Scope Creep could be described as the
uncontrolled changes in the requirements of the project as defined. In any project, you will expect a clearly
defined project scope; you still have to beware of scope creep. Scope creep
tend to arise when new features are
added to product designs that have already been approved, without providing
equivalent increases in budget, time and/or resources. In order to address
scope creep challenge, the best approach is to set up a well-controlled formal
process known as a change control system.
My blog is based on an experience during an interview with
my cousin about the failure experienced in his business. The incident occurred about 4 years ago.
Background
Tim had a good intention to be
self- employed. So he quit his real estate business after the economic downturn
with the hope of establishing a business to sustain himself and his family. He
wants to produce grilled goat meat, and chicken for sale. His criteria originated from considering fast
food franchise as a viable business, and believing the flocks of the immigrant population would
be his primary customers.
He had some money saved he hopes to secure a loan from the
bank, and have friends invest in the business. He also intends to partner with a friend to
run the business. They will both have a
50/50 share in the business.
As he worked on researching what he will need to accomplish
this goal, he learned that it will require a USDA involvement and approval. The
local health official’s involvement and layers of approval from the location (warehouse),
to the equipments required to produce the products. He quickly rented a place and renovated the location
for his business. After all the expenditure, the licensing authority informed
his that they are unable to approve the location. After multiple negotiations,
he was ordered to tear it down and rebuild the warehouse to the USDA
specification. The final approval of the location lingered for about 18 months.
He managed to get a small business loan from
the Latino organization in Washington, DC. He used the money to build the warehouse to
the specification. By the approval date, he was already broke and had no money to
operate the business. His rent was mounting
in arrears, and the repayment plan of the loan begins.
In his plan, he knew he could get the raw material (fresh
goat meat and chicken) from local farms. Little did he learn from USDA that he
could only purchase materials from only USDA approved farms. In his discovery,
USDA farms products are higher in price than other regular livestock farms. This
factor will cause his projected product price to increase.
Another interesting aspect of the operation is documentation
of almost every aspect of the production. Tim lacks the ability to complete documentation
requirements while working in production. He was informed about hiring
employees, but knew he cannot afford the salary.
Scope creep Issues.
The following issues impact the establishment of the business.
In my opinion, the business had problems at almost every stage such as Conceive,
Define, start, perform, and Evaluation.
Conceive Stage
Funding- the estimation of cost, expenditures,
facilities, equipment purchases, renovations and contingency plans were not properly identified before embarking on this project. In a nut shell, the entire approach to the
project needs to change. Portny, Mantel, Meredith, Shafer, Sutton, and Kramer (2008) states
that “input from more than 500 project managers regarding the most important
single problem facing project managers indicates that coping
with change is at the top of their list.”
Tim just want a business, no
feasibility study was done. Interestingly, USDA told him there is no one in USA
producing grilled goat as of the time of his business initiation. This makes it
difficult to compare his idea to similar businesses; instead, they got creative,
that lead to the layers of delay in the approval process.
He was unprepared and unaware of the different levels of
regulations, license and approval requirements.
Define /planning stage
In his planning, he
had no business plan to identify, analyze and define what this business will
need to thrive. He had no prior experience in the business. He just knew that edible
products sell in the fast food business.
There was no adequate plan on how he will purchase the raw materials
and other ingredients to prepare this product. The surprise occurs after the
fact.
The scope of other
resources was left out of his vision. In my opinion, the lack of feasibility
resulted in the frustration encountered with time frames and delay in the
approval process.
Project Start stage
The business was unable to start operation once approved, because
everything was wrong from the onset. The
owner was unable to purchase the materials to start operation as planned. Though,
the business had viable customers. Despite all these challenges, the business
continues to run in a substandard manner. The worst happened when the landlord
evicted them because they owed about a year and half rent.
How did you or other
stakeholders deal with those issues at the time?
Based on the
challenges encountered by the business, the business partner part ways with my
cousin. He was stuck with the business
and believed he could get by, ran on credit until eviction. Budrovich, (n.d.) indicated that the standard
five variables that challenge project manager are Time, money, scope, people and
quality.
What could you have
done to better manage these issues and control the scope of the project?
I am proud of what I have learned so far in this course,
because the experience taught me the foundation of project management and
standard of approach to project management.
With this in mind, every aspect of a project is important. It is not
just enough to conceive an idea, but be realistic about analyzing, planning and
identifying all the crucial aspects of the project idea, be able to determine
how the progress will be assessed.
I will partner with USDA to support /advice me on all the
requirements of this operation, have the necessary documentation,
schedules/timelines, and clarify expectation from the beginning of the project.
According to Suchan, J. (2007),” your ability to get buy-ins from the entire
stakeholder will help to streamline the approval process, and keeps information
flowing”.
I will do everything to get the experts involved, I will do
my research, I will have a concrete plan about the finances of the business.
References
Portny, S. E., Mantel, S. J., Meredith, J. R., Shafer, S. M.,
Sutton, M. M., & Kramer, B. E. (2008).
Project Management: Planning, scheduling, and
controlling projects. Hoboken, NJ: John Wiley &
Sons, Inc.