MODULE – 4

DEVELOPING A PROJECT PLAN

NETWORK IS A TECHNIQUE USED FOR PLANNING AND SCHEDULING OF LARGE PROJECTS IN THE FIELDS OF
CONSTRUCTION, MAINTENANCE, FABRICATION, PURCHASING, COMPUTER SYSTEM INSTANTIATION, RESEARCH AND
DEVELOPMENT PLANNING ETC.

IT IS A GRAPHICAL REPRESENTATION OF LOGICAL AND SEQUENTIALLY CONNECTED ACTIVITIES AND EVENTS OF A

PROJECT. NETWORK IS ALSO CALLED ARROW DIAGRAM. PERT (PROGRAMME EVOLUTION REVIEW TECHNIQUE) AND
(CRITICAL PATH METHOD) ARE THE TWO MOST WIDELY APPLIED TECHNIQUES.

A PROJECT NETWORK, ALSO CALLED PROJECT ACTIVITY NETWORK, IS A GRAPHICAL DESCRIPTION OF THE SEQUENCE
IN WHICH THE TERMINAL EVENTS OR MILESTONES OF A PROJECT MUST BE COMPLETED. THE PROJECT NETWORK IS
SIMILAR TO A FLOW CHART. THE TERMINAL EVENTS OF THE NETWORK REPRESENT ACTIVITIES AND DELIVERABLES
DERIVED FROM THE WORK BREAK DOWN STRUCTURE AND ARE ARRANGED SEQUENTIALLY LIKE IN A FLOWCHART
VISUAL AIDS LIKE PROJECT NETWORKS HAVE BEEN WIDELY USED IN PROJECT
MANAGEMENT TO HELP PROJECT MANAGERS AND TEAM MEMBERS STAY CLUED IN
ON THE PROGRESS OF PROJECTS AND SHARE IT WITH ALL THOSE INVOLVED IN THE
PROJECT.
PERT(PROGRAM EVALUATION AND REVIEW TECHNIQUE) IS A METHOD TO
ANALYZE THE INVOLVED TASKS IN COMPLETING A GIVEN PROJECT,
ESPECIALLY THE TIME NEEDED TO COMPLETE EACH TASK, AND
IDENTIFYING THE MINIMUM TIME NEEDED TO COMPLETE THE TOTAL
PROJECT

THE CPM IS A TECHNIQUE FOR ANALYZING, PLANNING AND SCHEDULING LARGE

COMPLEX PROJECTS. THE TECHNIQUE AIMS AT COMPLETING THE PROJECT IN TIME
AND WITHIN THE BUDGET. THE TECHNIQUE CAN BE APPLIED ONLY IF THE PROJECT
CAN BE DIVIDED INTO A NUMBER OF WELL DEFINED ACTIVITIES.
 NETWORK DIAGRAM

NETWORK DIAGRAM – IT IS A GRAPHICAL FLOW PLAN OF THE ACTIVITIES THAT MUST BE ACCOMPLISHED FOR
COMPLETING THE PROJECT. IT ARRANGES THE ACTIVITIES IN LOGICAL SEQUENCE, FOLLOWING THE PRECEDENCE –
SUCCEDENCE RELATIONSHIPS BETWEEN ACTIVITIES.
• NETWORK ANALYSIS IS ONE OF THE IMPORTANT TOOLS FOR PROJECT MANAGEMENT.

• WHETHER MAJOR OR MINOR A PROJECT HAS TO BE COMPLETED IN A DEFINITE TIME & AT A DEFINITE COST.

• THE NECESSARY INFORMATION OF ANY PARTICULAR DATA CAN BE REPRESENTED AS A PROJECT NETWORK.

• THESE TECHNIQUES ARE VERY USEFUL FOR PLANNING, SCHEDULING AND EXECUTING LARGE-TIME BOUND
PROJECTS INVOLVING CAREFUL CO-ORDINATION OF VARIETY OF COMPLEX AND INTERRELATED ACTIVITIES
 OBJECTIVES OF NETWORK ANALYSIS

• HELPFUL IN PLANNING
• INTER-RELATIONSHIP OF VARIOUS ACTIVITIES
• COST CONTROL
• MINIMISATION OF MAINTENANCE TIME
• REDUCTION OF TIME
• CONTROL ON IDLE RESOURCES
• AVOIDING DELAYS, INTERRUPTIONS
 APPLICATIONS OF NETWORK ANALYSIS

• PLANNING, SCHEDULING, MONITORING AND CONTROL OF LARGE AND COMPLEX

PROJECTS.
• CONSTRUCTION OF FACTORIES, HIGHWAYS, BUILDING, BRIDGES, CINEMAS ETC.
• HELPFUL TO ARMY FOR ITS MISSILE DEVELOPMENT.
• ASSEMBLY LINE SCHEDULING
• INSTALLATION OF COMPUTERS AND HIGH TECH MACHINERIES
• TO MAKE MARKETING STRATEGIES
 STEPS INVOLVED IN NETWORK ANALYSIS

