PROJECT MANAGEMENT & ECONOMICS

SESSION 41 Project Termination

5. DIVESTMENT PHASE
Transfer of resources to other systems Development of lessons learned from system for inclusion in qualitativequantitative database.

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Project Termination
All projects have an end point Closing out is a very important phase in the project life cycle It should follow particular disciplines and procedures in order to:
Effectively bring the project to closure Prepare for the transition into the next operational phase, such as from production to field installation, field operation, or training
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

STOPPING PROJECTS
Reasons for stopping: Final achievement of objectives Poor initial planning and market prognosis . A better alternative is found A change in the company interest and strategy Allocated time is exceeded Budgeted costs are exceeded Key people leave the organisation Personal whims of management Problem too complex for the resources available
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

WAYS OF STOPPING PROJECTS

EXTINCTION INCLUSION INTEGRATION

Project becomes a formal part of organisation Project ceases to exist Project personnel, property, & equipment are transferred Budgets & formal procedures Consequences Action: demand to contribute for profits arrangements for release complete transformation of project team to a functional unit property, equipment, less flexibility and materials distribution freedom project final report must increased political DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA infighting be prepared Project successful & achieved its goals Unsuccessful termination by murder suddenness of project demise lack of obvious signals for termination all activities cease

Output becomes a standard part of operating system Property, equipment, material personnel & functions are distributed

Consequences: integrated project personnel will be looked at as intruders project will not be looked at as special anymore

Planning for project termination includes:

Transferring responsibility Completion of project records Historic reports Post project analysis Documenting results to reflect as built" product or installation Acceptance by sponsor/user Satisfying contractual requirements Releasing resources Reassignment of project office team members Disposition of functional personnel Disposition of materials Closing out work orders (financial closeout) Preparing for financial payments

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

THE FINAL REPORT: PROJECT HISTORY

Memory of project management systems Chronicle of the life of the project Summary of what went right & what went wrong Of who served the project & in what capacity Project performance Administrative performance Organisational structure Project & administrative teams Techniques of project management

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA