Project Management Module 1

By Dr Dennis Mark Laxton

Introduction to Project Management and Project Life Cycles

Project Management Overview

This course is aimed at anyone involved with or intending to become involved with the
management of projects. Project management includes numerous elements and calls for a wide
variety of management skills and practices.

The techniques of project management provided in these modules provide the practicing
manager with useful tools for managing and implementing projects through the application of the
practical templates provided in these modules.

The concept of project management may be misinterpreted as the mere practice of scheduling
activities. The course takes a look at project definitions and demonstrates that project
management deals with the management of change - a challenging and dynamic endeavour.

A need for change often arises from a need to remain competitive in the business environment.
The management of change has become a cornerstone of successful business management and
the techniques and practices of project management can provide useful tools for managing and
implementing change.

A further misinterpretation is to associate project management only with the field of engineering.
Within any organisation, project based management encompasses a wide variety of disciplines,
such as: strategic management, finance, human resources, marketing and sales, production or
operations management and the practice of management in general.

In terms of the objectives of a particular project, change can occur in a variety of ways. For
example the project may be aimed at bringing about a change in technology, product offering,
marketing strategy, culture, staff skills, management practices, information technology, etc.
What you should gain form this course:
• An explanation of project management and the role of the project manager;
• An understanding of the main project planning techniques and the ability to apply these to
personal projects and in your place of work;
• The ability to use project management techniques to plan a project and produce project
reports;
• An understanding of the factors important to controlling the principal features of project
management and the ability to implement such measures in your own working
environment; and
• An appreciation of the challenges facing project driven industries.

The three modules are focused on introducing and explaining the fundamental elements of
project management.

Elements of Project Management

Before we analyse the practices and principles of project management, let us define what is
meant by the concept of project management. Various schools of thought exist for defining
project management. The purpose of this module is not to initiate a philosophical debate on the
correct definition or to redefine the concept of project management, but rather to develop an
understanding of the principle elements.

In 1976 an international institute known as the Project Management Institute (PMl) started work
on standards for the Project Management Body of Knowledge (PMBOK) which is an
internationally accepted body of knowledge on the practice of project management. The Project
Management Institute in their PMBOK(2000) define project management as “The art of directing
and coordinating human and material resources throughout the life of a project, using modern
management techniques to achieve predetermined objectives of scope, cost, time, quality and
participant satisfaction.” (www.pmi.org)

Using this definition, the key elements of project management include:

• Directing and coordinating - the responsibility of the project manager or project team;
• Resources - expressed in terms of both human and material;
• Scope - the primary objective of the project;
• Cost - usually a limited resource with respect to a particular project;
• Time - expressed in terms of a start date, completion date and the anticipated duration of
the project, this resource may also be limited;
• Quality - is typically determined prior to the start of a project and relates to the customer’s
expectation of the final product or outcome of the project;
• Participant satisfaction - the most obvious reason for participating in a project is to achieve
the anticipated goals of that project. The extent to which a project is successfully
completed will directly influence the level of participant satisfaction.

Who will benefit from applying project management skills?

In our competitive environment, project management is a useful skill for those wishing to
organise their work in a systematic, planned and effective manner. PMBOK(2000) views a project
as a defined unit of work with a clear beginning and ending, and specific milestones along the
way to provide measurable check-points; this all within limited time, resource and budget
constraints. From this definition it is clear that the project management approach is not limited to
the workplace but can be applied to almost any function in your personal life, such as planning a
holiday or a wedding.

Project management can be applied in the field of human resources in situations such as the
planning of training courses, induction programmes, etc. In marketing and sales, project
management can be used to plan product launches, implement promotional plans, etc. In
manufacturing and distribution, project management can be used to create production schedules
or maintenance schedules and is beneficial when installing new capital equipment.

Project management can be used across all sectors and is becoming increasingly popular in
organisations. Business School students are encouraged to apply the principles at work to
improve efficiency and effectiveness.

Remember:
• Projects are undertaken by organisations to deliver, construct, maintain or renew
facilities, systems or processes;

• A project will have a unique outcome, result or solution. For example: a strategic
plan, a corporate Intranet, a marketing brochure, a set of financial records or a new
parking area;

• Projects are made up of a number of activities all focused on achieving the desired
end result of the project;
• These activities are undertaken by different groups of people, utilising various
resources; and

• The activities must be related to one another, and therefore will need to be planned
either in sequence or in parallel.

Identify whether the following are projects or not:

?
Question

Yes No

Planning a wedding

Writing monthly reports on the fifth of each month

Writing a unique company newsletter

Managing quality on the shop floor

Implementing a company Intranet from scratch

Installing a security system in a branch office

Carrying out routine performance appraisals

Organising a sailing trip

Conducting research

Maintaining the premises in good order

 ?
Answers

Planning a wedding Yes

Writing monthly reports on the fifth of each month No

Writing a unique company newsletter Yes

Managing quality on the shop floor No

Implementing a company Intranet from scratch Yes

Installing a security system in a branch office Yes

Carrying out routine performance appraisals No

Organising a sailing trip Yes

Conducting research Yes

Maintaining the premises in good order No

 Based on what you have learned so far, think about the things you do at
work. Identify a few parts of your job that could be done using a project
? approach.
Question
Why the project approach?
Projects produce a unique outcome and this outcome is expected to deliver benefit or
purpose. For example:

• A business purpose - increased profits, efficiency, turnover or employment;

• A social purpose - relaxation or enjoyment; or

• A humanitarian purpose - disaster relief.

Projects are undertaken because the same benefits cannot be produced or achieved by
routine tasks. Projects help to:

• Improve time management;

• Deliver a once-off solution;

• Improve controls;

• Improve risk management;

• Meet expectations;

• Improve quality; and

• Promote productive cross-functional communication.

Review the above information and determine which of the benefits

? of the project approach will help you in your own projects.

Question
The Project Life-Cycle
The project management life cycle curve as discussed in PMBOK (2000) enables a project to be
structured with set milestones and deliverables in a series of phases. Some projects may stretch
over a number of years. Using the project management life cycle curve, the project can be
broken into manageable chunks of work, known as phases. This allows achievements to be
recorded and measured more frequently, motivating team members and customers alike, and
increasing the likelihood that the project requirements and specifications will be met. It also
allows for deviations to be re-aligned before things have gone too far off track.

Each phase of the project can have a definite handover with sign-off before the next phase is
allowed to start. This phased approach can be linked to the project budget so that payments are
only made on acceptance of the work.

Within each phase specific inputs are required which depend on the completion of outputs
from the previous phases. Specific processes must be followed in each phase with specific
outcomes and deliverables and appropriate hold points. This facilitates effective cost, time
and quality management in projects where there are a number of unknowns and
unpredictable variables. The parameters of cost, time and quality can be evaluated at the
end of each phase, and re-negotiated if necessary. Probably the greatest advantage of the
phased approach to implementing a project is that if at any point the project is halted,
limited resources will have been committed, reducing losses. By allocating resources in
phases, the risk is reduced.
The Project Life Cycle

Cumulative
High

effort over the

life of a project
Level of effort
Low

The time frame of the project

Start Finish
Project Design Implementation Commission
identification and
concept
Input Input Input Input
Problem or Approval to go Approval to implement Commissioning plan,
opportunity, project ahead with design the project notification of
brief, project completion
charter
Process Process Process Process
Project proposal, Detailed scope Award contracts and Start up and test the
Feasibility study, design and issue instructions, product, has the
Identify definition through Procure equipment and problem been solved?
stakeholders, Cost- the application of services, Produce as-built
benefit analysis, a work breakdown Make the product or solve drawings and
Assign project structure (WBS), the problem operation manuals
manager, Product design,
Determine Detailed
appropriate schedules, Critical
organisation path method
breakdown (CPM) and
structure (OBS), budgets
Responsibility
matrix
Key Activities Key Activities Key Activities Key Activities
Key activities may Key activities may Key activities may be Key activities are
be environmental be compliance compliance with usually based on
impact studies or with certain legislation or standards methods to evaluate
market research specific design imposed on the project the implementation
requirements or of the contractual
standards terms and conditions

Hold Points Hold Points Hold Points Hold Points

Approval of the Approval of the As the project progresses Usually the customer
factors affecting the detailed scope quality sign-offs or check sign-off and the final
concept, such as: documents, points will be used to delivery documents
environmental Approval of design determine if work is to or manuals, etc.
impact analysis, standards and proceed or not
market research, specifications as
shareholder well as the final
approval, etc. plans and designs
(may require
approval of a third
party)
Objectives Objectives Objectives Objectives
To ensure the To ensure the To ensure clear To ensure there is a
project supports the work is structured objectives have been set formal close-out
strategies correctly in similar for monitoring the meeting and hand
To ensure the packages of work schedules over
organisation has To ensure the To ensure effective To ensure the
the appropriate design work is feedback and contractual conditions
resources to be linked to the measurement techniques are audited and the
able to complete concept and done are in place user signs the project
the project in accordance with To ensure any deviations off
To ensure the set design from the schedule are
concept is clearly parameters and recorded and deviation
defined and adds specifications requests are completed
value to the To ensure
organisation accurate time
schedules are
drawn up and the
correct resources
are assigned to
the work
Output Output Output Output
Feasibility study Baseline plan Certificate of completion Close-out report
report
Approval Approval Approval Approval
Go or no-go To implement Ready to commission Project accepted by
decision to proceed project client
with design phase
Project Life Cycle Components Explained
PLAN ACCOMPLISH

Phase 1 Phase 2 Phase 3 Phase 4

Project Design Implementation Commission
identification and (Develop) (Execute) (Finish)
concept
(Conceive)
Gather data; Appoint key team Set up: Finalise products;
Identify need; members; w organisation Review and
Establish goals and Conduct studies; w communications accept;
objectives; Develop scope w motivate team Transfer product
Basic economics – baseline: w detail technical responsibility;
feasibility; w end products requirements Evaluate project;
Stakeholders; w quality Establish: Document
Risk level; standards w work packages results;
Strategy; w resources w detailed schedule Redirect
Potential team; w activities w information control resources;
Estimate resources; Establish: systems Reassign project
Identify alternatives; w master plan Procure goods and team.
Present proposal; w budget, cash services;
Obtain approval for flow Execute work
next phase. w WBS packages;
w policies and Direct/monitor/forecast
procedures /control:
Assess risks; w scope
Confirm w quality
justification; w time
Present project w cost
brief; Resolve problems.
Obtain approval to
proceed.
Project Identification and Concept Phase
This phase usually includes the project proposal, a feasibility study, identification of stakeholders
and a cost-benefit analysis. The design, implementation and commission phases will be explained
in sections to follow.

Identify the Purpose of the Project

Before a project can start and the concept can be defined, the basic operating rules and
expectations must be understood so that the project management team can fully commit to the
project. The first steps must include these questions:

• Why is the project being undertaken?

• What is the purpose of this project?

• What is the deliverable of this project?

• What does the project cover and not cover? What is its scope?

• What are the objectives and outcomes?

• How are we going to undertake this project? What is the process?

• What are the tools and techniques we can use?

• What is the concept of this project?

• What are the client’s needs?

• What predefined output rate is required for the product?

• What conditions must the product operate under?

• What is the minimum life expectancy of the product?

• What are the budget constraints and limits?

From these first steps, the project team should be able to establish the:

• Vision;

• Purpose;

• Parameters;

• Terms of reference; and

• Priorities and authority levels.

Identify Stakeholders and their Needs

A shareholder or sponsor is any individual or organisation providing funding for a project, while a
stakeholder is any individual or organisation with a vested interest in a project; one way or
another they have an interest in the outcome of the project.

Each shareholder and each stakeholder will have a different requirement from the project, and a
different measure of success – each will have their own definition of the outcome they require.
The project manager wanting to deliver a successful project must know exactly what each
shareholder and each stakeholder expects, so that the desired outcome can be delivered for each
of them.

The process to follow is:

• Identify the shareholders and understand their objectives and required outcomes;

• Identify all the possible stakeholders;

• Meet with stakeholders to establish their criteria for success;

• Document and gain approval for the criteria, include reference to time, quality standards
and cost;

• Design measurement instruments for each outcome;

• Report progress to each stakeholder only in terms of progress towards the outcomes they
are concerned with.

Project Planning – Shareholder and Stakeholder Analysis

Shareholder 1 Shareholder 2

Outcome Outcome

Project name

Stakeholder 1 Stakeholder 2
 Outcome Outcome

In order to meet requirements it is essential to identify the needs, expectations and desired
outcomes for each individual stakeholder. You cannot lump them all together and expect to
deliver what they want. Try to identify the stakeholders and shareholders in a project with which
you are familiar. This may be a wedding, an extension of your home or a systems installation in
your workplace. Now complete the exercises below.
?

For a project applicable to your personal or work life:

Identify the shareholders and stakeholders.

Identify the output or outcome desired by each of them.

Question

Shareholder Desired Outcome or Output

Stakeholder Desired Outcome or Output

?

Define the following, you may need to refer to the glossary for
some terms:

Question

Term Definition

Sponsor

Project Manager

Team Members

Customer

Line Managers

Stakeholders
?

Draw a diagram to illustrate the relationships between these people

or groups of people and indicate what it is that they require from
one another.

