Project Management Fundamentals — Part 2
Planning Deep Dive: Scope, Schedule, Cost, Quality & Risk
1. Scope Management in Depth
Scope defines the boundaries of the project — what's included and what isn't. Poorly managed scope is one
of the leading causes of project failure.
1.1 Collecting Requirements
Interviews — one-on-one conversations with stakeholders to surface needs
Workshops/Focus Groups — facilitated sessions to align multiple stakeholders quickly
Surveys — useful for gathering input from a large or dispersed group
Prototypes — early mockups that let stakeholders react to something tangible
1.2 Defining Scope
The Scope Statement should clearly state:
Project objectives and deliverables
Boundaries (what is explicitly out of scope)
Acceptance criteria — how you'll know a deliverable is "done"
Constraints and assumptions
1.3 Work Breakdown Structure (WBS)
The WBS decomposes the total scope of work into smaller, manageable components, typically down to a
"work package" level — the smallest unit that can be estimated and assigned.
Rule of thumb: If a work package takes more than ~80 hours or 2 weeks, break it down further.
1.4 Scope Creep
Scope creep is the uncontrolled expansion of scope without corresponding adjustments to time, cost, or
resources. Guard against it with:
A formal change control process — every scope change is documented and approved before work
begins
A clear scope baseline to measure changes against
Regular stakeholder check-ins to catch drift early
2. Schedule Management in Depth
2.1 Building the Schedule
1. Define Activities — break work packages into specific scheduled tasks
2. Sequence Activities — determine dependencies between tasks (finish-to-start, start-to-start, etc.)
3. Estimate Durations — using expert judgment, historical data, or analogous estimating
4. Develop the Schedule — assemble into a timeline (commonly a Gantt chart)
2.2 Critical Path Method (CPM)
The critical path is the longest sequence of dependent tasks that determines the minimum possible project
duration. Delaying any task on the critical path delays the whole project. Tasks not on the critical path have
"float" — some flexibility in start/finish dates without affecting the end date.
2.3 PERT Estimating
PERT calculates an expected duration using three estimates:
Expected Duration = (Optimistic + 4 × Most Likely + Pessimistic) / 6
This weighted average accounts for uncertainty better than a single-point estimate.
3. Cost Management in Depth
3.1 Estimating Costs
Technique Description When to Use
Analogous Estimating Uses costs from similar past projects Early stages, limited detail available
Parametric Estimating Uses a statistical relationship (e.g., cost per square foot) When reliable historical data/rates exist
Bottom-Up Estimating Estimates individual work packages and sums them Most accurate, but most time-consuming
3.2 Budget & Cost Baseline
The cost baseline is the approved, time-phased budget used to measure and monitor cost performance.
Actual spend is tracked against this baseline throughout execution.
3.3 Earned Value Management (EVM) — Basics
Metric Meaning
PV (Planned Value) Budgeted cost of work scheduled to be done by now
EV (Earned Value) Budgeted cost of work actually completed
AC (Actual Cost) Actual cost incurred for work completed
CPI (Cost Performance Index) EV / AC — above 1.0 means under budget
SPI (Schedule Performance Index) EV / PV — above 1.0 means ahead of schedule
4. Quality Management
Quality Planning — defining what quality standards apply and how they'll be met
Quality Assurance — process-focused; auditing whether the right processes are being followed
Quality Control — product-focused; inspecting deliverables against requirements
Common tools: checklists, inspection, the Pareto principle (80/20 rule for prioritizing defects), and cause-
and-effect (fishbone) diagrams for root-cause analysis.
5. Risk Management
5.1 Risk Management Process
1. Identify Risks — brainstorming, checklists, expert interviews, SWOT analysis
2. Qualitative Analysis — rank risks by probability and impact (often on a 5x5 matrix)
3. Quantitative Analysis — assign numerical values/costs to high-priority risks
4. Plan Responses — decide how to handle each risk
5. Monitor Risks — track known risks and watch for new ones throughout the project
5.2 Risk Response Strategies
Strategy For Threats For Opportunities
Avoid / Exploit Eliminate the risk entirely Ensure the opportunity definitely happens
Transfer / Share Shift impact to a third party (e.g., insurance) Partner with others to capture the upside
Mitigate / Enhance Reduce probability or impact Increase probability or impact
Accept Acknowledge and do nothing unless it occurs Take advantage if it happens, but don't pursue actively
5.3 The Risk Register
A living document tracking each risk's description, category, probability, impact, response strategy, and
owner. It should be reviewed and updated throughout the project, not just created once at the start.
6. Procurement Management (Brief Overview)
Make-or-buy analysis — deciding whether to build in-house or purchase externally
Contract types — Fixed-Price, Cost-Reimbursable, and Time-and-Materials, each shifting risk
differently between buyer and seller
Vendor selection — criteria-based evaluation (cost, capability, track record, timeline fit)
Part 2 of 3 — Project Management Fundamentals Reference Series