• DESCRIBING THE PROJECT

• DIAGRAMMING THE NETWORK
• ESTIMATING THE TIME OF COMPLETION
DETERMINISTIC ESTIMATES
PROBABILISTIC ESTIMATES
• MONITORING THE PROJECT PROGRESS
 CLASSIFICATION OF ACTIVITIES

PREDECESSOR ACTIVITY: ACTIVITIES THAT MUST BE COMPLETED IMMEDIATELY PRIOR TO THE START
OF ANOTHER ACTIVITY ARE CALLED PREDECESSOR ACTIVITIES.
SUCCESSOR ACTIVITY : ACTIVITIES THAT CANNOT BE STARTED UNTIL ONE OR MORE OF OTHER
ACTIVITIES ARE COMPLETED BUT IMMEDIATELY SUCCEED THEM ARE CALLED SUCCESSOR ACTIVITIES.
CONCURRENT ACTIVITIES: ACTIVITIES THAT CAN BE ACCOMPLISHED TOGETHER ARE KNOWN AS
CONCURRENT ACTIVITIES.
DUMMY ACTIVITY: AN ACTIVITY WHICH DOES NOT CONSUME ANY RESOURCE BUT MERELY DEPICTS
THE DEPENDENCE OF ONE ACTIVITY ON OTHER IS CALLED DUMMY ACTIVITY. IT IS INTRODUCED IN A
NETWORK WHEN TWO OR MORE PARALLEL ACTIVITIES HAVE THE SAME START AND FINISH NODES
 KEY TERMINOLOGY

ACTIVITY : ALL PROJECTS MAY BE VIEWED AS COMPOSED OF ACTIVITIES. IT IS THE

SMALLEST UNIT OF WORK CONSUMING BOTH TIME& RESOURCES THAT PROJECT
MANAGER SHOULD SCHEDULE & CONTROL.
AN ACTIVITY IS REPRESENTED BY AN ARROW IN NETWORK DIAGRAM
 CONTD….

EVENT:
THE BEGINNING & END OF AN ACTIVITIES ARE CALLED AS EVENTS .
EVENTS ARE REPRESENTED BY NUMBERED CIRCLES CALLED NODES.
TYPES OF EVENTS
 PATH & NETWORK

• AN UNBROKEN CHAIN OF ACTIVITY ARROWS CONNECTING THE INITIAL EVENT

TO SOME OTHER EVENT IS CALLED A PATH.
• A NETWORK IS THE GRAPHICAL REPRESENTATION OF LOGICALLY &
SEQUENTIALLY CONNECTED ARROWS & NODES REPRESENTING ACTIVITIES &
EVENTS OF A PROJECT . IT IS A DIAGRAM DEPICTING PRECEDENCE
RELATIONSHIPS BETWEEN DIFFERENT ACTIVITIES.
 RULES OF NETWORK CONSTRUCTION

1. EACH DEFINED ACTIVITY IS REPRESENTED BY ONE AND ONLY ONE ARROW IN THE NETWORK.
2. BEFORE AN ACTIVITY CAN BE UNDERTAKEN, ALL ACTIVITIES PRECEDING IT MUST BE
COMPLETED.
3. THE ARROWS DEPICTING VARIOUS ACTIVITIES ARE INDICATIVE OF LOGICAL PROCEDURE ONLY.
THE LENGTH AND BEARING OF THE ARROWS ARE OF NO SIGNIFICANCE.
4. THE ARROW DIRECTION INDICATES THE GENERAL PROGRESSION IN TIME. HEAD EVENTS AND
TAIL EVENTS.
5. WHEN A NUMBER OF ACTIVITIES TERMINATE AT ONE EVENT, IT INDICATES THAT NO ACTIVITY
EMANATING FROM THAT EVENT MAY START UNLESS ALL ACTIVITIES TERMINATING THERE HAVE
BEEN COMPLETED
 RULES OF NETWORK CONSTRUCTION