Question
Compiling a Project Charter
Acceptance of the project charter provides formal recognition of the initiation of a project. The
project charter provides the necessary authority for organisational resources to be applied to
project activities. A project charter guideline template is provided below. The document should
provide the necessary project initiation information to enable management to accept, reject or
defer future work on a project.

The project charter is intended as:

• a single, documented point of reference providing justification for the project; and
• an executive-level document; it does not contain task details.

It is used:
• to confirm the commitment of the organisation to the project;
• as an aid to communication both within and outside the project; and
• as a basis for project definition.

The project charter formalises the project and should be documented and signed off; if not by
the client, by the project manager.
PROJECT CHARTER TEMPLATE
Requesting Organisation: (Name of department/organisation requesting the product or
service)

Business Venture Manager: (Representative of the business, responsible for the quality of the
project – if known)

Owner:
Client:
Project Manager:

Revision Number:
Approved by:
Date of Approval:

Distribution
Name Location

Signatories

The report described herein is agreed to by the project sponsor. By signing this document, the
project sponsor gives the project manager a mandate to proceed with the project as described in
this report.
Project Sponsor:

Date:
Management Overview:
(An overview of the project)

Product/Service Description:
(A brief summary of the product or service being requested)

Business Need
The requirements, situations or conditions that will be addressed by the project are detailed
below.
Critical Issues:
(Identify any critical issues; such as any specific control requirements)

Relationship to Other Projects:

(Identify if this project is dependent on or related to any other ongoing or potential project)

Alternative Solutions:
The alternative solutions (including doing nothing) that were investigated in terms of their
relative strengths and weaknesses are:

Proposed Solution:
The proposed solution is:
Justification:
The proposed solution best meets the business need in the following ways:

(State who else supports this)

Benefits
The following benefits of the project were identified:

The benefits will be incorporated into the business and measured in the following ways:

For comparison, the benefits of the rejected options were as follows:

Business Case
The implementation of the proposed solution will involve the following costs:
(Include the Return on Investment – ROI where appropriate)

Risk
The following major risks associated with the proposed solution were identified and analysed:
Risk Probability Impact
(Low, medium or high) (Low, medium or high)

Feasibility
The feasibility of the project is based on the following:
1. Can we do the project?
2. Should we do the project?
3. Will the project work?
4. What will happen if we do not proceed with the project?
5. Is the project strategically important?
6. Is the project acceptable to the organisation?

Statement of Authority
The authorities of the key people (project sponsor, project manager and technical architect as a
minimum) are as follows:
Project sponsor:
Project manager:
Technical architect:

Constraints
The constraints that surround the project are:

Assumptions
The assumptions about the environment in which the project will operate are:

The decision to initiate a project requires good judgement. Consultation with others within the
organisation, consultants, professional and technical associations and industry groups is
recommended. Following acceptance of the project charter the identified project manager should
be formally appointed and the specific roles and responsibilities defined and agreed upon by the
relevant parties i.e. stakeholders, shareholders and management. The project manager is solely
responsible for all aspects pertaining to the project and should be appointed as early in the
project as possible, preferably before much planning is done.

Functional managers are responsible for the functions of specific departments, such as:
marketing, production, accounts, etc. Functional managers make decisions concerning the
activities of their specific departments as well as managing the resources of those departments.
Each functional manager has:
• Accountability - This cannot be delegated and each functional manager must answer for
their decisions and the consequences of those decisions;
• Authority - This is the right to give orders within their department within the scope of their
department’s operating parameters and legal and industrial relations frameworks; and
• Responsibility - The duty to follow instructions within the scope of the organisational
structure.

The project manager has the overall accountability, authority and responsibility to ensure the
project objectives are met and resources are optimised.
The roles and responsibilities of the project manager include:
• Understanding the vision of the organisation;
• Understanding the vision for the project;
• Understanding the organisation’s strategies;
• Understanding the functional strategies created by other departments; and
• Creating a project plan including:
o Project charter;
o Scope of work;
o Structuring of the work;
o Definition of tasks;
o Logical relationships between the tasks;
o Sequencing of tasks through a network and Gantt chart;
o Resource allocation;
o Division of labour;
o Levelled resource plan to resolve resource conflicts;
o Cost analysis;
o Advancing the end date in a crashed (shortened) project;
o Tracking the project to monitor progress;
o Determining earned value to monitor cost and schedule changes;
o Creating teams, temporary or permanent; and
o Handling conflict.

Having appointed a project manager an organisational breakdown structure (OBS) must be

created incorporating the project manager.

Creating the Organisation Breakdown Structure (OBS)

A discussion of the more common types of organisational structure follows.

1. Centralised organisational structure

This type of structure is mostly used by large organisations with many diverse types of projects
in many different locations. The planning, decision-making and control are carried out from the
head office and any changes to projects must be approved by the head office.

This can be very restrictive, especially if the projects are diverse in nature and quick decisions are
needed. The staff involved in the various projects may be demotivated by their lack of authority
to make decisions.
2. Decentralised organisational structure
Similarly large organisations with diverse projects in different locations may use this type of
structure where the planning, decision making and control are only assisted by the head office,
but the divisions have full autonomy, implementing their own strategies and tactics, provided
they are aligned with those of the head office.

Only major changes require approval from the head office. This is less restrictive and the staff
involved in the various projects are motivated by their autonomy and power to make decisions.

3. The functional organisational structure

This structure is based on the classic organisation theory developed by Henri Fayol (1841-1925).
Fayol was the first to “systematize” the organisation; his interest was in the total organisation
and designed departments.

Fayol’s 14 principles of management:

1) Division of labour;
2) Authority;
3) Discipline;
4) Unity of command;
5) Unity of direction;
6) Common goal by all;
7) Remuneration;
8) Centralisation;
9) Order;
11) Equity;
12) Stability of staff;
13) Initiative; and
14) Team spirit.

The structure is based on grouping by common function into various departments, such as:
accounts, production, sales and engineering, together with a vertical hierarchy.
The Functional Organisational Structure

CEO
Yellow Boxes Functional Functional
Functional
Represent Staff Manager Manager
Manager
Involved in Project
Activities Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

• Advantages:
High degrees of specialisation in each functional department assist the project manager. Lines of
communication are well established and well defined as illustrated above. Each functional
department’s work is easier to monitor and problems can be solved more rapidly within each
department.

• Disadvantages:
The client is not always the main focus of concern for a specific department. There are no formal
lines of communication between the different departments and it is often difficult to determine
and allocate a single point of responsibility.
There may be a lack of motivation if the project is not seen as being beneficial to a specific
department and so departmental work may take preference over project work.

4. The matrix organisational structure

This is designed the same way as a mathematical matrix, using vertical lines to represent
departmental or functional responsibility and authority, while horizontal lines represent
responsibility and authority for specific projects.

