IPM Scope Management

International
Project Management
Dr. Thomas Grisham
www.thomasgrisham.com
NOTE: Photos have been omitted respecting copyright restrictions, but

suggested locations for graphics are shown.
©2009 Dr. Thomas Grisham www.thomasgrisham.com 1

Introduction
Chapters
– 1 Introduction
– 2 Framework
– 3 Project Basics
– 4 Leading Diversity (HR & Communications)
– 5 Integration Management
– 6 Scope Management
– 7 Cost & Progress Management
– 8 Risk Management
– 9 Time Management
– 10 Quality Management – Customer Satisfaction
– 11 Procurement Management
– 12 CPE’S In the Future
(Collaborative Project Environment)

Introduction
• International project management is

the leadership of projects conducted in
multiple countries and cultures
Photo

Introduction
• International business and project

management practice have converged:
– The need for leaner and flatter
organizations
– The need for leadership skills throughout
the organizational food-chain
– The need for knowledge workers
– Globalization, need to improve quality
while reducing cost
– Kaizen
– Diversity
Introduction
Chapters
– 1 Introduction
– 2 Framework
– 3 Project Basics
– 4 Leading Diversity (HR & Communications)
– 5 Integration Management
– 6 Scope Management
– 7 Cost & Progress Management
– 8 Risk Management
– 9 Time Management
– 10 Quality Management – Customer Satisfaction
– 11 Procurement Management
– 12 CPE’S In the Future

Introduction
Scope Management
– 6.1 Developing a Project Scope
– 6.2 Developing a WBS
• 6.2.1 Step 1 – Organizational WBS
• 6.2.2 Step 2 – Value Chain WBS
• 6.2.3 Step 3 – Partner WBS
• 6.2.4 Step 4 – CPE WBS
– 6.3 Scope Change Control

6.1 Developing a Project Scope - Specifications
Level of
Detail & Cost
Technical
Equal-to
Performance

Figure 28 – Developing Scope
High Negotiated Bid

Performance Spec
Cost Reimbursable
Blended Bid
Equal -to Spec
Incentives
Risk To Customer
Competitive Bid
Technical Spec
Fixed Price
Low
Low High
Participation Of Customer
Go Green
Figure 29 – CPE WBS
Mumbai London All Together

Customer
(Buyer/Seller)
User
(Buyer)
a CPE
- Sponsor
- Project Manager
- Sponsor
- Project Manager
In this Book
- Stakeholders - Stakeholders
Mumbai New York

Service Provider A Service Provider B
(Seller/Buyer) (Seller/Buyer)
Alliance
- Lead Sponsor Partnership - Sponsor
- Lead Project Manager Joint Venture - Project Manager
- Stakeholders Consortium - Stakeholders
SupplyChain
Value ChainA.1
A.1 SupplyChain
Value ChainA.2
A.2 SupplyChain
Value ChainB.1
B.1 SupplyChain
Value ChainB.2
B.2
(Seller/Buyer) (Seller/Buyer) (Seller/Buyer) (Seller/Buyer)
One Participant
- Sponsor - Sponsor - Sponsor - Sponsor
- Project Manager - Project Manager - Project Manager - Project Manager A Project According to
- Stakeholders - Stakeholders IPMA, PRINCE2, PMI, APM
Bangalore Beijing Kuala Lumpur St. Petersburg
Text

6.2 Developing a WBS
Creating a CPE WBS

– All key organizations
– Collaborative
– Open and honest
– Mutual respect
– May be iterative
CPE collaborative project enterprise
Practice XLQ
Work package
– Lowest level detail of WBS
– Lowest level of activity in schedule
– One-for-one with chart of account
– Duration not longer than a month
– Duration not shorter than a week
Not Too Much Detail

Figure 30 - WBS & Chart of Accounts
Project WBS
Project Level 1
Software Hardware Level 2
Engineering Manufacturing Testing Level 3
Computer Router Phones Text Level 4

Vilnius
Chart of Accounts
Engineering
Organization
London
Design
Manufacture Work Package

&
Cost Account
Testing
Tokyo
PMO

Program Evaluation Review Technique

PERT
Best Case + (4 x Most Likely Case) + Worst Case

6
Reduces Bias
Step 1 – Your organization
Mumbai London
Customer User
(Buyer/Seller) (Buyer)
- Sponsor - Sponsor
- Project Manager - Project Manager
Mumbai New York

Alliance
SupplyChain
Value ChainA.1
A.1 SupplyChain
Value ChainA.2
A.2 SupplyChain
Value ChainB.1
B.1 SupplyChain
Value ChainB.2
B.2
- Project Manager - Project Manager - Project Manager - Project Manager
- Stakeholders - Stakeholders - Stakeholders - Stakeholders
You’re the lead project manager

