Project Planning and Excution chapter 6.ppt

Closing a Project Steps
for Closing the Project
Project Termination Post
Implementation Audit
Chapter 6
Project Close-out, Termination and Follow-up
Dinkisa K. (PhD)
Project Planning....

Table of Contents
1
Closing a Project
2
Steps for Closing the Project
3 Project Termination
4
Post Implementation Audit

Closing a Project
• When the project is complete and all the deliverables are tested
and approved, the project must be officially closed out.
• The purpose of project closure is to verify that all work has been
accomplished as agreed and that the client or customer accepts the
final product. This is called scope verification.
• Project closure is also a time to recognize individual efforts and
celebrate project success.
• A few key challenges may arise at the end of projects, one of
which is to keep the right workers engaged until project
completion.

Project closure deliverables
• The three major deliverables for project closure are:

Wrapping up the project
• The major task during project closure is to ensure the project is approved
and accepted by the customer.
• Other wrap-up activities include closing accounts, paying bills,
reassigning equipment and personnel, finding new opportunities for
project staff , closing facilities, and the final report.
• Checklists are used extensively to ensure tasks are not overlooked (next
section).
• Who resposible for closure activities and who prepares final report?
 In many organizations- the project office in coordination with the project
manager.
 In smaller organizations and projects - the project manager and team.

Project Closure Checklists

Performance Evaluation
• Evaluation includes team, individual team members,
and project manager performance.
• Vendors and the customer may provide external
input.
• Evaluation of the major players provides important
information for the future.

Project audit
• Audits are post-project reviews of how successful the project
was.
• They include analysis and thorough examinations which
identify lessons learned to improve performance on current and
future projects.
• Today, most retrospectives are the responsibility of an
independent facilitator.
• The facilitator also provides major input to the closure report
that will include lessons learned.
• These post-project reviews should be held with the team and
key stakeholders to catch any missing issues or gaps.

Steps for closing the project
• The steps involved in project closure ensure that:
 all payments are made, and finances reconciled.
 project documentation and final reports are completed, and
any remaining budget, materials, or other resources are
properly disseminated.
• A good project planning, monitoring, and controlling
subject also includes formal steps to close the project.
• Formal steps to close the project includes following seven
major steps:

1. Shutting down resources and releasing to new uses.
•During this time, all the bugs are worked out and conditions for delivery are satisfied.
2. Reassigning project team members.
•Releasing the project team typically occurs gradually during the closure phase.
•For some people termination of their responsible activities ends before the project is
delivered to the customer or user.
•If a project manager develops a reputation for taking good care of team members, it
becomes much easier to recruit team members for future projects.
•Many of these workers will be eager to work again for that project manager and will
tell others of their good experience. Reassignment for these participants needs to take
place well before the final finish date.

3. Closing accounts and seeing all bills are paid.
• In this step, we should make sure that:
 All payments have been made to vendors and contractors, project
accounts has been closed, and.
 Remaining project funds been returned.
4. Delivering the project to the customer.
• The formal handover involves an exchange of documents, which confirm
that the project has been completed by the contractor or supplier and
accepted by the client.
• These documents, which include the signed acceptance certificate, will
enable the contractor to submit his final payment certificate.

5. Getting delivery acceptance from the customer.
• This is a major and critical closure activity.
• It is nice to get delivery acceptance should a compliance
occur.
6.Creating a final report.
•Good project management systems have a memory, the organization
process assets.
•A key element of this memory is the project final report, which is
the history of the project.

7. Celebrate success
•Celebrations are excellent times to recognize and acknowledge both effort and results.
•Project closure is also a time to recognize individual efforts and celebrate project
success.
•The project manager ensures that team members have a smooth transition to other
projects or work assignments.
•The project team ensures that customers receive the ongoing support they need to
successfully use the project deliverables. Recognizing team members accomplishments:
Ensures that they have a smooth transition to other projects or work assignments.
Realize they just met a large challenge and are motivated to undertake new challenges.

Project Termination
• As it must to all things, termination comes to every
project.
• At times, project death is quick and clean, but more
often it is a long process; and
• There are times when it is practically impossible to
establish that death has occurred.
• We have fundamentally different ways to close out
a project.

