CHAPTER 13: Project Termination

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CHAPTER 13 Project Termination

• TMAN 640 Project Management
• Dr. Robert Beauchamp

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 LEARNING OBJECTIVES FOR CLASS 14

• To understand the different ways a project may be
  terminated and what needs to be accomplished.
• To understand the contents of the final report.
• To understand the reasons for resistance toward
  project termination.

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PROJECT TERMINATION

• TYPES OF TERMINATION
• EXTINCTION
• FINAL PRODUCT DELIVERED TO CLIENT ACCEPTED.
• PROJECT FAILED
• TERMINATION BY ADDITION
• PROJECT BECOMES A DIVISION OR A SUBSIDIARY OF THE
  FIRM.
• TERMINATION BY INTEGRATION
• INTEGRATING A SYSTEM INTO AN ORGANIZATION.
• TERMINATION BY STARVATION
• CUTTING THE BUDGET.

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TERMINATION PROCESS

• THE DECISION - GIVEN THE CURRENT STATUS
  EXPECTED OUTCOMES, IS THE ORGANIZATION WILLING TO
  INVEST TIME COST TO COMPLETE THE PROJECT?
• TERMINATION SHOULD BE PLANNED, BUDGETED
  SCHEDULED -- NOT A HATCHET JOB
• FOLLOW A CHECK LIST
• NEED A TERMINATOR

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TASKS TO BE ADDRESSED

• COMPLETE THE WORK
• NOTIFY CLIENT, DELIVER PRODUCT, OBTAIN
  ACCEPTANCE.
• COMPLETE DOCUMENTATION
• REDISTRIBUTE PROPERTY, EQUIPMENT, PERSONNEL
  RESOURCES
• NOTIFY TEAMS OF PLANS

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FINAL REPORT (HISTORY OF PROJECT)

• PROJECT PERFORMANCE
• ADMIN. PERFORMANCE
• PROJECT TEAM (APPRAISAL)
• TECHNIQUES USED (PLANNING , SCHEDULING, ETC.)
• RECOMMENDATION FOR CHANGES

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RESISTANCE TO CANCELING PROJECTS

• PROBLEMS MAY BE TEMPORARY
• CLOSING COSTS ARE HIGH
• HOPE IT WILL SUCCEED
• HIGH INVESTMENTS
• PROJECT FAILURE IS A PERSONAL FAILURE
• APPEARANCE OF INCOMPETENCE
• MAY VIOLATE LAYOFF POLICIES
• POLITICS