Abbott Project Management Playbook

management plan. A well-defined scope is considered extremely important because a scope that is not well-defined will lead to an unsuccessful project. Both scope and WBS is the basis for all the other processes and PM knowledge areas. 3.4 B UDGET The total cost of a project is the sum of all resources necessary to execute all the activities listed in the WBS, expressed in a monetary value. They add up to the cash flow and, with the gains of the project, determine the project feasibility. During the initiation, a cost evaluation is performed to elaborate a project preliminary budget to approve or not approve the project itself. This budget is detailed later, among the processes of cost management, and will be part of the cost baseline, which will be used to monitor/measure the project performance by tools, such as the earned value calculation. 3.5 T IMELINE (S CHEDULE ) The project schedule documents the project activities, the respective initial and end dates, the allocated resources, and schedule restrictions. For the project charter, it is recommended to focus primarily on the milestones of the project, to facilitate a management decision. A milestone (no duration considered) is a very important moment during the project, because when it is concluded, and it is effective, it means a goal for the entire team was achieved. The project manager and his team must be aware of the milestones of the project to guarantee they happen according to the dates listed in the schedule and do not impact the project success. 3.6 A SSUMPTIONS /C ONSTRAINTS The most common definition for assumption is a hypothesis that is considered true to reach a conclusion. Every project involves uncertainties which may be dependent on other parts not under control. It is important to state these assumptions to go forward with the project. The project assumptions are factors considered true without any evidence for planning goals. If they are not managed, the schedule and the budget can be compromised. The most important thing about any assumption is the risk evaluation supporting it. If the assumption is not in control or not true. The planning will not happen as predicted and the project is compromised. The constraints are project limitations imposed to the project team that might not affect the project performance at all, but cannot be violated and must be respected, analysed, and treated correctly. They can be organizational, environmental and/or external. They are extremely important as well because if they are not attended, the project success is compromised again. When it is known that it is not possible to attend a constraint, the project must be cancelled or have its scope redefined. Common examples of constraints: • Limited head count

• Lack of or limited knowledge • Short window of opportunity • Staffing constraints • Delivering the product within a specific time frame • Delivering the product within a limited cost

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