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PROJECT SCOPE STATEMENT TEMPLATE

This Project Scope Statement Template is free for you to copy and use on your project
and within your organization. We hope that you find this template useful and
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PROJECT SCOPE STATEMENT

<PROJECT NAME>

COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE

DATE

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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................... 3
PROJECT PURPOSE AND JUSTIFICATION ..................................................................................................... 3
SCOPE DESCRIPTION ............................................................................................................................. 4
HIGH LEVEL REQUIREMENTS ................................................................................................................... 4
BOUNDARIES ....................................................................................................................................... 5
STRATEGY ........................................................................................................................................... 5
DELIVERABLES ..................................................................................................................................... 5
ACCEPTANCE CRITERIA .......................................................................................................................... 6
CONSTRAINTS ...................................................................................................................................... 6
COST ESTIMATE ................................................................................................................................... 7
COST BENEFIT ANALYSIS ........................................................................................................................ 7

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INTRODUCTION
The purpose of the Project Scope Statement is to provide a baseline understanding of the scope
of a project to include the project’s scope and deliverables, the work required to complete the
deliverables, and ensure a common understanding of the project’s scope among all
stakeholders.
The Project Scope Statement defines the following:
 Purpose and Justification of the Project
 Scope Description
 High Level Project Requirements
 Project Boundaries
 Project Strategy
 Project Deliverables
 Acceptance Criteria
 Project Constraints
 Project Assumptions
 Cost Estimates
 Cost Benefit Analysis

This Project Scope Statement serves as a baseline document for defining the scope of the Acme
Consulting Portfolio Management Database (PMD) Project, project deliverables, work which is
needed to accomplish the deliverables, and ensuring a common understanding of the project’s
scope among all stakeholders. All project work should occur within the framework of the
project scope statement and directly support the project deliverables. Any changes to the
scope statement must be vetted through the approved Project Change Management Process
prior to implementation. This completion date for this project is December 31, 2014.

PROJECT PURPOSE AND JUSTIFICATION

It is important that project stakeholders understand the purpose and justification of a project.
Projects are conceived to support various business goals and objectives and these must be
communicated to ensure understanding of how the project will improve business. This also
helps stakeholders understand the investments being made and how this translates into better
business performance.

The PMD Project has been approved to plan, design, build, and implement a new tracking tool
for Acme Consulting professionals to manage all current and future programs in its portfolio.
The purpose of this project is to centralize Acme’s programs onto one common management
platform in order to improve management, resource allocation, and prioritization of its various
programs. As a small company, Acme Consulting has historically been challenged with limited

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resources for managing its various client programs. As a result, some programs have
experienced delays, exceeded their budgets, or have not properly met their deliverables. By
implementing the PMD Project, Acme Consulting can better leverage its limited resources by
establishing program priorities, allocating resources in a more efficient manner, and providing
proactive management oversight to help in identifying and mitigating risks before they
adversely impact programs. The successful implementation of this project is expected to
reduce Acme Consulting’s cost overruns and schedule delays by 30%.

SCOPE DESCRIPTION
The Scope Description should include all known characteristics of the project’s product or
service. It is important to note that as the project moves further along in its lifecycle, this scope
description will become more defined. All details may not be known at the onset of the project
and this may be progressively elaborated as the project moves forward. This section is key as it
serves as a primary reference for project planning and execution later in the lifecycle. This
section should contain descriptions of what is included in the product or service as well as the
desired outcome of the project.

The scope of the PMD Project is to plan, design, build, and implement an Access Database tool
on which all Acme Consulting programs will be managed. Various access and permissions will
be granted to the appropriate personnel in order to update, manage, and view programs. Each
program will incorporate a virtual dashboard with key metrics in order to provide a consistent
methodology on which to measure program health and status. Program dashboards will
contain schedules, budget data, assigned resources, risks, and milestones for each program.
The scope of this project includes all requirements gathering, planning, design, development,
and implementation of the PMD tool.

HIGH LEVEL REQUIREMENTS

This section should describe the capabilities to be met by successful completion of the project.
Depending on the size of the project, there may be very many or very few requirements.
However, during the creation of the scope statement, it is important to capture, at least, the
high level requirements as many detailed requirements may not yet be known.

The PMD tool has been approved to meet a business need for Acme Consulting. In order to
meet this business need there are several requirements which must be met as part of the
successful execution of this project. The following high level requirements have been identified
for the PMD Project:
 Database platform with access granted to all employees
 Accessible from office or remotely
 Program template tool to ensure all program dashboards are consistent
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 Ability to maintain tool internally without contract support

BOUNDARIES
Project boundaries are an important part of the scope statement as they identify what should
be included in the project as well as what should not be included. Without specific boundaries
as a part of the project scope statement, it is possible to introduce scope creep as stakeholders
may assume certain items to be included in the project that aren’t clearly stated.

The PMD Project includes all work associated with planning, designing, building, and
implementing the PMD Tool for Acme consulting. This includes requirements gathering,
gathering input from all departments, conceptual and technical design and coding work, server
configuration, testing, troubleshooting, and deployment of the PMD Tool across the
organization. This also includes training manuals and materials associated with operating the
tool. Not included in the scope of this project are: ongoing maintenance of the system,
implementing commercial database products, ongoing help desk and/or service support, or
hardware/software upgrades.

STRATEGY
This section should describe the strategy the project team will use in executing the project.
Depending on the size and complexity of the project, strategy can differ significantly. As the
number of stakeholders, deliverables, and complexity grow, the strategy may become more
difficult to plan. Strategy is sometimes referred to as the approach the team will take to
complete the project.

