Upload
teshome-abebe
View
217
Download
0
Embed Size (px)
Citation preview
7/28/2019 Lecture 11- Project Assesment and Termination
1/47
7/28/2019 Lecture 11- Project Assesment and Termination
2/47
Introduction
Projects are goal oriented open systems and utilizefeedback to track the progress and timing of coursealteration (when needed).
In the project environment the work must be tracked,evaluated and corrected to keep schedule, expenditure,
and performance on target.
How?
Oversee the work
Asses the progress Issue instruction for correction
By receiving the information the PM assesses the overallprogress and communicates with the client, upper
management, and the team
7/28/2019 Lecture 11- Project Assesment and Termination
3/47
A major vehicle forassessmentis theproject
audit, a more or less formal inquiry into any
aspect of the projectA project audit is highly flexible and may focus on
whatever matters senior management desires
The evaluation of a project must have
credibility in the eyes of the management groupfor whom it is performed and also in the eyes of
the project team on whom it is performed
Project Assessment/Evaluation
7/28/2019 Lecture 11- Project Assesment and Termination
4/47
Project Assessment
The primary purpose of project assessment is to
evaluate the performance,
reveal areas where the project deviate from the
goal,
uncover potential problems so that they can be
corrected.
Assessment serves the purpose ofsummarising
project status to keep stakeholders inform
7/28/2019 Lecture 11- Project Assesment and Termination
5/47
Goals of Project Assessment
The major goals of project assessment is thesuccessful completion of project.
Four independent dimensions of success:
The most important dimension is the projectsefficiency in meeting both the budget and schedule
Second dimension, again somewhat straightforwardand expected, is business/direct success
A third dimension, somewhat more difficult andnebulous to ascertain, is future potential
The last dimension, and the most complex, is that ofcustomer impact/satisfaction
7/28/2019 Lecture 11- Project Assesment and Termination
6/47
Goals of Project Assessment
Another purpose of assessment is to helptranslatethe achievement of the projects
goals into a contribution to the parentorganizations goals.
To identify and understand the projectsstrengths and weaknesses
The result is a set ofrecommendations thatcan help both ongoing and future projects
7/28/2019 Lecture 11- Project Assesment and Termination
7/47
Benefits of Project Assessment
A successful assessment via audit can help a
project:
Identify problems earlierClarify performance, cost, and time relationships
Improve project performance
Locate opportunities for future technological
advances
Evaluate the quality of project management
Reduce costs
7/28/2019 Lecture 11- Project Assesment and Termination
8/47
Need for Project Assessment
Organizational Benefits Speed the achievement of results
Identify mistakes, remedy them, and avoid them inthe future
Provide information to the client
Reconfirm the organizations interest in, and
commitment to, the project
7/28/2019 Lecture 11- Project Assesment and Termination
9/47
Ancillary benefits
Identify organizational strengths and weaknesses in
project-related personnel, management, anddecision-making techniques and systems
Identify risk factors in the firms use of projects
Improve the way projects contribute to the
professional growth of project team members Identify project personnel who have high potential
for managerial leadership
Need for Project Assessment
7/28/2019 Lecture 11- Project Assesment and Termination
10/47
Two Kinds of Assessment In Projects
Formative Assessment - throughout the project
life cycle to guide for corrective actions.
What is happening?
How is the project proceeding?
Summary Assessment - after project completion,
focuses on the outcome or end product/s of the
project
What happened?
What are the results?
7/28/2019 Lecture 11- Project Assesment and Termination
11/47
Formative Project Assessment
Must account for the fact that projects are complexsystems
cost, schedule and quality are interrelated-As a result
corrective measures directed on just one performance
criteria can lead to problems in other criteria interdependent work tasks are drawn from the same pool of
limited resource -Attempts directed solely in improving
performance in one work can have detrimental effects on the
others
Project assessment must incorporate the three performance
criteria simultaneously
Must account for the impact of changes in any one work area on
other related areas.
7/28/2019 Lecture 11- Project Assesment and Termination
12/47
Formative Project Assessment-
cont Must be able tosignal potential trouble
spot so action can be initiated before
problem is materialised
The best kind of assessment is not only
reveals problem but it also points outopportunities to reduce cost, speed up
works and/or enhance project outcomes in
other ways.
