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Project Closing & Auditing

Closing Processes
To approve and accept the project
deliverables,
close the contracts and accounts,
report the work and save the
information.
To review and discuss the final
work,
document lessons learned and
release the Project Team.

End of the Project.

Closing Process Group


Planning

Executing

Controlling

Close Project finalizing all activities across all of the project management
process groups to formally close the project or a project phase.
Contract Closure completing and settling each contract, including the resolution
of any open items, and closing each contract applicable to the project or a
project phase.

Project Closure

Conditions for Closure

Normal

Premature

Perpetual

Failed Project

Changed Priority

Close-out Plan: Questions


to be Asked

What tasks are required


to close the project?

Who will be responsible


for these tasks?

When will closure begin


and end?

How will the project be


delivered?

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Project Name:
Prepared by:
Date:
Customer has accepted all project results:
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Project Closure
Checklist

Accepted by:

2
3
4
5
6
Customer has accepted all other deliverables:
1
2
3
4
5
6
Customer has accepted from delivering organization
all other project requirements:
1 Staff evaluations
2 Budget reports

Accepted by:

Accepted by:

3 Lessons learned
4 Other
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Explain any exceptions to the above:

Documentation for the above has been filed/archived as follows:

Comments or remaining issues:

Checklist submitted by:


Name/Title:

Signature:

Date:

Name/Title:

Signature:

Date:

Ending a Contract or Project


Ending a contract:

Successful completion goods and services have been delivered in accordance with the
contract specifications.
Collective agreement mutual consent termination of the contract.
Breach of contract one of the parties is not complying with the terms and specifications
of the contract.

Work to be done during contract closure:

Product verification
Financial closure
Updating records in the records management system
Final contract performance reporting
Contract file
Procurement audit
Formal acceptance and closure

Ending a project: Contract closure occurs first. All contracts should be closed out before
the project is closed out. At the end of the contract, the project manager performs a
procurement audit for each contract, administratively closes out the contract, and then
administratively closes out the project when the whole project is completed.

Contract Closure

Project Termination Areas

Project Closeout

Organization

Financial

Purchasing

Site

Closeout Mtg
Plans
Personnel

Payables
Receivables
Budget Report

Contracts
Supplier Comm
Final Payments

Close Facilities
Dispose Equip/Mat'l

Lessons Learned

Keep a knowledge base for future projects:


What were the successes and failures of the project?
What could be improved?
How to save the information for future estimates?

Celebrate the closure of the project!

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Documenting Lessons Learned


Conduct a review meeting to address four critical questions:
What

was done right?

What

went wrong?

What

improvements can be made in the future?

How,

whom, and when to disseminate the knowledge?

Archive the lessons learned in the knowledge database.

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Purposes of Evaluation - Goals of Project Audit

Four independent dimensions of success:

The projects efficiency in meeting both the budget and schedule

The most complex, is that of customer impact/satisfaction

Impact on business/direct success i.e. translate the achievement of the


projects goals into a contribution to the parent organizations goals

The last dimension, somewhat more difficult and imprecise to ascertain, is


future potential

Chapter 12-2

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Types of Project Audits

In-process

project audits

Allow for corrective changes if conditions have changed


and for concentration on project progress and
performance.

Postproject

audits

Take a broader and longer-term view of the projects role


in the organization and emphasize improving the
management of future projects.

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Project Audit Components

A review of why the project was selected.

A reassessment of the projects role in the organizations


priorities.

A check on the organizational culture to ensure it facilitates


the type of project being implemented.

An assessment of how well the project team is functioning


and was it appropriately staffed.

A check on external factors that might change where the


project is heading or its importance.

A review of all factors relevant to the project and to


managing future projects.

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Project Audit-during the project


Evaluate if the project delivered the expected benefits to
all stakeholders.

1.

Is the project managed well?


Is the customer satisfied?

2.

Assess what is being done wrong and what contributed to


successes.

3.

Identify changes to improve the delivery of future


tasks/projects.

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Evaluation Benefits of Project Audit

A successful project evaluation via audit can help an


organization to:

Identify problems earlier

Clarify performance, cost, and time relationships

Improve project performance

Locate opportunities for future technological advances

Evaluate the quality of project management

Reduce costs

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Characteristic of Project Auditor/Evaluator

No direct involvement or direct interest in the project.

First and foremost, the auditor should tell the truth

Respect (perceived as impartial and fair) of senior management and other


project stakeholders

The auditor must approach the audit in an objective and ethical manner

Must assume responsibility for what is included and excluded from


consideration in the report

The auditor/evaluator must maintain political and technical


independence during the audit and treat all materials as confidential

Perceived as having the best interests of the organization in making


decisions.

Broad-based experience in the organization or industry

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Project Auditor/Evaluator Responsibilities

Assemble a small team of experienced experts

Familiarize the team with the requirements of the project

Audit the project on site

After the completion, debrief the projects management

Produce a written report according to a specified format

Distribute the report to the project manager and project team


for their response

Follow up to see if the recommendations have been


implemented
Chapter 12-17

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The Project Audit Life Cycle


Like the project itself, the audit has a life cycle composed of an orderly
progression of well-defined events:

Project audit initiation

Project baseline definition

Establishing an audit database

Preliminary analysis of the project

Audit report preparation

Project audit termination

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Data Collection and Analysis


Organization View:

Was the organizational culture supportive and correct?

