New Product Development

Fatima Khalid (19-11069)

Importance of Assumption and Constraints:

Assumptions = Possibilities. Constraints = Limits.

Assumptions and constraints form a foundational basis for project planning, filling in the gaps
between known proven facts and total guesswork. Each assumption is an "educated guess", a
likely condition, circumstance or event, presumed known and true in the absence of absolute
certainty. Each constraint is a limiting condition, circumstance or event, setting boundaries for
the project process and expected results. An assumption as a belief of what you assume to be true
in the future. We make assumptions based on our knowledge, experience or the information
available on hand. These are anticipated events or circumstances that are expected to occur
during your project’s life cycle. Assumptions are supposed to be true but do not necessarily end
up being true; Sometimes, they may turn out to be false, which can affect your project
significantly. They add risks to the project because they may or may not be true. Assumptions
play an essential role in developing a risk management plan. Therefore, as a project manager, we
must collect and identify as many assumptions as you can. It will assist you in developing a
sound risk management plan. Some simplified examples are as follows

Example: You will get all the resources required by you or during the rainy season cheap labor will
be available or all relevant stakeholders will come to the next meeting.

Making assumptions creates benchmarks that are often revisited during the project to aid the
project team in staying within scope, on time, and within budget. But what happens when
assumptions are wrong? It is where the risk comes into play.

Constraints: Constraints are limitations imposed on the project, such as the limitation of cost,
schedule, or resources, and you have to work within the boundaries restricted by these
constraints. All projects have constraints, which are defined and identified at the beginning of the
project. Once identified, these assumptions and constraints shape a project in specific, but
diverging ways. Assumptions and constraints must be defined for one or more of the following
elements:

 Key project member’s availability, Key project member’s performance, Key project
member’s skills

 Budget limitations, Internal process lead time (e.g. Procurement), Vendor delivery times,
Vendor performance issues, Accuracy of the project schedule dates.

PMBOK identifies six constraints: scope, quality, schedule, budget, resource, and risk. Out of
these six, scope, schedule, and budget are collectively known as the triple constraints.

In project management it is very important to see the bigger picture keeping in mind the balance
between realistic approach and assumptions which will lead to a successful completion of a
project.