7/28/2019 Lecture 11- Project Assesment and Termination
13/47
Methods and Measures
Methods and measures should be specified
before the project begins and should included in
the project plan. 4 primary ways of obtaining and/or conveying
assessment information are:
Graphics
Reports (oral and written)
Observations
Review meeting
7/28/2019 Lecture 11- Project Assesment and Termination
14/47
GraphicsUses charts and tables: most expeditious way of
presenting costs, schedules and performance info.
Advantages Large amount of complex info into simple, comprehensible
format
Clarify info on progress, performance and predictions
Allow everyone to appreciate the current status direction of theproject
Disadvantages
Can hide or obscure information leading to facile and erroneousconclusions, eg project level charts tend to hide problems of thework package level
Neither reveal the underlying causes of problems nor suggestopportunities
Time consuming
7/28/2019 Lecture 11- Project Assesment and Termination
15/47
Reports
Oral reports Oral reports about project status and performance
are easy and quick.
Quality and reliability depends on the interpretativeand verbal skill of the presenter
Unless followed by a written report gets lost orgarbled
Written reports Most effective when they succinctly summarise
info and make use of ratios and graphics tohighlight important points
7/28/2019 Lecture 11- Project Assesment and Termination
16/47
Observation
The PM can reduce the info distortion byincreasing observation and on-site contact
with the supervisors and workers since,the more channels for passing info, themore the info get distorted.
Good project managers do not stay in theiroffices but are usually on-site.
7/28/2019 Lecture 11- Project Assesment and Termination
17/47
Project Review Meeting
The most important and useful way of assessment.
Purpose of the meetings
Identify the deviation and corrective measures as quicklyas possible
Focuses on
Current problems with the schedule, costs, with thequality performance solutions
Anticipated problems and risksOpportunity to improve the performance
Similar to Quality circle procedures used in theproduction environment
Can be formal orinformal
7/28/2019 Lecture 11- Project Assesment and Termination
18/47
Formal Reviews Scheduled in advance at critical stages or project
milestones
Most common reviews during the project planning and
execution phases Preliminary design review: to determine whether the concept and
planned implementation fits the basic operational requirements
Critical design review: details of the design are reviewed to see
that they conform to the preliminary design specification.
Functional readiness review: to evaluate the efficacy of the project
outcome
Product readiness review: products are compared to specifications
and requirements to ensure that the controlling designdocumentation produces items that meet the requirement
7/28/2019 Lecture 11- Project Assesment and Termination
19/47
Informal Reviews Held frequently and regularly involving small groups of
people
Referred to as peer review
Focuses on Project status
Special problems
Emerging issues
Performance of the project with regard to requirement, budget andschedules
Participants depends on the meeting issue and thephase of the project
Role of the PM as a facilitator not as dominator
7/28/2019 Lecture 11- Project Assesment and Termination
20/47
Post Completion Project Review
Summary assessment
The summary review and assessment of the
project
The post completion review process should
1. Review initial project objectives and review
soundness of the objectives
2. Review the evolution of objectives through the end to
determine how well the project team performed andreview the reasons for changes, noting which changes
were avoidable and which were not;
3. Review the activities and the relationships of the
project team throughout the project lifecycle
7/28/2019 Lecture 11- Project Assesment and Termination
21/47
4. Review the involvement and performance of all
stakeholders including subcontractor and vendors
5. Review expenditures, sources of costs andprofitability; identify organisational benefits, projectextensions, and marketable innovations
6. Identify areas of the project where performance weregood, noting reasons for success and identifyingprocesses that worked well
7. Identify the problems, mistakes, oversights, andareas of poor performance and their causes
8. Summarise the lessons learned from the project andprovide recommendations for future projects
7/28/2019 Lecture 11- Project Assesment and Termination
22/47
Project
Documentation/Reporting
Company management must be kept appraised ofthe status, progress, and performance of allcompleted, ongoing and upcoming events;
Problem affecting profits, schedule, quality orbudgets as well as their impacts and recommendedactions should be reported promptly
Client also should be updated about the projectstatus and notified whenevermajor problem arises
Consideration should be given to otherstakeholders, weighing confidentiality, and privacyissues against opportunity costs
7/28/2019 Lecture 11- Project Assesment and Termination
23/47
Reports to Top Management
Periodic (Monthly) reports from the PM to the topmanagement about the project status. Shouldinclude
1.A brief statement of summarising the project status;2. Red flag items where corrective actions have or should be
taken;
3.Accomplishment to date, changes to schedule and budget,and projection for schedule and costsat completion;
