Ch08 Summary Mantel

 

8/ Evaluating and Te Terminating rminating the Project

Chapter 8 Evaluating and Terminating the Project

This chapter discusses the issue of appraising the progress of a project and its  performance and describes the various ways that projects can be terminated. Project evaluation criteria are listed and discussed. Also, the formal process of audit auditing ing a project is overviewed including the information that should be contained in the audit report. uidelines for when to consider terminating a project, the types of project termination, and the termination process itself itself are also discussed. discussed. The chapter concludes with a discussion of the project final report.  

Cases and Readings !ome cases appropriate to the subject of this chapter are" Harvard: 9-696-08 !iogen" #nc$: r!eta #nter%eron &anu%acturing Process 'evelopment This #8$page case concerns a biotech firm that is wrapping up a new manufacturing process project for a newly developed deve loped drug. %ne of the senior scientists is charged with performing an evaluation of the project to document the lessons learned and  provide guidance for future projects. Harvard: 9-69(-069 &otorola" #nc$: !andit Pager Project This #&$page case places the student in the role of conducting an evaluation of an automated production process for  radio pagers. Although considered a major major success by the company, company, there appear to be some difficulties in mar'eting mar'eting and production that need more attention. A #( page teaching note ))-69(-069* is available. Harvard: 9-+,)-+8 .ortheast Research /aorator1 2!* This e*cellent #&$page retrospective case describes a client+s une*pected cancellation of what was thought to be a successfully on$going project. nvolves issues of control, auditing, auditing, evaluation, termination, behavior, leadership, and organi-ation.

!ome readings appropriate to the subject of this chapter are" 3$R$ 4ulliver$  4ulliver$  Post-Project 5ppraisals Pa1 ) Harvard  Harvard Business Business Review, arch$April #(8&. This article points out the gross fallacy fallacy of ignoring the outcome of project projectss that had thousands of hours of planning planning invested in them. 0ithout 0ithout postproject appraisals, the the organi-ation learns nothing from the e*ecution of the project, either in terms of how to do

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8/ Evaluating and Te Terminating rminating the Project

a better job in selecting and supporting projects in the future or in terms of what was learned from the project itself. itself. This article gives advice on how to organi-e and conduct  postproject appraisals. n addition, it describes four major lessons the involved company learned from their appraisals. !$&$ ta7 et al$ no7ing hen to Pull the Plug ) Harvard  Harvard Business Review Review, arch$ April #(8&. This article has already become a classic on the psychological psychological basis for

continuing a project invariably headed for disaster. disaster. The authors clearly point out the dangers of certain personality types in project managers matching the needs profile of certain organi-ations. n these all$too$fre2uent situations, situations, projects are conti continued nued way past the point where common sense would have called for their termination.

5ns7ers to Revie7 uestions #. The termination project is similar to any other project e*cept that there is only one  person conducting the termination itself and there is no 3project selection3 phase. Also, it is a process of distribution of resources and personnel rather than ac2uisition of them and the tas's to be conducted are relatively standard or else specified in advance. t is best conducted by someone without an emotional investment in the  project. And finally, finally, it it is a completely administrative project with a si single ngle purpose. 4. There are often political, psychological, and other reasons why projects are continued when they should be terminated. At times, times, projects that fail to meet their objectives are continued because they are accomplishing other things of value to the organi-ation. 5. Any aspect of termination may cause an otherwise successful project to become a failure, such as an inability to complete the wor', not delivering the result, providing  poor product support, etc. 6. nside auditors would probably be more efficient and lless ess e*pensive. 7owever, they would not be as objective and they may not be familiar with how other firms or organi-ations operate and could not ma'e accurate comparisons. or e*ample, internal auditors may positively evaluate a situation that appears favorable when outside auditors would report that the situation is not up to mar'et standards based on industry e*perience. 9. As discussed in the previous answer, internal and e*ternal auditors each have their advantages and disadvantages. !tudents that initially initially answered e*ternal e*ternal auditors  based on perhaps higher objectivity might note that in situations when cost or time is critical, internal auditors might be preferred. :i'ewise, students that favored internal auditors might recogni-e the need for e*ternal auditors when objectivity or e*pertise is the 'ey concern. ;. re2uent, brief evaluations have a better chance of finding problems as they are developing and can thus be solved easier and 2uic'ly. 2uic'ly. The fre2uent, low level

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8/Evaluating and Terminating the Project

evaluations are also less disruptive to the project team. ?o$opt@ means >to appropriate as one+s own.@ own.@ This is a common tactic for parties  being audited. Passive resistance is advised. The audit team should listen interestedly to all complaints, advice, etc., and proceed as if the co$opting had not occurred. oncommittal is the best attitude attitude for the auditors. #8. Introduction: This is the 'ey to all that follows. t is important to ma'e sure that all  parties are in agreement with the statement of project direct goals and objectives. Current status:  t is also important important that all parties parties agree about the current stat status us of the project. All direct direct costs and the actual state state of wor' on the project should be detailed in this section. This serves as the basis many of the report+ report+ss recommendations.  Future project project status:  cowboys.@