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Project Management Level 2 Training Forces Fostering Project Management

• Expansion of knowledge: Solution to Problems
Day 1 • Product design integrated & inherent to 
1. Projects in Contemporary Organizations production & distribution systems to satisfy 
2. Project Proposals
j p demand for more complex & customized
demand for more complex & customized 
3. Projects Feasibility products & services
4. Project Charter
• Worldwide markets force: what, where, when, 
5. Project Scope
& how to produce & distribute output
A Special Presentation for 
NESPAK
28 June 2010

Emergence of Project Management Brief History of Project Management
• Project management practiced for thousands 
• Combination of all three forces of years: Egyptian epoch
• Mid‐1950's:  application of formal project 
– require use of teams to solve problems that used  management tools & techniques to complex 
to be solvable by individuals projects. 
• Henry Gantt is considered to be the forefather 
– greatly increases complexity of goods & services 
greatly increases complexity of goods & services p j g , p g
of project management, as his planning and 
organizing methods with the use of the bar 
produced; & complexity of processes used to  charts as a project management tool 
recognizes him as the foremost precursor for 
produce them  contemporary project management practices 
employed today.
• Thus need for more sophisticated systems to  • Modern project management methods had 
their origins in two parallel but different 
control both outcomes & processes problems of planning and control in projects in 
the United States. 

Polaris Missile  Project E.I du Pont de Nemours Company
• U.S Navy: control of contracts.  • Construction of major chemical plants in U.S. 
• Research, development work and manufacturing of parts that were 
unique and had never been previously undertaken. • Unlike the Navy Polaris project, these 
• Characterised by high uncertainty. Hence, completion times were  construction undertakings required accurate time 
based on probabilities.  & cost estimates. 
• Time estimates based on optimistic, pessimistic
p ,p and most likely. 3 
y
time scenarios mathematically assessed to determine the probable  • Methodology developed originally referred to as 
Methodology developed originally referred to as
completion date. This procedure was called program evaluation  project planning & scheduling (PPS); required 
review technique (PERT).  realistic estimates of cost & time, and thus more 
• Initially, the PERT did not consider cost; later included using the  definitive approach than PERT. 
same estimating approach as with time. 
• PERT was found (and still is) to be best suited for projects with a  • PPS later developed into critical path method 
high degree of uncertainty reflecting their level of uniqueness.  (CPM) that became very popular in construction 
industry.
• PERT & CPM increasingly popular in private and public 
sectors, in 60’s & 70’s
• Defence Departments in many countries, NASA, & large‐scale 
4 Periods in Development of 
engineering and construction companies world wide applied  Project Management
PM principles/tools to manage large budget projects
PM principles/tools to manage large budget projects.
• Computer Packages for PM developed in 70’s; costly
• 80’s; PCs & low cost PM software
• Manufacturing & software sectors adopted sophisticated 
project management practices as well
• 1990s; PM theories, tools & techniques widely received.
• PRINCE2 & PMI Models

Prior to 1958 1958‐1979
• Craft system to human relations. Evolution of technology,  • Application of Management Science. Significant technology 
such as, automobiles & telecommunications shortened  advancement, such as, Xerox. CPM & PERT introduced. 
the project schedule. For instance, automobiles allowed 
effective resource allocation & mobility, whilst the  Development of computer technology. Computers from 
telecommunication system increased the speed of  mainframe to the mini‐computer; Microsoft founded in 
communication.  1975. Project management software companies, including, 
• Furthermore, the job specification which later became  Artemis (1977), Oracle (1977), & Scitor
( ), ( ), Corporation (1979). 
p ( )
the basis of developing the Work Breakdown Structure 
(WBS) was widely used & Henry Gantt invented the 
Material Requirements Planning (MRP)
Gantt chart.  Examples:
Examples: – Polaris missile project ;that had the objective of delivering 


Pacific Railroad in 1850‘s
Construction of Hoover Dam in 1931‐1936; 5,200 workers, still one of 
nuclear missiles carried by submarines, known as Fleet Ballistic 
the highest gravity dams in the U.S. generating four billion kilowatt  Missile. Successfully launched its first Polaris missile in 1961; 
hours a year; & 
– The Manhattan Project in 1942‐1945; pioneer research & 
– Apollo project; sending man to the moon; & 
development project for producing the A‐bomb, 125,000 workers & 
costing nearly $2 billion.
– E.I du Pont de Nemours chemical plant project

1980‐1994 1995‐Present
• Production Centre Human Resources.  • Creating a New Environment. Internet provided fast, 
Revolutionary development in the information  interactive, & customized new medium that allows people 
management, PC & associated computer  to browse, purchase, & track products & services online 
communications networking facilities. Low cost  instantly. Firms more productive, more efficient & more 
PM software for PCs. client oriented; allows automatic uploading of data so that 
Examples: anyone around the globe with a standard browser can: 
y g
– England France Channel project, 1989 to1991.  • Input the most recent status of their assigned tasks; 
International project, involved two governments, several 
financial institutions, engineering construction  • find out how the overall project is doing; 
companies, & various organisations. Language, use of  • be informed of any delays or advances in the schedule; & 
standard metrics, & other communication differences 
needed to be closely coordinated;  • stay "in the loop" for their project role, while working 
– Space Shuttle Challenger project, 1983 to 1986. Disaster  independently at a remote site.
focused attention on risk management, group dynamics, 
& quality management
– xv Calgary Winter Olympic of 1988, successfully applied 
project management practices to event management.
Projects & Processes are often 
Program & Project
contrasted
• Sometimes achieving a certain organizational  • Process: day‐to‐day working of an organization
objective may not be possible through one 
project.
• Programs involve number of interrelated 
g • Project: used to describe activities outside the 
projects. d
day‐to‐day working of an organization
d ki f i i

• Example: • In fields such as Software, Construction, 
– Economic Development Programs Research; day‐to‐day working is often Projects
– Earthquake reconstruction of schools in Bakot

Managers in Projects Management Functions
• Line managers ‐ responsible for activities making direct contributions to
production of organization’s basic goods or services. Process of mgmt consists of 4 basic managerial 
• Staff managers ‐ use special technical expertise to advise & support the functions
efforts of line workers.
• Functional managers ‐ responsible for one area of activity, finance, • Planning
marketing, production, personnel, accounting, or sales.
• Gen mgrs ‐ responsible for complex organizational unit that ‐ many areas • Organizing
of functional activity
• An administrator ‐manager, who works in a public or non profit • Controlling
organization.
• Leading 
Project mgrs cannot perform their tasks well unless they have: 
Understanding of & are responsive to, 
many elements of external environment – economic, technological social, 
political & ethical factors that effect their areas of operations.

