WBS, Scope Change Control and Cost Reserve

• What is Work Breakdown Structure?
• The Work Breakdown Structure takes the project and divides it in smaller pieces. These can be called sub projects.
• The subprojects can be broken down into smaller pieces. This process of breaking down the project can continue until the project is broken into small, more manageable pieces

• What is Scope Change Control?
• Since changes to the project scope are inevitable, we should have a means of changing the scope in such a way that the changes can be managed successfully into the project without causing havoc. This is what we mean by scope change control.
• One of the things you will need in order to control the changes is a clear definition of the project deliverables.
• Unless the deliverables are clear when the scope baseline of the project is established, it is difficult to know when a change is requested whether it is or is not part of the already established project scope.
• Many conflicts can be avoided by having a clear scope baseline that all of the stakeholders have agreed to.

• What are the Cost Reserves?
• There are two kinds of reserves set up to budget for risks: the contingency reserve and the management reserve. The contingency reserve contains the money to do the risks that were identified. The management reserve contains the money to do the risks that were not identified.

Project Justification, Charter & Scope

• What is Project Justification?
• The most credible justification is one where the identified benefits of the project are greater than the cost of doing the project.

• What is Project Charter?
• A Project Charter is the first document exists in the project.
• The project charter names the project and briefly describes it.

• What is Scope Statement?
• The Scope Statement is the defining statement of the project.
• It is a primary document to understand the project and its nature
• The project statement includes Goal Statement, the project justification, the products the project will produce, the deliverables and the success criteria of the project.
• The project statement should also include the things that the project will not do

Project Failure

Why do Projects fail?

• Project fail mainly because of two reasons:

• Failure of estimation and
• Failure of implementation.

• Other reasons are:

• Initial cost and schedule estimates are not revised when more information becomes available as the project progresses.
• Plans are not used correctly or used to guide the project forward.
• Project managers are not trained to acquire the necessary skill base; subsequently, the same mistakes are made repeatedly.
• The theory of project management is not put into practice. This point can be seen in the attitude of many managers who view theory as a waste of time—yet time is found to repair errors later. Isn't that a sure sign of the wrong approach?
• The project scope changes.
• The incorrect project methodology is used.
• Requirements have major changes.
• Communications are poor.
• Testing and/or inspections are poorly done.