1. Ch 4 - Learning Objectives Scope Management You should be able to: n Discuss the relationship between scope and project failure n Describe how strategic business planning is related to project selection n Explain how projects are initiated and selected n Define activities, inputs, and outputs of scope initiation, planning, definition, verification n Prepare a project charter n Construct a WBS

2. Scope Management n Processes are needed to ensure that: –The project includes all required work –The project includes only required work n Product scope –features and functions of product deliverables –measured against product requirements n Project scope –work that must be done to deliver them –measured against project plan

3. Scope Management Processes n Project Initiation –commitment to next phase n Scope Planning –written scope statement n Scope Definition: WBS n Scope Verification: formal acceptance n Scope Change Control

4. Scope Initiation n Initiating a new project, or n Commitment to the next phase of an existing project n Inputs: –product description/business need –strategic plan/goals –project selection criteria & methods –expert judgment, historical information

5. Strategic Planning, Leading to Project Selection n Business strategy and goals –SWOT analysis n IT systems help companies compete n Identify and prioritize opportunities Business Goals Selected Projects Potential Projects Business Needs

6. Methods for Project Selection n Organizational Need Perspective –Perceived need? –Likelihood of funding? –Willingness to support? n Source, time, impact, priority –problem –opportunity –directive n Financial Perspective

7. Project Selection Low BenefitHigh Benefit High Cost/ Risk Low Cost/ Risk C B E G A D F

8. Financial Perspective n Cost/benefit analysis –NPV - net present value –ROI - return on investment –Payback analysis n Limitations: difficulty of estimating n Weighted scoring model –incorporates multiple criteria

9. Weighted Scoring Model n Determine criteria n Weight criteria by importance n Score each project on each criterion n Multiply scores by weights n Get overall score for each project n Select project with highest score n “What-if” analysis may be helpful

10. Scope Initiation Outputs n Project Charter –Conceptual baseline n Project Manager selected n Constraints –factors that will limit the team’s options –e.g., fixed budget –e.g., contractual provisions n Assumptions

11. Project Charter n Formalizes existence of project n Provides direction on objectives n Signoff by key project stakeholders Charter Components: n title, date n project manager n scope statement n summary of approach n roles and responsibilities matrix n sign-off n comments (assumptions, constraints)

12. Scope Planning n Inputs to planning = outputs of initiation –description and charter –constraints and assumptions –product description and analysis –cost/benefit analysis

13. Scope Planning Outputs n Written Scope Statement –justification: business need –product description –project deliverables –quantifiable criteria for success n Common understanding of project

14. Scope Definition n Decomposition of project into more manageable components –sufficiently detailed for tasks, estimation n Helps improve estimation accuracy n Defines a baseline for measurement and control n Clarifies responsibilities

15. Work Breakdown Structure n Analysis of work needed to complete project n Hierarchical breakdown of tasks n Provides basis for planning and change control n Can be organized around products or phases n Work package is lowest, detailed level n Requires involvement of project team and customers n Helps identify needed coordination

16. Approaches to Preparing a WBS n Use formal templates if available n Use previous similar projects’ WBS n Top-down –iteratively add levels of detail n Bottom-up –team members identify detailed tasks –tasks are aggregated and summarized –creates buy-in by project team n Combination

17. WBS Principles n A unit of work appears only once n Each unit of work responsibility is assigned to one person n Each unit of work must have a clear scope n WBS reflects how work will be done –serves project team first n Must be flexible to accommodate changes

18. Scope Verification n Formal acceptance by stakeholders n Inputs: –Work results from execution of project plan –Product documentation n Inspection n Outputs: –documented level of completion –documented acceptance

19. Scope Control and Project Failure n Project failure often due to scope getting out of control –Did not understand requirements –Or, allowed requirements to grow n On average, project scope increases 4-fold n “Requirements (scope) creep” –users see potential for automation, ask for more –users want new system for current jobs

20. Reducing IT Project Scope Creep n User involvement –project selection: ensure sponsor –easy access to project information –users as member(s) of project team –regular meetings with users –co-location with users –focus on completion dates –prototyping, use cases, JAD, CASE