DQ1 - Week 6 - Final Responce - LTG1

DISCUSSION QUESTION No. 1 – WEEK 06 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 26 / 04 /2014 PAGE 1 OF 5

DISCUSSION QUESTION No. 1

WEEK 06

EXECUTING AND CONTROL WITH RISK

LEONARDO TRIGOS G.





DATE: 26 / 04 /2014 PAGE 2 OF 5

DISCUSSION QUESTION – WEEK 6Word counts: 700

1. INTRODUCTION

All good things must end, even our projects. My boss once told me that even when the project is finished, its closing is important; and everything must be neatly ‘tied-up’. According to Young (2007, p. 243), the final phase of our project still has the potential for success or failure. Many issues can still occur and we as PM must continue to monitoring carefully to ensure a successful outcome. The project closing must be planned carefully, and avoid the ‘project drift’.

According to Lazar (2010, p. 4), a project can be closed for different reasons, all depending on the nature of the project, the industry, the technology, etc. In a regular closing of a project, it’s mainly motivated by the achievement of the project’s objectives and the successful delivery of its outcomes.

In other hand, Lazar (2010, p. 4) explains that closure before successful completion occurs when an unexpected event arises, driving the project team to terminate the project, or when the project fails in delivering the expected benefit or reaching its objectives. In any event, this kind of closure is always the result of an unexpected negative event.

2. DIFFERENCE BETWEEN CLOSING AND TERMINATING A PROJECT

In any way that the project is complete or finish before successful completion, the PMBOK (2013, p. 57) explains that the project manager should guarantee that the correct execution of the process performed to conclude all activities across all PM process groups to formally complete the project. Sanghera (2010, pp. 376 - 377) and the PMBOK (2013, p. 58) stats that the PM may apply the follow steps to closure the project formally:

Table 1. Project closure process [Source: PMBOK (2013, p. 58)]

But exist some difference between completed and terminated a project as are described as follow:

A. Completed project:Complete project cause:





DATE: 26 / 04 /2014 PAGE 3 OF 5

(1) Get a supportive and ongoing relationship with client(2) Increase morale of the team(3) Increase commercial opportunities to the company(4) Have positive benefits on costs

B. Terminated project:

Terminate a project cause:

(1) Difficulties with team morale(2) Emotional problems in project team(3) More likely to be given in low priority(4) Often have more unforeseen details to be concluded, must be handled faster(5) Have a greater impact on immediate cost and benefits (6) Damage relations with the client(7) Evaluate the losses(8) Handover the uncompleted work to the client(9) Involves possible penalties

3. ADMINISTRATIVE AND CONTRACT CLOSURE

A. Administrative closure:

According to the PMBOK (2013, p. 101), “administrative closure involves bring to completion all internal aspects of the project concerning management, team members, financials, key stakeholders and equipment”. The following processes are required in administrative closure:





DATE: 26 / 04 /2014 PAGE 4 OF 5

Table 2. Administrative closure process [Source: Spirer (2004, pp. 73 – 74)]

B. Contract closure:

Contractual closure refers to deals with project elements that were external to the organization. This is usually part of procurement management. The following aspects have to be included in the contractual closure procedure:

Table 3. Contract closure aspects





DATE: 26 / 04 /2014 PAGE 5 OF 5

4. RECOMENDATIONS

According to Spirer (2004, pp. 73 – 74), finishing a project fits the definition of a project as the task of achieving a unique goal with clear resource constraints. Once it’s clear that the end is in sight, it’s possible to define the objectives of the project to termination. Given that those objectives can be clearly stated, preferably in terms of deliverable items, the PM needs to determine the profile of the tools of project management to be used to successfully carry out this mini-project. Closure has its special needs and problems which determine the nature of plans, schedule, types and uses of personnel. The PM must select the supporting personnel for their ability to help in closing the project.

5. CONCLUSIONS

According to Young (2007, p. 243), closure can be triggered by a risk occurrence, so he defines the closing activities as being the response, or mitigation of that risk. With this approach, the PM must consider closure activities as a risk mitigation work package that has to be included in the risk management plan, ant then being ready to be initiated at any stage of the project, when a risk driving to close the project occurs. This risk mitigation activities may defined, scheduled, resourced and budgeted by the project team in the planning phase of the project.

6. REFERENCE LIST

Young, T. (2007) PMP® in depth: The Handbook of PROJECT MANAGEMENT: A practical guide to effective policies, techniques and processes. 2nd Edn. London: Kogan Page Limited.

Lazar, O. (2010). Project Closing Process: Modular Risk Based Closure. Project Management Institute Annual Seminars & Simposium – Proceedings. Milan - Italy: Project Management Institute.

Project Management Institute (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 5th Edn. Newtown Square, Pennsylvania: Project Management Institute, Inc.

Sanghera, P. (2010) PMP® in depth: Project management professional study guide for the PMP® exam. 2nd Edn. Boston: Course Technology / Cengage Learning.

Spirer, H. (2004). A systematic approach to project termination. Project Management Journal, 14 (9), pp. 73 – 83.

Documents

DQ1 - Week 6 - Final Responce - LTG1