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Scope Creepcases & preventive actions
Prepared by:
Engr. Mohamed Maged
Admin of:
www.facebook.com/Prof.Planner
حاالت وحلول–تغير نطاق عمل المشروع
Prof. Plannerمحاضرة تدشين حملة صفحة
(CYLFEx)سجل دروسك المستفادة من الخبرة العملية
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Instructor: Mohamed Maged
Senior Project Control Engineer, B.Sc. of Civil engineering – Ain Shams University, with
experience in MENA region of (construction, infrastructure & roads) Mega projects, in professions
of Contract admin., Procurement, Tender estimating, Cost control, Planning & Claim analysis.
PMP - Project Management Professional certified, SFC – Scrum Fundamentals Certified,
Associate of Chartered Institute of Arbitrators (CIArb - London), Fellow of Association of
International Arbitration (AIA - Brussels) & FIDIC Contracts Consultant: Conference of FIDIC
contract’s strategies and dispute resolution, Cairo - March 2014.
Instructor of Planning & Project Management: Construction Management Planning and Control
(CMPC), Delay, Claim and Dispute Resolution (DCDR).
Admin of the biggest online community of Arab Planners (9000+) - Facebook Page: to be prof.
planner & Founder of Group: Best Advice for Planners, born March 2013.
Arranged Two Annual Conferences of Planning and Project Management in Cairo (Anniversary of
Facebook Page: Prof.Planner) –American University in Cairo, August 2014 & 2015.
1- Scope in project management.
2- Scope creep in middle east & over the
world.
3- Agile approach Vs Plan-driven approach.
4- Change, variation, claim & dispute.
5- Scope creep control & preventive Actions.
6- Capture Your Lessons-learned From
Experience (CYLFEx).
3 Topics:
What’s Scope??
Scope. The sum of the products,
services, and results to be provided
as a project. See also project scope and product scope.
Product Scope. The features and functions that characterize
a product, service, or result.
Project Scope. The work performed to deliver a product,
service, or result with the specified features and functions.
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Scope is one of (Project Management Constraints: A limiting factor that affects the execution of a project,
program, portfolio, or process (time, cost, quality,
scope, risk, resources & customer satisfaction)).
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The
Ma
na
ge
me
nt
Scope
Quality
Risk
ResourcesCustomer
Satisfaction
Target
Project Statement of Work (SOW). by initiator, sponsor or customer - A
narrative description of products,
services, or results to be delivered
(Business need, Product scope
description, Strategic plan).
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Project Charter. A document issued by
the project initiator or sponsor that
formally authorizes the existence of a
project and provides the project
manager with the authority.
Project Idea & Feasibility Study
5.1. Plan Scope Management
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5.2. Collect Requirements
Define
Scope
5.3. Define Scope (Planning)
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Product Analysis. For projects that have a product as a deliverable,
it is a tool to define scope that generally means asking questions
about a product and forming answers to describe the use, characteristics,
and other the relevant aspects of what is going to be manufactured.
Value Engineering. An approach used to optimize project life cycle costs, save time,
increase profits, improve quality, expand market share, solve problems, and/or use resources
more effectively.
Project Scope Baseline
5.4.
Create
WBS
M. M.
No Management without Planning:
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Planning is useless without Control:
Wrong plan is better than no plan.
We do planning to
try on achieving it.
After Initiation, We do Planning, then Control
Success & Failure:
Cost: Budget Overrun.
Delay (ahead/ behind schedule).
Defect or Rework, Gold Plating.
Availability of resources.
Level of Uncertainty.
Customer Expectation.
Changes/ Scope Creep.
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5.5. Validate Scope
5.6. Control Scope
Change / Variation (PMBOK):
Perform Integrated Change Control. The key
benefit of this process is that it allows for
documented changes within the project to be
considered in an integrated fashion while
reducing project risk, which often arises from
changes made without consideration to the
overall project objectives or plans.
In the context of achieving ISO compatibility,
modern quality management approaches seek
to minimize variation/ variance and to deliver
results that meet defined requirements.
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Scope Creep13
Many projects suffer from scope-creep, in whichChanges keep adding to the project budget andput it at levels far beyond what the owneroriginally planned.
