1. Project Management – PTM721S
Faculty of Computing and Informatics
7 August2017
Project Management – PTM721S
Lesson 5 – Project scope management

2. Project scope management
Faculty of Computing and Informatics
Project scope management
Why organisations invest in IT projects
Definition of project scope management
Project scope management processes
Project initiation – techniques for selecting projects
Scope planning and scope statement
Scope definition and WBS
Scope verification and scope change control

3. Why organisations invest in IT projects?
Faculty of Computing and Informatics
Why organisations invest in IT projects?
Support explicit business objectives
Has good Internal Rate of Return (IRR)
Supports implicit business objectives
Has good Net Present Value (NPV)
Has reasonable payback period
Used in response to competitive systems
Supports management decision making

4. Why organisations invest in IT projects?
Faculty of Computing and Informatics
Why organisations invest in IT projects?
Meets budgetary constraints
High probability of achieving benefits
Good accounting rate of return
High probability of completing projects
Meets technical/system requirements
Supports legal/government requirements
Good profitability index
Introduces new technology

5. Definition of project scope management
Faculty of Computing and Informatics
Definition of project scope management
Scope refers to all work involved in creating the products of a project and all processes used to create them
A deliverable is a product produced as part of the project
Deliverables can be project-related such as pieces of hardware or software or process-related such as a planning document or minutes of meeting

6. 5 Project scope management processes
Faculty of Computing and Informatics
5 Project scope management processes
Initiation – committing organisation to begin a project or continue to next phase – PROJECT CHARTER
Scope planning – developing documents to provide basis for future project decision – CRITERIA FOR COMPLETION
Scope definition – subdividing major project deliverables – WORK BREAKDOWN STRUCTURE
Scope verification – formalizing acceptance of project scope
Scope change control – controlling changes to project scope – SCOPE CHANGES, CORRECTIVE ACTION, LESSONS LEARNT

7. Initiation – Identifying potential projects – SWOT Analysis
Faculty of Computing and Informatics
Initiation – Identifying potential projects – SWOT Analysis

8. Initiation – 5 techniques for selecting projects
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects
Focusing on broad organisational needs
Categorising information technology projects
Performing Net Present Value (NPV) analysis, present value or other financial analyses
Using a weighted scoring model
Implementing a balanced scorecard

9. Does the project meet need? Does the project meet funding?
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects - Focusing on broad organisational needs
Organisational needs, e.g., improve safety, increase moral, provide better communications, improve customer service
Three criteria:
Does the project meet need?
Does the project meet funding?
Does the project meet will?

10. Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – categorizing IT projects
Problems – undesirable situations that prevent an organisation from achieving its goals, e.g. getting information in a timely manner
Opportunities – chances to improve organisation, e.g. enhance sales by selling products directly to customer
Directives – requirements imposed by management, government or external vendors
Time it will take to complete project, e.g., customer requires vendor to use EDI to do business with them
Overall priority of project

11. Initiation – 5 techniques for selecting projects – Net Present Value
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Net Present Value
Net Present Value (NPV) is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows
Estimated costs and benefits of project and products
Determine discount rate – minimum acceptable rate of return on investment - what organisation would expect to receive elsewhere for investment of similar nature

12. Initiation – 5 techniques for selecting projects – Net Present Value
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Net Present Value

13. The higher the ROI, the better
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Return on Investment (ROI) (see next slide for example)
Return on investment (ROI) are results of subtracting project costs from benefits and then dividing by costs
ROI = (total discounted benefits – total discounted costs) / discounted costs
ROI = (516, 000 – 243,200) / 243, 200 = 112%
The higher the ROI, the better

14. Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Return on Investment

15. Initiation – 5 techniques for selecting projects – Payback analysis
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Payback analysis
Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project

16. Initiation – 5 techniques for selecting projects – Payback Analysis
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Payback Analysis

17. Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Weighted scoring model
A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria
Identify criteria important to the project selection process
Assign weights (percentages) to each criterion so they add up to 100%
Assign scores to each criterion for each project
Multiply the scores by the weights and get the total weighted scores
The higher the weighted score, the better

18. Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Weighted scoring model

19. Initiation – 5 techniques for selecting projects – Balanced scorecard
Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Balanced scorecard
A balanced scorecard is a methodology that converts and organisation’s value drivers such as customer service, innovation, operational efficiency and financial performance to a series of defined metrics

20. Faculty of Computing and Informatics
Initiation – 5 techniques for selecting projects – Balanced scorecard example

21. Faculty of Computing and Informatics
Project Charter
A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management
Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management

22. Parts of the Project Charter
Faculty of Computing and Informatics
Parts of the Project Charter
Project title and date of authorization
Project manager’s name and contract information
A brief description of project objectives
A summary of planned approach for managing project
A roles and responsibilities matrix
A sign-off section for signatures of key project stakeholders
A comments section in which stakeholders can provide important comments related to project

23. Scope planning and scope statement
Faculty of Computing and Informatics
Scope planning and scope statement
Project scope planning is developing documents to provide the basis for future decisions including the criteria for determining if a project or project phase has been completed successfully
The output of project scope planning:
Witten scope statement
Project scope management plan

24. Scope planning and scope statement – scope statement
Faculty of Computing and Informatics
Scope planning and scope statement – scope statement
Scope statement is a document used to develop and confirm a common understanding of the project scope
Project justification – business need for project
Brief description of project’s products – characteristics of products or services the project will produce
Summary of project deliverables – e.g. problem plan, WBS, cost estimate, communications management plan, performance reports
Quantifiable criteria for project success, e.g. cost, schedule, quality measures
References to supporting documents, e.g. org. charts,

25. Scope planning and scope statement – project scope management plan
Faculty of Computing and Informatics
Scope planning and scope statement – project scope management plan
A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control
The components of a project management plan
Introduction or overview of the project
Description of how the project is organized
Management and technical processes used on the project
Work to be done, schedule, and budget information

26. Scope planning and scope statement – sample project management plan
Faculty of Computing and Informatics
Scope planning and scope statement – sample project management plan

27. Scope definition and work breakdown structure (WBS)
Faculty of Computing and Informatics
Scope definition and work breakdown structure (WBS)
WBS is a deliverable-oriented grouping of work involved in a project that defines the total scope of the project.
For example:
Evaluate current systems
Define requirements
Define specific functionality
Define risk and risk management approach
Develop project plan
Brief project team
Design and develop prototype
Roll out
Support

28. Scope verification and scope change control
Faculty of Computing and Informatics
Scope verification and scope change control
Scope verification involves formal acceptance of project scope by the stakeholders
Factors causing IT project problems:
Lack of user input
Incomplete requirements and specifications
Lack of executive support
Technology incompetence
Lack of resources
Unrealistic expectations
Unclear objectives
Unrealistic time frames
New technology

29. Thank You. Faculty of Computing and Informatics 13 Storch Street
Private Bag 13388
Windhoek
NAMIBIA T: F: E: W:
Faculty of Computing and Informatics
Thank You.