Planning Organizing
• Basic activity of mgt, Mgr at every level do planning
• Determined through Objectives of organization & establishment 
• Involves establishing intentional structure of 
of appropriate Strategies” for achieving them. roles for people to fill in organization
• Strategy provides‐ with direction, A sense of unity of purpose –
integrative blueprint for org
• Organizing involves turning plans into actions
• Strategy serves to obtain a match b/w external environment &  • After developing strategy, & plans to achieve 
Af d l i & l hi
internal capabilities.
the objective they need to develop an 
• intended to achieve a sustained competitive advantage over 
competitors. organization to accomplish objectives
• Planning Involves selecting “missions & objectives” & actions to 
achieve them.
Controlling Leading
• Measuring & correcting individual & organizational • Influencing people‐ so that they will contribute to 
performance to ensure that events conform to plans. organization & group goals 
• Predominantly, to do with interpersonal aspect of 
• 3 elements: managing 
– Establishing Standard of Performance • In project Most important problems arise form people 
In project Most important problems arise form people
– Info that indicates Deviation b/w actual vs established – their desires & attitudes, their behavior  as 
standards individuals & in groups
– Actions to Correct performance that doesn’t meet • Effective project mgrs also need to be effective leaders.
standards • Leadership implies follower‐ship & people tend to 
• Facilitates accomplishment of plans.  follow those who offer means of satisfying their own 
needs, wishes, & desires.

Planning
The Project Manager
• Setting performance 
objectives & deciding 
how to achieve them  • Management (Expertise, Tools, HRM, QM …)
• Conflicts
The  • Visibility
Organizing  Controlling 
• Arranging tasks, people, & 
other resources  to 
Management 
M t • Measuring performance 
& taking action to  
• Risks
accomplish the work
Process ensure desired results
• Teams
• Managing Stakeholders, Schedule, Budget, 
Plan
Leading 
• Inspiring people to  
work hard to achieve  
• Cross Functional management
high performance 

Changes in Managing Organizations Some Definitions
From To • A project is a sequence of unique, complex &
Industrial Society Information Society
Forced Technology High Technology
connected activities having one goal or
National Economy World Economy purpose & that must be completed by a
Sh t T
Short Term L
Long T
Term
Centralization Decentralization specific time, within budget, & according to
Institutional Help Self‐Help
specifications.
Representative Democracy Participatory Democracy
Hierarchies Networking
West East
Either/OR Multiple Option
What is a Project ? Project Management Consists Of

• Unique venture with beginning & end,  Work Products


Roles
conducted by people to meet established 
Guiding
goals within parameters of cost, schedule &  Who is responsible? Principles
What to deliver?
quality (Buchanan & Boddy
(Buchanan & Boddy 1992)

• Set of people & other resources temporarily 
assembled to reach specific objective,  Hints & Tips
Processes
1

normally with fixed budget & time period  2
Techniques
3

(Graham 1985) 7

How to produce? How to produce?

Project Characteristics Project Characteristics..
Unique Activities One Goal
• The project has never happened before & will never happen again 
under the same conditions. (Uncertainty & Risk) • Projects must have a single goal as compared to a 
program
Complex Activities
• Not simple, repetitive acts, such as mowing the lawn, running the  Specified Time
weekly payroll, washing the car, or loading the delivery truck. 
(Expertise Required) • Projects have a specified completion date
Connected Activities
Within Budget
• There is some order to the sequence in which the activities that 
make up the project must be completed. Connectedness follows 
from the fact  that the output from one activity is input to another.  • Projects also have resource limits (people, money, 
(Interdependencies) machines)

Project Characteristics... Project is ….
According to Specification • Organized work for a predefined goal
• Certain level of functionality & quality expected.   requiring resources & efforts, a unique (thus 
may be  self‐imposed or customer‐specified, & are  risky) venture having budget & schedule.
fixed for a given time
• Its success can be measured in terms of how 
Its success can be measured in terms of how
Require Efforts of people closely it comes to meeting goals within set 
parameters.
• Human Resource Management
• Once complete, it ceases.
Measures of Quality will apply
• Quality Management
Some Humor!!!!!
ACTIVITY 1
• Enthusiasm
• Disillusionment
• Panic Think about how you might identify 
• Search for the guilty
Search for the guilty whether or not a project is successful
whether or not a project is successful. 
• Punishing the innocent List those items that you would look at to 
• Praising those not involved determine a projects success.

DISCUSSION – ACTIIVTY 1 Quality in Projects


Asking these questions can reflect upon the success of a  • An aspect that will remain relevant 
project. throughout the project (and this course)
• Defining quality not easy, some perspectives 
• Did the project achieve its time, cost and quality  are:
objectives?
– Product Based View
• Does it meet the customers’ perceived requirements?
– User Based View
• Does its outcome make the client come back for further  – Manufacturing based view
business?
– Value Based View
• Has it completed leaving the project organization fit and 
able to continue further work? – Transcendent View

ACTIVITY 2 DISCUSSION – ACTIIVTY 2


• Product Based View: focuses on standard of 
From your personal experience, choose a  material used in the car
major item you have purchased and spend 5  • User Based View: depends on who the user is, 
and what he or she wants from the car. May 
minutes writing down an appreciation of its  range from utilitarian to exotic.
• Manufacturing Based View:
Manufacturing Based View: rate quality against 
rate quality against
quality from the different points of views on  given set of standards. A cheap, low specs car can 
be rated much higher than a costly, high specs 
previous slide. car
• Value Based View: combines users requirements 
• Our discussion: Motor Car, you can choose whatever you like with the price, or conformity to specs at an 
• Purpose: appreciate several perceptions of quality acceptable costs
• Transcendent View: something like a Rolls Royce, 
top of the line Mercedes Benz or a hand‐built 
luxury sports car.
Some Examples of Projects Triple Constraints

SCHEDULE
For analytical purposes, the time required
to produce a deliverable is estimated
• Constructing firm: construct  • A R&D Department in a  chemical  • Marketing group of a company:  using several techniques. One method is Scope are requirements specified to achieve
access roads & a group of small  firm may be asked to devote time  prepare the launch of new  to identify tasks needed to produce the the end result. The overall definition of what
industrial units on derelict road  to exploring possibilities of  product.  deliverables documented in a the project is supposed to accomplish, and
to generate jobs.  developing new products using a  • May involve marketing research,  work breakdown structure or WBS. a specific description of what the end result
• May involve surveying,  new polymer. planning & executing advertising  The work effort for each task is should be. A major component of scope is
demolition, clearing rubble, 
, g , p g , g
campaign, organizing g estimated & those estimates are the quality of the final product.
product
removing trees & shrubs,  promotional events & press 
rolled up into the final deliverable
leveling, laying out roads,  release & liaising with 
foundations, raising buildings. wholesalers & retail outlets. estimate.

Construction R&D Marketing

COST
QUALITY SCOPE
Costs include: resource costs, labor rates, material rates, risk management (i.e. cost contingency),
Earned value management, plant (buildings, machines, etc.), equipment, cost escalation, indirect costs,
and profit. The economic cost that must be considered; worker skill & productivity which is
calculated by variation to project cost estimates.

Project Initiation Product vs. Project Management
Identify Needs
• Project Manager focuses – Project Constraints
Establish Objectives & Constraints • Product Manager not willing to admit ‐
Production line will ever end.
Establish Scope
Undertake Studies Appoint
pp p
project
j Mgr
g • Product Manager wants product to be long
Product Manager wants product to be long‐lived
lived 
Generate Alternatives & profitable .
Approximate Estimating Identify Stakeholders • Even with less demand for product   Prod 
Establish Feasibility
Manager looks to keep Product alive.

Obtain Approvals Not Proceed -


End of project

Proceed

Getting the Olympic Flame, known as the went out. The caravan included: 50 cellular
Olympic Torch Relay, to the Salt Lake City, telephones; 60 pagers; 120 radios; 30 cars;
Utah, USA 2002 Olympic Games promised to 10 motorcycles; and clothing for 10,000
Project Management in Practice‐1 be no simple matter. Generally, the Torch
Relay has gotten longer and more complex
runners, 10,000 volunteers, as well as 2,500
escort runners.
with every Olympic event. This complexity is
driven by the realization of host‐country However, the torch relay is also a major
citizens that it is a rare opportunity to have marketing campaign, primarily for the
the Olympic torch pass through your relay's sponsors. Thus, accompanying the
hometown and the corresponding goal of Atlanta‐bound caravan were trucks
the Olympic Committee to touch as many hawking Olympic memorabilia: t‐shirts,
lives as possible in a positive way. sweatshirts, baseball caps, tickets to the
soccer matches, and on and on. In addition
Planning for the 1996 Atlanta Olympic to retail commercialism, a number of
Torch Relay took two years, cost over $20 companies were piggybacking on the torch
million, and involved an 84 day, 42 state relay to further their own commercial
campaign using 10,000 runners to carry the interests: IBM, Motorola, Bell‐South,
torch for 15,000 miles! Accompanying the Texaco, BMW, Lee, Coca‐Cola, and so on.
runners was a 40‐vehicle caravan carrying AU in all, a very successful relay!
security officers, media personnel, medical
personnel, computers, telecommunications
The Olympic Torch Relay Project gear, clothing, food, and spare lanterns
Source: G. Ruffenach, "Gelling the Olympic Flame to Atlanta Won't be a Simple 
Cross‐Country Run," The Wall Street Journal, February 26, 1996.

with extra flames in case the original torch


Questions on Project Management in  Typical Sequence of Phases in a Project Life
Cycle
Practice 1
• Is the torch relay another part of the Olympics 
themselves, perhaps a sub‐project?
• Given the geography of Australia, with most of 
the populace living on the edges of the 
p p g g
continent and few in the interior, what path 
for the torch relay would make sense?
• Is the life cycle for this project S‐shaped or 
shaped like the right half of a U or something 
else? Why?

Product vs Project Life Cycles Modern Tools ‐ Technique


• PERT/CPM (Program Eval & Review Tech)
• VERT/GERT (Venture/Graphical)
• Linear Responsibility Charts
• Gantt Charts
Gantt Charts
• Milestone Charts
• Work Breakdown Structures
• Project Action Plans
• Computers

Project Selection Models Project Management Lifecycle
• Non‐numeric Models
– The sacred cow
– The operating necessity
– The competitive necessity Executi
– The product line extension ng
vity

P
Process
Level of Activ

– Comparative benefit model
• Numeric Models: Initiatin Plannin
g g
– Payback period Proces Proces
Controllin Closing
g Process Process
– IRR s s

– Discounted cash flow, NPV
– Benefit Cost Ratio
Start Time Finish
Project Life Cycle – Example Phases The Project Lifecycle
Concept &
Proposal

Development

Implementation

Verification

Termination

Initial Phase Intermediate Phases Final Phase

Additional Reading(s): Page 14-19 of textb

Generic Cost & Staffing Life Cycle Time Distribution of Project Efforts

Cost and Intermediate Phases


Staffing (one or more)
Level
Initial Final
Phase Phase

Start Finish
Time

Risks During Project Lifecycle Risks During Project Lifecycle..

Estimates made at project start Estimates made at times t0, t1 & t2


The Central Freeway Viaduct in downtown San  safety structures, traffic control) , a dust 
Francisco suffered major structural damage  control plan , work‐hour schedule , noise‐
during the 1989 Loma Prieta earthquake and  level monitoring , load determinations and 
recently had to be safely demolished. The task  structural analyses.

Project Management in  was complicated because the bilevel, multi 
span bridge passed within six feet of heavily 
Most of the demolition was accomplished 
using a breaker on the upper deck of the 
populated buildings, ran in the vicinity of both  bridge and a pulverizer on the lower deck. 
Practice‐2 overhead and underground utilities (gas, 
water, electric, and sewer lines), and crossed 
First the road‐way slab was demolished, then 
the girders were pulverized and all the debris 
both commercial and residential areas with  pushed down to the ground. Then the cap, 
strict vibration and sound level restrictions.  columns, and restrainers were demolished. 
Thus, managing the demolition while ensuring  This process continued along the length of 
th
the safety of both the on‐going population and 
f t f b th th i l ti d th b id
the bridge until the entire distance was 
til th ti di t
existing facilities was a major challenge.  demolished. Constant monitoring was con‐
The primary tools for conducting such a  ducted for noise, vibration, safety, and 
delicate, but dangerous operation were  procedures throughout the project. 
detailed planning and thorough  Continuous communication was made with 
Demolishing San Francisco’s  communications with all related parties. An  utility companies and others concerned with 
extensive Demolition Plan was required and  a particular segment being demolished. In 
Bridges Safely included:
‐ a Code of Safe Practice describing personal 
this fashion, the entire viaduct was 
demolished with no major accidents or 
protective equipment for the workers, as well  injuries. 
as a maintenance plan for the equipment;  Source: O. Y. Abudayyeh, "Safety Issues in Bridge Demolition Projects: A Case 
‐ a demolition sequence plan (sequence of  Study," PM Network. January 1997, pp. 43‐45.

work, staging, equipment location, restraints, 

Questions on Project Management in 
Class Discussion/Assessment
Practice 2
• What was the main consideration in this  • Give several examples of projects found in our society, 
avoiding those already discussed in the chapter.
demolition project? • Describe some situations in which project management 
• How would a demolition project differ from a  would probably not be effective.
more common construction project? Consider 
p j • How does the rate‐of‐project‐progress chart (Fig. 1‐3) help 
a manager make decisions?
a manager make decisions?
performance, schedule, and budget. • Expound on the adage, “Projects proceed smoothly until 90 
• Would the life cycle for this project be S‐ percent complete, and then remain at 90 percent forever.”
• Discuss the duties and responsibilities of the project 
shaped or the right half of a U or something  manager. How critical is the project manager to the success 
else? How about the life cycle for a freeway  of the project?
construction project? • Would you like to be a project manager? Why, or why not?

