Project scope

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” link_color=”” link_hover_color=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_blend_mode=”none” video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″][fusion_builder_row][fusion_builder_column type=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” hover_type=”none” border_size=”0″ border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” background_type=”single” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” background_blend_mode=”none” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_type=”regular” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ last=”no”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

The work must be done in order to deliver a product, services, or result with the specified feature and function.

[/fusion_text][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Scope Management

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

It is the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

By properly managing the scope of your project, you help to

(1) Ensure that only the essential work required for project completion is included in planning and scheduling, so you save time and money.

(2) Ensure that the final project delivers the required product, so you satisfy your customer needs.

[/fusion_text][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Steps for Project Scope Management

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

(1)Fully Understand the Problem or Opportunity

 

-Problems and opportunities

-Identifying true need and its importance.

-Preparing the Project Requirements Document

  • Description of the problem or opportunity.
  • Impact or effects of the problem.
  • Identification of who or what is affected by the problem.
  • Impact of ignoring the problem or opportunity.
  • Desired outcome.
  • Value or benefit associated with achieving desired outcome.
  • Strategic fit.
  • Interface integration and compatibility issues.
  • Uncertainties and unknowns.
  • Key assumptions.
  • Environmental considerations.
  • Background or supporting information.

-Problems are ordinarily complex, consisting of many aspects that require analysis and insight. There’s frequently more to a problem than what’s apparent on the surface.

-We need to invest an appropriate amount of time to fully understand all aspects of the problem. what appears to be the problem is actually masking a bigger, more fundamental problem. Uncovering that fundamental problem is referred to as identifying the true need.

[/fusion_text][fusion_imageframe image_id=”18870|medium” max_width=”” style_type=”” blur=”” stylecolor=”” hover_type=”none” bordersize=”” bordercolor=”” borderradius=”” align=”none” lightbox=”no” gallery_id=”” lightbox_image=”” lightbox_image_id=”” alt=”” link=”” linktarget=”_self” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″]https://eccceg.com/wp-content/uploads/2020/05/identifying-the-needs-300×183.png[/fusion_imageframe][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

-Problems and opportunities can arise almost anywhere inside or outside the organization. Problems are typically driven from within and frequently relate to improving organizational performance. Problems are generally regarded as negative.

-Opportunities may be viewed as positive events that need to be exploited. Opportunities are often driven by external forces.

-One of the more common examples of opportunities can be found in the areas of product development or product enhancement. These opportunities are often the response to a perceived need in the marketplace.

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

(2) Identify the Optimum Solution

Why Optimum Solution?

 The process of Generating optimum solutions:

  • Do it in a team environment.
  • Include subject matter experts and stakeholders as appropriate.
  • Use brainstorming techniques.
  • Limit further development to only reasonable alternatives.

 Using Financial Criteria for Project Selection

  • Net present value,
  • Internal rate of returns
  • payback period
  • Cash hole

Using Non-Financial Criteria for Project Selection

  • SMART

(3) Fully Develop the Solution and a Preliminary Plan

A comprehensive Project Definition Document should include these elements:

  • Problem need or opportunity.
  • Statement of work and strategy for execution
  • Major deliverables.
  • Completion criteria.
  • Risks, uncertainties, and unknowns.
  • Assumptions
  • Preliminary execution plan.
  • Project stakeholders.
  • Success criteria.

(4) Formally launch the project

OK, let’s review. So far we’ve:

  • identified the true need,
  • determined the best solution to satisfy that need,
  • described how we’re going to carry out the solution,
  • developed a sense of how much the solution will cost,
  • developed a sense of how long it will take to carry it out, and
  • identified who will be working on it.

At this point, some sort of formal authorization and/or funding approval may be required before the project can proceed.

 

  • Making a Proposal for Management Approval
  • Securing Authorization to Proceed
  • Conducting a Team Kickoff Meeting
  • The Unspoken Imperative: Evaluate the Political Environment

[/fusion_text][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Fully Understand the Problem or Opportunity (step1)

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

 Identifying the True Need

The term “true need” refers to the most basic problem to be solved. Identifying your project’s true need can, at times, be tricky. But it’s absolutely vital that you as the project manager understand what the true need is.

Why identifying the true need?

Because many will judge you as a project manager by your ability to solve the original problem. Solving the original problem equates to satisfying the true need. And you cannot be certain that you’ll satisfy the true need unless you know what it is.

