual development, full definition,
execution, and termination.
• The process of scope management consists of several distinct activities,
1) Conceptual development 4) Scope reporting
2) Scope statement 5) Control systems
3) Work authorization 6) Project closeout
all based on creating a systematic set of plans for the upcoming project.

Intro_to_PM_ch05 4
» Introduction

• Elements in project scope management

Intro_to_PM_ch05 5
» Conceptual Development

• Conceptual development is the process that addresses project objectives by

finding the best ways to meet them.
• Key steps in information development: • Successful conceptual development
• Problem/need statement requires:
• Requirements gathering ✓ Reduction of overall project complexity

• Information gathering ✓ Goals and objectives are clearly stated

• Constraints ✓ Complete understanding of the

problem
• Alternative analysis
• Project objectives
• Business case

Intro_to_PM_ch05 6
» The Statement of Work

• As an important component of conceptual development, the Statement of Work

(SOW) is a detailed narrative description of the work required for a project.
• Useful SOWs contain information on the key objectives for the project, a brief and
general description of the work to be performed, expected project outcomes, and
any funding or schedule constraints.
• The purpose of the SOW is to give the project organization and the project
manager specific guidance on both work requirements and the types of end
results sought once the project is completed.
• The SOW is important because it typically serves as the summary of the
conceptual development phase of the project plan.

Intro_to_PM_ch05 7
» The Statement of Work

• An example from the U.S. Federal Geographic Data Committee

1. Background—describes the project in very general terms; discusses why the project is being pursued and how it relates
to other projects. It includes, as necessary, a summary of statutory authority or applicable regulations and copies of
background materials in addenda or references.
2. Objectives—provide a concise overview of the project and how the results or end products will be used.
3. Scope—covers the general scope of work the contractor will be performing.
4. Tasks or requirements—describe detailed work and management requirements, and also spell out more precisely
what is expected of the contractor in the performance of the work.
5. Selection criteria—identify objective standards of acceptable performance to be provided by the contractor.
6. Deliverables or delivery schedule—describes what the contractor shall provide, details the contractor’s
responsibilities, and identifies any specialized expertise and services, training, and documentation that is needed. In
addition, it clearly states the deliverables required, the schedule for delivery, the quantities, and to whom they should be
delivered. Finally, it describes the delivery schedule in calendar days from the date of the award.
7. Security—states the appropriate security requirement, if necessary, for the work to be done.
8. Place of performance—specifies whether the work is to be performed at the government site or the contractor’s site.
9. Period of performance—specifies the performance period for completion of the contracted project.
Intro_to_PM_ch05 8
» Scope Statement

• The scope statement, reflects a project team’s best efforts at creating the
documentation and approval of all important project parameters prior to
proceeding to the development phase.
• Key steps in the scope statement process include:
• Establish the project goal criteria
‒ cost
‒ schedule Any measurable, tangible, verifiable outcome, result,
‒ performance or item that must be produced to complete a project
or part of a project.
‒ deliverables
‒ review and approval gates
• Develop the management plan for the project
• Establish a work breakdown structure
• Create a scope baseline
Intro_to_PM_ch05 9
» Work Breakdown Structure

• The Work Breakdown Structure (WBS) is a process that sets a project’s scope by
breaking down its overall mission into a cohesive set of synchronous, increasingly
specific tasks.
• Consider the simple case of a student team working together on a term paper and final
presentation for a course.
Task One: Refine topic
Task Two: Assign library/internet research responsibilities
Task Three: Develop preliminary outline for paper and presentation
Task Four: Assign team member to begin putting presentation together
Task Five: Begin producing drafts of paper
Task Six: Proofread and correct drafts
Task Seven: Refine class presentation
Task Eight: Turn in paper and make classroom presentation

Intro_to_PM_ch05 10
» Work Breakdown Structure

• Six main purposes of WBS:

• Echoes project objectives
• Offers a logical structure
• Establishes a method of control
• Communicates project status
• Improves communication
• Demonstrates control structure

Intro_to_PM_ch05 11
» Work Breakdown Structure

1.0 The project is the overall Lowest level in WBS,

project under development
Deliverable result, One owner,
1.2 1.3 1.4
Miniature projects, Milestones,
Deliverables are major Fits organization, Trackable
1.2.1 1.3.1
project components
• Work packages are defined as
1.2.2 1.3.2
Subdeliverables are
WBS elements of the project that
1.2.3 supporting deliverables are isolated for assignment to
“work centers” for
1.2.3.1 accomplishment.
Work Packages are individual
1.2.3.2 project activities • Work packages are the lowest
level in the WBS, composed of
short-duration tasks that have a
defined beginning and end, are
assigned costs, and consume some
resources.
Intro_to_PM_ch05 12
» Organization Breakdown Structure

• Organizational Breakdown Structure

(OBS) allows
• Work definition
• Owner assignment of work packages
• Budget assignment to departments

• OBS links cost, activity and responsibility

Intro_to_PM_ch05 13
» Responsibility Assignment Matrix

• Responsibility Assignment Matrix (RAM)

lists not only the member of the project
team responsible for each activity, but
also the other significant members of
the team at each stage, organized
according to how that activity requires
their support. This tool provides a clear
linkage among all project team
members and combats the danger of a
potential communication vacuum in
which project team members perform
their own tasks without updating others
on the project team.

Intro_to_PM_ch05 14
» Work Authorization

• Once the scope definition, planning documents, management plans, and other
contractual documents have been prepared and approved, the work
authorization step gives the formal go-ahead to commence with the project.
• Work authorization consists of the formal sign-off on all project plans, including
detailed specifications for project delivery.
• Most contractual documentation contain: requirements, valid consideration,
contracted terms. The most common contracts range from lump-sum or turnkey
contracts, and cost-plus contracts.
• The manager must draw up contracts that clearly stipulate the work agreed to,
the nature of the project development process, steps to resolve disputes, and
clearly identified criteria for successfully completing the project.

Intro_to_PM_ch05 15
» Scope Reporting

• Scope reporting determines what types of information reported, who will receive
copies of this information, when, and how this information will be acquired and
disseminated.
• Typical project reports contain: cost status, schedule status, technical
performance.
• Solid communication between all concerned parties on a project is one of the
most important aspects of effective scope reporting. Project managers should
consider who would benefit from receiving regular project updates and plan their
reporting structure appropriately.

Intro_to_PM_ch05 16
» Control Systems

• Control systems are vital to ensure that any changes to the project baseline are
conducted in a systematic and thorough manner.
• Types of control systems:
• Configuration control
• Design control
• Trend monitoring
• Document control
• Acquisition control
• Specification control
• An important advice for project managers and teams is to establish and maintain
a reasonable level of control, including clear lines of authority, at the start of a
project.
Intro_to_PM_ch05 17
» Project Closeout

• The project closeout step requires project managers to consider the types of
records and reports they and their clients will require at the completion of the
project.
• Closeout documentation is used to:
• Resolve disputes
• Train project managers
• Facilitate auditing
• Closeout documentation includes:
• Historical records
• Post project analysis
• Financial closeout

Intro_to_PM_ch05 18
 ＊ 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 development.
√ Identify the various types of information available for scope reporting.
√ Demonstrate how control systems relate to scope development.
 Introduction to
Project Management

End of Chapter 5

Dr. Chenglong Li
Email: [email protected]