Group 9 Project

Termination
Sayantan Bandyopadhyay (MBA20062)
Priyabrata Tarai (MBA20361)
Arka Pratim Mandal (MBA20376)
Arnab Bijoy Mandal (MBA20351)
Dimpy Naik (MBA20299)
Contents

Project Reasons why

termination project is cases
Types terminated
Project Termination

1. 2.
Termination by Extinction Termination by Addition

3. 4.
Termination by
Termination by Starvation
Integration
 Termination by Extinction
Extinction occurs when a project is
• Successful: When the project is successfully completed. The software has been installed and is running at the client's facility,
or a new product has been built and handed over to the client.
• Unsuccessful: Due to failure of the exact deliverables. The new medicine failed its efficacy tests; better/faster/cheaper/prettier
alternatives exist; or it will be too expensive and take too long to achieve the targeted results.
• Changes in Environment: explosion of the Challenger stopped a number of space shuttle projects overnight
• Takes too long in time.
• Murder: This is when a project is terminated abruptly and without warning, usually for reasons unrelated to the project's goal.

When a project is terminated, all activity of the project ceases but organisational activity like orderly release of project team
members & their reassignment to other activities, the property, equipments & materials belonging to the project needs to be
disbursed according to project contract and finally project final report known as project history needs to be prepared.
 Termination by Addition
The project comes to an end, but the work or in many cases, the people involved are transferred into a new division
of the company.
• This is for a project that is being done in-house.
• When a project is a big success, the parent organisation decide to end it by making it an official part of the parent
organisation.
For example, NCR Corporation (prior to its merger and demerger with AT&T) adopted this strategy of turning a
project into a division of the company, and subsequently into an independent subsidiary if genuine economic
stability seemed to be ensured.
• While the project is terminated, the project's personnel, property and equipments are transferred to the new
business.This is a challenging transition for the Project Manager, who must ensure that the shift is made smoothly.
 Termination by Integration
The project comes to an end, but its work is incorporated into the organization's ongoing operations or products. The
most popular method for ending a project.

• This is the most typical strategy for terminating successful projects. The project's property, equipment, materials,
staff, and functions are transferred among the parent organization's existing elements.

• The project is brought inside the company and integrated into the current structure

• The individuals who nurtured the project may have returned to their respective organizational divisions, and may
have new responsibilities. They have the tendency to lose their interest on the old project

• Important Aspects of the transition from project to integrated operation to be considered are personnel,
manufacturing, accounts/finance, engineering, purchasing, risk identification & management.
 Termination by Starvation
Because resources are depleted, the project comes to a halt. Because a project has fallen out of favour,
resources are often slashed progressively, but the initiative is rarely blatantly "murdered" for political reasons.

• Budget cuts, or decrements, are not rare. Because they are common, they are sometimes used to mask a
project termination

• Termination by starvation involves greatly reducing the budget of a project

For an example, it is politically dangerous to admit that one has championed a failure, and terminating a
project that has not accomplished its goals is an admission of failure. In such a case, the project budget might
receive a deep cut or a series of small cuts that is large enough to prevent further progress on the project and to
force the reassignment of many project team members

• These strategies used when it is politically dangerous to cancel a project

 Critical Success Factors
• Project Mission: Goals and directions are clearly specified at the start.

• Top-Management Support: Top management's willingness to offer the resources and authority/power required for project success.

• Project Schedule: Detailed specification of the individual action steps for project implementation

• Client Consolation: Communication, consultation, and active listening to all impacted parties

• Personnel: Recruitment, selection, and training of the necessary personnel for the project team

• Technical Tasks: Requisite technology and knowledge to complete the precise technical action steps are available.

• Client Acceptance: act of "selling" the final project to its ultimate intended users

• Monitoring & Feedback: At each level of the implementation process, timely provision of complete control information is
required.

• Communication: All important stakeholders in the project's implementation will have access to a suitable network and the
necessary data.

• Troubleshooting: Ability to handle unexpected crises and deviations from plan

Critical Factors leading to termination
Technical
Technical Objectives cannot be achieved or commercialised
Current R&D skills are not sufficient
Other Projects needs skills or R&D
Economic
Low Return on Investment
Too costly product development
Market
Drop in market potential
 Non-Technical Reasons for Termination of
Primary Reasons for failure of Project
Projects

● Project Organization Is Not Required ● Political terminations

● Insufficient Support from Senior ● Cross-cultural terminations

Management ● Senescence terminations

● Naming the Wrong Person as Project
Manager
● Poor Planning
 The Decision Process

Project is compared to a set of benchmarks or factors

which are associated with a successful project.
This is a Yes/No analysis

Decision-aiding Models for the Project is judged based on how much of the project goals
Termination Decision have been met.