Was senior managements support adequate?

Did the project accomplish its intended purpose?

Were risks appropriately identified and assessed?

Were the right people and talents assigned?

Have staff been fairly reassigned to new projects?

What does evaluation from contractors suggest?

Were the project start-up and hand-off successful?

Is the customer satisfied?

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Data Collection and Analysis


Project Team View:

Were the project planning and control systems appropriate for this type
of project?

Should all similar projects use these systems?

Did the project conform to plan for budget and schedule?

Were interfaces with stakeholders effective?

Have staff been fairly assigned to new projects?

Did the team have adequate resources? Were there resource conflicts?

Was the team managed well?

What does evaluation from contractors suggest?

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Activities in Closeout Stage

Plan,

schedule and monitor completion activities

Obtain and approve termination plans

Prepare and co-ordinate termination plans

Plan for reassignment of project team members and


assign resources to other projects

Monitor termination activities and complete all


contractual agreements

Monitor disposition of all excess material, transfer


customer assets etc

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Factors Influencing Audit Depth and Detail


Organization size
Project importance
Project type
Project risk
Project size
Project problems

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Project Performance Evaluation:


Team

Are standards and goals for measuring performance clear, challenging,


and attainable? Lead to positive consequences?

Are responsibilities and performance standards known by all team


members?

Are team rewards adequate? Management believes teams are important?

Is there a career path for successful project managers?

Does the team have discretionary authority to manage short-term


difficulties?

Is there a high level of trust within the organization culture?

Are there criteria beyond time, cost, and specifications?

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Sample Team Evaluation


and Feedback Survey

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Project Performance Evaluation:


Individual
Responsibility for assessing performance:

Functional and weak matrix organization: The functional


manager may solicit the project managers opinion of the
individuals performance on a specific project.

Balanced matrix organization: The project manager and the


area manager jointly evaluate an individuals performance.

Strong matrix and projectized organizations: The project


manager is responsible for appraising individual performance.

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Project Performance Evaluation:


Individual
Multirater appraisal or the 360-degree feedback:

Involves soliciting feedback concerning team members


performance from all the people their work affects.

This includes project managers, area managers, peers,


subordinates, and even customers.

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Conducting Performance Reviews

Begin by asking the individual to evaluate his or her own performance.

Avoid drawing comparisons with other team members; rather, assess


the individual in terms of established standards and expectations.

Focus criticism on specific behaviors rather than on the individual


personally.

Be consistent and fair in your treatment of all team members.

Treat the review as one point in an ongoing process.

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Implementing Closedown
1.

Getting delivery acceptance from the customer

2.

Shutting down resources and releasing to new


uses

3.

Reassigning project team members

4.

Closing accounts and seeing all bills are paid

5.

Evaluating the project team, project team


members, and the project manager

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How to Terminate a Project


Extinction:

Stop the project immediately

Integration:

Project results are integrated into the


existing organizational units

Addition:

Project is institutionalized as a new part of


the organization (new product line or new division)

Starvation:

Gradually reduce resources so that


project dies slowly but surely (it fades out of sight)

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Project Final Report


History
It

of the project: Usually written by PM

should address:

project performance

administrative performance

organizational structure

confidential assessment of team members

project management techniques

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Project Overview
Background

Objectives / Highlights

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Results Analysis

Planned / Expected Results

Differences / Deltas from Planned / Expected Results

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Schedule Analysis

Milestone

Baseline

Actual

Deviation

% deviation

Comment

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Effort Estimate Analysis

Task

Est.
Hours

Act.
Hours

Diff Hours

Diff %

Explanation of Variance

Project Total

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Problem / Issue Analysis

Problem / Issue

When Occurred

Root Cause

Resolution

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Open Issues

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Lessons Learned

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Suggested Improvements

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Final Thoughts

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(Post) Project Audit

Executive Summary

Introduction

Project Review

Project Objectives

Method or approach

Effectiveness of Planning

Effectiveness of project management

Effectiveness of technical solution

Project deliverables

Description

Assessment against requirements

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Project Audit

Quality

Standards used

Measurement

Assessment against requirements

Schedule

Delays
Reasons
Recovery

Method followed

Assessment against plan

Finances

Problems
Reasons
Recovery

Method followed

Assessment against Plan

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Project Audit

Resource Utilisation

Effectiveness

Problems
Reasons
Recovery

Method followed

Lessons Learned

Individual Team-Member Assessment and recommendations


(confidential reports)

Recommendations

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Checklist

Close-out Plan

Verify Scope

Contractual obligations

Administrative obligations

WBS (tasks and deliverables)

Customer acceptance of deliverables

Document and archive files

Document lessons Learned

Reassign Resources

Notify all stake holders for project completion

Celebrate

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Reporting
Audit Report Content Outline

Classification of project

Project type

Size

Staffing

Technology level

Strategic or support

Project mission and objectives

Procedures and systems used

Organization resources used

Reminders

Appendix

Corrective actions

Lessons learned

Analysis of information gathered

Recommendations

Backup data

Summary booklet

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Last word
When

one hears of a disastrous slip in project,

imagines that a series of major calamities must


have befallen it. Usually, however, the disaster is
due to termites, not tornadoesthe schedule
slips one day at a time

Frederick P Brooks The Mythical Man-Month Essays


on Software Engineering

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