SkarpChapter 5 of 11
Planning for Success: Project Management Plans, Scope and Estimating
See how a clear plan turns ideas into coordinated action, from defining what is in and out of scope to estimating effort and cost with realistic accuracy.
From Idea to Plan: Where This Module Fits
Where This Module Fits
You already know the project life cycle and roles. Now we zoom into planning: how to turn a business idea into a realistic, controllable plan.
Three Focus Areas
We will cover: 1) the Project Management Plan and its link to the business case, 2) scope management, and 3) estimating and the estimating funnel.
Planning Is Iterative
Modern frameworks treat planning as iterative. Plans are refined as you learn more, but they must always support the approved business case.
Usefulness Test
As you go, keep asking: Would this plan actually help a project manager make decisions day to day? If not, it is just paperwork.
The Project Management Plan: Purpose and Contents
What Is a PMP?
A Project Management Plan (PMP) is the integrated description of how the project will be managed, controlled and reported.
Business Case vs PMP
The business case explains why the project is worth doing. The PMP explains how you will deliver the benefits described in the business case.
Typical PMP Sections
Common sections: context, scope, schedule, cost, organisation, risk/issue/change management, quality, and communication and reporting.
How the PMP Is Used
The PMP is used to coordinate the team, control progress and costs, and govern decisions by the sponsor and steering group.
Modern Practice
In many organisations the PMP is a living, sometimes lightweight set of documents and tools. The key is clarity, not format.
Activity: Link the PMP to the Business Case
Imagine this situation:
- Business case: Launch a new student mobile app to reduce call‑centre queries by 30% within 12 months and improve student satisfaction scores.
Spend 1–2 minutes and jot down answers (mentally or on paper):
- Which parts of the PMP must clearly connect back to this business case?
- Think about scope, benefits, schedule, and risks.
- What would worry you if it appeared in the PMP?
- For example, a feature, milestone or risk that does not support the stated objectives.
- How could the sponsor use the PMP to check if the project still makes sense halfway through?
When you are done, compare with this checklist:
- Scope section: focuses on features that reduce queries and improve satisfaction (e.g. self‑service, FAQs, notifications)
- Schedule: milestones aligned with the 12‑month benefit target
- Benefits and metrics: includes call‑centre volume and satisfaction scores as tracked measures
- Risks: includes risk that uptake is low, with actions to drive adoption
If your ideas reflect these links, you are correctly seeing the PMP as a tool to protect the business case, not just a schedule.
Scope Management: What Is In and What Is Out
What Is Scope Management?
Project scope management is defining and controlling what work is included in the project, and what is not.
Two Parts of Scope Management
1) Scope definition: agree what will be delivered. 2) Scope change control: manage requests to change that agreed scope.
Why Scope Matters
Poor definition leads to confusion and rework. Weak change control leads to scope creep, delays and overspends.
In Scope vs Out of Scope
In scope: what the team will deliver. Out of scope: related work the team will not do, even if it happens elsewhere.
Using Scope in Decisions
Clear scope lets the PM say "yes, but with a change" or "no, that belongs elsewhere" when new ideas appear mid‑project.
Using WBS-Style Thinking to Define Scope
What Is a WBS?
A Work Breakdown Structure (WBS) breaks the project into smaller, manageable pieces of work. WBS‑style thinking clarifies scope.
Library Website Example
Example top level: 1) Requirements and design, 2) Build and configuration, 3) Testing, 4) Content migration, 5) Training and go‑live.
Zooming In
Within "Build and configuration": homepage redesign, search improvements, account pages, accessibility enhancements.
Why This Helps
WBS‑style thinking focuses on deliverables and work packages, helps you ask "What else?", and makes missing or out‑of‑scope items visible.
Agile Parallel
Agile teams do something similar by breaking epics into user stories and tasks. Different labels, same principle: structure the work.
Quick Check: Scope Definition vs Scope Change Control
Test your understanding of the two sides of scope management.
A user asks to add a new reporting feature halfway through a software project. Discussing the impact on time and cost, then deciding whether to approve this request, is mainly an example of:
- Scope definition
- Scope change control
- Benefits management
Show Answer
Answer: B) Scope change control
This is **scope change control**: managing a requested change to already agreed scope by assessing its impact and deciding whether to approve it.
Estimating Basics: Top-Down vs Bottom-Up
Why Estimate?
With clear scope, you must estimate effort, time and cost. Estimates support decisions on feasibility, funding and scheduling.
Top-Down Estimating
Top‑down starts from the whole project, often using analogies with past work or high‑level ratios. It is quick but less precise.
Bottom-Up Estimating
Bottom‑up starts from detailed work packages or tasks, estimates each, then rolls them up. It is slower but usually more accurate.