6. EVENTS ARE IDENTIFIED BY NUMBERS.

7. THE ACTIVITIES ARE IDENTIFIED BY THE NUMBERS OF THEIR STARTING AND ENDING EVENTS OR BY
ALPHABETS.
8. A NETWORK SHOULD HAVE ONLY ONE INITIAL AND TERMINAL NODE. – MERGE /BURST.
9. PARALLEL ACTIVITIES BETWEEN TWO EVENTS, WITHOUT INTERVENING EVENTS, ARE PROHIBITED. WHEN TWO
OR MORE PARALLEL ACTIVITIES IN A PROJECT HAVE THE SAME HEAD AND TAIL EVENTS, DUMMY ACTIVITIES
ARE NEEDED IN CONSTRUCTING THE NETWORK.
10. DUMMY ACTIVITIES DO NOT CONSUME TIME OR RESOURCES. AN EFFICIENT NETWORK CONTAINS A
MINIMUM NUMBER OF DUMMY ACTIVITIES REQUIRED TO PORTRAY THE CORRECT PRECEDENCE
RELATIONSHIPS.
11. LOOPING IS NOT PERMITTED IN A NETWORK
 RESOURCE LEVELLING AND RESOURCE ALLOCATION

IN PROJECT MANAGEMENT, WE USE THE TERM RESOURCES TO

INDICATE THREE MAIN CATEGORIES:
• LABOR (HUMAN)
• MATERIALS
• EQUIPMENT
 THE THREE CATEGORIES OF RESOURCES

LABOR
• SALARIED STAFF: THESE INDIVIDUALS INCLUDE THE PROJECT MANAGER,
SUPERINTENDENT, PROJECT ENGINEER, SECRETARY, AND ANY OTHER PERSON
WHO IS TIED TO THE PROJECT.
• HOURLY WORKERS: THESE INDIVIDUALS ARE HIRED TO PERFORM A SPECIFIC
TASK OR ACTIVITY. EXAMPLES INCLUDE CARPENTERS, MASONS, IRONWORKERS,
ELECTRICIANS, FOREMEN, AND SO FORTH.
 THE THREE CATEGORIES OF RESOURCES

EQUIPMENT AND MATERIALS

• CONSTRUCTION EQUIPMENT AND MATERIALS: THIS TYPE OF EQUIPMENT AND
MATERIALS IS USED FOR THE CONSTRUCTION PROCESS BUT IS NOT PERMANENTLY
INSTALLED IN THE PROJECT. – EXAMPLES OF CONSTRUCTION EQUIPMENT ARE
BULLDOZERS, BACKHOES, CRANES.
– EXAMPLES OF CONSTRUCTION MATERIALS ARE FORMWORK MATERIALS AND
SCAFFOLDING.
 THE THREE CATEGORIES OF RESOURCES

EQUIPMENT AND MATERIALS

• INSTALLED EQUIPMENT AND MATERIALS: THIS TYPE OF EQUIPMENT AND
MATERIALS STAYS PERMANENTLY IN THE PROJECT AFTER COMPLETION.
– EXAMPLES OF INSTALLED EQUIPMENT EMERGENCY GENERATORS (IN HOSPITALS,
INDUSTRIAL PROJECTS)
– EXAMPLES OF INSTALLED MATERIALS ARE CONCRETE, REBAR, BRICK, MORTAR,
INSULATION, FRAMING WOOD.
WHAT IS RESOURCE ALLOCATION?

TO ASSIGN THE REQUIRED RESOURCES TO EACH ACTIVITY, IN THE

REQUIRED AMOUNT AND TIMING.

WHAT IS RESOURCE LEVELING?

TO MINIMIZING THE FLUCTUATIONS IN DAY-TO-DAY RESOURCE USE

THROUGHOUT THE PROJECT. IT ATTEMPTS TO MAKE THE DAILY USE
OF A CERTAIN RESOURCE AS UNIFORM AS POSSIBLE.
 WHY LEVEL RESOURCES?

DEMAND FOR A CERTAIN RESOURCE NATURALLY FLUCTUATES DURING THE

LIFECYCLE OF THE PROJECT
WHEN THE CONTRACTOR ADDS THE DAILY TOTAL DEMAND FOR A SPECIFIC
RESOURCE FOR ALL ACTIVITIES, HE OR SHE MUST PROVIDE THE REQUIRED
AMOUNT,
OR
WORK WILL BE DELAYED
 DO ALL RESOURCES HAVE TO BE LEVELED?

NOT ALL RESOURCES NEED TO BE LEVELED.

WHY!!!
THE MAIN IDEA OF RESOURCE LEVELING IS TO IMPROVE WORK EFFICIENCY AND
MINIMIZE COST DURING THE LIFE OF THE PROJECT.
THIS CONCEPT APPLIES TO RESOURCES THAT ARE HIRED OR RENTED (LABOR AND
MAJOR CONSTRUCTION EQUIPMENT)
 MULTI PROJECT RESOURCE LEVELING

• SOME RESOURCES MAY BE SHARED AMONG PROJECTS!!!!