-The problem is that when you’re assigned to manage a project you may not be presented with the true need explicitly.

-One of the most reliable methods for uncovering the true need is to ask the right people one simple question: “Why?” However, as you seek to uncover the true need, you can expect to encounter some resistance.

-If you ask questions rather than digging in and getting the project going, some within your organization may assume that you’re not moving forward.

-However, asking the right questions of the right people can often lead to some startling discoveries.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/Identifying-the-True-Need-300×225.jpg” image_id=”18874|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Preparing the Project Requirements Document

  • Description of the problem or opportunity.
  • Impact or effects of the problem.
  • Identification of who or what is affected by the problem.
  • Impact of ignoring the problem or opportunity.
  • Desired outcome.
  • Value or benefit associated with achieving the desired outcome.
  • Strategic fit.
  • Interface integration and compatibility issues.
  • Uncertainties and unknowns.
  • Key assumptions.
  • Environmental considerations.
  • Background or supporting information.

Reality Check #1: Stop or Go?

Although it is very early in the life of the project, two important questions should be asked:

  • Is this problem worth solving?
  • Does a potential solution exist?

These two questions address the issues of justification and feasibility, respectively.

You should address both issues before continuing. If not, you run the risk of wasting time and money on problems that should not or cannot be solved.

[/fusion_text][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Identify the Optimum Solution(step2)

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Identify the Optimum Solution

-The key to effective project management is to determine the best solution—the one that’s most attractive to the organization.

-This requires some careful thought and the development of criteria by which we can evaluate which solution is “best.”

-The solutions we identify through our initial, response might work to solve the problem—may not be the most effective.

-For many problems, there are multiple solutions and various approaches for carrying them out.

-Once you fully understand the need and establish that satisfying the need is justifiable and feasible, you’re ready to determine the best way to satisfy that need.

-If you’re fortunate enough to be involved at this stage of the project’s evolution, you should be actively working toward building a team that can work with you from this point on.

Identifying Alternative Solutions

The process of identifying the optimal way to satisfy the project requirements begins with generating a list of potential solutions. This process can be greatly enhanced in the following ways:

(a) Do it in a team environment.

(b) Include subject matter experts and stakeholders as appropriate.

(c) Use brainstorming techniques.

(d) Limit further development to only reasonable alternatives.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/brainstorming-300×150.png” image_id=”18879|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Project selection method

                        (1)Financial                                                      (2) non-financial

(1)Using Financial Criteria for Project Selection

  • Companies that use project selection and justification methods often rely on financial calculations as a comparative tool and as a basic hurdle for management approval.
  • Basic financial evaluation models—variously known as financial analysis, business case, project financials, or cost/benefit analysis—often include some combination of these four basic metrics:
    • Net Present Value
    • Internal Rate Of Return
    • Payback Period
    • Cash Hole

Net present value (NPV)

Calculating a project’s NPV answers the question:

How much money will this project make (or save)? It’s a calculation in dollars of the present value of all future cash flows expected from a project. It’s roughly equivalent to the concept of profit.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/if-300×213.png” image_id=”18881|medium” link=”” linktarget=”_self” /][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/Net-present-value-NPV2-300×37.png” image_id=”18888|medium” link=”” linktarget=”_self” /][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/1111-300×100.png” image_id=”18886|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Example

An investment with initial cash out flow of $100,000 pays back $34,432 in the first year, $39,530 in the second year, $39,359 in the third year, and $32,219 in the fourth year. If the rate of return is 12%, find the Net Present Value

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/example-300×146.png” image_id=”18895|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Internal rate of return (IRR)

It’s a calculation of the percentage rate at which the project will return wealth. It’s roughly equivalent to the effective yield of a savings account.

How to Calculate IRR?

It is just simple to calculate “k” in the NPV formula when NPV = 0

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”2″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/irr-300×37.png” image_id=”18897|medium” link=”” linktarget=”_self” /][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/zero.jpg” image_id=”18899|full” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Payback period

Calculating this metric (also known as time to money or breakeven point) answers the question:

When will the original investment (the amount spent on the project) be recovered through benefits? It’s typically expressed in months or years.

 

Example:

Assume a project costs L.E. 100,000 to implement and has annual net cash inflows of L.E. 25,000. Calculate the payback period?