The intersections of the lines represent the people in contact on a specific project. The project
manager usually has authority over the specific functions to be completed by any department as
required by the project.
HARRY I THINK THE MESSY MATRIX FIGURE BELOW WOULD BE BETTER HERE (wes)
The matrix structure may vary depending on the distribution of power in the projects and the
organisation. The most common are:

• The co-ordination matrix:

This is similar to the traditional organisation structure, except that the project manager co-
ordinates the various departments to ensure the project is completed as scheduled. The problem
is that the project manager may lack the necessary authority within the various departments.
This can be overcome if cross functional teams are formed with full management support at all
levels. The project manager would then act as a facilitator, working to a project schedule
designed and controlled by the team.

• The normal matrix:

Staff from the required departments are assigned to the project until their work on the project is
completed. They report to the project manager on issues affecting the project and to their own
departmental managers on functional issues that are not project related. Conflicts can arise when
employees are required to report to two managers, especially if the time allocation is limited and
there are urgent deadlines to meet.

• The empowered project manager matrix:

To eliminate the situation above, where employees report to two bosses, project managers can
be given a wider range of powers over a total project. The project manager would be more
senior to the functional managers, but would still need to negotiate with them for the use of their
resources. This creates a single point of project responsibility and a large company resource pool
from which to draw. Conflicts may still arise between the departments and the project manager,
especially if the project management position is sought after by other functional managers but
this structure does allow for rapid response to client needs and to any problems that may occur.
The Matrix Organisational Structure

GENERAL
MANAGER

Engineering Quality Finance Other

Manager Manager Manager Manager

Project
Manager
Project A Specific resources assigned from various departments

Project ManagerProject B

HARRY THE MATRIX FIGURE ABOVE IS A REAL MESS BUT I AM SURE YOU CAN DO
SOMETHING WITH IT. I think it should be moved as suggested above. (wes)

5. The true (perfect) project organisational structure

This structure, based on the classic organisation design, except that the departments are project-
based, is very useful when an organisation is involved in multiple projects. Project managers
have full authority over their projects and all resources for any project are under the control of
the project manager. This eliminates the need for departmental authority and prevents any
conflicts associated with reporting to two bosses. The lines of communication are a lot faster and
centralised responsibility results in better customer care and faster response to problems.
The True (perfect) Project Organisational Structure

General
Manager - Projects

Civil Structural
manager manager

Civil site Structural site

manager manager

The Design Phase

In this module only the scope design aspects of the design phase will be discussed; the
remainder of the design phase will be dealt with in Module 2. The implementation and
commission phases will be explained in Module 3.

During the design phase the scope is further refined from the project charter, the design is
completed for the product or service, detailed schedules are developed, a work breakdown
structure (WBS) is created , tasks are defined and a network diagram is completed to show the
logical relationships between tasks. The critical path method (CPM) is used to indicate the earliest
possible finishing time. Resources are allocated and budgets are also completed. Where
applicable, tenders are also collected during the design phase.
 Consider a project you need to undertake at work. Assume the role of a key

? customer for the project and answer the following questions in order to
define the scope of the project.
Activity

Project name: Customer name: ___

Describe what the end result should look like.

1. What specifications or standards should apply to the end result?

2. What situation has given rise to the requirement for the project?

3. What is actually happening and what would you like to happen? (What is the gap
between expectation and reality?)
4. What will be the benefit to the organisation once the product is delivered or
the process formulated?

5. Who else will be affected by this project in some way? (Who are the
stakeholders?) What does each of them want to see?

6. Do you have the ultimate authority to approve this project and the resources
it requires? Who else needs to be consulted or informed? Whose support do
you need to make it happen?

7. What will happen to the product/process once it is delivered? What will you
do with it?
Scope of the Project
The scope of a project defines the end products, processes or outputs of a project, as well as the
standards and criteria that will apply to them, and the work required to produce them. As well as
the definition of deliverables, objectives and constraints, scope management involves the initial
justification for the project and project start-up. The project scope forms the foundation of the
project plan and the basis from which related plans are developed and integrated. The key
activities of scope management include:

Managing project authorization:

This includes an analysis of needs in consultation with the client and stakeholders, to provide
justification for the project. Project authorisation is obtained as the basis for future project
management activities and the commitment of resources and effort, including the appointment of
a project manager.

Defining the project scope:

Scope definition involves sub-dividing the major project deliverables (as identified in the scope
statement) into smaller, more manageable components in order to improve the accuracy of cost,
time and resource estimates. Proper scope definition is critical to project success. Scope
definition identifies exactly what is required to complete a project. When scope definition is poor,
final project costs are frequently higher than expected because the inevitable changes disrupt
project rhythm, increase project duration and lower the productivity and morale of the workforce.

Scope management planning:

The defined project objectives, deliverables, constraints and principal work activities form the
basis for agreement between the project team and the client.
Measurable project benefits and outcomes must be determined to enable evaluation of project
performance e.g. reduced costs, increased output of items per unit time, reduced wastage, actual
revenue or profits, or increased market share. Scope management strategies and plans
developed and agreed upon must be effectively communicated.

A scope statement template and a detailed scope planning template are included. These can be
used to document the output from the project scope planning stage.
Scope Statement Template

General information
For:
Author:
Owner:
Client:
Project Manager:
Revision Number:
Approved by:
Created Date:

Distribution
Name Location

Planned start:
Planned finish:
Key contact name:
Background:

Objectives:

Responsibility of parties:

Deliverables:
Standards of acceptability:
Detailed Scope Planning Template
1. PROJECT BACKGROUND/CURRENT ENVIRONMENT

In this section include the following topics:

• Historic perspective of work effort;
• References to pertinent people, places, events and documents;
• Identification of product uses; and
• Description of how product will be used to conduct business activities.
Describe the current environment using the following:
• Existing policies related to the project;
• Description of the enterprise;
• Current system profile; and
• Current infrastructure of the business.
2. BUSINESS OBJECTIVE

Define the business driver behind the proposed work effort.

For example:
• Business opportunity for customer; or
• Business problems that can be resolved.
3. PRODUCT/SERVICE DESCRIPTION
A brief summary of the product or service being requested
4. PROJECT SCOPE
Defines the:
Boundaries (what is included and what is excluded from the project) of
business functions (encompassed by the scope).
4.1 Included in the project
(Identify items that will be included in the project. For example, business functions or processes
that will be addressed.)

4.2 Excluded from the project

(Identify items that will not be addressed during the course of the project.)