Figure 31 - Organizational WBS (first section)
WBS Dictionary
Amount Office,
from from Analagous or Brainstorm # of people management,
corporate PMO Bottom-up or Top/down Resources PERT calc'd are paid support, etc. calc'd
Corporate Hours Best Most Worst PERT Base Burdened

Chart of # of per Case Likely Case Work Person Hourly Overhead & Personnel
Accounts WBS # Work Packages People Day Days Days Days Days Hours Rate Profit Factor Cost
$ 100 3.10
Joint Planning Meeting

07.01.03.01 01.01.10 (Service Provider A) 8.0 8.0 2.0 3.0 5.0 3.2 203 $100 3.10 $ 62,827
01.01.20 Medical Mentoring 10.0 4.0 20.0 35.0 60.0 36.7 1,467 $100 3.10 $ 454,667
SC.A.1 - Medical Training
01.30.10 Facilities & Documents - - $100 3.10 $ -
SC.A.1 - Prepare Medical
01.30.11 Training Documents - - $100 3.10 $ -
02.01.10 Deliver Drugs to Hospitals - - $100 3.10 $ -

- - $100 3.10 $ -
- - $100 3.10 $ -
Acceleration (Risk of
07.01.03.02 01.01.90 Liquidated Damages) - - $100 3.10 $ -
- - $100 3.10 $ -
Subtotals 1,669 $ 517,493
Project BAC
Contingency Reserves

Figure 32 - Organizational WBS (second section)
WBS Dictionary
Amount to
Cost for cover
material, estimate
equipment, being less
from from Analagous or Brainstorm subcontractors, than 100% from risk from Chart
corporate PMO Bottom-up or Top/down vendors, travel accurate register calc'd of Acounts
Corporate Total
Chart of Contingency Budgeted
Accounts WBS # Work Packages Fixed Cost Amount Risk Fund Cost Actual Cost
80%

07.01.03.01 01.01.10 (Service Provider A) $ 4,750 $ 13,515 $ - $ 81,092 $ 84,000
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ - $ -
$ - $ - $ -
07.01.03.02 01.01.90 Liquidated Damages) $ - $ 40,000 $ 40,000
$ - $ - $ -
Subtotals $ 4,750 $ 13,515 $ 40,000 $ 121,092 $ 84,000
Project BAC $ 121,092
Contingency Reserves $ 53,515

Figure 33 - Organizational WBS (third section)
WBS Dictionary
checks if
actual cost is Software tech,
total cost outside programmers, Assumed no resourse
from from Analagous or Brainstorm from Chart minus actual control designers, iron constraints, or assume from
corporate PMO Bottom-up or Top/down of Acounts costs limits workers, etc. resource availabilit, etc. schedule
Corporate
Chart of Schedule
Accounts WBS # Work Packages Actual Cost Delta Variance Resource Category Assumptions Activity #
10%
Sponsor, PM,
Joint Planning Meeting Planner, Estimator, Fixed cost based on
07.01.03.01 01.01.10 (Service Provider A) $ 84,000 $ (2,908) $ - Technical (4) food for 30 people
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
07.01.03.02 01.01.90 Liquidated Damages) $ - $ -
$ - $ -
Subtotals $ 84,000 $ (2,908) $ -

Step 1 - Contingency
• You have done a PERT on each work

package
• You have checked with experts
• Your due diligence estimate of costs is
20% under the customer’s budget
Do You Divulge Contingency?

Step 2– The Value Chain
Mumbai London
Customer User
- Sponsor - Sponsor
Mumbai New York

Alliance
SupplyChain
Value ChainA.1
A.1 SupplyChain
Value ChainA.2
A.2 SupplyChain
Value ChainB.1
B.1 SupplyChain
Value ChainB.2
B.2

Figure 34 - Value chain WBS (first section)
WBS Dictionary
Amount Office,
from from Analagous or Brainstorm # of people management,
corporate PMO Bottom-up or Top/down Resources PERT calc'd are paid support, etc. calc'd
Corporate Hours Best Most Worst PERT Base Burdened

Chart of # of per Case Likely Case Work Person Hourly Overhead & Personnel
Accounts WBS # Work Packages People Day Days Days Days Days Hours Rate Profit Factor Cost
$ 100 3.10

07.01.03.01 01.01.10 (Service Provider A) 8.0 8.0 2.0 3.0 5.0 3.2 203 $100 3.10 $ 62,827
01.01.20 Medical Mentoring 10.0 4.0 20.0 35.0 60.0 36.7 1,467 $100 3.10 $ 454,667
01.30.10 Facilities & Documents - - $100 3.10 $ -
01.30.11 Training Documents - - $100 3.10 $ -
02.01.10 Deliver Drugs to Hospitals - - $100 3.10 $ -

