Module 12 Session 12.1 Visual 1 Module 12 Terminating the Project Session 12.1: Terminating the Project

Module 12 Session 12.1 Visual 2 Instructional Objectives At the end of the session, the learner will able to 1.List at least five tasks a project manager typically must perform during termination. 2. Describe at least three problems commonly encountered during project termination. 3.Describe at least three best practices that may make the transition from project to operations more successful.

Module 12 Session 12.1 Visual 3 Steps Involved in Closing a Project Step 1.Ensure that project deliverables and objectives have been achieved. Step 2.Complete close-out activities:  Complete paperwork.  Plan for the operational phase.  Transfer personnel. Step 3.Carry out postproject audit.

Module 12 Session 12.1 Visual 4 Step 1: Ensure That Project Objectives are Achieved.  Agree with contractors and consultants on remaining deliverables.  Agree with suppliers on outstanding commitments.

Module 12 Session 12.1 Visual 5 Step 2: Complete Close-Out Activities Responsibility of Project Management Responsibility of Contractors or Consultants Joint Responsibility Plan for maintenance (done jointly with contractor or supplier and your organization’s maintenance department). Close out contracts and settle disputes. Transfer files and documentation. Obtain needed government approvals and certification. Plan inspection and acceptance procedures. Inspect and accept deliverables. Plan for ex post evaluation; design monitoring system. Close out project accounts, including work orders and work packages. Close project facilities. Arrange for transfer of personnel. Coordinate planning for commissioning of facilities and start-up of operations, including training. Perform postproject audit. Notify affected communities. Close contractor facilities. Prepare as-built drawings (or the equivalent) and other project documentation. Prepare operational manuals. Complete punch list.

Module 12 Session 12.1 Visual 6 Project Termination Paperwork  Review and agree on termination checklist with contractors, consultants, and suppliers.  Prepare termination plan of action, including all activities that need to be carried out, who is responsible, and dates:  Project accounts  Contracts  Drawings, files, reports, and other documents  Approvals and certifications

Module 12 Session 12.1 Visual 7 Planning for Start-Up of Operations Project management’s role: Coordinate transition to operations  Notify those responsible for operations.  Assist in preparation of operational plan.  Ensure training needs are known and addressed.  Ensure operational policies, systems, and procedures are prepared.  Transfer any files, documents, or materials necessary for operations, such as maintenance manuals.

Module 12 Session 12.1 Visual 8 Step 3: Postproject Audit Purpose: To learn from experience  Identify mistakes.  Determine impact of mistakes.  Identify how mistakes can be avoided on future projects.  Make appropriate changes and improvements in project management and functional policies and procedures. Source: Russell Archibald Managing High Technology Projects and Programs, 2nd ed. New York: John Wiley Publishers.

Module 12 Session 12.1 Visual 9 Components of a Postproject Audit 1. What were the original and final objectives?  Performance (Scope)  Cost  Schedule 2. Were the objectives met? 3. Were there problems in the process of implementation? 4. What factors contributed to successful aspects? 5. What factors contributed to problems and mistakes? 6. What policy or procedural changes could avert future problems? 7. Implement any necessary changes.

Module 12 Session 12.1 Visual 10 Step 2: Complete Close-Out Activities Responsibility of Project Management Responsibility of Contractors or Consultants Joint Responsibility Plan for maintenance (done jointly with contractor or supplier and your organization’s maintenance department). Close out contracts and settle disputes. Transfer files and documentation. Obtain needed government approvals and certification. Plan inspection and acceptance procedures. Inspect and accept deliverables. Plan for ex post evaluation; design monitoring system. Close out project accounts, including work orders and work packages. Close project facilities. Arrange for transfer of personnel. Coordinate planning for commissioning of facilities and start-up of operations, including training. Perform postproject audit. Notify affected communities. Close contractor facilities. Prepare as-built drawings (or the equivalent) and other project documentation. Prepare operational manuals. Complete punch list.

Module 12 Session 12.1 Visual 11 Potential Behavioral Problems 1.Fear of no future work 2.Loss of interest in tasks remaining 3.Loss of project-derived motivation 4.Loss of team identity 5.The effect of personnel reassignment 6.Reassignment methodology 7.Diversion of effort Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 12 Potential Behavioral Problems Contractors’ and consultants’ concerns at project termination 1.Changes in attitude 2.Loss of interest 3.Change of personnel 4.Unavailability of key personnel Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 13 Potential Behavioral Problems Dealing with low interest and lack of team identity 1.Define termination as a project. 2.Provide a team identity. 3.Bring the team together frequently. Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 14 Potential Behavioral Problems Dealing with project staff’s concerns about reassignment 1.Be honest about reassignment and future work. 2.Make each reassignment decision a conscious, deliberate choice. 3.Hold the right personnel. 4.Carry out reassignments openly. 5.Play an active role in reassignment. Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 15 Staff Characteristics Needed at Termination  Flexibility  Independence  Attention to detail  Highly developed skills Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 16 Potential Behavioral Problems Things the contractor, supplier, and consultant should do: 1.Outline availability of future support for the project’s deliverables. 2. Identify warranty obligations and the start and completion dates. 3.Be willing to negotiate. Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds.. New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 17 Technical Problems at Termination Have To Do With Details

Module 12 Session 12.1 Visual 18 Technical Problems: Close-Out Activities  Identifying and agreeing on remaining deliverables  Certifying and accepting  Identifying and agreeing on outstanding commitments  Controlling charges to the project  Screening uncompleted tasks that are no longer needed  Closing work orders and work packages  Identifying, closing, and/or transferring physical facilities  Accumulating and structuring project historical data: post-project audit  Disposing of project material  Implementing the warranty program and other postcontract efforts  Communicating closures Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 19 Dealing With Potential Technical Problems Analytical Tools  Tree Diagrams  Matrixes  List Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold.

Module 12 Session 12.1 Visual 20 Tree Diagram for Termination Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., NewYork: Van Nostrand Reinhold. Project close-out Organization Financial Purchasing Site Close-out meeting Reassignment plan Personnel reports Collect receivables Supplier notifications Final payments Compliance documents Charge audits Final report Close down facilities Equipment/material disposal

Module 12 Session 12.1 Visual 21 Matrix Model for Relationship Among Commitments, Vendors, and Status Company 1 Company 2 Company 3 Company 4 Company 5 Stand pipes I Note: D - To take delivery N - In negotiation I - Awaiting information C - Closed Blank indicates no commitment, past or present Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold. PumpsD CChemical Water tanks Vehicles I D D C CI N D DNCMeters N

Module 12 Session 12.1 Visual 22 Matrix Model for Assignment of Records in Project Termination Source: Herbert F. Spirer and David H. Hamburger “Phasing Out the Project,” in Project Management Handbook, David I. Cleland and William R. King, eds., New York: Van Nostrand Reinhold. Note: P - Prepare A - Approve R - Review E - Execute Quality assurance manual P P QA procedures index Drawings, auto equipment Drawings, calibration blocks A A P/ER Spare parts specifications Calculation notebooks QA audit schedule A A A PR P P R A P RP Director of projects Task engineer Automatic equip. manager Vice president operations Project manager Quality assurance manager

Module 12 Session 12.1 Visual 23 A Project Manager Needs  Knowledge of financial systems and accounting  Technical knowledge of project  Negotiating skills  A sense of urgency about details