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Module 4 - IDP.pptx
- 1. Project Scope Management - A knowledge area in PM
- 2. Recap - PIM Process Project Phase Key Deliverables Develop Project Charter Initiating Project Charter Develop Project Management Plan Planning Project Management Plan Direct and Manage Project Execution Execution Deliverables Monitor and Control Project Work Monitoring and Control Change Requests Perform Integrated Change Control Monitoring and Control Change Requests status updates Close Project or Phase Closure Final product
- 3. Why Do We Manage Scope? Can’t manage schedule and budget if scope is out of control (Triple Constraint) Scope docs are used to manage expectations TIME COST SCOPE Quality
- 4. Project Scope Management - PSM PSM is primarily concerned with controlling what is and what is not in the scope. PSM Overview Scope Management Processes Selecting the Project Weighted Scoring Model Project Charters Work Breakdown Structures(WBS) Approaches for developing WBSs
- 5. PSM -Scope Management Processes The knowledge area of PSM consists of the following processes , Process Project Phases Key Deliverables Plan Scope Management Planning -- Collect Requirements Planning Requirements document Define Scope planning project scope statement Create WBS planning WBS, WBS dictionary Validate Scope Monitoring and Controlling Acceptance deliverables Control Scope Monitoring and Controlling Change Requests
- 6. Selecting the Project Project Portfolio Management is the process of project selection. It involves making a decision about which project an organization should execute. There are two types of project selection methods. They are Benefits Measurement Method for Project Selection (Comparative Approach) Constrained Optimization Method for Project Selection (Mathematical Approach)
- 7. Benefits Measurement Project Selection (Comparative Approach) Benefits Measurement project selection methods involve comparing the values of one project against another. There are the following type of Benefit Measurement project selection techniques , Murder Boards Scoring Models Benefits Cost Ratio Payback period Discounted Cash Flow Internal Rate of Return (IRR)
- 8. Benefits Measurement Project Selection Murder Boards - This involves a committee asking tough questions from each project. Scoring Models - Different projects are given scores based on certain defined criteria. Project with higher score is selected. Benefits Cost Ratio - This technique involves computing benefits to cost ratio (BCR) for a project. Project with higher BCR is selected.
- 9. Benefits Measurement Project Selection Payback period - This technique involves considering how long it takes back to "pay back" the cost of the project. Inflation or interest earned in not considered in this technique. A project with lower pay back period is better. Discounted Cash Flow - This technique takes into account the interest earned on the money. The Future Value (FV) of projects is compared. FV=PV(1+i)n PV is the present value of the project. A project with higher present value is better. Internal Rate of Return (IRR) - A project that has higher IRR is better, as it is giving higher return on money.
- 10. Constrained Optimization Project Selection (Mathematical Approach) Constrained Optimization Project selection methods are used for large projects. These are techniques based on mathematical models. The Constrained Optimization techniques are - Linear Programming Non-Linear Programming Integer Algorithm Dynamic Programming Multi-objective Programming
- 11. How Do We Manage Scope? Five processes Collect Requirements Define Scope Create WBS Verify Scope Control Scope Collect Requirements Define Scope Create WBS Verify Scope Control Scope
- 12. Collect Requirements Project Charter Interviews Focus groups Facilitated workshops Group creativity techniques Group decision making techniques Questionnaires and surveys Observations Prototypes Inputs Outputs Tools & Techniques Requirements docs Stakeholder Register Collect Requirements Define Scope Create WBS Verify Scope Control Scope Requirements mgmt plan Requirements traceability matrix
- 13. Collect Requirements Determine product of the project requirements Make sure all requirements support the business need of the project as described in the charter
- 14. Define Scope Organizational Process Assets Project Charter Expert judgement Product analysis Alternatives identification Facilitated workshops Inputs Tools & Techniques Project Document Updates Outputs Project Scope Statement Collect Requirements Define Scope Create WBS Verify Scope Control Scope Requirements documentation
- 15. Project Scope Statement Product scope description Product acceptance criteria Project deliverables Project exclusions Project constraints Project assumptions Remember the difference between product and project?
- 16. Weighted Scoring Model A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria. Used in portfolio management as a selection method that can be applied by a project selection committee. The following steps define the process for applying a weighted scoring model. The first three steps are to create the model at the organizational level and the last three steps are to apply the model to projects in the organization.
- 17. Weighted Scoring Model 1. Determine criteria that are important to the project selection process. 2. Assign weights to each criterion or group of criteria based on their importance to the organization. 3. Develop a scoring rubric for each criterion. 4. Apply the scoring rubric to assign raw scores for each criterion to each project. 5. Multiply the raw scores by the weights to get the weighted scores for each criterion on each project. 6. Add the weighted scores for each project.
- 18. Weighted Scoring Model Sample Weighted Scoring Sheet Project A Project B Criteria Weight Raw Score Weighted Score Raw Score Weighted Score Strategic 20 Future Potential 20 Financial 30 Experience 15 Resource Usage 15 TOTAL 100
- 19. Weighted Scoring Model -Sample Scoring Rubric Criterion Raw Scores Very Poor 1 Poor 2 Good 3 Very Good 4 Strategic Project aligns with <50% of strategies Project aligns with 50% to <65% of strategies Project aligns with 65% to 80% of strategies Project aligns with >80% of strategies Future Potential No future business foreseen Minor future opportunities are possible from project Future benefits are likely from project Future benefits are assured or project is required to remain viable Financial Cost savings or profits from project are <$100k Cost savings or profits from project are $100k to <$500k Cost savings or profits from project are $500k to $1M Cost savings or profits from project are >$1M Experience Little improvement in existing skills Improvement in existing skills Some new skills gained Improvement in existing skills and new skills gained Resource Usage Project will drain many resources from other projects Project will drain few resources from other projects Project will be completed with available resources Project will use currently underutilized resources
- 20. Sample Weighted Scoring Model for Project Selection
- 21. Work Breakdown Structures - WBS Every one of us have some goal and we plan accordingly to achieve them. One of the effective ways to reach our goal quickly is to break down the larger goals in to realistic achievable steps. The WBS, as the name says, is the process or the technique of dividing complex and difficult projects into smaller units. This smaller units can be a data, product ,service and any combination. In other words, WBS is hierarchical decomposition of work that must be performed to achieve the objective. Graphical picture of work.
- 22. Rules followed in constructing a WBS 1. Two week rule – any broken down level of the above structure cannot be smaller than two weeks of work. 2. 8/80 rule for WBS - No task should be less than 8 hours or more than 80 hours. 3. There are many ways to represent the WBS such as Tree , Table and List, the tree type structure is mostly used and an efficient way of representation.
- 23. WBS Dictionary WBS Dictionary explains all the WBS components and also WBS is input to most of the planning processes. Specifically WBS is input to the following processes , Cost Estimating Cost Budgeting Scope control Activity Definition Plan Purchases and Acquisitions
- 24. Create WBS Project scope statement Requirements documentation Organizational process assets Decomposition Inputs Tools & Techniques Work Breakdown Structure (WBS) WBS Dictionary Outputs Scope Baseline Project Document Updates Collect Requirements Define Scope Create WBS Verify Scope Control Scope
- 25. Scope (definition) Project Management Processes – Eg for WBS (Initiation) Also to consider: Quality, Risk, Communication, Procurement, Integration (knowledge areas) Initiation Cost (estimates, …) WBS Time (activity diagrams, …) Human Resources (RACI matrix, …) Project Charter Project Management Plan WBS Estimating Network Diagrams Staffing Risk
- 26. WBS in Tree Structure New Warehouse Design - 1 Construction - 2 Commissioning - 3 Structural - 1.1 Architectural – 1.2 Steel Package 1.1.1 Concrete Package 1.1.2 Floor Layout 1.2.1 Elevations 1.2.2 Door Schedule 1.2.3 Concrete Install – 2.1 Steel Install – 2.2 Drywall Install – 2.3 1st Floor Package 2.3.1 2nd Floor Package 2.3.2
- 27. WBS in Tabular Form
- 28. Approaches for WBS development Deliverable-Based: It defines project work in terms of the physical or functional components which make up the deliverable/product. Task Based: It defines the project work in terms of the actions to tasks which must be done to create the project deliverable. Time Based: It defines the project work in terms of time phases instead of tasks or deliverable. Cost Based: This approach defines project work in terms of cost but this is rarely used.
- 29. Methods for creating WBS Analogy Top-down Bottom-up Mind Mapping
- 30. Verify Scope Project Management Plan Requirements Documentation Requirements Traceability Matrix Inspection Inputs Tools & Techniques Accepted Deliverables Validated Deliverables Change Requests Outputs Project Document Updates Collect Requirements Define Scope Create WBS Verify Scope Control Scope
- 31. Control Scope Project Management Plan Work Performance Information Requirements Documentation Variance analysis Inputs Tools & Techniques Requirements Traceability Matrix Work Performance Measures Outputs Organizational Process Assets Organizational Process Assets Change Requests Project Management Plan Updates Project Document Updates Collect Requirements Define Scope Create WBS Verify Scope Control Scope
- 32. Scope Definitions Change Control System Documentation, tracking, and approvals required to change project scope. Configuration Management System Documentation, tracking, and approvals required to change product scope. Management by Objectives (MBO) Establish unambiguous and realistic objectives. Periodically evaluate if objectives are being met. Take corrective action.