Payback period= 100,000/25,000= 4 years

 

Cash hole

Calculating the cash hole (also known as the maximum exposure) answers the question: What’s the most we’ll have invested at any given point in time? It’s expressed in terms of dollars.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/Cash-hole-300×190.png” image_id=”18901|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Using Non-Financial Criteria for Project Selection

Sacred Cow:

CEO suggestion of a potential project or product.

The Operating / Competitive necessity

Select projects that are necessary for the continued operation of a group facility or the firm.

Comparative Benefits

A selection committee based on their experience to rank projects as “good”, “fair” and “poor”. Then “good-plus”, “good-minus”, etc.

  • Financial models express costs and benefits in dollars and cents. As mentioned earlier, estimating certain kinds of benefits in financial terms can be quite difficult or uncomfortable. Such as
  • Increased output due to enhanced employee satisfaction
  • Improvement in vendor delivery reliability
  • Improvement in workforce safety
  • Increase in user comfort or convenience
  • Reduction in potential legal action against your organization

-In other situations, accurate data may be obtainable, but only by conducting expensive tests, studies, or surveys.

-Whenever the process of getting good financial data is difficult, expensive, or time-consuming, using a weighted factor scoring model (decision matrix) may be a reasonable option for selecting the best alternative solution.

A decision matrix constructed to determine the preferred model of automobile. We’ve identified six attributes that are meaningful to us: durability, comfort, style, handling, reliability, and resale.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/A-decision-matrix-300×225.png” image_id=”18903|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Fully Develop the Solution and a Preliminary Plan (step3)

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Fully Develop the Solution and a Preliminary Plan

-When a solution is identified, it’s typically characterized in one or two brief statements (install an additional production line, for example).

-This solution statement must be converted into a plan. The process begins with a full description of the solution, including the methods for achieving it. It ends with the development of a credible, detailed project plan that the team can use as a map for execution.

-At this point, you’ve identified the preferred solution. Now, you need to develop the details. This step consists of completely defining every aspect of the preferred solution. It’s a progressive elaboration of the work to be done, beginning with the Project Definition Document.

A comprehensive Project Definition Document should include these elements:

  • Problem need or opportunity.
  • Statement of work and strategy for execution
  • Major deliverables.
  • Completion criteria.
  • Risks, uncertainties, and unknowns.
  • Preliminary execution plan.
  • Project stakeholders.
  • Success criteria.

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Preliminary Planning: How Much Is Enough?

You’ll find this to be one of the most difficult points in the life of the project.

You’re about to make a specific project proposal to management, who will crave precise estimates. You won’t be able to provide precise estimates, because you simply don’t know enough

at this point.

-You’ve done a limited amount of analysis, so you can’t predict an outcome with much confidence.

-The schedule you produce in your preliminary planning should be relatively very simple and not very detailed. In fact, the level of detail in all of your documentation should reflect your level of knowledge and certainty.

-In most cases, you may wish only to indicate the major phases of the program and to identify some high-level milestones. Again, you should try to indicate a completion date and a cost estimate in terms of ranges, not specifics.

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

-Figuring Out Who Can and Will Do the Work Problem need or opportunity.

-Before presenting your project proposal to management, you should try to gain some assurance that the labor and materials required for the project will be available, should you get approval.

Nothing is worse than managing a project without the proper resources.

You should normally begin the process by searching within your organization and asking a few key questions:

  1. Do we have people with the necessary expertise to do the work?
  2. Are they willing to commit to doing the work, barring any scheduling problems?
  3. Would we achieve a better result by going outside the company, such as a lower cost, higher quality, or faster delivery?
  4. Are there concerns associated with going outside the organization, such as confidentiality and safety?

You can also conduct a preliminary make-or-buy analysis, which helps to determine whether it’s better to obtain a deliverable or group of deliverables from within the company or from an outside source. A make-or-buy analysis should examine this issue from three perspectives:

  • By performing direct cost comparisons.
  • By considering critical factors.
  • By applying appropriate filters or constraints

By performing direct cost comparisons

Normally cost is the primary consideration in a make-or-buy analysis. Comparing costs should be fairly straightforward and the calculations should be relatively routine.

By considering critical factors

 There are many factors beyond simple dollars and cents, such as attributes of the group providing deliverables, delivery, quality, reliability, and so forth. These factors can be included in a weighted factor scoring matrix. This approach may include any number of different factors

 By applying appropriate filters or constraints.

