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Module 8

The document discusses project termination, which refers to actions taken to end a project prior to or upon completion. A project may terminate due to successful completion, lack of funds, or significant changes in requirements. Termination types include natural termination upon achieving objectives and unnatural termination when objectives become irrelevant. Reasons for termination include technical issues, changed requirements, lack of resources or support, and increased costs. The termination process should involve a committee, be planned in advance, and appoint a termination manager to oversee closeout activities.

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Aagam Sakaria
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67 views9 pages

Module 8

The document discusses project termination, which refers to actions taken to end a project prior to or upon completion. A project may terminate due to successful completion, lack of funds, or significant changes in requirements. Termination types include natural termination upon achieving objectives and unnatural termination when objectives become irrelevant. Reasons for termination include technical issues, changed requirements, lack of resources or support, and increased costs. The termination process should involve a committee, be planned in advance, and appoint a termination manager to oversee closeout activities.

Uploaded by

Aagam Sakaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Project Termination

• Project termination refers to the actions undertaken to


terminate a project. Project termination may occur
because the project is completed or because the project
must be terminated prior to completion due to a lack of
funds, significant changes in requirements, and so on.

When do projects terminate?


• Upon successful completion, or
• When the organization is no longer willing to invest the time and
cost required to complete the project, given its current status and
expected outcome.
• Project success means that the project has met its cost, schedule, and
technical performance objectives and has been integrated into the
customer's organization to contribute to the customer's mission.

• Project failure means that the project has failed to meet its cost, schedule,
and technical performance objectives, or it does not fit in the
organization's future.
Why terminate?

• Technical reasons
• Requirements or specifications of the project result are not clear or unrealistic
• Requirements or specifications change fundamentally so that the underlying
contract cannot be changed accordingly
• Lack of project planning, especially risk management
• The intended result or product of the project becomes obsolete, is not any longer
needed
• Adequate human resources, tools, or material are not available
• The project cost increases profit becomes significantly lower than expected
• The parent organization does not longer exist
• The parent organization changes its strategy, and the project does not support the
new strategy
• Natural calamities(e.g. earthquake, flooding, etc.)
• Necessary conditions disappear
• Lack of management support
• Lack of customer support
Types of project
• “Natural termination” and “Unnatural termination”.

• “Natural termination” means that the aims of the project objective


have been attained.

• “Unnatural termination” means that work on the project has


stopped because of the project constraints have been violated or
the project objective has become irrelevant to the overall goals.
Types of project termination

1. Project Extinction
- Project activity suddenly stops or has successfully completed or has a
high expectation for failure

2. Termination by addition
– The project becomes a formal part of the parent organization

3. Termination by integration
– Project assets are distributed to and absorbed by the parent

4. Termination by starvation
– Withdrawal of “life support”
Termination process

• Decision should be made by a broad based committee of senior managers

• Termination process should be specified in project plan

• A termination manager should be appointed


Termination Strategies
• Maintain an ongoin surveillance of the closeout activities
• Notify relevant stakeholders of the termination
• Ensure that all financial matters on the project have been satisfactorily
terminated
• Assist members of the project team to find other work in the organization
• Prepare the project history, particularly a ”lesson learned” report
• Conduct a postcompletion audit of the project to identify strengths and
weaknesses in the management
Evaluation of termination possibilities
• Review the project and its strategic context on a regular basis
• Recognize the psychological and social forces that motivate one to ”stay on
course”
• Recognize that there is a prevailing belief and cultural force that
encourage the commitment of more resources to solve current difficulties
and ensure success
• Consider replacement of the project manager
• Listen carefully to the concerns of others about the project
• etc..

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