Class Discussion/Assessment.. 9 Knowledge Areas
• Discuss why there are trade‐offs among the three prime  CORE FUNCTIONS Tools and
objectives of project management. Techniques
• Why is the life cycle curve often “S” shaped? Scope Time Cost Quality
Mgt Mgt Mgt Mgt
• How might project management be used when doing a 
major schoolwork assignment?
• Why is there such a pronounced bend in the curve of Figure 
Wh i h h db di h f Fi
1‐2?
• Which of the identified project attributes in Section 1.1 are  Stake Project Integration Management Project
Success
always present? Which are simply frequently present? holders
needs
• Describe a project whose life cycle would be a straight line  and
from start to finish. Describe a project with an inverse‐S life  expecta
cycle. tions HR Comm Risk Procur
Mgt Mgt Mgt Mgt

FACILITATING FUNCTIONS
Use of Management Functions at different 
Organizational Levels hierarchical levels

Top
Managers

Expertise
Authority

xpertise
PLANNING
Middle
mber

Managers
g

Technical Ex
Functional A

Managerial E
Num

ORGANIZING
First-Line Managers

LEADING
Operatives

CONTROLLING
Engineering
Accounting
Marketing
Finance
R&D
HR

First Line Middle Top


Mangers Mangers Mangers

Key Players in a Project
• Project manager. The person responsible for managing the 
project. 
Technical • Customer/user. The person or organization that will use the 
Skills
project’s product. There may be multiple layers of customers. 
For example, the customers for a new pharmaceutical product 
can include the doctors who prescribe it, the patients who 
i l d h d h ib i h i h
Human
take it and the insurers who pay for it. In some application 
Skills
areas, customer and user are synonymous, while in others, 
customer refers to the entity acquiring the project’s product 
and users are those who will directly utilize the project’s 
Conceptual
Skills
product. 
• Performing organization. The enterprise whose employees 
are most directly involved in doing the work of the project. 
First Line Middle Top
Mangers Mangers Mangers

Organizational Planning
• Project team members. The group that is performing the 
work of the project.  • Mission Statements and Projects
• Project management team. The members of the project team 
who are directly involved in project management activities. 
• Sponsor. The person or group that provides the financial  • Change from above, Strategic Planning
resources in cash or in kind for the project
resources, in cash or in kind, for the project. 
• Influencers. People or groups that are not directly related to 
the acquisition or use of the project’s product, but due to an 
individual’s position in the customer organization or  • Change from below
performing organization, can influence, positively or 
negatively, the course of the project. 
• PMO. If it exists in the performing organization, the PMO can 
be a stakeholder if it has direct or indirect responsibility for  • Change from outside
the outcome of the project. 
STRATEGIC PLANNING
QUESTIONS TO EXPLORE OUTCOME

What are we here to
Mission Statement
do?

SWOT Analysis
SWOT Analysis
What are we now? Market Analysis, Forecasting,
PEST, Technological forecasting

What do we want
Objectives
to achieve?

How will we go about Strategies
achieving it? Plans

Enhanced SWOT Analysis

Many Environmental Opportunities


Two Investigative Tools

QUADRANT 3 QUADRANT 1 • Pareto Analysis


– The 80/20 Rule
Supports a turnaround-style Calls for an
strategy aggressive strategy
Crucial Enormous
I t
Internall I t
Internal
l • Cause and Effect Diagram
Weaknesses Strengths
– Identify root‐cause
QUADRANT 4 QUADRANT 2
Will need a defensive-style Requires a diversification
strategy strategy

Grave Environmental Threats


Pareto Chart Example Cause and Effect Diagram

How is a Pareto Chart constructed? ACTIVITY 3
Step 1 ‐ Record the data • You are part of a team responsible for the 
Step 2 ‐ Order the data quality of the BOQ. You want to improve the 
Step 3 ‐ Label the axis service you provide but are not sure where to 
begin or where to concentrate your efforts
begin or where to concentrate your efforts. 
Step 4 ‐ Plot the bars You decide to keep track of the complaints 
Step 5 ‐ Add a cumulative line, title, legend, and  received over a three‐month period.
date • Rank order your data in an analysis sheet and 
draw a Pareto Chart.
Now answer the following questions:
1. Does the Pareto Principle apply?
2. Where should you concentrate your efforts?
3. Do your proposed efforts pass a sanity 
check? In other words, do the top problems 
h k? I h d d h bl
really stand out as most important to you 
and your customers?

Answer Activity 3 Answer Activity 3

DISCUSSION – ACTIIVTY 3 Organizational Objectives


• In this problem, the Pareto Principle is very much in evidence. 
Notice the sharp change of slope after the first three items.  • What we want to achieve?
Most Pareto Charts will have such a break point.
• Organizations can have diverse objectives
• Attacking the problems to the left of the break point will have 
the greatest payoff. In fact, if you solve these problems, you  – Increase Profits
will have dealt with 81.7 percent of the deficiencies 
p
uncovered in your customer survey. Therefore, this is where  – Improve Living Standards
I Li i S d d
you should concentrate your initial efforts.
– Electricity Provision
• Later, you can do another Pareto analysis which will probably 
show some of the lesser problems becoming more dominant. – Encourage use of Public Transport
• 3. How about your sanity check? Well, not only is the 
cockroach problem number one in your survey, but from a 
health standpoint, it merits immediate action.
Identifying Objectives, Towards Project  Matrix Diagrams – From Objectives to 
Proposals Strategies
• Brainstorming

• Nominal Group Techniques

• Affinity Diagrams

Positives: People Involvement, Clarity of 
Purpose

ACTIVITY 4 DISCUSSION – ACTIIVTY 4


• Produce a short Matrix Diagram for the  • Your Key strategies might be:
following objectives: – Attend a course on study skills
– Develop Study Skills – Read PMBOK
– Study Project Management
Study Project Management – Take notes
Take notes
– Pass a Professional Exam – Revise notes
• The links might be ……
• List your key strategies and indicate their links 
with these objectives 

