PROJECT MANAGEMENT
Last Updated October 27th, 2001
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 » DEFINE - PROJECT SCOPE  

The purpose of the project scope is to define the boundaries of the project. A lot projects are not successful because there is no clear scope. There fore, the team ends up focusing in the less important areas of the project. Remember, the project results are measure by the customer. Therefore, the scope of the project must include what the customer wants.

The scope of the project should be as specific as possible. Bellow are some characteristics of a good project scope:

  • It defines who is the customer
  • It outlines the final deliverable to be produced
  • It defines the criterias that the customer will use to measure their satisfaction

Start defining your scope by giving your project a name.

Project Name: The project name should reflect the purpose of the project. Use action verbs and objectives in the project name

For example, the project name for our case study is "Increase Production". As you can see the project name gives away the purpose of the project. The major deliverable of this project is to increase bicycle production to meet market demands.

Make Sure That Your Scope Is Not Too Big

There are a lot of teams that work under huge scopes. Their projects take years to complete. Must of the time these projects are never completed or deliver a final product. The scope must be obtainable within a reasonable time frame (3 months). If the scope is bigger than that then you need to break the project into phases to be able to deliver a final product. Another risk that projects with big scopes inquire is that if they are able to deliver a final product. The final product is not what the customer wants at the time of the delivery. For example, The customer wants a new PC with 200MHZ in 1998. If it took you as a supplier two years to deliver what the customer wants. In 2000 the customer does not want a 200 MHz PC, they want a 1GZ PC. Therefore, you are not meeting the customer current necessities.

How do we narrow the scope of the project?

There are a lot of tools that can help you narrow the scope. One of the most effective ones is call a QFD. (Click here to Learn how to create a QFD). For most projects you can start narrowing the scope by segmenting the different processes or functionality of the product you are trying to build.

For the purpose of our case study we know we need to increase production to meet market demand, but our company currently sales 5 different brands of bicycles. So, which bicycle production should we increase. Let's look at the sales and inventory numbers for our company.

Product Name Sales (%) Sales (Units) Current Inventory
X-Mountain 47% 700,000 25,000
BYU 7% 100,000 450000
X25-Mountain 33% 500,000 50,000
LOPEX 10% 150,000 130,000
J400-SPORT 3% 50,000 310,000
TOTALS
  1,500,000 965,000

Based on this data you can notice that there is a high demand for the X-Mountain and the X25-Mountain bikes. Also, that the BYU, LOPEX, and J400 SPORT are not selling as fast. Therefore, increasing sales to these three last products will not increase sales. Based on these numbers we learn that our total production is (Total Sales + Total Inventory) 2,465,000. The gab we are trying to fill is 735,000 bikes (if we completely sell our inventory).

From this data we conclude our project scope:

To increase production of X-Mountain and X25-Mountain bikes by x percent and to analyze why BYU, LOPEX, and J400 SPORT bikes are not selling as munch.

 


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