4.3 Key Deliverables/Expected Outcomes

(A list of the sub-products whose full and satisfactory delivery marks completion of the project.)
4.4 Context Analysis
Context analysis consists of defining the environment within which a process operates. Briefly
describe the following:
• The process "as is";
• Assessment of the process output/condition;
• Business or information system gaps associated with the current condition;
• The process or information system improvements needed; and
• Include a context diagram.
The structure of a context diagram is relatively simple. It shows a single process as a rectangle
(representing the boundaries of the system), with arrows indicating inputs, outputs, controls
and enablers.
5. PROJECT PARAMETERS
5.1 Constraints
Constraints are limiting factors which could influence the way the assignment is undertaken.
They may alter recommendations and may even affect the quality of the deliverable; thus, they
must be specified up-front. The following factors are typically included in a list of constraints:
• Time scale (the assignment must be completed by a specified date);
• Effort (the job must be accomplished within a budget of workdays; the specification may
include a proportion of available time, such as three days per week);
• Budget (the amount of money allocated for the activity);
• People (the category of staff or specific individuals);
• Equipment (accessibility limitations may also be specified); and
• Environment (facilities available during the work effort; may also include such items as the
extent to which change can be recommended).
5.2 Assumptions
(At the beginning of a project, not all relevant facts are apparent; any assumptions must be
clearly stated.)
5.3 Detailed Issues/Risks Analysis (refer to project charter)
Risk Assessment Checklist:
The checklist that follows is categorised by type of risk. Actions are suggested for each
risk.

Risks Associated with the Project Team

Inexperienced Project Leader
• Avoid assigning such a person to large or high risk projects; and
• Have management monitor plans and progress.
Large Project Team
• Hold frequent team meetings; and
• Partition work to minimise interdependence.
Inexperienced Project Team
• Assign more experienced staff; and
• Hold frequent task "walkthroughs".
Project Team Members come from Multiple Departments
• Move project team members to one locale; and
• Have them report to the entity responsible for the project.
Project Team Members are not engaged full-time in the Project
• Gain a full understanding of other commitments and schedules;
• Track progress carefully; and
• Estimate additional time for part-time project team members.
High Probability of Loss of Project Team Members
• Determine the likelihood and timing, and estimate the time needed to
accommodate the change.
High Probability of Billing Rate Increases
• Add a management reserve amount to allow for estimated rate increases across
the life of the project.

Risks Arising from Relationships with Other Organisations

Low Confidence in Project Development Organisation
• Assign project managers skilled at dealing with other organisations;
• Assign competent project team members; and
• Hold frequent reviews for user management.
Users Feel Threatened by the Product
• Schedule sessions with users to discuss the impact and explain the benefits of
the product; and
• Ensure work plans contain an adequate amount of time for user training.
Users’ Time Availability does not Match Required Commitment
• Work to increase their time; or
• Defer the project until the appropriate commitment is made.
Multiple Organisations will use the Product
• If the project size warrants it, organise a stakeholder committee that meets
periodically to discuss needs, priorities, progress and funding.
Client Project Manager is not engaged full-time
• Arrange frequent meetings with the client project manager;
• Set milestones; and
• Focus communications on key management issues.

Risks Associated with the Business Environment

Highly Volatile Business Area
• Divide the project into sub-projects or stages to provide flexibility;
• Design the product to accommodate change;
• Build into the budget a significant allowance for change; and
• Establish and adhere to a procedure for managing change.
Users are Unsure of their Needs
• Communicate your understanding of the current business environment,
deficiencies and proposed changes to the user and ask for verification;
• Conduct "walkthroughs" of the functional specifications and the users' manual
with the users; and
• Develop and use prototypes to verify user needs.
Development of a Product within a Tight Deadline
• Determine whether there are interim alternatives that could be used to extend
the deadline;
• Provide the product in stages to minimise the risk of last-minute changes; and
• Provide a fallback plan if the deadline cannot be met.
High Probability of Staff/Management Changes
• Determine the likelihood and timing, and estimate the time needed to
accommodate the change.
Significant Business Procedural Changes necessitated by Product
• Ensure business venture manager has adequately estimated the business
process change management plan.
Trade Restrictions, Language Barriers, Political and Time Differences related
to International Projects
• Work with business venture manager to address concerns; and
• Plan meetings carefully (e.g. alternate meeting times).

Risks Associated with the Product

Complex Product
• Divide the product into smaller units for design and development;
• Allow sufficient time in the project plans to review the design and test the
product, both when divided into small units and as a whole; and
• Staff the project team with experienced personnel.
Product is in a new Business Area
• Budget extra time for the project team to become familiar with the business;
and
• Expect increased user involvement in project definition and design stages.
Technical Environment is Complex
• Review project team recommendations in a "walkthrough" with technical
experts; and
• Assign a full-time, experienced person to the project to co-ordinate technical
decisions.
New Technology will be Used
• Emphasise performance and acceptance criteria;
• Benchmark test the system;
• Add extra time to the project plan for the project team to become familiar with
the technology;
• Build a prototype to gain familiarity with the technology; and
• Develop a backup plan with alternatives if the new technology fails.
Project Team has Little Experience with the Technology to be Used
• Add personnel experienced with the technology to the project team;
• Use consultants as appropriate; and
• Add time to the project plan for the project team to gain familiarity with the
technology.
 Risks Associated with Vendor Development
Vendors Will Develop All or Part of the Product
• Ensure that the project development organisation will have managerial control of
the work effort;
• Establish a schedule with pre-set objectives, milestones and reviews;
• Assess vendor's internal project management capability and supplement as
needed;
• Review products thoroughly and have the vendor correct any problems before
proceeding; and
• Allow ample time for negotiating favourable contract terms. Include terms in the
contract for penalties or cancellation for inadequate performance and incentives
for exemplary performance.

General Risks
Long Project (over six months to planned completion)
• Deliver the product in stages; and
• Increase the number of team members.
Implementation will Occur at a Busy Time for the Users
• Re-schedule the implementation to a more convenient time; and
• Have additional staff assigned to the user group to accommodate increased work
during project development and training.
Development of the Planned Product will Require other Business Functions to
be Changed
• Contact support personnel responsible for the affected business functions as
early as possible to plan and implement the required changes;
• Contact affected business organisations and obtain their commitment; and
• Ensure that all parties have the same understanding of commitments and
deadlines.
5.4 Critical Success Factors
(Critical success factors are quantifiable criteria that must be met for the project to be
considered successful.)

