Monday, 8 February 2016

Time, Cost, Scope, Risk, Quality and Benefit - and how they relate


So…  I felt like revisiting an old favourite this time, something I am sure that many, if not most, have seen before.  But this time I want to push it, stretch the idea as far as it will go.

The diagram below describes one of the central ideas behind Project Management – that it is necessary to balance Time, Scope and Cost (or Resource) to deliver a project.  For example, when a project is planned, the amount of Time, Scope and Cost is defined.  If something occurs which is not to plan, a compromise must be found.  Possible responses might be to reduce Scope to ensure that Time and Cost are still delivered as planned.  Or increase the amount of Time and Cost so that the full Scope is delivered.  In reality it is rarely that simple, but you get the idea.


These three parameters could be classified as inputs, and changes to any of them alters the shape of the project.  This in turn will often affect the planned outcome of the project – the Objective.  If we develop our diagram a little further, at this point we can plot our Objective on a fourth scale, the Benefit scale.


As the project progresses, we can draw lines from the planned departure points of each input towards our objective.  The length of line could denote how much of each input parameter has been consumed.  Errors in planning alter the departure point of each of these lines, as the assumption of how much of that input was required was in error.  Using this method it is clear to see that the closer the project is to completion, the harder it is to adjust for incorrect assumptions and still hit the objective. 


Further, it is apparent that should the Objective change partway through a project, although it may be possible to adjust it will also mean that consumption lines will not be straight (and therefore less efficient).

Those more familiar with Project Management will at this point be wondering about Risk and Quality – where do they fit in this model?  Let’s start with Risk.  Risk is by definition an ambiguity, and can easily be considered as a cone around each of our input parameters.  The earlier a Risk is to eventuate in a project, the greater the potential impact on the eventual objective.


Finally, Quality - assuming that our definition is consuming our three input parameters as planned to deliver our Objective.  This is by far the simplest concept, so much so I am not even going to draw it on the diagram.  Delivery of a Quality outcome is simply bringing the three input parameters together at the point of Objective, despite changes in project requirements, erroneous assumptions or eventuating Risk.  The greater the variance, the greater impact on Quality.  The key to delivering Quality is therefore alignment.  If all those involved in a project fully understand the input parameters, the Objective, the Risks, and most importantly – how these relate to each other, the result will inevitably be a Quality outcome.