4. Current and potential problem areas and actions required;
5. Current cost situation and cost performance;
6. Manpowerplan and limitation.
7/28/2019 Lecture 11- Project Assesment and Termination
24/47
Summary Reports from the Top
Management When several projects are underway simultaneously, top
management uses these information received from the PMsto compile periodic (monthly) summaries, Includes
Name of the customer and the PM;
Monitory and labour investment;
Scheduled start and finish date;
Possible risks, losses and gains;
Other related information
The summary enables the top management to assess therelative performance and combined influence of all theprojects on the company.
This assists the company office in planning, coordination,
authorisation and resource allocations.
7/28/2019 Lecture 11- Project Assesment and Termination
25/47
Other Reports
Frequent reports from work packages to the PM on: Value of work completed to-date,
forecasts of the costs at completion and
revised calendar schedules for completion
Monthly reports to PM about the financial status fromwork packages costs incurred and cumulative plannedcosts versus actual costs.
Reports to functional managers (monthly) man-hours
and cost associated with the work packages. Reports to customer/user(monthly) monthly status from
the PM, includes
Recent changes as requested by the customer
Changes in costs, schedule and scope, arising from the unavoidablecircumstances
7/28/2019 Lecture 11- Project Assesment and Termination
26/47
Project Termination
Project has limited duration all projects come to an end; Project termination is a process of closure of all activities
that occurs whether a project is successful or notdrawingconclusion through some formal and informal ways
Project Termination is a term that is used commonly inconjunction with other terms such as commissioning, hand-over, and close out;
The Aim of the termination process is
to cease the project at all levels with minimumadministrative dislocation
PM ensures that all project related work has beencompleted and formally closed out by a specified date.
7/28/2019 Lecture 11- Project Assesment and Termination
27/47
Normal or natural termination
Projects can be terminated as the naturalconclusion in their lifecycle - occurs on
most projects when all the program works
are completed as planned.
Project Termination
7/28/2019 Lecture 11- Project Assesment and Termination
28/47
Unnatural terminations
Can be terminated unnaturally - for a variety of reasonssuch as:
Project Owner withdraws support
Major implications and violations of project time, cost or scopeconstraints.
Performance of the completed facility is inadequate.
The need for the project no longer exists.
The project will no longer deliver the benefits as expected.
Changed PriorityFinancial or economic reasons may dictate thatresources are no longer available to the project.
Termination could be the Result of success orfailure
Project Termination
7/28/2019 Lecture 11- Project Assesment and Termination
29/47
Projects In Trouble
The four major potential sources of risk of
unsuccessful are:
Pioneerorcutting edge technology
A new type of project for the participating organisation
and a project manager/team with non-relevant
experience
A project substantially largerand complex than theproject participants have ever experienced
The estimates of cost during the implementation phase
were done before detailed design was completed and
the scope fully determined.
7/28/2019 Lecture 11- Project Assesment and Termination
30/47
Project Termination Modes:
Termination by Extinction
Extinction by decision It has successfully completed its Scope that has been accepted by
the Client
It has Failed
It has been superseded by external developments- changes inexternal environment
It no longer has sufficient Support of Senior Management
Extinction by murder Political assassination; projecticide
Mergered redundancy- corporate mergers often make certainprojects redundant or irrelevantNCR was forced to cancel severalprojects following its merger into AT&T and several more when NCRwas unmerged recently
7/28/2019 Lecture 11- Project Assesment and Termination
31/47
Termination by Addition
Project becomes a part of organization New functionality or new division
Protected status deemed as child, first year,
carrying less than an adult share of overhead cost Transfer of assets from the extincting project to
the new born division/function People
Equipment
Addition of responsibilities Budgets
Practices and procedures
7/28/2019 Lecture 11- Project Assesment and Termination
32/47
By Integration/Transition
Most Common
Most Complex
Project Outcome(s) Become(s):Part of Acquiring Organization
Redistribution of Residual Resources
Equipment Capital Improvements
Follow-on Support
7/28/2019 Lecture 11- Project Assesment and Termination
33/47
Project Starvation
Budget Decrement
Reallocation of Resources Away from
ProjectBusiness Conditions
Political Considerations
Active w/o Activity
7/28/2019 Lecture 11- Project Assesment and Termination
34/47
When to Terminate a Project
Some questions to ask when consideringtermination: Has the project fulfilled all its obligations?
