Project Planning – Scope, Schedule, and Budget

Computer Science Graduate Course in Project Management – Texas Tech

Introduction

This comprehensive guide to project planning explores three critical aspects defined in the Project Management Body of Knowledge (PMBOK): project scope management, project schedule management, and budget estimation. Think of these as the three pillars of project planning – the scope tells us what to do, the schedule tells us when to do it, and the budget tells us how much it will cost.

Part 1: Project Scope Management

Let’s start with scope management. Why is this so important? Because project scope management ensures we do all the work required – and only the work required – to complete the project successfully. It’s one of the ten knowledge areas in PMBOK, and for good reason!

The Project Scope Management Process

The scope management process has six key components that we follow in sequence:

1. Plan Scope Management: First, we develop our game plan – the scope management plan
2. Collect Requirements: We gather what our stakeholders actually need (not always what they say they want!)
3. Define Scope: We determine what’s in and what’s out – this is crucial!
4. Create Work Breakdown Structure (WBS): We break down deliverables into manageable chunks
5. Validate Scope: We review everything and get stakeholder buy-in
6. Control Scope: We manage the inevitable changes that will come

Understanding Scope Changes: The Reality Check

Here’s a truth bomb: projects rarely proceed without scope changes. Understanding why and how scope changes occur will save you countless headaches as a project manager.

Scope Creep vs. Scope Leap

Scope Creep is like gaining weight – it happens gradually through small, seemingly innocent additions:

• Incomplete Initial Definition: “Oh, we forgot to mention we also need…”
• Additional Features: “Wouldn’t it be nice if it could also…”
• Technology Improvements: “We just discovered a better way to…”

Scope Leap is more dramatic – think of it as a complete pivot:

• Market conditions change dramatically
• Competitors release a game-changing product
• Your original concept becomes obsolete overnight

Managing Scope Changes: The Formal Process

When changes come (and they will!), you need a formal process. No more hallway decisions or “quick favors”!

The Scope Change Request Form must include:

• Request details (who, what, when)
• Clear description and justification
• Alternative approaches considered
• Impact analysis on:
  • Scope
  • Schedule
  • Resources
  • Cost
• Recommendations

Remember: No approval = No change!

Creating the Work Breakdown Structure (WBS)

The WBS is your project’s backbone – it’s a hierarchical decomposition of all the work. Think of it as creating a family tree for your project deliverables.

WBS Best Practices

• Deliverable-Oriented: Focus on what you’re producing, not just activities
• 100% Rule: The WBS must include 100% of the work – no more, no less
• Mutually Exclusive: No overlap between work packages
• 8/80 Rule: Work packages should be between 8 and 80 hours of effort

Here’s a simple WBS structure for a banking project:

Activity Duration Estimation Techniques

Once you have your activities from the WBS, you need to estimate how long each will take. Let’s explore six different techniques, from quick-and-dirty to highly sophisticated:

1. Guesstimating (The “Gut Feel” Method)

• ✅ Pros: Super fast, no analysis paralysis
• ❌ Cons: No justification, high risk of being wrong
• When to use: Low-risk activities or when you have extensive experience

2. Delphi Technique (The “Ask the Experts” Method)

Process:

1. Multiple experts estimate independently
2. Compare results anonymously
3. Re-estimate where big differences exist
4. Repeat until consensus

• ✅ Pros: Highly accurate, reduces bias
• ❌ Cons: Time-consuming, expensive
• When to use: High-stakes projects with available expertise

3. Time Boxing (The “Agile” Method)

• ✅ Pros: Predictable delivery, forces prioritization
• ❌ Cons: Work might be incomplete
• When to use: Agile/iterative projects, fixed deadlines

4. Top-Down Estimating (The “Management Decree” Method)

• ✅ Pros: Aligns with strategic goals
• ❌ Cons: Often unrealistic, team stress
• When to use: When market timing is critical

5. Bottom-Up Estimating (The “Engineering” Method)

• ✅ Pros: Most accurate, defensible
• ❌ Cons: Time-intensive to create
• When to use: When accuracy is paramount

6. Planning Poker (The “Team Consensus” Method)

• ✅ Pros: Fast consensus, team buy-in
• ❌ Cons: Requires team availability
• When to use: Agile teams, collaborative environments

Part 2: Project Schedule Management

Now that we have our scope and activity estimates, let’s build the schedule. This is where the project really comes to life!

The Project Planning Framework

Think of this as your recipe for project success:

1. Define the MOV (Measurable Organizational Value)
2. Align scope and deliverables with MOV
3. Structure phases to reduce risk
4. Define activities for each deliverable
5. Sequence activities (what depends on what?)
6. Estimate resources per task
7. Estimate time per task
8. Link resources to costs

Scheduling Tools and Techniques

Gantt Charts: The Classic Timeline View

Gantt charts are like a calendar for your project – they show when things happen but not why they happen in that order.

