Project Scope Terminologies

Original Article

Many times we read so many academic definitions of various terms but when it comes to the application we miserably fail because we have not internalized the meaning. In this article, I will not bore you with more academic definitions but direct hit the nail at the right place so that you understand how to apply these concepts.

Problem Statement or Opportunity 

1. (Problem) Machine #121 is frequently breaking down in our assembly line.
2. (Problem) We are in the restaurant business. Due to the COVID pandemic, people are not moving out. Can we do something different which can help us to retain our revenue?
3. (Opportunity) I am in the home tuition business I teach physics and maths. Because of high internet penetration and many online platforms can help me in reaching the national international students. Can I do something?
4. (Opportunity) I can avail one-month leaves from my work and I love to track whole India on the bicycle. I want to buy the best bicycle suited for this purpose.

In the interest of time and keeping this article simple from now onwards we will discuss only 2 examples 1 & 4. And I hope you will be able to expand the remaining 2 and main more on your own.

Project Justification

To repair the machine cost is $ 1000 but we do not have a guarantee that when another component of the machine can go down. In that situation, it will further affect our production. The cost of replacing machine #123 is $3000 but then for 5 years, we can work without any problem. If we manually do the work of machine #123 then it is cost-effective but the problem is quality and speed. We can manage the situation this way for a maximum of one week. Therefore we need a solution to this problem

Project Proposal Options

1. Repair Machine

2. Replace Machine

3. Do that work manually with other labor

Project Proposal

Detail the pros and cons of all three options.

Project Approval

A committee evaluates the proposal and recommends for the second proposal, i.e. replace the machine. Sponsoring department and person will approve the fund for recommended work. Now it is called a Project.

The sponsor identifies a Project Manager for this project.

Project Goal

Replace machine #123 in the assembly line and ensure there is minimum disruption to the current operations. A new machine should be a 5-year cost-free warranty. The selected vendor needs to ensure in case of extreme situation production should not stop more than 2 hours because of the supplied machine.

Project Constraints

1. The machine needs to be replaced by 31-Oct-20. Because of ABC reasons.
2. The maximum budget allowed for this is $3000.
3. If we are going to an international supplier then he must have a local service center.
4. We will not buy from the companies which are <= 1 year old. Also not from those who have an annual turnover of less than USD 50 million.

Project Assumptions

From the day of approval to the final project closure, we knowing or unknowing assume many responsibilities and activities. And without stating it clearly to the stakeholders we take a risk. No matter how silly an assumption is, if you think it can impact project goals and objective then it is the project manager's responsibility to document, communicate, and manage it. Example

1. It will not rain during transit.

2. Transport costs will be born by the vendor.

3. If we are buying from international market then not more than +/-5% change in the exchange rate

4. No strike, roadblock, jam during transit

Project Objective

1. Minimum disruption to existing production
2. Finding good vendors and negotiating terms & conditions with them.
3. Procure Machine.
4. Install machine and run 3 days trial with vendor's support.
5. 3 days on the job training for the operators.
6. Dispose of the old machine and maximum scrape value.

Project Scope & out of scope

1. The training cost is within the scope
2. Inspection cost of the machine is within the scope 
3. By replacing machine #123 if other machine needs to be tuned then that cost is not in the scope of this project.
4. Travel insurance of the machine is within scope because the vendor is not buying transit insurance.
5. If process change happens and machine needs to be installed in other building within the same premise then it is allowed and within the scope 

Project Work Breakdown Structure (WBS)

It is a hierarchy structure of all the deliverables & key activities you are going to track in your project. You can create project WBS mainly in 3 ways. 

1. Keeping Phases at top-level of the hierarchy
2. Keeping Vendors/Department/Team at top-level of the hierarchy
3. Keeping key milestones at the top-level of the hierarchy

At the bottom-most level of this hierarchical structure, it will include work packages that can be assigned to individual teams, persons or organizations, or vendors. If you are tracking engineering activities of a project then it will also include Product Break Down Structure items.

Let's say if final delivery of the project is a bicycle and you are also tracking engineering activities then how WBS (top-level phase) looks like (please make a note it is also including phases from project cycle)

While creating WBS we should keep in mind WBS is from the project manager's perspective and not from the perceptive who is taking work from the PM (like vendor, engineer, etc). The project schedule may have those activities but not WBS.

Product Scope 

Let's say if final delivery of the project is bicycle then how Product Scope looks like

Mostly we use the bicycle for mountain tracking but we can use it for tracking on sea beaches. So, it should be easy to change the tire based on the need. We can travel for 7-10 days without touching to cities so we need a facility to carry a minimum of 40 kg luggage.

Product Breakdown Structure (PBS)

High-level components breakdown of the output of the project. This should be in a hierarchical format. Let's say if final delivery of the project is bicycle then how PBS look like

• Bicycle
• Headlight
• 36 Geat
• Tubeless Tire
• Electronic Mirror
• Adjustable Seat 
• Luggage Careers

Project Lifecycle

1. Project Initiation
2. Vendor & Machine Evaluation
3. Vendor & Machine Finalization
4. Shipping & Installation
5. Training & Handover
6. Project Closure

Project Requirements

Here you can put the desired machine's feature, specification, performance, quality requirement. If this is a machine part of a food processing unit then the example is.

1. Able to process the different kinds of fruits like apple, orange, banana, lemon, etc.
2. Should be able to segregate the seed
3. Can process 10,000 kg of fruits in 24 hours.
4. The machine should be able to run without a break for all seven days of the week. Only 4 hours of maintenance down is allowed in a week.
5. Integrate seamlessly with our juice packing machine.

I hope this helped you. Do write to me if still there is some confusion or you want to expand this by contributing something more useful. hari.prasad @ vedavit-ps.com