Has the project been obviated by technicaladvances?
Is the output of the project still cost-effective?
Is it time to integrate or add the project as a part ofregular operations?
Are there betteralternative uses for the funds,time and personnel devoted to the project?
Has a change in the environment altered the needfor the projects output?
7/28/2019 Lecture 11- Project Assesment and Termination
35/47
When to Terminate a Project
Other Reasons :
Project organization is not required
Insufficient support from seniormanagement
Wrong person as project manager
Poor planning
7/28/2019 Lecture 11- Project Assesment and Termination
36/47
Project Termination Areas
Closeout MtgPlans
Personnel
Organization
PayablesReceivables
Budget Report
Financial
ContractsSupplier Comm
Final Payments
Purchasing
Close FacilitiesDispose Equip/Mat'l
Site
Project Closeout
7/28/2019 Lecture 11- Project Assesment and Termination
37/47
Project Termination Activities
Ensure completion of work Close out all work authorities and contracts
The Client
Notify client of product completion Ensure delivery and installation is accomplished
Obtain formal client acceptance
Financial close out
Settle outstanding accounts receivable and payable
Termination Documentation
Post implementation audit
Final report
7/28/2019 Lecture 11- Project Assesment and Termination
38/47
Project Termination Activities
Release resources
Release/reassign personnel as their planned activityceases
Distribute other resources appropriately Project Records
Collate
Final disposition
Support
Determine ongoing support requirements
Assign responsibilities
7/28/2019 Lecture 11- Project Assesment and Termination
39/47
7/28/2019 Lecture 11- Project Assesment and Termination
40/47
Termination Responsibilities (TM)
A project is terminated through a series of formal
procedures
A. Planning, scheduling and monitoring
completion activities: Obtaining and approving termination plans from individual
functional managers;
Preparing and coordinating termination plans and schedules;
Monitoring termination activities and completion of all
contractual agreements;
Monitoring the disposition of any surplus (material/equipment)
7/28/2019 Lecture 11- Project Assesment and Termination
41/47
Closing out all work orders and approving thecompletion of all sub-contracted works
Notifying all departments
Closing the project office and all other facilities
occupied by the project organisation
Closing project book
Ensuring transfer of project files and documents
to the responsible department
B. Final close-out activities
7/28/2019 Lecture 11- Project Assesment and Termination
42/47
C. Customer acceptance, obligation,
and payment activities
Ensuring delivery of end items, side items and customeracceptance of the items
Communicating to the customer when all contractual
obligations have been fulfilled Ensuring that all documents relating to the customer
acceptance as required by contract has been completed
Expediting any customer activity needed to complete the
project
Transmitting formal payments and collecting payments
Obtaining formal customer acknowledgement of completion
of contractual obligations
7/28/2019 Lecture 11- Project Assesment and Termination
43/47
Termination Report: Some Headings
Project Summary Project description, Scope, schedule, budget, and
quality objectives
Project Performance Compare proposal to post implementation review
Comment on deviations
Administrative Performance
Organisational Structure
How did structure impede and/or speed
7/28/2019 Lecture 11- Project Assesment and Termination
44/47
Project and Administrative Teams
Confidential comments on performance of
individuals and teams in the projectenvironment
Techniques of Project Management
Planning, estimating, budgeting, scheduling,resource allocation and control
Termination Report: Some Headings
7/28/2019 Lecture 11- Project Assesment and Termination
45/47
Earned
ValueAnalysis
(EVA)
Actual cost of workperformed (ACWP)
Budgeted cost of workperformed (BCWP)
Budgeted cost of workscheduled (BCWS)
13
Graphical Method of Assessment
7/28/2019 Lecture 11- Project Assesment and Termination
46/47
back
7/28/2019 Lecture 11- Project Assesment and Termination
47/47