Project which cannot be completed. This are project which

have fallen far behind. Cost to complete cannot be
justified.
 The Decision Process
A project manager should try to ensure that the effort given in a project is justified and in line with the organization
Value = Benefits/ (Cost + Schedule)

Termination criteria is different from selection criteria. Factors change as the project progresses.

Termination criteria should be based on current policy and requirements of the organisation
Selection criteria was based on the policies of an earlier time

After sunk costs, criteria should be is the organisation willing to invest the estimated time and cost to complete
the project given its current status and expected outcomes.

Decision support system based on a constrained weighted factor scoring model can be used.
 The Implementation of the Termination Process

• Termination can be planned and orderly, or a simple hatchet job or not done at
all
• Planned, budgeted and scheduled termination always yields better results
• In complex projects “Termination Managers” are responsible for closing the
projects
• Administration or bureaucracy
• Manager from the live environment
• Staff from the project team in case technical knowledge is needed
 Primary Duties of the Termination Manager
1. Ensuring the completion of the work, including all the duties undertaken by subcontractors
2. Notifying the client that the project has been completed and that delivery (and installation) has been completed. The
client must acknowledge the project's acceptance
3. Ensuring that all paperwork is in order, including a final appraisal of project deliverables and the preparation of the
project's final report
4. Clear for final billings and oversee preparation of the client's final invoices
5. Redistribute personnel, materials, equipment, and any other resources should be redistributed to the proper locations
6. Clear project with legal counsel or consultant. File for patents, If necessary. Record and archive all the “nondisclosure”
documents
7. Choosing that what records (manuals, reports, and other paperwork) to keep. Ensuring that such
documents are stored in the proper places and that responsibility for document retention is turned
over to the archivist of the parent organization
8. Determine any product support requirements (for example, spare or service), identify how such support will be
delivered, and allocate responsibility
9. Ensuring that the project's books are closed
 Project termination practices in Indian industry

Project Termination is the last phase of the project life cycle

Problems of project termination can be categorized into emotional and
and it needs to be planned, budgeted & scheduled.
intellectual problems.
It is often overlooked by project managers and requires
special termination managers to complete the termination
process

If the project is not terminated successfully then it gave rise

to other series of effects namely

•Time Overrun

•Cost Overrun
•Tarnishes the image & credibility of project team
•Locks valuable human & other resources which could have
been gainfully utilized elsewhere
•Develops enormous stress on project personnel
Difficult aspect is identification of beginning of the
termination phase of a project. Project managers use their
perception & judgement to identify the starting of
termination phase.
Staff Related Problems: Fear of no future work, loss of interest in remaining
tasks, loss of motivation & loss of team identity.
Client Related Problems: Change in client’s attitude to project, loss of
interest in project, change in personnel & non availability of key personnel.
Internal Problems: certification needs, outstanding commitments, screening
of partially completed tasks, closure of work orders, disposal of unused
materials.
External Problems: agreement with clients on deliverables, obtaining
required certificates, agreement with suppliers on outstanding payments &
communicating closure of projects.
Project Success Factors: Insights from analyzing Project Success Factors:
● Consulting & Informing clients over ● Identification of missing processes
the various phases of project life cycle ● Reinforcement of existing but appropriate processes
● Communication mechanisms to be
● Helps in increasing efficiency and performance in
given more importance to avoid
project termination
misunderstandings & uncertainties
during the termination phase
● Contingency plans are necessary to Problems in project termination phase for both public &
handle unexpected crisis and
private Indian corporations are:
deviations in project
● Negotiating claims with clients
● Project audit would necessarily be
● Compliance of statutory requirements
required at various stages of project
● Receipt of the final installment of payment
life cycle & not merely at the end
● Performance guarantee tests
when the project is already completed.
● Handling claims of suppliers
Pulling the plug!
A creative movie project by Terry Gilliam who previously directed successful movies like Time Bandit, 12
Monkeys and The Fisher King

The man who killed Don Quixote however failed twice!

Problems
Air Force planes in the sky created “Technical operation” difficulty
Thunderstorm and rain changed the landscape to green from barren
Lead Actor had to leave due to medical reason

Conclusion termination of project

Termination by extinction (changes in external environment)
Delays due to external factors
Murder due to financial backers withdrawing their support and filing Insurance claims
Thank You