Questions for

Discussion – Project
Termination
F RIDAY, APRIL 17, 2020

MUHAMMAD SIHWAN ABDULLAH

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 Case: The Dilemma of a Project
Manager
Do you think the project could be considered as a “looser” because of its over-budget and late (behind schedule)?

The project could be considered as a “looser” because as we can see in the case that the project is delayed over the schedule due to a lot of problems such as

miscommunication, unclear scope of work, and conflict of interest. The project also spent 85% of contract money that would not generate any profit if the project

can be successful, it means that the project has spent money over its budget. The technical performance of this project is biased because there is unclear scope of

work that can measure project’s performance. Based on the course material the project can be classified into failure project.

If you want to terminate the project, what are your reasons for doing so? Or, if you want to continue the project, what would be your recommendations for

Mr. Zhang Yan (Project Manager)?

The reasons this project should be terminate are the project is unclear about its scope of work so it is hardly to measure the expectation of project performance,

the ongoing project has over its schedule and the cost has over its budget.

My recommendation to Mr. Zhang Yan, he should list all the work that he and his team has been done, review the work and classified it into the work that has

met the requirement and not fulfill the requirement. After that he should discuss it with the stakeholder about project’s obstacle. Then, he should have a meeting

with Kaye as his client discussing about continuing the project and make a clear and detail scope of works.
 News info: “Proyek Mangkrak PLN”
From the course material “Project Termination”, how are you going to respond to the widely reported news about “Proyek
Mangkrak PLN”?

BPKP as Indonesia Auditor has found that there are 34 electricity power plant project by PLN is stalled. My responds to this
news is that the BPKP as auditor has done his job well as auditor. The continuity of the project is reviewed by its stakeholder
and resulting that there are 12 power plant that would be continue to be built with additional investment which means that
these power plant is still economically or technically feasible to be continue, there are 10 power plant that is still being
reviewed whether to continue or not, and there are 12 power plant that would be terminate due to technically and
economically not feasible.

The terminate power plant is align with the material from course that this plant is classified as failure project because it is not
met the schedule, budget and technically performance.
 Case: The Concorde Project

What was the strategic context of the project for French and Great Britain at that
time?
Strategic context of this project is to create or build a supersonic airliner. The both of parties (Britain and French) must
equally contribute doing this project, there are no financial limit and nor performance requirements on this
project.

Who were the stakeholders and how did they evaluate the success or failure of
the project?
The stakeholders of this project: Great Britain and French Government, STAC, Royal Aircraft, The British Aircraft
Corporation and Sud Aviation, Bristol Siddeley and SNECMA.

The success or failure of the project is determined whether they can build a supersonic aircraft that can transport
passenger safely at supersonic speed or not.
 Case: The Concorde Project
Why was the project terminated?

The project was terminated because the project is not economically feasible to be continued. The project has unmet its

scheduled that we can see from the case that certificate from the aviation federation is delayed for 3 years. The advent of

wide bodied aircraft and the ticket tariffs that is expensive for concorde led the project become terminated. External

factor such as expensive oil price is another factor that terminate concorde.

The project is not see another factor such as ticket price and oil price as main factor for the successful of this project.
Please highlight the most basic rules of project management that did not exist in that project.

- There is no financial cost limited

- There is no management structure of this project except committee hierarchy
- There is no detail on project owner and key person of this project