Project Conception Requirements for the Project

PROJECT PROPOSALS MISSION


• Getting requirements right
??? – What are acceptable requirements
– What are acceptable demonstration of each 
elements of those requirements
elements of those requirements
ANALYSES & FORECASTING
– Resolution of conflicts that may appear from 
Proprieties and Linkages STRATEGIES requirements
drawn
PLANS – Agreement on & documentation of 
Proposals for Actions REQUREMENTS and DEMONSTRATION
become detailed
Their costs and benefit
OBJECTIVES
analysis becomes clearer
Requirements vs. Specifications ACTIVITY 5
Customer Complaint Resolution Department Assume you are drawing up 
requirements for a door. First list 2 or 
• Requirement: To enable workforce to travel  q
3 qualities the door should exhibit, 
i d
independently of the public transport system
d l f h bli
then refine this by listing 2 
• Specification: Get each group a 1000 cc 
<brand> car, capable of carrying <x>  contributing factors for each quality
passengers.

DISCUSSION – ACTIIVTY 5 Classification of Project Types


Projects can be classified as social sector and
infrastructure. Some examples are:

Transportation Highways, mass transit, airports


Utilities Electric power, gas, telephones
Education Schools,, colleges,
g , dormitories
Public Safety Police, fire, National guard
Recreation Parks, playgrounds, historic sites
Development Harbors, dams, irrigation,
Research Health, space, agriculture
Defense Military equipment and systems
ConservationForests, shorelines, pollution
More can be added, such as strength etc

Life Is A Project

Project Selection

95
Rapid Adoption of Project  Problems in Organizations managing 
Management means: Multiple Projects
• there are many projects that fall outside the  • Delays in one project delay other projects 
organization’s stated mission; because of common resource needs or 
• there are many projects being conducted that  technological dependencies
are completely unrelated to the strategy and
are completely unrelated to the strategy and  • The inefficient use of corporate resources results 
The inefficient use of corporate resources results
goals of the organization; and in peaks and valleys of resource utilization
• there are many projects with funding levels  • Bottlenecks in resource availability or lack of 
required technological inputs result in project 
that are excessive relative to their expected 
delays that depend on those scarce resources or 
benefits.
technology

Success with Project Management

• 30% projects canceled midstream • Firms that “bought” PM skills from consultants:


• 50% + completed projects 190% over budget &  – tend to see it as a “commodity” 
220% late – rely on outsourcing difficult activities, even entire 
projects
• Primary motivation of organizations to improve & 
y g p
expand their project management processes due  • Those who developed the skills internally:
to: – Saw project management as offering a proprietary 
– Major troubled or failed projects competitive advantage
– new upcoming mega‐projects – Moved toward recognizing project management as a 
viable career path in their organization, leading to 
– to meet competition senior management positions
– maintain their market share

Project Management Maturity
controlled &
measured
processes, results

some processes
more in line with
plans Adoptive Project Management in Practice
exist, Managed
inconsistent continuous
management
management, improvement in
Organized
unpredictable
results standardized
processes,
success is normal,
Implementing Strategy through 
Abbreviated processes, more
predictable results
performance
keeps improving Projects at Blue Cross/Blue Shield
Ad‐hoc
disorganize
d,
accidental
successes
& failures
Since strategic plans are usually developed at  These may include new product development,  Questions ‐ Project Management in 
the executive level, implementation by middle  upgrading information systems, or 
level managers is often a problem due to poor  implementing facility automation systems.  Practice
understanding of the organization’s  CPAG also works with the project teams to 
capabilities and top management’s 
expectations. However, bottom‐up 
develop their plans, monitoring activities, and 
reports so they dovetail with the strategic 
• Is the new project management approach to 
development of departmental goals and  intentions. implementing strategy bottom‐up or top‐
future plans invariably lacks the vision of the  The primary benefits of the system have been 
overall market and competitive environment.  that it allows: down?
At Blue Cross/Blue Shield (BC/BS) of Louisiana,  • senior management to select any corporate 
thi
this problem was avoided by closely tying 
bl id d b l l t i i iti ti
initiative and determine its status;
dd t i it t t
• What is the role of projects and their 
What is the role of projects and their
project management tools to the  • PMs to report progress in a relevant,  management in this new process? That is, 
organizational strategy. systematic, timely manner;
The resulting system provided a set of checks  • all officers, directors, and managers to view  wouldn’t a functional approach have worked 
and balances for both BC/BS executives and 
project managers. Overseeing the system is a 
the corporate initiatives in terms of the 
overall strategic plan; and
just as well?
newly created Corporate Project 
Administration Group (CPAG) that helps senior 
• senior management to plan, track, and 
adjust strategy through use of financial 
• What other benefits might you expect from a 
management translate their strategic goals  project data captured by the system. system such as this?
and objectives into project management 
performance, budget, and schedule targets. 
Diab P (98)

Project Selection
Project Proposals
• Project selection is the process of evaluating 
individual projects or groups of projects,
A Special Presentation for 
• and then choosing to implement some set of  NESPAK
28 June 2010
them so that the objectives of the parent 
j p
organization will be achieved.
• The proper choice of investment projects is 
crucial to the long‐run survival of every firm.
• Daily we witness the results of both good and 
bad investment choices.

Purpose of a Proposal Purpose of a Proposal

‰ Proposals are sales presentations ‰ Should answer the following questions:

‰ Persuasion ‰ What problem you intend to solve?


‰ To
T persuade
d the
h reader
d to do
d what
h isi being
b i ‰ What solution you are proposing?
requested and to make him believe that the ‰ How do you plan to do it?
solution being presented is practical and ‰ When do you plan to do it?
appropriate. ‰ How much it is going to cost?
‰ Example: persuade a donor to fund a project. ‰ What expertise have you got to solve the
problem?
Types of Proposals Types of Proposals

• Internal ‐ To Promote Structural or


‰ Research proposals Procedural Changes
– Proposal for a Restructuring of a Department
‰ Usually academic in nature
– Proposal
p for Changing
g g Purchasingg Procedures
‰ U d by
Used b universities
i ii andd research
h
– To Urge one's Organization to Pursue an External
organizations to obtain grants for research
Project
projects (understand a phenomenon, develop
a new technology etc.) – Proposal that a Company Develop and Sell a New
‰ Proposals for conducting research by Product or Service
students e.g. for Masters and Doctorate

Types of Proposals
Types of Proposals
• External • Pre‐proposals: requested to minimize applicant's 
effort in preparing a full proposal. Usually in the 
– Solicited proposals:  submitted in response to a specific 
solicitation issued by a sponsor. Such solicitations,  form of a letter of intent, letter of enquiry, brief 
typically called Request for Proposals (RFP), or Request  abstract/summary, cover letter or a concept paper.
for Quotations (RFQ)
– Unsolicited proposals:  submitted to a sponsor that has 
• Continuation or Non‐Competing proposals: confirm 
not issued a specific solicitation but is believed by the 
investigator to have an interest in the subject the original proposal and funding requirements for 
which the sponsor has already provided funding for 
an initial period.