Types of project termination
• There 4 major types of project termination
1 Extinction Addition
Integration, and
Starvation
2
3
4

Termination by Extinction
• Project extinction occurs when the project activity suddenly stops.
• Project may end or stopped (closed) either because
It has been successfully completed and achieved its goals.
 Successful projects are completed and delivered to the client.
 Example: The new product has been developed and handed over to the client, or
the software has been installed and is running at the client's facility.
• It is unsuccessful or has been out-dated or failed.
 Expected failures occur when the project no longer meets cost/benefit criteria, or
when its goals have been achieved by another project, often in another firm.
 Example: The new drug failed its efficacy tests; there are better/faster/cheaper
alternatives available.

Termination by Extinction
With Termination by Extinction:
•All activity on the substance of the project ceases.
•Arrangements must be made for reassignment project team members to other
activities if they are to remain in the parent organization.
•The property, equipment, and materials belonging to the project must be
disbursed according to the project contract.
•Finally, the Project Final Report, also known as the project history, must be
prepared.
•Project extinction occurs when the project activity suddenly stops, although
there is still property, equipment, materials, and personnel to disburse or
reassign.

Termination by Addition
• It occurs when an in-house project is successfully completed, and
institutionalized as a new, formal part of the parent organization.
• This may take the form of an added department depending on the
magnitude and importance of the project.
• Project team members sometimes become the managers of the new
entity.
• If a project is a major success, it may be terminated by
institutionalizing it as a formal part of the parent organization.

Termination by Addition
With termination by addition:
•The transition is different from termination by extinction.
•In both cases the project ceases to exist, but there the similarity stops.
•Project personnel, property, and equipment are often simply
transferred from the dying project to the newly born division.
•The project property often is simply transferred to an existing or
newly created organizational entity.

Termination by Integration
• This is the most common way of dealing with successful
projects, and the most complex.
With termination by Integration:
• The property, equipment, material, personnel, and functions of
the project are distributed among the existing elements of the
parent organization.
• The output of the project becomes a standard part of the
operating systems of the parent, or client.
• Most problems of termination by addition are also present when
the project is integrated.

Termination by Starvation
• There is a fourth type of project termination, although
strictly speaking, it is not a termination at all.
• It often occurs when it is inapproapriate to terminate a
project but its budget can be squeezed, as budgets
always are.
• It is slow starvation by budget decrement or budget cuts,
which are not rare.
• Because they are common, they are sometimes used to
mask a project termination.

Takeaway Points
Four major types of closure are
i.By extinction: where the project was either successfully
completed or failed (or expected to be a failure);
ii.By addition: where the project output is added to the
organization in whole, as with a new plant;
iii.By integration: where the project output is distributed
throughout the organization, as with a software upgrade.
iv. By starvation: variants of some of these, which is a special type
of closure.

Post Implementation Audit
Project audits
•Are more than the status reports, which report on project
performance.
•Do use performance measures and forecast data.
•Not only examine project success but also review why the project
was selected.
•Include a reassessment of the project's role in the organization's
priorities.
•There are two types of project audits:
1. In-process project audits and
2. Post implementation project audits

In-Process Project Audits
In-process project audits:
•It concentrate on project progress and performance and
check if conditions have changed.
•Project audits early in projects allow for corrective changes,
if they are needed, on the audited project or others in
progress.
Example: have priorities changed? Is the project mission still relevant?
•Sometimes, the audit report may recommend closure of a
project that is in process.

Post Implementation Project Audits
Post implementation project audits:
•It do check on project performance, but the audit represents a broader view of the
project's role in the organization
Example: were the strategic benefits claimed actually delivered?
•These audits tend to include more detail and depth than in-process project audits.
•Project audits of completed projects emphasize improving the management of future
projects.
•These audits are more long-term oriented than in-process audits.
•It can yield valuable lessons and recommendations that team members can apply to
future project work.

Takeway points
•An independent, trained facilitator acts as a guide leads the project team through an analysis of
project activities
This facilitator may come from the project officer or be an external consultant.
•Wherever this individual comes from, it is critical that she or he be perceived as being independent
and unbiased.
•The post project audit can yield valuable lessons and recommendations that team members can
apply to future project work.
•The major goal of the audit report is to improve the way future projects are managed.
•The audit report attempts to capture needed changes and lessons learned from a current or finished
project.
•The report serves as a training instrument for project managers of future projects.

End of the course
Thanks!!

Project Planning and Excution chapter 6.ppt

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