Defining the Scope Boundaries of the Project

The project scope boundaries can be clearly defined boundaries using:
• Work Breakdown Structure: relating to products and work activities;

• Product Breakdown Structure: relating to products, sub-products, assemblies and

components;

• Process Breakdown Structure: relating to interrelated processes;

• Cost Breakdown Structure: relating to budgets and costs; or

• Organisational Breakdown Structure: relating to resource types, skills types and

activities.
Glossary

Accountability Matrix See responsibility assignment matrix

Activity An element of work performed during the course of a project

Activity Definition Identifies the specific activities that must be performed in order to produce
the various project deliverables

Activity Description (AD) A short phrase or label used in a project network diagram

Activity Duration Estimating Estimating the number of work periods which will be needed to
complete individual activities

Activity-on-Arrow (AOA) See arrow diagramming method

Activity-on-Node (AON) See precedence diagramming method

Actual Cost of Work Performed (ACWP) Total costs incurred (direct and indirect) in
accomplishing work during a given time period (See also earned value)

Actual Finish Date (AF) Date that work actually ended on an activity

Actual Start Date (AS) Date that work actually started on an activity

Administrative Closure Generating, gathering and disseminating information to formalise

project completion

Application Area A category of projects that have common elements not present in all projects

Arrow The graphic representation of an activity (See also arrow diagramming method)

Arrow Diagramming Method (ADM) A diagramming technique in which activities are

represented by arrows
As-of-Date See data date

Backward Pass The calculation of late finish dates and late start dates for the uncompleted
portions of all network activities

Bar Chart A graphic display of schedule-related information

Baseline The original plan (for a project, a work package or an activity) plus or minus approved
changes

Baseline Finish Date See scheduled finish date

Baseline Start Date See scheduled start date

Budget at Completion (BAC) The estimated total cost of the project when done

Budget Estimate See estimate

Budgeted Cost of Work Performed (BCWP) The sum of the approved cost estimates
(including any overhead allocation) for activities or portions of activities completed during a given
period, usually project-to-date (See also earned value)

Budgeted Cost of Work Scheduled (BCWS) The sum of the approved cost estimates
(including any overhead allocation) for activities or portions of activities scheduled to be
performed during a given period, usually project-to-date (See also earned value)

Calendar Unit The smallest unit of time used in scheduling the project

Change Control Board (CCB) A formally constituted group of stakeholders responsible for
approving or rejecting changes to the project baselines

Change in Scope See scope change

Chart of Accounts Any numbering system used to monitor project costs by category e.g.
labour, supplies, materials
Charter See project charter

Code of Accounts Any numbering system used to uniquely identify each element of the work
breakdown structure (See also chart of accounts)

Communications Planning Determining the information and communications needs of the

project stakeholders

Concurrent Engineering An approach to project staffing that, in its most general form, calls
for implementers to be involved in the design phase; sometimes confused with fast tracking

Contingencies See contingency planning and reserve

Contingency Allowance See reserve

Contingency Planning The development of a management plan that identifies alternative

strategies to be used to ensure project success if specified risk events occur

Contingency Reserve A separately planned quantity used to allow for future situations which
may be planned for only in part, sometimes called “known unknowns”

Contract A contract is a mutually binding agreement which obliges the seller to provide the
specified product and obliges the buyer to pay for it. Contracts generally fall into one of three
broad categories:

• Fixed price or lump sum contracts involve a fixed total price for a well-defined product. Fixed
price contracts may also include incentives for meeting or exceeding selected project
objectives such as schedule targets.
• Cost reimbursable contracts involve payment (reimbursement) to the contractor for actual
costs. Costs are usually classified as direct costs (costs incurred directly by the project, such
as wages for members of the project team) and indirect costs (costs allocated to the project
as a cost of doing business, such as salaries for corporate executives). Indirect costs are
usually calculated as a percentage of direct costs. Cost reimbursable contracts often include
incentives for meeting or exceeding selected project objectives such as schedule targets or
total cost.
• Unit price contracts – The contractor is paid a preset amount per unit of service and the total
value of the contract is a function of the number of units needed to complete the work.

Contract Administration Managing the relationship with the seller

Contract Close-Out Completion and settlement of the contract, including resolution of all
outstanding items

Control The process of comparing actual performance with planned performance, analysing
variances, evaluating possible alternatives and taking appropriate corrective action as needed

Control Charts Control charts are a graphic display of the results of a process, over time and
against established control limits, to determine if the process is “in control” or in need of
adjustment

Corrective Action Changes made to bring expected future performance of the project into line
with the plan

Cost Budgeting Allocating cost estimates to individual project components

Cost Control Controlling changes to the project budget

Cost Estimating Estimating the cost of the resources needed to complete project activities

Cost of Quality The costs incurred to ensure quality, including quality planning, quality control,
quality assurance and rework

Cost Performance Index (CPI) The ratio of budgeted costs to actual costs (BCWP/ACWP)

Cost Plus Fixed Fee Contract (CPFF) A type of contract where the buyer pays a fixed fee and
reimburses the seller for the seller’s allowable costs as defined by the contract

Cost Plus Incentive Fee Contract (CPIF) A type of contract where the buyer reimburses the
seller for the seller’s allowable costs as defined by the contract, and the seller earns profits if
defined performance criteria are met
Cost Variance (CV) (1) Any difference between the estimated cost of an activity and the actual
costs of that activity (2) In earned value: BCWP less ACWP

Crashing Taking action to decrease the total project duration after analysing a number of
alternatives to determine the maximum duration compression for the lowest cost

Critical Activity Any activity on a critical path, most commonly determined by the critical path
method

Critical Path In a project network diagram, the series of activities which determines the earliest
completion of the project

Critical Path Method (CPM) A network analysis technique used to predict project duration by
analysing which sequence of activities (which path) has the least amount of scheduling flexibility
(the least amount of float)

Current Finish Date The current estimate of the date when an activity will be completed

Current Start Date The current estimate of the date when an activity will begin

Customer Individual or organisation requiring the end result of the project

Data Date (DD) The date that separates actual (historical) data from future (scheduled) data;
also called as-of-date

Definitive Estimate See estimate

Deliverable Any measurable, tangible, verifiable outcome, result or item that must be produced
to complete a project or part of a project

Dependency See logical relationship

Dummy Activity An activity of zero duration used to show a logical relationship in the arrow
diagramming method
Duration (DU) The number of work periods (not including holidays or other non-working
periods) required to complete an activity or other project element

Duration Compression Shortening the project schedule without reducing the project scope

Early Finish Date (EF) In the critical path method, the earliest possible date on which the
uncompleted portions of an activity (or the project) can be completed, based on the network
logic and any schedule constraints

Early Start Date (ES) In the critical path method, the earliest possible date on which the
uncompleted portions of an activity (or the project) can begin, based on the network logic and
any schedule constraints

Earned Value (EV) (1) A method for measuring project performance (2) The budgeted cost of
work performed for an activity or group of activities

Earned Value Analysis See definition (1) under earned value

Effort The number of labour units required to complete an activity or other project element

Estimate An assessment of the likely quantitative result

Estimate at Completion (EAC) The expected total cost of an activity, a group of activities or of
the project when the defined scope of work has been completed

