Apply scope management tools as a means of managing and pivoting scope (value engineering and cost benefit analysis)

Scope management is a key procedure in any project, and it is highlighted as a critical knowledge area in the PMI Construction Professional (PMI-CP) Exam. It refers to the methods and processes used to ensure a project is completed within a defined scope. To manage scope effectively, numerous tools and techniques are critical, amongst which the Value Engineering (VE) and Cost Benefit Analysis (CBA) play a pivotal role.

Value Engineering as a Scope Management Tool

Value Engineering (VE), originally termed “Value Analysis”, is a systematic and structured approach to improving projects. It involves evaluating and improving the value of goods or products and services by utilizing an examination of function. In project management, the VE approach focuses on enhancing the value of work while achieving the intended functions of a project at the lowest possible cost.

For instance, a construction project may require a specific type of material for better durability and quality. With VE, you can find an alternative material that will serve the same function and provide similar durability and quality but at a lower cost.

VE follows a distinctive process:

• Information gathering: Understand the project and its objectives.
• Functional analysis: Identify what the project needs to accomplish.
• Creative ideation: Generate new ideas for achieving the project objectives.
• Evaluation and selection: Evaluate ideas and select the most suitable ones.
• Development and presentation: Develop the selected idea and present it to stakeholders.

Cost Benefit Analysis as a Scope Management Tool

Cost Benefit Analysis (CBA) is another useful tool often employed in scope management. It helps in the decision-making process by comparing the costs and benefits of the competing alternatives, assisting in the identification of the most cost-efficient alternative.

Consider, for example, a construction project where the team has several options for a building design. Each design has different costs and benefits. By applying CBA, the project team can compare the benefits and costs associated with each design to determine the most advantageous one, aiding in scope management.

Here’s the general process for CBA:

• Identify the potential costs and benefits: This process involves estimating the costs of resources and benefits that could be gained from these resources.
• Assign a monetary value to these costs and benefits: This will vary depending upon the nature of the costs and benefits.
• Compare the costs and benefits: This is done to determine the net benefit or cost of the competing alternatives.

Importance of Value Engineering and Cost Benefit Analysis in Scope Management

Both Value Engineering and Cost Benefit Analysis are crucial for effectively managing and redefining the scope of a project. VE helps in identifying the most cost-effective methods for achieving the goals. On the other hand, CBA ensures that all decisions related to scope are based on a thorough comparison of costs and benefits.

With these methods, project managers can make more informed decisions while managing the scope. They aid in identifying potential risks and in the optimization of resource allocation. Moreover, these methods ensure that the project stays within budget, achieves the desired goals, aligns with stakeholders’ expectations and delivers maximum value.

In conclusion, effective scope management is a crucial part of the PMI-CP exam and Value Engineering and Cost Benefit Analysis are two powerful tools in managing scope. It is essential to gain proficiency in applying these tools to ensure the successful management of projects and to excel in the PMI-CP examination.