Combining Approaches
Common pattern: top‑down early to test affordability, then bottom‑up later to build a realistic baseline plan.
Estimates vs Promises
An estimate is a reasoned prediction, not a guarantee. Good estimates clearly state the assumptions behind them.
The Estimating Funnel: Why Estimates Improve Over Time
What Is the Estimating Funnel?
The estimating funnel describes how estimates start very uncertain and become more accurate as the project progresses and you learn.
Early Stages
At concept/feasibility, scope is vague and unknowns are many. You rely on top‑down estimates and wide cost or time ranges.
Middle Stages
As scope and design firm up, you can estimate bottom‑up. The uncertainty range narrows; estimates become more reliable.
Later Stages
During delivery, you estimate mainly remaining work, using real performance data to refine forecasts.
Good Practice
Show ranges, update estimates at reviews, and keep the Project Management Plan aligned with the current level of certainty.
Mini Exercise: Apply the Estimating Funnel
Consider a project to build a small study space extension to an existing campus building.
At each stage, think about how you would estimate:
- Concept stage ("Should we do this?")
- What information do you have?
- Would you use top‑down, bottom‑up, or both? Why?
- Design and planning stage (architect drawings are ready)
- What new information do you have now?
- How does this change your estimating approach and accuracy?
- Construction stage (work has started)
- What can you estimate more precisely now?
- How could you use actual progress to update forecasts?
Spend 2–3 minutes thinking or writing brief notes. Then compare with this pattern:
- Concept: mainly top‑down, using cost per square metre from past projects, wide range.
- Design/planning: mix of bottom‑up (materials, labour tasks) plus refined top‑down checks, narrower range.
- Construction: estimate remaining work bottom‑up using actual productivity data; forecasts much closer to final cost and date.
Quick Check: Estimating Approaches
Choose the best answer based on what you have learned.
You are at an early concept stage with limited detail. Senior management wants a rough cost to decide whether to explore the project further. Which approach is most appropriate now?
- Detailed bottom-up estimating of all tasks
- Top-down estimating using similar past projects
- Waiting until all requirements are fully documented
Show Answer
Answer: B) Top-down estimating using similar past projects
At early concept stage, **top-down estimating** using data from similar projects is appropriate. Detailed bottom-up is not yet possible, and waiting for full requirements would block decision-making.
Review Key Terms
Use these flashcards to review the core concepts from this module.
- Project Management Plan (PMP)
- The integrated description of **how** the project will be managed, controlled and reported, kept consistent with the approved business case.
- Business case
- The justification for the project, explaining **why** it should be done and what benefits, costs and risks are expected.
- Project scope management
- Processes for **defining** what work and deliverables are included and **controlling changes** to that agreed scope.
- Scope definition
- Clarifying what is in and out of scope, usually by breaking the project into deliverables and work packages (WBS-style thinking).
- Scope change control
- Assessing and deciding on requests to change scope, including their impact on time, cost, quality and risk.
- Work Breakdown Structure (WBS)
- A hierarchical breakdown of the project into smaller, manageable pieces of work focused on deliverables and work packages.
- Top-down estimating
- Estimating from the overall project level, often using analogies or high-level ratios; quick but less precise, common early in the life cycle.
- Bottom-up estimating
- Estimating at the level of detailed tasks or work packages and summing them; slower but usually more accurate and transparent.
- Estimating funnel
- The idea that estimates start with high uncertainty and become more accurate as more information becomes available over the project life cycle.
- Scope creep
- Uncontrolled growth in project scope without corresponding adjustments to time, cost or resources, often due to weak change control.
Key Terms
- Scope creep
- The uncontrolled expansion of project scope without corresponding changes to time, cost or resources, typically resulting from inadequate change control.
- Business case
- A document that explains why a project should be undertaken, outlining expected benefits, costs, risks and alignment with strategy.
- Scope definition
- The activity of clarifying and documenting what is in and out of scope for a project, often by breaking work into smaller components.
- Estimating funnel
- A concept that describes how estimate accuracy improves and the range of uncertainty narrows as a project progresses and more information is known.
- Top-down estimating
- An estimating technique that starts from the overall project level, often using analogies or high-level metrics based on previous projects.
- Bottom-up estimating
- An estimating technique that starts at the level of individual tasks or work packages and aggregates these estimates to produce totals.
- Scope change control
- The formal process of evaluating, approving or rejecting proposed changes to the agreed project scope.
- Project scope management
- The processes used to define what work and deliverables are included in a project and to control changes to that scope.
- Project Management Plan (PMP)
- The integrated set of documents and tools that describe how a project will be managed, controlled and reported, aligned with the approved business case.
- Work Breakdown Structure (WBS)
- A hierarchical decomposition of the total scope of work into smaller, more manageable components called work packages.