Certain conditions might exist that would eliminate a given choice—make or buy—even if that choice is feasible and/or cost effective.

Here are some examples of filters or constraints:

  • Specific legal concerns
  • A need for confidentiality
  • The need or desire to maintain direct control
  • Significant excess capacity currently in your organization
  • Outsourcing the function generally unadvisable

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Determining to Make or Buy

The decision to make or buy a product is a fundamental aspect of management.

-In some conditions it is more cost effective to buy—while in others it makes more sense to create an in-house solution.

-The make-or-buy-analysis should be made in the initial scope definition to determine if the entire project should be completed in-house or procured. As the project evolves, additional make-or-buy decisions are needed.

-The initial costs of the solution for the in-house or procured product must be considered, but so too must the ongoing expenses of the solutions.

For example, a company may elect to lease a piece of equipment. The ongoing expenses of leasing the piece of equipment should be weighed against the expected ongoing expenses of purchasing the equipment and the monthly costs to maintain, insure, and manage the equipment.

For example

-Determine whether it is better to create a software program in-house or buy one from a software company.

-The in-house solution will cost your company $25,000 to create your own software package with $2,500 per month to maintain the software.

-The development company has a solution that will cost your company $17,000 to purchase, but the development company requires a maintenance plan for each software program installed, which will cost your company $2,700 per month.

-The difference between making the software and buying the software is $8,000.

-The difference between supporting the software the organization has made and allowing the external company to support their software is only $200 per month.

-The $200 per month is divided into the difference between creating the software internal and buying the software—which is $8,000 divided by $200—40 months.

-If the software is to be replaced within 40 months, the company should buy the software.

-If the software will not be replaced within forty months, it should build the software.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/software-program-300×193.png” image_id=”18906|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

In the previous example, If your project is 42 months, which is more feasible: (i) to build your in-house software or (ii) to buy it? Explain your answer.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/aaa-300×148.png” image_id=”18907|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

You are the Construction Manager for a construction project. You have to determine whether it is feasible to buy a loader for your project or hire it from a supplier. The cost of buying the equipment is L.E. 350000 with monthly maintenance and operation expenditure of L.E. 10000. Alternatively you can hire the equipment for a L.E. 27500 per month with L.E. 50000 monthly insurance premium and L.E. 6000 operating cost. How many months will you hire the equipment before it is better to buy it? Explain your answer.

[/fusion_text][fusion_gallery layout=”” picture_size=”” columns=”1″ column_spacing=”” gallery_masonry_grid_ratio=”” gallery_masonry_width_double=”” hover_type=”” lightbox=”yes” lightbox_content=”” bordersize=”” bordercolor=”” border_radius=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””][fusion_gallery_image image=”https://eccceg.com/wp-content/uploads/2020/05/www-300×122.png” image_id=”18909|medium” link=”” linktarget=”_self” /][/fusion_gallery][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Formally Launch the Project(step4)

[/fusion_title][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

-The activities involved in the formal initiation of project execution depend on the organization’s specific project procedures.

-Project launch activities may include preparing a business case, making formal presentations to management, creating and approving a project charter, and securing funding to proceed.

-It also should include team-oriented activities, such as conducting a kickoff meeting and establishing mutual expectations between you and your project team.

So far we’ve:

  • identified the true need,
  • determined the best solution to satisfy that need,
  • described how we’re going to carry out the solution,
  • developed a sense of how much the  solution will cost,
  • developed a sense of how long it will take to carry it out, and
  • identified who will be working on it.

At this point, some sort of formal authorization and/or funding approval may be required before the project can proceed.

  • Making a Proposal for Management Approval
  • Securing Authorization to Proceed
  • Conducting a Team Kickoff Meeting
  • The Unspoken Imperative: Evaluate the Political Environment

 

Before We Move to a Time Management

Project Manager’s Checklist for Scope Management

❏ identifying the customer’s true need—the most fundamental problem or opportunity—is the first and most important step in the entire project process.

❏ using financial criteria is the preferred method for determining whether projects are worth doing. After all, when you boil it down, projects are really financial investments. However, non-financial criteria can be used when financial information is unavailable or expensive to obtain.

❏ using a combination of financial and non-financial criteria is an excellent way to ensure a comprehensive analysis of a prospective project opportunity. Doing this allows for consideration of the intangibles, which many people seem to like.

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Leave A Comment

Your email address will not be published.