Title: 0.6.0 Statement of Work Lesson
Course: ATEP - MMT: Module A: > Section: WELCOME TO MODULE A - DESIGN FOR MANUFACTURING

0.6.1 Statement of Work (SOW)

A statement of work (SOW) is a formal document that explains the work activities, deliverables, and timeline that a team or supplier must complete in performance of specified work for a client.  It is very often used as a binding contract between a team and the customer. As an official document, it is printed on the company letterhead.

The statement of work includes:

  - Title page
    - Company name
    - Project name
    - Team member names and positions
    - Date of publication
  - Index page
  - Purpose:  Specifics of the project and responsibilities of the people involved.  Why are we doing this project?
  - Scope of Work: A description of the work that must be done in detail.  Specifies both the hardware and software involved along with the exact nature of the work to be done.
  - Assumptions: A list of events and circumstances that need to occur in order to be successful.
  - Organization: A list of all parties involved in the project, their titles and responsibilities.
  - Location of Work: This describes where the work must be performed. This also specifies the location of hardware and software and where people will meet to perform the work.
  - Period of Performance: This specifies the allowable time for projects, such as start and finish time, number of hours that can be billed per week or month, where work is to be performed and anything else that relates to scheduling.
  - Deliverables Schedule: This part lists the specific deliverables, describing what is due and when, often referred to as milestones.
  - Applicable Standards: Describes any industry-specific standards that need to be adhered to in fulfilling the contract.
  - Acceptance Criteria: This specifies how the buyer or receiver of will determine if the product or service is acceptable, what objective criteria will be used to state the work is acceptable.
  - Risks: Lists the things outside the control of the people involved that could negatively affect the outcome of the project  and a plan to overcome those risks. Think of what might have a negative affect on the people building the product, the environment and the end users.
  - Special Requirements: This specifies any special hardware or software, specialized workforce requirements, such as degrees or certifications for personnel, travel requirements, and anything else not covered in the contract specifics.
  - Type of Contract/Payment Schedule: The project acceptance will depend on if the budget available will be enough to cover the work required. Therefore, payments breakdown whether up front or phased will be negotiated very early at this stage.
  - Reporting Procedures:  Describes how and who will report the status of the project to the customer.
  - Miscellaneous:  Items that are not part of the main negotiations but are still very important to the project. They might seem minor but by being overlooked could create problems for the project.
  - Approvals:  Signatures and dates, signed by everyone involved in the project.

Knowledge Note:

A letterhead is the heading at the top of a sheet of letter paper or stationery. The heading usually consists of a company  name an address, a logo or corporate design, telephone number, website address, email address and sometimes a background pattern. The term "letterhead" is often used to refer to the whole sheet imprinted with the above components.

A logo is a graphic symbol or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition. A logo is normally a graphic image, a graphic image of the name of the organization or a combination of both.