- - $100 3.10 $ -
- - $100 3.10 $ -
07.01.03.02 01.01.90 Liquidated Damages) - - $100 3.10 $ -
- - $100 3.10 $ -
Subtotals 1,669 $ 517,493
Project BAC
Contingency Reserves

Figure 35 - Value chain WBS (second section)
WBS Dictionary
Amount to
Cost for cover
material, estimate
equipment, being less
from from Analagous or Brainstorm subcontractors, than 100% from risk from Chart
corporate PMO Bottom-up or Top/down vendors, travel accurate register calc'd of Acounts
Corporate Total
Chart of Contingency Budgeted
Accounts WBS # Work Packages Fixed Cost Amount Risk Fund Cost Actual Cost
80%

07.01.03.01 01.01.10 (Service Provider A) $ 4,750 $ 13,515 $ - $ 81,092 $ 84,000
01.01.20 Medical Mentoring $ 90,933 $ - $ 545,600 $ 550,000

01.30.10 Facilities & Documents $ 20,000 $ 4,000 $ - $ 24,000 $ 40,000
01.30.11 Training Documents $ - $ - $ -
$ - $ - $ -
$ - $ - $ -
07.01.03.02 01.01.90 Liquidated Damages) $ - $ 40,000 $ 40,000
$ - $ - $ -
Subtotals $ 24,750 $ 108,449 $ 40,000 $ 690,692 $ 674,000

Figure 36 - Value chain WBS (third section)
WBS Dictionary
checks if
from from Analagous or Brainstorm minus actual control designers, iron constraints, or assume from
corporate PMO Bottom-up or Top/down costs limits workers, etc. resource availabilit, etc. schedule
Corporate
Chart of Schedule
Accounts WBS # Work Packages Delta Variance Resource Category Assumptions Activity #
10%
Sponsor, PM,
07.01.03.01 01.01.10 (Service Provider A) $ (2,908) $ - Technical (4) food for 30 people
Equipment &
facilities by Supply
01.01.20 Medical Mentoring $ (4,400) $ (4,400) Doctors, Nurses Chain A.1
01.30.10 Facilities & Documents $ (16,000) $ (16,000) Supply Chain A.1
01.30.11 Training Documents $ - $ - Supply Chain A.1
$ - $ -
$ - $ -
07.01.03.02 01.01.90 Liquidated Damages) $ -
$ - $ -
Subtotals $ (23,308) $ (20,400)

Step 3– The Partner WBS
Mumbai London
Customer User
- Sponsor - Sponsor
Mumbai New York

Alliance
SupplyChain
Value ChainA.1
A.1 SupplyChain
Value ChainA.2
A.2 SupplyChain
Value ChainB.1
B.1 SupplyChain
Value ChainB.2
B.2

Figure 37 - CPE Structure of WBS
User Customer
Level 1 Minister of Health Cambodia Government
Minister of
Consortium
Level 2 Education Level 1
Provincial Provincial Medical Service Provider A Service Provider B Level 2

Level 3
Facility Management Staff
Added Medical Project Facility Mentors & Medical Mentors &

Level 4 Management Trainers Trainers Level 3
Staff Employment
Integration Supply Chain A.1

Level 5 Scope Treatment Level 4
Management Training Program
Management
Level 6 Funding Stakeholder

Analysis
Training Assessment of Staff Level 5
Advertisement
Joint Planning
Selection Sessions
Level 7 Step 1 - Organizational Level 6

Work Package Step 2 - Supply Chain Work Package
Step 3 - Partner

Figure 38 - Partner WBS
WBS Dictionary
checks if
from from Analagous or Brainstorm from risk from Chart minus actual control designers, iron constraints, or assume from
corporate PMO Bottom-up or Top/down register calc'd of Acounts costs limits workers, etc. resource availabilit, etc. schedule
Corporate Total
Chart of Budgeted Schedule
Accounts WBS # Work Packages Risk Fund Cost Actual Cost Delta Variance Resource Category Assumptions Activity #
10%
Sponsor, PM,
07.01.03.01 01.01.10 (Service Provider A) $ - $ 81,092 $ 84,000 $ (2,908) $ - Technical (4) food for 30 people
Equipment &
facilities by Supply
01.01.20 Medical Mentoring $ - $ 545,600 $ 550,000 $ (4,400) $ (4,400) Doctors, Nurses Chain A.1
01.30.10 Facilities & Documents $ - $ 24,000 $ 40,000 $ (16,000) $ (16,000) Supply Chain A.1
01.30.11 Training Documents $ - $ - $ - $ - Supply Chain A.1
02.01.10 Deliver Drugs to Hospitals $ 40,000 $ 52,000 $ 60,000 $ (8,000) $ (8,000) Supply Chain B.1
$ - $ - $ - $ -
$ - $ - $ - $ -
07.01.03.02 01.01.90 Liquidated Damages) $ 40,000 $ 40,000 $ 40,000 $ -
$ - $ - $ - $ -
Subtotals $ 80,000 $ 742,692 $ 734,000 $ (28,400)
Project BAC $ 742,692 $ 742,692
Contingency Reserves $ 190,449 $ 162,049

