# Project Scope vs. Product Scope: Understanding Key Differences

![Scope](https://www.investopedia.com/thmb/091C7gnNiQr7sTliyxnuyc2RtKo=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/scope.asp-Final-8ce5200b5f7a4a0aa01c598bc4d26bf7.jpg)

*— Investopedia / Yurle Villegas*

## What Is Scope?

Scope, a crucial concept in project management, involves defining the objectives and requirements to complete a project. It’s vital to distinguish project scope, which outlines all necessary work, from product scope, which focuses on the final deliverable. Effective scope management helps organizations save time and reduce costs.  

### Key Takeaways

*   Scope in project management defines the objectives and requirements necessary to complete a project, allowing for accurate cost and time estimations.  
    
*   Project scope involves all the work needed to deliver a product or service, while product scope focuses on the characteristics and functionality of the final product.  
    
*   Scope creep refers to uncontrollable changes that extend project deadlines, requiring effective management to prevent budget and time overruns.  
    
*   Visualization tools like Gantt charts and PERT charts help project managers plan and communicate a project's scope effectively.  
    
*   Proper scope definition is crucial for saving time and resources and avoiding costly changes during a project's implementation.

## Comprehensive Guide to Project Scope

In project management, scope outlines the processes and resources needed for a project. It helps in planning and organizing a company’s resources to complete tasks, events, or actions, usually as a one-time event. Recognizing different project variables saves money through scope management.

> **Important**
>
> Properly defining the scope of a project allows managers to estimate costs and the time required to finish the project.

There are two types of scope: product scope and project scope. Product scope identifies a product's functions, while project scope outlines everything needed to deliver it. Product scope focuses on the product's functions, while project scope details the steps to achieve it.

Deliverables include project objectives or milestones, like creating products or services. They may also involve incremental changes, assessed during the project to monitor progress.

## Comparing Product Scope and Project Scope

### Product Scope

Product scope outlines a product's characteristics and functions, including size, materials, and functional specs. It covers what the product is designed to do and its intended use

Product scope focuses on the result or the actual offering. This is the final product or service. Product scope may also refer to a service or other item for customer use. Product scope often considers how to evaluate whether the object is on track for completion and whether it meets the expected outcome. 

### Project Scope

Conversely, the project scope encompasses all the work needed to deliver a product or service. In short, the project scope describes how the mission will be accomplished. It includes identifying and documenting the project's goals, deliverables, tasks, project members, deadlines, and milestones. Documentation consists of the scope statement, statement of work, and a [breakdown](https://www.investopedia.com/terms/b/breakdown.asp) of the work structure. 

The project scope also outlines the project's limits by specifying what is not included within the scope of the plan. It can incorporate information about the project's [budget](https://www.investopedia.com/articles/pf/06/budgeting.asp) or available resources. Information regarding the project schedule, as well as the assignment of tasks, may also be included in the project scope. Workgroups will often be assigned listing the internal or external personnel who will be involved with the project.

## Key Challenges in Scope Management

Uncontrollable changes that extend deadlines are known as scope creep. Extended deadlines can alter the original project requirements. Small changes during the project can expand the scope beyond the initial budget and time limits, leading to more changes and additional requirements.

Effective project management considers the possibility of scope creep and incorporates strategies to mitigate it. Understanding the vision or primary objective, proper initial planning, as well as devising and adopting approaches to avoid scope creep from the outset are ways to prevent scope creep.

### 7-11%

According to the Project Management Institute, the combined project management costs for all phases of a project total somewhere between 7–11% of the project's true interest cost.

## Tools for Visualizing Project Scope

Project managers use a variety of tools to plan and communicate a project's scope. Two popular tools to do this are the Gantt chart and the program evaluation review technique (PERT).

A Gantt chart visually depicts a project schedule as a bar chart showing start and finish dates for resources, milestones, tasks, and dependencies. It was designed by American engineer Henry Gantt.

The [program evaluation review technique](https://www.investopedia.com/terms/p/pert-chart.asp) (PERT) chart is a visual representation of a series of events that must occur within the scope of a project’s lifetime. A PERT chart allows managers to evaluate the time and resources necessary to manage a project. This evaluation includes the ability to track [required assets](https://www.investopedia.com/terms/c/core-assets.asp) during any stage of production in the course of the entire project.

## What Does Scope Mean?

In the business world, scope refers to the combined objectives and requirements needed to complete a project. Scope is a term commonly used by project managers.

## What Is an Example of the Economies of Scope?

Company ABC wants to increase its [product line](https://www.investopedia.com/terms/p/product-line.asp) and remodel its manufacturing building to produce a variety of electronic devices, such as laptops, tablets, and phones. Since the cost of operating the manufacturing building is spread out across a variety of products, the average total cost of production decreases. The costs of producing each electronic device in another building would be greater than just using a single manufacturing building to produce multiple products.

## What Is the Difference Between Scope and Scale?

Economies of scope focus on the average total cost of production of a variety of goods. In contrast, economies of scale focus on the cost advantage that arises when there is a higher level of production for a single good.

## What Is the Scope of a Project?

The scope of a project is a detailed outline that encompasses all the work needed to deliver a product or service. This includes the project's goals, deliverables, tasks, project members, deadlines, and milestones.

## How Do You Write a Project Scope Statement?

A proper project scope statement should include the following elements: an introduction stating the purpose of the project, the deliverables required to complete the project, a determination of the project's milestones, as well as any constraints or exclusions.

## The Bottom Line

Understanding and defining the scope is vital for successful project execution. Project scope outlines all necessary work elements, including goals, deliverables, tasks, and deadlines, while product scope focuses on the required functions and characteristics of the final product. Effective scope management not only helps estimate time and budget efficiently but also mitigates risks like scope creep, ensuring projects stay on track. By leveraging tools like Gantt and PERT charts, project managers can visualize project scope and maintain control as the project progresses.

> **Article Sources**
>
> 1.  Project Management Institute. "[Project Management: How Much Is Enough?](https://www.pmi.org/learning/library/project-management-much-enough-appropriate-5072#:~:text=Based%20on%20the%20above%20estimates,the%209%E2%80%9315%20percent%20range.)"