PREPAREPM: Project Scope Management

Scope Management Processes
Process Project Phase Key Deliverables

Scope planning planning scope management plan

Scope definition planning project scope statement

Create WBS planning WBS, WBS dictionary

Scope verification Control Acceptance deliverables

Scope control Control Requested Changes

The knowledge area of Scope Management includes the processes required to ensure that the project includes all the work, and only all the work required to complete the project successfully. It is primarily concerned with controlling what is and what is not in the scope.

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. These are
- Benefits Measurement
- Constrained Optimization

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 - 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.
- 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.

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

Expected monetary value of a project (or expected value) is equal to probability*impact. So if probability of a project's success is 20% and revenue earned if successful is $100000, then the net value of the project will be $20,000. A project with higher net value should be selected when performing project selection.

Management by Objective (MBO) is a management philosophy with three objectives -
- Establish unambiguous and realistic objectives
- Periodically Evaluate if objectives are being met
- Take corrective actions.
MBO works only if management supports it.

The tools and techniques of the Scope planning process are - Expert Judgment and "Templates, forms and standards". The process has only one output - Project Scope Management Plan.

Work Breakdown Structure (WBS) is an important part of the exam. It is a graphical representation of the hierarchy of the project. The WBS template can be reused across projects. WBS forces the project team to think through all the levels of the project. If a task is not in the WBS, then it is not part of the project.

8/80 rule for WBS - No task should be less than 8 hours or more than 80 hours.

WBS dictionary explains all the WBS components. 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

The Scope Verification is the process in which the project customer formally accepts the project deliverables. Scope Verification happens at the end of each phase. It is the customer feedback on a detailed basis. While Scope Verification focuses on customer acceptance, Quality Control focuses on correctness of work.

The table below gives inputs, Tools & Techniques, and Outputs of the Scope Verification process.

Scope Verification Process
Inputs Tools & Techniques Outputs

Project Scope Statement Inspection Accepted Deliverables

WBS Dictionary Requested changes

Project scope management plan Recommended corrective actions

Deliverables

Project Plan

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