For the PMD Project strategy, the project team will leverage the expertise of several database
developers from the Acme Consulting Information Technology (IT) group. These experts will be
in matrixed support as part of the project team. They will aid the project manager and other
team members in conceptual and technical design, coding, server configuration, testing and
troubleshooting, and deployment. The project manager will ensure that the IT experts
incorporate all input from stakeholders and gathered requirements.

DELIVERABLES
Project deliverables are the products or outputs that project is intended to produce.
Deliverables may also include various reports or documentation. This section should describe
the project’s deliverables which may be in general terms and not a high level of detail. During
the project lifecycle more detail can be added as it is determined.

There are several deliverables which will be produced as a result of the successful completion
of the PMD Project. If all of the following deliverables are not met then the project will not be
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considered successful. The Project Manager is responsible for ensuring the completion of these
deliverables.

1. Deliverable 1 – A tested and operational Program Management Database tool free of

errors and meeting the specifications described in the Project Scope Description
2. Deliverable 2 – A tested and operational Program template tool (as part of the PMD)
which allows users to enter Program data and metrics in a consistent manner
3. Deliverable 3 – A complete and thorough user’s manual which provides step by step
instructions on how to use the PMD tool for users of all permission levels
4. Deliverable 4 – A complete and thorough troubleshooting guide which provides
corrective steps to users of all permission levels for all anticipated problems

ACCEPTANCE CRITERIA
Acceptance criteria are the criteria which must be met for the project to be considered
complete and accepted by management. This section is important as it sets the expectations of
what will and will not constitute acceptance of the project. Without clear definition of what
will be accepted, there may be uncertainty across the project team and stakeholders.
Acceptance criteria may be both qualitative and quantitative.

Acceptance criteria have been established for the PMD Project to ensure thorough vetting and
successful completion of the project. The acceptance criteria are both qualitative and
quantitative in nature. All acceptance criteria must be met in order to achieve success for this
project:
1. Meet all deliverables within scheduled time and budget tolerances
2. Reduce schedule delays by at least 30%
3. Reduce budget overruns by at least 30%
4. Improve Acme Consulting’s resource allocation ability
5. Accomplish an overall performance improvement in program metrics

CONSTRAINTS
Project constraints are limitations that the project faces due to funding, scheduling/time,
technology, or resources. Constraints may also be physical (i.e. inadequate space or facilities).
Constraints must be carefully planned for and communicated to all stakeholders as they may
require an elevated level of urgency or flexibility to work within and successfully complete the
project. This section should describe the project’s constraints to ensure that all stakeholders
understand the limitations within which the project must be completed.

Several constraints have been identified for the PMD Project. It is imperative that
considerations be made for these constraints throughout the project lifecycle. All stakeholders
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must remain mindful of these constraints as they must be carefully planned for to prevent any
adverse impacts to the project’s schedule, cost, or scope. The following constraints have been
identified for the PMD Project:
1. IT experts will only work 50% of billable hours on this project
2. Project manager will only work 75% of billable hours on this project
3. The Project Manager working only 75% of billable hours on this project is adequate to
complete the project by December 31, 2014
4. The PMD Project has full support from senior management across all departments
within Acme Consulting

COST ESTIMATE
The project cost estimate is the foundation for budgeting for the project. It represents an
estimate of the funding which will be needed to successfully complete the project. While all
costs may not be exactly known until later in the project lifecycle, it is extremely important to
develop as accurate an estimate as possible. This section should provide a project cost
estimate with all known details so that there’s a common understanding among all
stakeholders.

The estimated costs for this project are included in the table below. As the project proceeds
and any additional costs become known, this cost estimate will be refined and communicated
to all project stakeholders.

Estimated Expended to Estimate to

Expense Variance
Budget Date Complete
Labor
Internal $165,000 $14,000 $151,000 +/- $4,000
External $0 $0 $0 N/A
Software $0 $0 $0 N/A
Hardware $0 $0 $0 N/A
Other $7,000 $0 $7,000 +/- $500
Total $172,000 $14,000 $158,000

COST BENEFIT ANALYSIS

The project cost benefit analysis is a measure of a project’s costs vs. its benefits to determine a
course of action most beneficial to an organization in terms of cost. Projects are undertaken to
provide some benefit to an organization assuming the project is completed successfully. If
there is no benefit provided by a project, then it will not be approved. However, there must be
a quantitative way to measure the benefit provided by the project. This section must provide
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this quantitative analysis and ensure all stakeholders understand why the project has been
approved as well as the benefits.

A cost benefit analysis has been performed for the PMD Project. The successful completion of
this project will provide significant benefits to Acme Consulting. It is imperative that all
stakeholders understand these benefits as well as the importance of the successful completion
of this project. The table below shows a net benefit of $35,000 over one year after successful
completion of the PMD Project. This is a total benefit of $242,000 if no project is done and
schedule delays, cost overruns, and poor resource allocation continue.

With PMD Project Without PMD Project

Costs of Project
Recurring Cost $0 $0
Non-Recurring Cost $172,000 $0
Capital Costs $0 $0
Total Cost of PMD Project $172,000 $0

Benefits (1 year)
Reduce Delays by 30% $15,000 -$15,000
Reduce Overruns by 30% $170,000 -$170,000
Improve Resource Allocation $22,000 -$22,000
Total Benefits of PMD Project $207,000 -$207,000

Net Benefits of PMD Project $35,000 -$207,000

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SPONSOR ACCEPTANCE

Approved by the Project Sponsor:

__________________________________________ Date: ___________________

<Project Sponsor>
<Project Sponsor Title>

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