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Scenario 1 2 3 4 5 6 7 8
Monthly "scope growth" rate 1% 2% 5% 7% 1% 2% 5% 7%
Project duration (months) 12 12 12 12 24 24 24 24
Final scope increases by 6% 27% 80% 125% 27% 61% 223% 407%
How Much Do Things Change?Much like a miniscule interest rate compounded with necessary frequency can drastically
impact the size of one's debt, so uncontrolled changes can lead to a "scope explosion" on the
project.
According to Capers Jones an average rate of scope change on projects is two percent per
month. This doesn't sound like much but simple calculation will yield a staggering 27% growth in
the project scope over the course of one year.
To put this number in perspective, if the initial project budget was one million dollars, a scope
change rate of two percent will balloon to at least $1,270,000 by the end of the year! We say "at
least" because, typically, late changes in the project cost proportionally more than if the same
scope items were to be implemented at the beginning of the venture.
A simple implementation of a change control process decreases the monthly growth rate to 0.5
percent, which in turn leads to approximately 6% annual increase in scope.
Exhibit 4 demonstrates various scenarios of monthly scope change rates and annual increases
in the scope of the project.
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PMI report reveals millions lost in constructionon Feb 19, 2014
Organisations in the Middle East waste an average of $79mn for every $1bn spent on a project.However, statistics in the Project Management Institute’s (PMIs) 2014 Pulse of the Profession report show the region is performing better than counterparts in other parts of the world – the global average is a loss of $109mn.PMI president Mark Langley told Construction Week: “There are organisations that have matured and excel in project management. We call them ‘high performing organisations’. We contrast them with ‘low performing organisations’. If there were ever a clear imperative for investment in mature project management, high performing organisations risk 12 times less than low performing organisations.“For me, if I’m in the private sector, that’s a competitive edge I have right there.If I can get my products and services to the market, expand globally into the market and risk 12 times less than my competitors, I think I’ve established a competitive advantage.”
The report, which gauged insights from 2,500 project management leaders and practitioners around the world, found projects in the Middle East experienced scope creep of 36% versus 43% globally.And Langley admitted proper project management practices were even more important as the UAE and Qatar head into the Expo 2020 and Qatar World Cup respectively.“It’s important to think of it as not just the Expo 2020 at the end of something but rather at the beginning of the next wave of economic activity,” he said.
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Startling Project Statistics
Although scope creep is not the only nemesis a project can have, it does tend to have
the farthest reach. Without a properly defined project and/or allowing numerous changes
along the way, a project can easily go over budget, miss the deadline and wreak havoc
on project success. Not surprisingly, less than a third of projects are completed on time
and within budget. The Standish Group’s CHAOS Summary 2009 found that:
o 32% of all projects were successful, meaning delivered on time, on budget, with
required features and functions
o 44% were challenged; these projects were late, over budget, and/or with less than the
required features and functions
o 24% failed which was denoted by those projects that were canceled prior to
completion or delivered and never used
"These numbers represent a downtick in the success rates of the previous study, as well
as a significant increase in the number of failures," says Jim Crear, Standish Group CIO.
"They are the low point in the last five study periods. This year's results represent the
highest failure rate in over a decade."
It’s your time (Actual cases)17
Capture Your Lessons-learned
From Experience (CYLFEx)18
1- Brainstorming session for your experience
(projects/ location).
2- Classify the projects (as per next slides).
3- Write down the major successes/ failures have
occurred.
4- How do you see the best scenario (happened/
suggested)??
5 & 6 are optional:
5- Capture the lessons-learned in a presentation
with photos (if available) for each project.
6- Upload the file and get a link.
7-Record in the following form:
http://bitly.com/profplanner-cylfex
Prof. Plannerحملة صفحة
سجل دروسك المستفادة (CYLFEx)من الخبرة العملية
Management of Various
Projects Classifications
Horizontalwide plot area
Verticalhigh rise
buildings
Linear - LOB
repeating tasks
Offshorehydropower
Size as per Value:1- Mega: more than
200 million dollars.
2- Large: 50-200 million
dollars.
3- Medium: 10-50
million dollars.
4- Small: less than 10
million dollars.
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Are All Changes Necessarily Bad?