Limitation Alert! Gantt charts don’t show dependencies – you can’t see that Task C needs Task B to finish first!

Activity on Node (AON) Diagrams: Showing the Flow

AON diagrams show how activities connect. Let’s look at a web development project example:

Activity	Description	Duration	Predecessor
A	Evaluate current technology	2 days	None
B	Define user requirements	5 days	A
C	Design web page layouts	4 days	B
D	Set up server	3 days	B
E	Estimate web traffic	1 day	A
F	Test web pages	3 days	C, D
G	Move to production	2 days	D, E
H	Write announcement	4 days	F, G
I	Train users	2 days	G
J	Write report	1 day	H, I

Critical Path Analysis: Finding the Longest Road

The critical path is the longest sequence through your project – it determines your minimum project duration. Let’s trace all possible paths:

• Path 1: A → B → C → F → H → J = 18 days
• Path 2: A → B → D → F → H → J = 17 days
• Path 3: A → B → C → F → I → J = 16 days
• Path 4: A → B → D → G → I → J = 19 days ⬅️ CRITICAL PATH!
• Path 5: A → B → E → G → I → J = 17 days

Key Insight: Activities on the critical path have zero slack – any delay directly impacts the project end date!

Advanced Scheduling Techniques

PERT: Dealing with Uncertainty

PERT (Program Evaluation and Review Technique) acknowledges that estimates are uncertain. It uses three estimates:

Where:

• O = Optimistic (best case)
• M = Most likely (normal case)
• P = Pessimistic (worst case)

Example: Testing might take 1 day (optimistic), 3 days (most likely), or 6 days (pessimistic):

Precedence Diagramming Method (PDM)

PDM recognizes that not all dependencies are simple “finish-to-start”. Four types exist:

1. Finish-to-Start (FS): Most common – B starts after A finishes
2. Start-to-Start (SS): Both activities start together
3. Finish-to-Finish (FF): Both activities must finish together
4. Start-to-Finish (SF): Rare – B finishes after A starts

Critical Chain Project Management (CCPM)

CCPM addresses three human behaviors that cause delays:

• Student’s Syndrome: We procrastinate until the deadline looms
• Parkinson’s Law: Work expands to fill available time
• Multitasking: Context switching kills productivity

CCPM Solution: Remove padding from individual estimates and add strategic buffers:

• Project buffer at the end
• Feeder buffers where paths merge
• Resource buffers for critical resources

Part 3: Project Budget Development

Money matters! The budget transforms your beautiful schedule into financial reality.

Cost Estimation Process

1. Define resources: What do you need? (people, equipment, materials)
2. Quantify needs: How much of each resource?
3. Determine rates: What does each resource cost?
4. Calculate totals: Duration × Rate = Cost
5. Level resources: Avoid overallocation

Types of Project Costs

Direct Costs (The Obvious Ones)

• Employee salaries and benefits
• Contractor and consultant fees
• Equipment and software purchases
• Travel and training expenses

Indirect Costs (The Hidden Ones)

• Office rent and utilities
• Administrative support
• Corporate overhead allocation
• Insurance and legal fees

Sunk Costs (The “Already Spent” Ones)

• Previous failed attempts
• Preliminary research
• Cancelled project phases

Remember: Sunk costs shouldn’t influence future decisions!

Learning Curve Costs (The “Getting Up to Speed” Ones)

• Training on new technologies
• Team familiarization time
• Initial productivity losses

Reserves (The “Just in Case” Money)

• Contingency Reserves: For known risks (usually 10-20%)
• Management Reserves: For unknown unknowns (5-10%)

Integration: Bringing It All Together

The magic happens when you integrate scope, schedule, and budget. They form the “triple constraint” – change one, and the others are affected!

Best Practices for Success

1. Start with clear scope – Ambiguity kills projects
2. Use appropriate estimation – Match technique to situation
3. Focus on the critical path – That’s where delays hurt most
4. Build realistic budgets – Include all cost types and reserves
5. Implement change control – No informal changes!
6. Use PM software – Excel breaks down on complex projects
7. Review regularly – All three elements need continuous attention

Key Takeaways

• 📋 Scope defines what you’ll deliver – get it right upfront!
• 📅 Schedule shows when you’ll deliver – find and protect the critical path
• 💰 Budget determines what it costs – include all cost types
• 🔄 Changes are inevitable – have a process to manage them
• 🎯 Integration is key – scope, time, and cost are interconnected

Practice Makes Perfect

Before our next class, try these exercises:

1. Create a WBS for developing a mobile app (at least 3 levels deep)
2. Calculate the critical path for the AON example above
3. Estimate a simple task using PERT with O, M, and P values
4. List all cost types for a software development project

Remember: Project management is both art and science. These tools give you the science – experience will teach you the art!

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Next Week: We’ll dive into risk management and quality assurance. See you then!