Purpose of Project Proposal Purpose of Project Proposal


• Complete business case for the project. Includes expected • Persuade the reader to to do something,
business value, cost and time estimates. Details on what
– persuade a potential customers to purchase
is to be done, who is going to do it, when it is going to be
goods and/or services
done, and how it is going to be done.
–p
persuade yyour employer
p y to fund a p
project
j or
• A roadmap
d f the
for h project.
j
implement a program that you would like to
• The proposal is the document that you use to convince launch.
the sponsor that your project should be funded.
• A proposal offers a plan to fill need
What Should it Cover!
• Carefully follow any instructions from the funding 
• State clearly the need for, and the objectives of, 
agency, including page limitations, deadlines, and 
the project. 
review criteria. 
• Make clear the ways in which your project is 
• Include, if requested, a current, clean copy of 
innovative, necessary, timely, and significant. 
your curriculum vitae, and biographical sketches 
• Clearly describe your project, including timeliness 
Clearly describe your project including timeliness of other key personnel. 
f h k l
charts, and graphs as appropriate. 
• Determine if you will need approval for 
• Collaborate with other individuals, agencies, or  copyrights, etc., in consultation with the Office of 
organizations whenever possible.  Grants and Contracts, well before the agency 
deadline.

Proposal Development Model 
(Grantsmanship Center in LA)

• Issue definition: An accurate and specific  • Budget: that would give an investor confidence


definition of the problem • Introduction: an introduction to the organization 
• Objectives: The establishment of feasible,  that inspires confidence and enthusiasm
measurable objectives
j • Summary: a clear and concise summary of the above 
a clear and concise summary of the above
• Method: Choice of appropriate means to address  on which a funder could base a decision if it were the 
the problem only piece read.
• Evaluation: A plan to evaluate progress and 
impact
• Future funding: A plan to meet future or ongoing 
funding requirements

Proposal Contents Based Upon this  Proposal Writing Hints
Model
• Be prepared to spend a lot of time on your 
1.  Summary proposal (Like publishing an article)
2.  Introduction • Before writing, thoroughly read the guidelines for 
3.  Issues definition the program to which you're applying
4.  Objectives • Before you submit a proposal to a granting 
5.  Methods agency, have a draft "critiqued" 
6.  Evaluation
7.  Future funding
8.  Budget
Proposal Writing Hints
• Must convince the reviewers of four things:
– Project is of sufficient importance and significance to 
merit support, Questions
– A thorough review of literature in the field and have a 
well‐designed plan of work
– Project is of manageable size and can be carried out 
?
within the time frame of the proposal 
– You are competent to complete the project 
successfully

Project Selection Decision


Existing &
Perceived & Available
Real Needs Resources

Day 1
Project Feasibility Decision Outcome

• Accept project
Potential & Project
P j • Reject
j project
j
• Delay project
Ongoing Selection
• Refocus project
A Special Presentation for  Projects Decision • End-user
NESPAK Development
28 June 2010 • Proof of concept

Current
Org Evaluation
Environment Criteria

Process of Project Analysis Feasibility


1. Viability of Idea
Identify Set up Define scope
problem or feasibility and 2. Analyzing Feasibility ( Possibility) of Project
opportunity study objectives – Possibility of Completion ?
– Will it be Successful
3. Reasonable likelihood - constraints
3
Will Not prevent from meeting key objective
Carry out
Recommend – Evaluate
different 4. Synonym: Achievability
proceed alternatives –
aspects
/shelve develop/buy
of the study
5. “Planning & Organizing Procedure”
- To Ensure Project is Effective
- It will work”.
What is Feasibility Assessment? WHAT IS A FEASIBILITY STUDY?

Disciplined & documented Process of


“Thinking through an idea” • Essentially a process for:
from its
Determining viability of a
“Logical beginning to its Logical end”.
- This is to determine its proposed initiative or
“Potential to be a viable business” Service & Providing a
given realities of the
framework & direction for
“Economic & social environment”
in which it will operate” its Development & Delivery.

A Feasibility Study Application of FS


• -Evaluation New business venture
• looks at three major areas: • -New Project & Established Businesses
a) Market issues • -Expand Existing services
• -Build or Remodel facilities
b) Organizational/technical • Change Operations Methods
-Change
issues • -Add New Products
• Merge with Another Business.
c) Financial issues • Sensitivity to Changes” in Basic
assumptions.
• Standard Technical & Financial
Components,
• Provides an evaluation of success potential
of a Project

Feasibility Check List Feasibility Check List


• In the feasibility study phase, it is • In the feasibility study phase, it is
necessary to define Project basic necessary to define Project basic
“approaches, boundaries or scope”. “approaches, boundaries or scope”.
A typical feasibility study checklist might A typical feasibility study checklist might
include: include:
Evaluate  Evaluate market  Evaluate cost  Evaluate  Evaluate  Evaluate  Evaluate market  Evaluate cost  Evaluate  Evaluate 
alternatives potential effectiveness produce ability technical base alternatives potential effectiveness produce ability technical base

Summary Level Summary Level Summary Level Detail Level


What a FS is Not Initial Feasibility Report

• FS -Conducted on “Real-World" • Prepare feasibility report


Project.
– Current situation
• Not Academic or Research/Papers.
– Future expectations
• Simulations or Projection Models, – Favorable plan(s) of action
Useful on some Projects- but never
– Underlying rationale for management decision
replace
l FS.
FS
• No "Cookie cutter" Approach to Selected Plan, Prepare System Proposal
Project. – Project description
Resource requirements
• No “Generic Source of Info”. –
– Development schedule
• Not a Business Plan.
– Acceptance criteria

Possible Outcomes of FS Feasibility Study involves


• Appraisal of Existing System
1.Feasible within Defined domain
• Risk Analysis & Assessment.
( assumptions about technology, • Risk Mgt.
location, market, financing, industry • C/B Analysis.
analysis, etc);
• p
Impact Analysis.
y
2. Feasible with changes to certain • Sys Integration (Existing & New).
Domain Factors • Resource Requirement, Planning & Timings.
3. Infeasible within the defined domain. • Implementation Strategy.
• Infrastructure Assessment & Requirement.
• Dependencies & Requirements.
• Support Requirements & Logistical Analysis

Tech Feasibility
Types of Feasibility
First systematic
investigation of Project Design Viability.
• Technical Feasibility Foundation of all other FS.
• Managerial Feasibility
• Economic Feasibility - Assessment of a Project- Capabilities.
• Financial Feasibility -Investigation of Technical & Physical Parameters
• Cultural Feasibility
• Social Feasibility TF Reviews:
• Safety Feasibility -Technical Capability of HR
• Political Feasibility -Capability of Available Technology
• Environmental Feasibility
• Market Feasibility Foreign consultants Role –LDCs
• Schedule Feasibility “Too rigid, & Advanced Tech Spec”
- Cannot be met by Country.
- Question is “Can it be built?”
Technical Feasibility (TF) Technical Feasibility (TF) Contd..