As was mentioned earlier, it is a natural instinct of any project manager - including the author of this article - to dislike last-minute scope changes. Once you have spent copious amounts of time on scoping, scheduling, budgeting and all other related project management tasks, you want to take a deep breath, lean back in your chair and relax for a while as the well-oiled project machine is chugging along destined to deliver great results.
This brings us to a very important question that came up time after time in my class discussions and in conversations with my peers, "Is all change in scope on the project inherently bad?"
We all know of examples when scope creep has devastated projects, driving them to be late and over budget, or delivering graceless monstrosities that nobody wanted. Having said that, are there any good changes that improve the final outcome? Discovery of a major flaw in the original design, new risks that could not have been foreseen, change in the market conditions - shouldn't we try to address these changes as soon as possible? The key question for the project manager and the rest of the stakeholders including customers and users is purely economical:
"Is the value of implementing the proposed change minus all of its negative impacts higher or lower than the cost of not carrying it out?"
Agile (Value-based & customer satisfaction):
Level of Uncertainty (Vision).
Adaptive lifecycle (change-driven).
Business Case (business need & the
cost-benefit analysis).
Rolling wave planning for each
sprint (grooming like iceberg).
Scrum: Prioritized backlog, Sprints
(1-6 weeks) & daily standup
meeting.
Continuous improvement (PDCA).
Testing is done concurrently with
development.
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Delay Reasons & EOT claims
(Risk Events)
24In Construction: It’s
Plan driven
Employer Vs Contractor
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How to Control Scope Creep
Managing scope creep in project management is achievable. A recent article on Tech
Republic, a CBS Interactive website, provides the following guidelines:
Be sure you thoroughly understand the project vision. Meet with the project drivers and deliver an overview of the project as a whole for their review and comments.
Understand your priorities and the priorities of the project drivers. Make an ordered list that you can refer to throughout the project duration. Items should include budget, deadline, feature delivery, customer satisfaction and employee satisfaction. You’ll use this list to justify your scheduling decisions once the project has commenced.
Define your deliverables and have them approved by the project drivers. Deliverables should be general descriptions of functionality to be outlined during the project.
Break the approved deliverables into actual work requirements. The requirements should be as detailed as necessary and can be completed using a simple spreadsheet. The larger your project, the more detail you should include. If your project spans more than a month or two, don’t forget to include time for software upgrades during development and always include time for ample documentation.
Break the project down into major and minor milestones and complete a generous project schedule to be approved by the project drivers. Minor milestones should not span more than a month. Whatever your method for determining task duration, leave room for error. When working with an unknown staff, I generally schedule 140% to 160% of the duration as expected to be delivered. If your schedule is tight, reevaluate your deliverables. Coming in under budget and ahead of schedule leaves room for additional enhancements.
Once a schedule has been created, assign resources and determine your critical path using a project evaluation and review technique (PERT) chart or work breakdown structure. Your critical path will change over the course of your project, so it’s important to evaluate it before development begins. Follow this map to determine which deliverables must be completed on time. In very large projects, try not to define phase specifics too early, but even a general plan will give you the backbone you need for successful delivery.
Expect that there will be scope creep. Implement change order forms early and educate the project drivers on your processes. A change order form will allow you to perform a cost-benefit analysis before scheduling changes requested by the project drivers.If you can perform all of these steps immediately, you’ll be better positioned for project success. However, any steps you’re able to implement will bring you that much closer to avoiding and controlling scope creep.
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To minimize the number ofChanges. Owners should:
Define the full required scope of the project.
Select a competent designer and care ofchecking the design.
Select a competent contractor who has theability and experience then control well.
Preventive Actions
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Risk management Stakeholder engagementOrganization/ teamwork Plan & ControlManage on inch-stones instead of mile-stones
Real robust & honest reporting/ feedback Implement change order forms early Establish definite acceptance criteria/ value
Other Preventive Actions
Links to (CYLFEx):
1) Lecture video:https://www.youtube.com/watch?v=kM4LaEMPyJc
2) Presentation:http://www.slideshare.net/MohamedMaged8/productoriented-construction-management
3) For assistance contact me: https://www.facebook.com/ProfPlanningEngr
4) Google form: http://bitly.com/profplanner-cylfex
Share your experience for all
practitioners’ sake & career
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سجل دروسك المستفادة (CYLFEx)من الخبرة العملية
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