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Engineering Project Management 444

Lecture F - SCOPE AND VALUE ENGINEERING

INTRODUCTION

To commence, a question, what is the scope of a project? The project

management literature is relatively silent in dealing with scope as a major

issue. To provide a basis for the discussion, scope as defined is:

"1. End aimed at, purpose, intention

2. Outlook, purview, sweep or reach or sphere of observation or

2

The process

Early definition requires input from all stakeholders to the project,

marketing, business groups, technical personnel, operations and

management.

Early scope definition should cover all aspects of the project, albeit

superficially, thus a consistent estimate, schedule and design basis

can be prepared.

As a corequisite to this preliminary scope definition, market

evaluation, raw material availability and quantity, project objectives,

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Engineering Project Management 444

many cases the process is more cyclic where new information

leads to the development of a range of options. Even before the

project receives commitment either internal or external factors will

cause a revision to the studies and analyses.

The Range

Overarching Philosophy

An essential element is the project philosophy, a set of broad

based project objectives covering facilities, proposed

execution, organisation, productivity and operability. This

 Future growth and local involvement,

 Labour requirements both during execution and

operations.

Scope definition is therefore a tradeoff.

Technical Definition

This process develops the product. Specifications are

established, targets set and other product characteristics

determined. This process will affect all subsequent design

alternatives. At this stage, both operating and capital cost

effects should be considered and a range of alternatives

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Engineering Project Management 444

Scheduling and Cost Estimates

commitment decision. An audit trail should be established

from this basis as design proceeds.

Organisational and Procedural Definition

design further refines the requirements of the project,

procedural issues are also defined to allow for improvement

in the project performance. These include:

 execution methodology,

 procurement basis,

 accounting procedures and functions,

 governmental relationships and statutory

the project.

Control of scope is complicated by the range of objectives on a

project and the perspective of the various stakeholders to the

project.

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Engineering Project Management 444

Some fundamental control questions arise from this complication:

 Who is the client?

 How do we manage the project to achieve the

client's objectives?

 What type of information can and does the client

wish to allow the client to control the project?

 Will the objectives remain constant over the life of

particularly in the early stages of a project.

Is the exact definition of scope required for effective execution of

the project, how is the trade-off possible with a spongy scope.

CHARACTERISTICS OF EFFECTIVE SCOPE CONTROL.

Effective scope control systems are closely integrated with planning

and are flexible, accurate, timely, and objective.

Integration with planning:

The more explicit and precise the linkage between planning

and control is, the more effective the control system will be.

Flexibility:

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Engineering Project Management 444

Accuracy:

instability and risk in the project environment.

Objectivity:

A control system should provide information that is as

objective as possible. But even when the information is

objective, managers need to look beyond the numbers when

assessing performance.

SCOPE ORGANISATION

NARRATIVE METHODS

Under this system a narrative is provided to describe the scope of

work. Often these narratives form part of a request for funding,

support or tender.

These methods are useful in providing scope checklists and allow

for detail to grow with the project.

Other requirements for these systems include:

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