Anticipate Broader Problems with Questions: Primary Task of TF is Blueprinting:


1. Adequate “Choice of Available Technologies a) Manpower Needs
for Alternative Design” & purposes, considering:
a. Physical layout
b) Resources, & Design
b. Engineering design c) Provide Design Alternatives
c. A il bilit off raw materials?
Availability t i l ? d) Choice of:
2. Costs of Constructing & Operating “Available Technologies,
ProjectFacilities/Service
& Cost estimates” for each alternative.
a) Machinery, b ) Equipment, c) Spare Parts ?
3. Manpower Req:
a) From professional to labor
b) locally available?
c) Responses vary – sector to sector

Admin/Managerial Study (AMS) Economic Study (EconS)


Evaluates Strategy of Org in Crying/ Out Proj Examines a Proposed Project in terms of:
Activities. Net Contribution to:
Providing info & Guidelines - •Industry
Used to improve overall Proj. Admn. •Economy
Project mgr in investigating team. • Society….
Address 3 Related Questions:
Examines for Components: 1. Project Responsive to “Urgent Present or Anticipated
Econ/Social” need?
A. External Linkages, 2. Project Planned Economic o/put Serve Intended
Purpose?
b. Internal org,
3. Service Proposed to be Performed by Project Benefits –
c. Personnel, and Justify Costs? (Mono Rail by CDA, Sub Way, Clean
d. Mgt plan Drinking Water, Steel Mill, Suzuki Car, Mass Transit…)

Economic Feasibility (EconF)


Economic Feasibility
• Cost/Benefit Analysis 1. Summary of Economic B/C of Project
– Estimate Proj Development Costs 2. Extent to which savings Passed on
– Estimate operational costs after proj 3. Optimum timing of Project
4. Sensitivity Analysis
– Estimate financial benefits based on:
Considering influence of variations of
– “Annual savings & Increased revenues”
critical P/M like discount rates, energy
– Calculate Costs & Benefits cost, Construction costs Cement &
• Uses net present value (NPV), payback period, Steel), Traffic forecasts.
return on investment (ROI) techniques 5. Conclusions as to Econ Feasible or not
Project Organizational Culture
How Individuals Work, Live, and 
Achieve Together Understanding of culture –leads to benefits:

1. Understand subcultural dynamics within org


2. Understand how new technologies influence & are
influenced by orgs
3. Understand how to:
“Manage across national & Ethnic boundaries”
4. Understand that culture can be:
Prime source of resistance to change.

Cultural Feasibility. Cultural Feasibility


Compatibility of • Each Project has own culture
– New system must fit into culture
“Proposed Proj vs Cultural Setup” • Evaluate related issues for potential risks
of Proj environment – Low level of computer competency
Labor-intensive Proj- – Computer & Field Phobia
– Perceived loss of control
– Shift in power
Integrated with
– Fear of job/Assignment change or employment loss
Local Cultural Practices & Beliefs.
– Reversal of established work procedures
Religious Beliefs – • Positive steps should be undertaken to reduce the risks
Influence- • E.g.: additional training can be held to teach new procedures &
provide increased computer skills
individual willingness

Social Feasibility

• Addresses influences –Project May have on Financial Feasibility


– “Social Sys in Project Environment”
– Social Structure
Certain type of HR: Capability of Project Org
In short supply
pp y or non-existent. ((weekend worker in USA,,
in Pakistan HR mgr, PhD faculty in Mgt, Nurses)
To Raise Funds to:
implement Proposed Project
• You need to Evaluate its Effect on Project and ensure (different from economic feasibility)
“Social Status of HR to Ensure Compatibility”.
Certain Industry- have Status Symbols within Society
Financial Study (FinS) Questions Safety Feasibility.
• At Project Planning stage.
Capital & Operating Costs ?
• NIMBY Syndrome
• Sources of Funds & Draw-down schedules- sufficient to
Cover costs of activities/implementation? • Analysis of whether:
• Any alternative Financing Schemes – P- Capable of implementation
• Projected Cash flow (CF)?
– Operated safely with minimal adverse effects on
• Extent of necessary y borrowings
g ((L of Cr)?
)
• When P- Revenues Paying back /cover Operating Costs?
environment.
i t Amonia
A i Cylider
C lid ;Leakage
L k
• Formation of Accounting system: – Finis Fatory Lahore 1996, kala Shah Kaku
– Balance Sheets Chemical
– CF Statements
– Debt Servicing Schedules
– Union Carbide Bohapal 1984, Kala Bagh
– Other Financial Reports? – Chernoybal USSR- Nuclear Powr Plant 1986
• Source of Project Investment - Inadequate EIS-in Complex Proj
• Means of Recovery investment
– • NAFTA –1993- Due to Legal issue of Potential EIS of
P- Under agreement.

Political Feasibility. PF Environmental Feasibility


• Politically Feasible Project -“Politically Correct Project" Agricultural Project, Question as:
• PF Analysis: a) Soil Quality appropriate for Proposed
• An Evaluation of Compatibility of P-Goals with Prevailing crops?
Goals of Political System.
• Political considerations dictate Direction of P-. b) Sufficient water?
• Political Necessity -Source of Support, c)) Adequate
q drainage?
g
• Regardless of P- Merits. d) Adequate sunlight?
• Political Opposition Scarp Good P-
– Q1. Who Resist Migration to New System? e) Climate right?
– Q2. Measures To overcome this Inertia? -Concern must be shown
• P- with “National Visibility” Political Implications.–get -Action must be taken to address any & all
Significant Govt I/Put
environmental concerns raised or
• Kala Bagh, Thar, Swat Girls School today
anticipated