Step 4– The CPE WBS
Mumbai London
Customer User
- Sponsor - Sponsor
Mumbai New York

Alliance
SupplyChain
Value ChainA.1
A.1 SupplyChain
Value ChainA.2
A.2 SupplyChain
Value ChainB.1
B.1 SupplyChain
Value ChainB.2
B.2

Step 4 – Joint Planning Meeting
Plan for
– Attendees
– Lead project manager
leads
– Duration
– Venue
– Deliverables
WBS Template
– Support
– Fun

6.3 Scope Change Control
Imagine
You are the lead PM on a €50 million project to build
a new hospital in Nigeria, and you are meeting the
PM for the customer for the first time at the joint
planning meeting.
Over tea he introduces himself and tells you that his
team has overlooked the need for a new sign to tell
the public that the hospital is to be constructed. He
asks you if you can “take care of this for him.”
You are thinking that the cost is about €500. What do
you tell him?

6.3 Scope Change Control
Evaluate ALL Changes

– Description Photo
– Requested by
– Impact on time
– Impact on cost
– Impact on quality
– Impact on risk
– Written approval
– Dispute process
No Matter How Small

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NOTE: Photos have been omitted respecting copyright restrictions, but

©2009 Dr. Thomas Grisham www.thomasgrisham.com 1

©2009 Dr. Thomas Grisham www.thomasgrisham.com 2

• International project management is

©2009 Dr. Thomas Grisham www.thomasgrisham.com 3

• International business and project

©2009 Dr. Thomas Grisham www.thomasgrisham.com 5

©2009 Dr. Thomas Grisham www.thomasgrisham.com 6

©2009 Dr. Thomas Grisham www.thomasgrisham.com 7

High Negotiated Bid

Mumbai London All Together

Mumbai New York

©2009 Dr. Thomas Grisham www.thomasgrisham.com 9

Creating a CPE WBS

CPE collaborative project enterprise

Not Too Much Detail

Software Hardware Level 2

Engineering Manufacturing Testing Level 3

Computer Router Phones Text Level 4

Manufacture Work Package

©2009 Dr. Thomas Grisham www.thomasgrisham.com 12

Program Evaluation Review Technique

Best Case + (4 x Most Likely Case) + Worst Case

Mumbai New York

You’re the lead project manager

©2009 Dr. Thomas Grisham www.thomasgrisham.com 14

Corporate Hours Best Most Worst PERT Base Burdened

Joint Planning Meeting

02.01.10 Deliver Drugs to Hospitals - - $100 3.10 $ -

©2009 Dr. Thomas Grisham www.thomasgrisham.com 15

Joint Planning Meeting

©2009 Dr. Thomas Grisham www.thomasgrisham.com 16

©2009 Dr. Thomas Grisham www.thomasgrisham.com 17

• You have done a PERT on each work

Do You Divulge Contingency?

Mumbai New York

You’re the lead project manager

©2009 Dr. Thomas Grisham www.thomasgrisham.com 19

Corporate Hours Best Most Worst PERT Base Burdened

Joint Planning Meeting

02.01.10 Deliver Drugs to Hospitals - - $100 3.10 $ -

©2009 Dr. Thomas Grisham www.thomasgrisham.com 20

Joint Planning Meeting

01.01.20 Medical Mentoring $ 90,933 $ - $ 545,600 $ 550,000

©2009 Dr. Thomas Grisham www.thomasgrisham.com 21

©2009 Dr. Thomas Grisham www.thomasgrisham.com 22

Mumbai New York

You’re the lead project manager

©2009 Dr. Thomas Grisham www.thomasgrisham.com 23

Provincial Provincial Medical Service Provider A Service Provider B Level 2

Added Medical Project Facility Mentors & Medical Mentors &

Integration Supply Chain A.1

Level 6 Funding Stakeholder

Level 7 Step 1 - Organizational Level 6

©2009 Dr. Thomas Grisham www.thomasgrisham.com 24

©2009 Dr. Thomas Grisham www.thomasgrisham.com 25

Mumbai New York

You’re the lead project manager

©2009 Dr. Thomas Grisham www.thomasgrisham.com 26

©2009 Dr. Thomas Grisham www.thomasgrisham.com 27

©2009 Dr. Thomas Grisham www.thomasgrisham.com 28

Evaluate ALL Changes

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