Estimate to Complete (ETC) The expected additional cost needed to complete an activity, a
group of activities or the project

Event-on-Node A network diagramming technique in which events are represented by boxes

(or nodes) connected by arrows to show the sequence in which the events occur

Exception Report Document that includes only major variations from plan, rather than all
variations

Expected Monetary Value The product of the probability of occurrence of an event and the
gain or loss that will result
Fast Tracking Compressing the project schedule by overlapping activities that would normally
be done in sequence, such as design and construction

Finish Date A date associated with completion of an activity

Finish-to-Finish (FF) See logical relationship

Finish-to-Start (FS) See logical relationship

Firm Fixed Price Contract (FFP) A type of contract where the buyer pays the seller a set
amount (as defined by the contract) regardless of the seller’s costs

Fixed Price Contract See firm fixed price contract

Fixed Price Incentive Fee Contract (FPIF) A type of contract where the buyer pays the seller
a set amount (as defined by the contract) and the seller can earn an additional amount if defined
performance criteria are met

Float The amount of time that an activity may be delayed from its early start without delaying
the project finish date

Forecast Final Cost See estimate at completion

Forward Pass The calculation of the early start and early finish dates for the uncompleted
portions of all network activities (See also network analysis and backward pass)

Fragnet See subnet

Free Float (FF) The amount of time an activity can be delayed without delaying the early start
of any immediately following activities (See also float)

Functional Manager A manager responsible for activities in a specialised department or

function
Functional Organisation An organisation structure in which staff are grouped hierarchically by
specialisation

Gantt Chart See bar chart

Grade A category or rank used to distinguish items that have the same functional use but do not
share the same requirements for quality

Graphical Evaluation and Review Technique (GERT) A network analysis technique that
allows for conditional and probabilistic treatment of logical relationships

Hammock An aggregate or summary activity (a group of related activities is shown as one and
reported at a summary level)

Hanger An unintended break in a network path

Information Distribution Making needed information available to project stakeholders in a

timely manner

Initiation Committing the organisation to begin a project phase

Integrated Cost/Schedule Reporting See earned value

Invitation for Bid (IFB) Generally, this term is equivalent to request for proposal

Key Event Schedule See master schedule

Lag A modification of a logical relationship which directs a delay in the successor task

Late Finish Date (LF) In the critical path method, the latest possible date that an activity may
be completed without delaying a specified milestone, usually the project finish date

Late Start Date (LS) In the critical path method, the latest possible date that an activity may
begin without delaying a specified milestone, usually the project finish date

Lead A modification of a logical relationship which allows an acceleration of the successor task
Level of Effort (LOE) Support-type activity (e.g. vendor or customer liaison) that does not
readily lend itself to measurement of discrete accomplishment

Levelling See resource levelling

Life-Cycle Costing The concept of including acquisition, operating and disposal costs when
evaluating various alternatives

Line Manager (1) The manager of any group that actually makes a product or performs a
service (2) A functional manager

Link See logical relationship

Logic See network logic

Logic Diagram See project network diagram

Logical Relationship A dependency between two project activities or between a project activity
and a milestone:
• Finish-to-start: “from” activity must finish before “to” activity can start
• Finish-to-finish: “from” activity must finish before “to” activity can finish
• Start-to-start: “from” activity must start before “to” activity can start
• Start-to-finish: “from” activity must start before “to” activity can finish

Loop A network path that passes the same node twice

Management Reserve A separately planned quantity used to allow for future situations which
are impossible to predict, sometimes called “unknown unknowns”

Master Schedule A summary-level schedule which identifies the major activities and key
milestones (See also milestone schedule)

Mathematical Analysis See network analysis

Matrix Organisation Any organisational structure in which the project manager shares
responsibility with the functional managers for assigning priorities and directing the work of
individuals assigned to a project

Milestone A significant event in the project, usually completion of a major deliverable

Milestone Schedule A summary-level schedule which identifies the major milestones (See also
master schedule)

Mitigation Taking steps to lessen risk by lowering the probability of a risk event occurring or
reducing its effect should it occur

Modern Project Management (MPM) A term used to distinguish current broad range project
management (scope, cost, time, quality, risk) from the narrower, traditional concept of project
management that focused on cost and time

Monitoring The capture, analysis and reporting of project performance, usually as compared to
plan

Monte Carlo Analysis A schedule risk assessment technique that performs a project simulation
many times in order to calculate a distribution of likely results

Near-Critical Activity An activity that has low total float

Network See project network diagram

Network Analysis The process of identifying early and late start and finish dates for the
uncompleted portions of project activities

Network Logic The collection of activity dependencies that make up a project network diagram

Network Path Any continuous series of connected activities in a project network diagram

Node One of the defining points of a network, a junction point joined to some or all of the other
dependency lines
Order of Magnitude Estimate See estimate

Organisational Breakdown Structure (OBS) A depiction of the project organisation arranged

so as to relate work packages to organisational units

Organisational Planning Identifying, documenting and assigning project roles, responsibilities

and reporting relationships

Overall Change Control Coordinating changes across the entire project

Overlap See lead

Parametric Estimating An estimating technique that uses a statistical relationship between

historical data and other variables

Pareto Diagram A histogram, ordered by frequency of occurrence, that shows how many
results were generated by each identified cause

Path A set of sequentially connected activities in a project network diagram

Path Convergence In mathematical analysis, the tendency of parallel paths of approximately

equal duration to delay the completion of the milestone where they meet

Path Float See float

Percent Complete (PC) An estimate, expressed as a percentage, of the amount of work which
has been completed on an activity or group of activities

Performance Reporting Collecting and disseminating information about project performance to

help ensure project progress

Performance Organisation The enterprise whose employees are most directly involved in
doing the work of the project

PERT Chart A specific type of project network diagram. See Programme Evaluation and Review
Technique
Phase See project phase

Planned Finish Date (PF) See scheduled finish date

Planned Start Date (PS) See scheduled start date

Precedence Diagramming Method (PDM) A network diagramming technique in which

activities are represented by boxes or nodes

Precedence Relationship The term used in the precedence diagramming method for a logical
relationship

Predecessor Activity (1) In the arrow diagramming method, the activity which enters a node
(2) In the precedence diagramming method, the “from” activity

Procurement Planning Determining what to procure and when

Programme A group of related projects managed in a coordinated way

Programme Evaluation and Review Technique (PERT) An event-oriented network analysis

technique used to estimate project duration when there is a high degree of uncertainty with the
individual activity duration estimation

Project A temporary endeavour undertaken to create a unique product or service

Project Charter A document issued by senior management that provides the project manager
with the authority to apply organisational resources to project activities

Project Communications Management A subset of project management that includes the

processes required to ensure proper collection and dissemination of project information

Project Cost Management A subset of project management that includes the processes
required to ensure that the project is completed within the approved budget
Project Human Resource Management A subset of project management that includes the
processes required to make the most effective use of the people involved with the project

Project Integration Management A subset of project management that includes the

processes required to ensure that the various elements of the project are properly coordinated

Project Life Cycle A collection of generally sequential project phases whose name and number
are determined by the control needs of the organisation or organisations involved in the project

Project Management (PM) The application of knowledge, skill, tools and techniques to project
activities in order to meet or exceed stakeholder needs and expectations from a project

Project Management Body of Knowledge (PMBOK) An inclusive term that describes the sum
of knowledge within the profession of project management

Project Management Professional (PMP) An individual certified as such by the Project

Management Institute

Project Management Software A class of computer applications specifically designed to aid

with planning and controlling project costs and schedules

Project Management Team The members of the project team who are directly involved in
project management activities

Project Manager (PM) The individual responsible for managing a project

Project Network Diagram Any schematic display of the logical relationships between project
activities

Project Phase A collection of logically related project activities, usually culminating in the
completion of a major deliverable

Project Plan A formal, approved document used to guide both project execution and project
control
Project Plan Development Taking the results of other planning processes and putting them
into a consistent coherent document

Project Plan Execution Carrying out the project plan by performing the activities included
therein

Project Planning The development and maintenance of the project plan

Project Procurement Management A subset of project management that includes the

processes required to acquire goods and services from outside the performing organisation

Project Quality Management A subset of project management that includes the processes
required to ensure that the project will satisfy the needs for which it was undertaken

Project Risk Management A subset of project management that includes the processes
concerned with identifying, analysing and responding to project risk

Project Schedule The planned dates for performing activities and the planned dates for
meeting milestones

Project Scope Management A subset of project management that includes the processes
required to ensure that the project includes all of the work required, and only the work required,
to complete the project successfully

Project Team Members The people who report either directly or indirectly to the project
manager

Project Time Management A subset of project management that includes the processes
required to ensure timely completion of the project

Quality Assurance (QA) (1) The process of evaluating overall project performance on a regular
basis to provide confidence that the project will satisfy the relevant quality standards (2) The
organisational unit that is assigned responsibility for quality assurance
Quality Control (QC) (1) The process of monitoring specific project results to determine if they
comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory
performance (2) The organisational unit that is assigned responsibility for quality control

Quality Planning Identifying which quality standards are relevant to the project and
determining how to satisfy them

Remaining Duration (RDU) The time needed to complete an activity

Request for Proposal (RFP) A type of bid document used to solicit proposals from prospective
sellers of products or services

Request for Quotation (RFQ) Generally, this term is equivalent to request for proposal

Reserve A provision in the project plan to mitigate cost and/or schedule risk

Resource Levelling Any form of network analysis in which scheduling decisions (start and finish
dates) are driven by resource management concerns

Resource-Limited Schedule A project schedule whose start and finish dates reflect expected
resource availability

Resource Planning Determining what resources (people, equipment, material) are needed in
what quantities to perform project activities

Responsibility Assignment Matrix (RAM) A structure which relates the project organisation
structure to the work breakdown structure to help ensure that each element of the project’s
scope of work is assigned to a responsible individual

Responsibility Chart See responsibility assignment matrix

Responsibility Matrix See responsibility assignment matrix

Retained Portion A portion of a contract payment that is held until contract completion in order
to ensure full compliance with the contract terms
Risk Event A discrete occurrence that may affect the project for better or worse

Risk Identification Determining which risk events are likely to affect the project

Risk Quantification Evaluating the probability of a risk event and its effect

Risk Response Control Responding to changes in risk over the course of the project

Risk Response Development Defining enhancement steps for opportunities and mitigation
steps for threats

S-Curve Graphic display of cumulative costs (labour, hours or other quantities) plotted against
time

Schedule See project schedule

Schedule Analysis See network analysis

Schedule Compression See duration compression

Schedule Control Controlling changes to the project schedule

Schedule Development Analysing activity sequences, activity durations and resource

requirements to create the project schedule

Schedule Performance Index (SPI) The ratio (BCWP/BCWS) of work performed to work
scheduled (See earned value)

Schedule Variance (SV) (1) Any difference between the scheduled completion of an activity
and the actual completion of that activity (2) In earned value, BCWP less BCWS

Scheduled Finish Date (SF) The date work was scheduled to finish on an activity

Scheduled Start Date (SS) The date work was scheduled to start on an activity

Scope The sum of the products and services to be provided as a project

Scope Baseline See baseline

Scope Change Any change to the project scope

Scope Change Control Controlling changes to project scope

Scope Definition Involves dividing the major deliverables into smaller, more manageable
components to improve estimate accuracies (cost, time and resources)

Scope Planning Developing a written scope statement that includes the project justification, the
major deliverables and the project objectives

Scope Verification Ensuring that all identified project deliverables have been completed
satisfactorily

Should-Cost Estimates An estimate of the cost of a product or service; used to assess a

prospective contractor’s proposed cost

Slack Term used in programme evaluation and review technique (PERT) for float

Solicitation Obtaining quotations, bids, offers or proposals as appropriate

Solicitation Planning Documenting product requirements and identifying potential sources

Source Selection Choosing from among potential contractors

Sponsor Provides funding for a project (shareholder)

Staff Acquisition Getting the required human resources assigned to and working on the project

Stakeholder Individuals and organisations involved in or affected by project activities

Start Date Associated with the beginning of an activity, usually qualified by one of the following:
actual, planned, estimated, scheduled, early, late, target, baseline or current
Start-to-Finish See logical relationship

Start-to-Start See logical relationship

Statement of Work (SOW) A narrative description of products or services to be supplied under

contract

Subnet A subdivision of a project network diagram usually representing some form of sub-
project

Sub-network See subnet

Successor Activity (1) In the arrow diagramming method, the activity which departs a node (2)
In the precedence diagramming method, the “to” activity

Target Completion Date (TC) An imposed date which constrains or otherwise modifies the
network analysis

Target schedule See baseline

Task See activity

Team Development Developing individual and group skills to enhance project performance

Team Members See project team members

Time-Scaled Network Diagram Any project network diagram drawn in such a way that the
positioning and length of the activity represents its duration

Target Finish Date (TF) The date work is planned (targeted) to finish on an activity

Target Start Date (TS) The date work is planned (targeted) to start on an activity

Total Float (TF) See float

Total Quality Management (TQM) A common approach to implementing a quality
improvement programme within an organisation

Workaround A response to a negative risk event

Work Breakdown Structure (WBS) A deliverable-oriented grouping of project elements which

organises and defines the total scope of the project

Work Item See activity

Work Package A deliverable at the lowest level of the work breakdown structure; a work
package may be divided into activities