Project management is composed of three project components that are interdependent and sensitive to each other’s state. This is known as the project management triangle. The three components are the project cost, the project schedule and the project scope. We are all familiar with costs and time but scope is sometimes fuzzy. The scope of a project is the extent of the subject matter that is included in the project. Couldn’t be less clear…. I like to think of it as “how wide I throw my net”.
Keywords: Project Management Triangle, Scope Management, Cost-Schedule-Scope Balance
Here’s an example, to better understand the interconnectedness of the cost component, the time component and the scope component:
My boss gives me an assignment. I have to analyse the price of grommets and supply a forecast on the grommets we expect to sell next year. Here’s the project specification:
Cost: must be kept below $2000 (excluding salary)
Time: The project must be finished in 7 days.
Scope: The project must contain the price of grommets and a forecast for next year.
After thinking about the project for a while, I decide to hire an assistant for $1500 and print the documents for $500. Next I plan 3 days to analyse the price of grommets, 1 day to document the results, 2 days to create my forecast and 1 day to document everything. Good. 7 days. My scope is covered by the plan. I’m happy.
My boss comes back to see me in the afternoon to tell me we only have 5 days for the project. The Time has been changed. This can affect the costs or the scope. I have 2 choices; increase the cost or reduce the scope. For example I can hire another assistant to help get the job done within the new time frame, increasing the cost. Conversely, I can reduce the scope of the project by not doing the pricing analysis and instead, only supplying a forecast on next year’s sales.
If we change the time component, we affect the cost component or the scope component.
Keywords: Time Constraint Impact, Cost-Scope Trade-off
What if we change the cost? My boss comes back to see me in the afternoon to tell me we have 7 days after all, but we have no money for the project. I have 2 choices; Increase the time or reduce the scope. Since I don’t have my assistant anymore, I will have to do more of the work myself. Now it should take 10 days. Alternatively I can reduce the scope of the project by not doing the pricing analysis and instead, only supplying a forecast on next year’s sales, like in the previous paragraph.
If we change the cost component, we affect the time component or the scope component.
Keywords: Cost Reduction Impact, Time-Scope Adjustment
Finally what if the scope changes? My boss comes back to see me at the end of the day to tell me that he’s convinced his boss to get me some money, but his boss insists that it be conditional on including the price variation in short throw dipsticks in the past five years. Again, I have 2 choices; Increase the time or increase the cost. I can add a second assistant to take care of the short throw dipstick analysis, but this will bring up the cost. Finally, I can beg my boss for a few extra days.
If we change the scope component, we affect the time component or the cost component.
Keywords: Scope Expansion Consequences, Time-Cost Balancing
Nothing is as black and white as the example above. Of course, both the cost and scope components will be affected in a change in the time component, in differing proportions depending on the various pressures you are getting from your boss/bosses. The same is true for the cost and scope components. They also have an effect on the other two components.
Therefore the real rules are:
If we change the time component, we affect the cost component and/or the scope component.
If we change the cost component, we affect the time component and/or the scope component.
If we change the scope component, we affect the time component and/or the cost component.
Keywords: Project Flexibility, Constraint Interactions
Sadly, there is an option that can be used to stay within budget, schedule and scope when a projects specifications change. You can reduce the quality of the project. I say “sadly” because it is an option that is far too overused and sometimes ends up with something that is not fit for use.
Here’s what happens in the real world. My boss changes the schedule, so I spend less time analyzing and cut corners a bit. The analysis and findings might not be as accurate as I would have liked. Quality is affected. Later the budget is revised. I have to hire a junior instead of someone with experience. Less than optimal results…. Quality is affected. Finally, the scope is changed so the workload goes up per resource. The time that everyone should spend on each task will go down. Quality is affected.
This why when we try to use new software, it is bug ridden and poorly tested. This is why overpasses collapse, processes fail, companies fold...
Keywords: Compromised Quality, Project Constraints Impact
Therefore the final rules are:
If we change the time component, assuming we want the quality to remain the same, we affect the cost component and/or the scope component.
If we change the cost component, assuming we want the quality to remain the same, we affect the time component and/or the scope component.
If we change the scope component, assuming we want the quality to remain the same, we affect the time component and/or the cost component.
Once again, I'm not advocating reducing quality but rather giving you some leads to follow when projects get tight and confusion starts to take over.
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