Project Scope Management

This chapter covers key concepts related to Project Scope Management.

The knowledge area of Project Scope Management consists of the following processes -

Scope Management Processes

Process	Project Group	Key Deliverables
Collect Requirements	planning	Requirements document
Define Scope	planning	project scope statement
Create WBS	planning	WBS, WBS dictionary
Verify Scope	Monitoring and Controlling	Acceptance deliverables
Control Scope	Monitoring and Controlling	Change Requests

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.

Collect Requirements process involves documenting stakeholders needs to meet project objectives. The Inputs, Tools and Techniques, and Outputs of Collect Requirements process are given below.

Collect Requirements Process

Inputs	Tools & Techniques	Outputs
Project charter	Interviews	Requirements documentation
Stakeholder register	Focus groups	Requirements management plan
	Facilitated workshops	Requirements traceability matrix
	Group creativity techniques
	Questionaires and surveys
	Observations
	Prototypes
	Group decision-making techniques

The Define Scope process involves defining detailed description of the project and major deliverables. The Input, Tools and Techniques and Output of the Define Scope process are:

Define Scope Process

Inputs	Tools & Techniques	Outputs
Project charter	Expert judgment	Project scope statement
Requirements documentation	Product analysis	Project document updates
Organizational process assets	Alternative identification
	Facilitated workshops

Create WBS is the process of dividing the project deliverables into smaller components. The Inputs, Tools and Techniques and Outputs of Create WBS process are:

Create WBS Process

Inputs	Tools & Techniques	Outputs
Project Scope Statement	Decomposition	WBS
Requirements documentation		WBS dictionary
Organizational process assets		Scope baseline
		Project document updates

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 Verify Scope is the process in which the project customer formally accepts the project deliverables. Scope Verification happens at the end of each phase. During the Verify Scope process customer gives feedback on work performed. While Verify Scope process focuses on customer acceptance, Perform Quality Control process focuses on correctness of work.

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

Verify Scope Process

Inputs	Tools & Techniques	Outputs
Project management plan	Inspection	Accepted Deliverables
Requirements documentation		Change requests
Requirements traceability matrix		Project document updates
Validated deliverables

Control Scope process involves monitoring the status of project and managing scope changes. The Inputs, Tools and Techniques and Outputs of Control Scope process are:

Control Scope Process

Inputs	Tools & Techniques	Outputs
Project management plan	Variance analysis	Work performance measurements
Requirements documentation		Change requests
Requirements traceability matrix		Project management plan updates
Organizational process assets		Organizational process assets updates
Work performance information		Project document updates