Legal Feasibility Schedule Feasibility


Solution Violate: • Estimates needed complete info
• Contracts, • Management deadlines may not be realistic
• Licenses, • Project managers must:
– Drive realistic assumptions and estimates
• Copyrights,
– Recommend completion date flexibility
• Non-disclosures,
– Assign “Interim Milestones to Periodically Reassess”
• Laws or Regulations? completion dates
Policy & Procedures – Involve experienced personnel
– Solution violate Corporate Policies – Manage proper allocation of resources
or Procedures?
Market Feasibility

Market Viability & impact on


Project
. Not to be confused with Economic Project Charter & Scope
Feasibility
A Special Presentation for NESPAK

Project Charter

• Formally recognizes the existence of a project 

Project Charter • Refers to the business need the project is 
addressing
• Describes the product to be delivered
• Gives the project manager the authority to apply 
resources to the project

160

Project Charter Project Charter


9Formally recognizes existence of a 
A document that is formally
Project
authorize the Project.
Provides Project Mgr with 9Records business need the project is 
authority to apply org resources addressing
dd i
to project activities 9Describes Product to be delivered
9Gives Project Mgr authority to apply 
resources to Project
Project Charter
Project Manager assigned 
Primarily concerned with: 
prior to  the start of  1. Documenting the business needs,
planning & preferable  2. Project justification,
during  3. Current understanding of customer’s
requirement
Project Charter Development. 4. New product, service,
5. Or to satisfy any requirements

Project Charter Charter is Developed as Result of:
Sometimes, Project is not formally
– Market demand (e.g. SUZUKI wants more fuel‐
Chartered & initiated until  efficient cars in gasoline shortage)
completion of:
– Business need (Training company authorizing
1. Needs Assessment, 
Needs Assessment, new course to increase
i revenues))
2. Feasibility study, 
3. Preliminary plan,  – Customer request (building new sub‐station to
serve new industrial park)
or some other equivalent form of analysis.

Project Charter, directly/reference should address:
Charter is Developed as Result of:
– Technological Advance (authorizing a proj to – Summary milestone schedule
develop faster, cheaper, & smaller laptop)
– Stakeholder influence
– Legal Requirement (paint manufacturers
– Functional org their participation
authorizing proj to establish guidelines for
handling of toxic materials) – Organizational, environmental
O i ti l i t l & external 
& t l
assumptions
– Social Need (NGO authorizing a project to provide
sanitation education to communities suffering – Organizational, environmental & external constraints
from high rates of Cholera) – Business case justifying proj, including Return on 
Investment
– Summary Budget
Project Scope Scope is:
• Project Scope Management includes the processes  “What the Project Contains or Delivers”.
required to ensure that the project includes all the 
work required, and only the work required, to  When starting to plan the
complete the project successfully. Managing the 
project scope is primarily concerned with defining and  “Scope of the Project”:
controlling what is and is not included in the project
controlling what is and is not included in the project.  Think about the BIG PICTURE first!
• In the project context, the term scope can refer to: At this level - Best to Concentrate on:
• Product scope. The features and functions that 
characterize a product, service, or result; and/or Major Deliverables &
• Project scope. The work that needs to be accomplished  Not get bogged down with detail.
to deliver a product, service, or result with the  Whats IN, Whats OUT!
specified features and functions.

Scope Statement Scope Types

A written statement includes:
Horizontal scope:
• Project Justification • Cumulative coverage of units or subunits at 
• Project Objectives the same level of detail. 
• Major Deliverables  • It is well defined when all the units are 
• Criteria: Project/ or Phase Successfully  defined 
Completed Vertical scope 
• Completeness of scope of the respective units 
and subunits. 
• It is well defined when all subunits & Detail of 
their sub‐units are well defined.

Defining Project Scope Project Scope Statement

Defining What Pro Scope means critical.


2-3 people leave with different impressions • Defines in “Writing, drawings & price 
of discussion.
figures”, the “intended span of work 
g a “Prelimary /Scope statement” is
Creating
key way to: expected” and to be provided for in the
and to be provided for in the
Ensure: Every one is on Same page. “Plans for the new facility”
Proj Scope Statement Defines:
a. Proj Scope
b. What Needs to be accomplished To:
Meet Project Objectives
Scope Statement …
Project Scope vs. Product Scope
• The scope statement should be a:
– Clear communication of the Extent & 
functionality of the  facility between Architects,  • 1. Proj Scope – Work that must be done to deliver a 
Owners, sponsors, designers, constructors, & the  Product/svc With Specified Features & Functions. 
((Construction of New Block))
Users or purchasers
Users or purchasers
• Scope may be further described in terms of  Cost  • Proj/S: Measured Against Plan
budget figures. 
• 2. Product Scope – Features & Functions to be 
• Such budget figures need to be expressed in enough 
detail to provide a basis for a cost control system &  included in a Product /Svc. (Details of Block)
for evaluating any subsequent changes to that  • Product Scope ‐ Measured Against Requirements 
scope.

Product vs. Product Scope
• Product scope – The features and 
functions that are to be included in a 
product or service
• Project scope – The work that must be 
p
done in order to deliver a product with the  Why is Scope Important?
specified features and functions
• Successful completion of product scope is 
measured against the requirements; 
project scope is measured against the plan

177

Scope Definition  Difference in Scope, Objective/Goals?
Goals/Obj:
What business wants to achieve thru Proj
• Detail with which a Proj‐ defined that is 
starting from the: Define WHY client wants to u/take Proj. 
Scope defines  size of Project.
• “Overall functionality of  Project” to the “Last 
definable functional element in descending
definable functional element in descending  including areas as 
g
order”.  a. Departments,
• This process starts in “Conceptual Phase” b. Geographic loc, 
c. Deliverables, 
d. Features & functions. Often scope is ltd by 
“Schedule  & Budget” constraints. 
Scope Change Change in Functionality 

Any change,  • Change in Capacity 
at any stage in the functionality of the  • Change in Quality 
project 
j t • Complete change 
Complete change
or facility is termed 
a scope change

Change in Capacity Change in Quality

• Can be either Addition or Subtraction • This kind of a change is an addition or 
in:  subtraction of a functionality to the 
Span of  Work  span of work:
1. Increase or decrease in length of Rd Examp: Providing or deleting dividers,
2. Increase/decrease in no. of  Toll booths, extra markings, & guard rails in 
Rd works, or providing or deleting facing 
Standardized housing units to be 
in a building 
constructed 

SCOPE CREEP

• Uncontrolled changes in a project’s scope.  
Occur when scope of a project is not properly 
defined, documented, or controlled. 
• It is generally considered a negative 
It is generally considered a negative
occurrence to be avoided.
• Scope creep (also called requirement creep, 
feature creep, & sometimes kitchen sink 
syndrome) in PM is: