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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:

define scope.

EARLY SCOPE DEFINITION

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.

These processes are highly rational, however the process is often

not as simple or as rational as this treatment would suppose. In

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.

Overarching Philosophy

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

based project objectives covering facilities, proposed

� Maintenance and operation factors,

� Future growth and local involvement,

� Labour requirements both during execution and

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

Scheduling and Cost Estimates

further evaluation. They also form the basis of the

commitment decision. An audit trail should be established

from this basis as design proceeds.

Organisational and Procedural Definition

This is possibly the birth of the project control system. As

the 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,

What do we have to do and produce to achieve the objectives of

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.

Some fundamental control questions arise from this complication:

� Who is the client?

� How do we manage the project to achieve the client's

� What type of information can and does the client wish

Can scope definition become a constraint on the project,

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.

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.

Accuracy:

necessary and this is often a function of uncertainty,

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

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

These methods attempt to successively refine the definition of

scope. They are the most common method of scope organisation.

These methods are useful in providing scope checklists and allow

for detail to grow with the project.

Other requirements for these systems include: