The folder structure created by Project Switcher represents a very simple concept.
Project → Scene → Shot → Setup Files.
The project folder is the main folder.
The Scene folder is a child of the project folder
The Shot folder is a child of the scene folder
An example, that should showcase the abstractness of the concept:
FerretProject (Project directory)
CHARS (scene level folder)
SLEEPING (shot level folder, that would be for the sleeping ferret character)
sleeping-ferret_v001.hip (hip file)
sleeping-setup_v001.hip (hip file)
DIGGING (shot level folder that would be for the ferret digging a trench)
digging-setup_v001.hip
digging-setup_v002.hip
digging-sim_v001.hip
PREVIS (scene level folder)
SHOT0010 (shot level folder)
shot0010_previs_v001.hip (hip file)
SHOT0020 (shot level folder)
shot0020_previs_v001.hip (hip file)
Each shot level folder, has the tex/cache/geo folder structure.