Discussion 1.4

Attachments

Project Management: Achieving Competitive Advantage

Fifth Edition

Chapter 14

Project Closeout and Termination

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1

Learning Objectives

14.1 Distinguish among the four main forms of project termination.

14.2 Recognize the seven key steps in formal project closeout.

14.3 Understand key reasons for early termination of projects.

14.4 Know the challenges and components of a final project report.

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P M B o K Core Concepts

Project Management Body of Knowledge (P M B o K) covered in this chapter includes:

Close Project (P M B o K 4.6)

Close Procurements (P M B o K 12.4)

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Project Termination

The four main reasons for project termination are:

Extinction

Addition

Integration

Starvation

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Natural Termination—Closeout Process

Finishing the Work

Handing Over the Project

Private Finance Initiatives (P F I s)

Build, Operate, and Transfer (B O T)

Build, Own, Operate, and Transfer (B O O T)

Gaining Acceptance for the Project

Harvesting the Benefits

Reviewing How It All Went

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Post-Project Reviews

Objectivity and Issues

a. Outside reviewers are unfamiliar.

b. Project team may be suspicious.

c. Outside evaluators may be compelled to find problems.

d. Outside reviewers are not competent.

Internal Consistency

Replicability

Fairness

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Lessons Learned Meetings

Common Errors

Misidentifying systematic errors

Misapplying or misinterpreting lessons based on events

Failure to pass along conclusions

Meeting Guidelines

Establish clear rules of behavior

Describe objectively what occurred

Fix the problem, not the blame

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Closeout Paperwork

Documentation

Legal

Cost

Personnel

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Required Reviews

General program and project management confidence

Commercial confidence

Market and sales confidence

Product quality confidence

Manufacturing confidence

Supply chain logistics confidence

Aftermarket confidence

Health, safety, and environment confidence

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What Prevents Effective Project Closeouts?

Project sign off discourages other closeout activities.

Urgency of all project pressures cause shortcuts on back-end.

Low priority given to closeout activities.

Lessons learned analysis seen as bookkeeping.

Unique view of projects.

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Dynamic Project Factors to Monitor

Static

Task-team

Sponsorship

Economics

Environment

User

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Early Termination Decision Rules

Costs exceed business benefits.

Failure to meet strategic fit criteria.

Deadlines continue to be missed.

Technology evolves beyond the project’s scope.

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Project Termination Issues

Figure 14.2 Work Breakdown for Project Termination Issues

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Concerns When Shutting down a Project

Emotional Issues of the Project Team

Emotional Issues of the Clients

Intellectual Issues—Internal

Intellectual Issues—External

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Table 14.2 Concerns When Shutting Down a Project—Emotional

Emotional—Project Team Emotional—Client
Fear of no future work Change in attitude
Loss of interest in remaining tasks Loss of interest in project
Loss of project-derived motivation Change in personnel dealing with project
Loss of team identity Unavailability of key personnel
Selection of personnel to be reassigned Blank
Diversion of effort Blank

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Table 14.2 Concerns When Shutting Down a Project—Intellectual

Intellectual—Internal Intellectual—External
Identification of remaining deliverables Agreement with client on remaining deliverables
Certification needs Agreement with suppliers on outstanding commitments
Identification of outstanding commitments Communicating closure
Control of changes to project Closing down facilities
Screening of partially completed tasks Determination of requirements for audit trail data
Closure of work orders and work packages Blank
Disposal of unused material Blank

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Top 10 Signs of I T Project Failure

Best practices and lessons learned are ignored.

Project lacks people with appropriate skills.

Sponsorship is lost.

Users are resistant.

Deadlines are unrealistic.

Business needs change.

Chosen technology changes.

Project changes are poorly managed.

Scope is ill-defined.

Project managers don’t understand user’s needs.

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Claims and Disputes

Two types of claims:

Ex-gratia claims

Default by the project company

Resolved by:

Arbitration

Binding

Nonbinding

Standard litigation

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Protecting Against Claims

Consider claims as part of the project plan.

Verify stakeholders know their risks.

Keep good records throughout the life cycle.

Keep clear details of change orders.

Archive all correspondence.

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Final Report Elements

Project performance

Administrative performance

Organizational structure

Team performance

Project management techniques

Benefits to the organization and customer

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Summary

Distinguish among the four main forms of project termination.

Recognize the seven key steps in formal project closeout.

Understand key reasons for early termination of projects.

Know the challenges and components of a final project report.

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved

Copyright

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