THE QUESTION IS WHICH RESOURCES AND HOW MUCH OF THEM.
FOR INSTANCE, SOME STAFF (PROJECT MANAGER, SAFETY MANAGER, SECRETARY,
ETC.) AND EQUIPMENT MAY BE SHARED. (PROJECT MANAGERS MUST MAKE
DECISIONS)
WOULD IT BE MORE EFFICIENT TO HAVE SOMEONE TRAVEL BETWEEN TWO JOBS
OR TO HIRE ANOTHER PERSON
 HOW TO AVOID COST AND TIME OVERRUNS?

TIME AND COST ARE THE TWO MOST IMPORTANT RESOURCES THAT A PROJECT MANAGER DEALS WITH. BOTH THESE
RESOURCES HAVE CONSTRAINTS AND THE JOB OF A PROJECT MANAGER IS TO HAVE A JUDICIOUS BALANCE BETWEEN
THE TWO.
THE JUDICIOUS BALANCE BETWEEN TIME AND COST IS CALLED TIME AND COST TRADE OFF AND IT CAN BE ACHIEVED
BY STUDYING THE AVAILABILITY OF THESE TWO RESOURCES AND THE DEMAND FOR THESE TWO RESOURCES FOR
THE GIVEN PROJECT.
EVERY PROJECT IS UNIQUE AND THE SAME TIME –COST TRADE OFF RULE WILL NOT BE APPLICABLE TO ALL PROJECTS
UNIFORMLY. FOR EXAMPLE,
(i) THE DURATION FOR A PROJECT AS OBTAINED FROM NETWORK CALCULATIONS MIGHT BE LONGER THAN THE
DESIRED. SOCIAL, ENVIRONMENTAL OR POLITICAL CONSTRAINTS MAY NECESSITATE EARLY COMPLETION OF THE
PROJECT EVEN AT A HIGHER COST.
(ii) WHEN COST IS THE ONLY CONSTRAINT AND THERE IS NO NECESSITY THAT THE PROJECT SHOULD BE HURRIED
THROUGH, THE PROJECT TIME CAN BE EXTENDED TILL THE TOTAL COST BECOMES THE MINIMUM.
 WHAT IS PROJECT APPRAISAL?

IT IS A PROCESS OF DETAILED EXAMINATION OF SEVERAL ASPECTS OF A GIVEN PROJECT

BEFORE RECOMMENDING THE SAME.
THE INSTITUTION THAT IS GOING TO FUND THE PROJECT HAS TO SATISFY ITSELF BEFORE
PROVIDING FINANCIAL ASSISTANCE FOR THE PROJECT.
HERE ARE THE KEY OBJECTIVES OF THE APPRAISAL PROCESS OF A PROJECT:
• ASSESSMENT OF A PROJECT IN TERMS OF ITS ECONOMIC, SOCIAL AND FINANCIAL VIABILITY
• DECIDE TO ACCEPT OR REJECT A PROJECT
• IT IS A TOOL TO CHECK THE VIABILITY OF A PROJECT PROPOSAL
 STEPS IN PROJECT APPRAISAL PROCESS

HERE ARE THE KEY STEPS THIS PROCESS. PROPOSAL OF A PROJECT IS ASSESSED
WITH THE BELOW STEPS AND ASPECTS.
• FINANCIAL AND ECONOMIC APPRAISAL
• ORGANIZATIONAL OR MANAGEMENT APPRAISAL
• MARKETING AND COMMERCIAL APPRAISAL
• TECHNICAL AND LEGAL APPRAISAL
PROJECT CONTROL PROCESS
PROJECT CONTROL PROCESS
STEPS IN PROJECT CONTROL PROCESS
STEP -1
STEP -2
STEP - 3
 WHAT IS A PROJECT AUDIT?

A FORMAL PROJECT MANAGEMENT AUDIT AIMS TO ASSESS A PROJECT CONSIDERING

PREDETERMINED STANDARDS. PROJECT PERFORMANCE, QUALITY, AND CONFORMITY TO THE
STATEMENT OF WORK ARE A FEW EXAMPLES.
AUDITS DIFFER FROM CONVENTIONAL PROJECT REVIEWS IN THAT THEY ARE UNDERTAKEN BY
A PARTY EXTERNAL TO THE PROJECT TEAM AND COMMAND STRUCTURE. A DESIGNATED AUDIT
DEPARTMENT, STEERING COMMITTEE, OR EXTERNAL AUDITOR TYPICALLY PERFORMS THE
PROJECT AUDIT.
THE CHARTERED INSTITUTE OF INTERNAL AUDITORS DEFINES AUDITING AS "AN INDEPENDENT,
IMPARTIAL ASSURANCE AND CONSULTING ACTIVITY MEANT TO PROVIDE VALUE AND IMPROVE
AN ORGANIZATION’S OPERATIONS."
 WHEN TO AUDIT?

A PROCESS OR QUALITY SYSTEM IS AUDITED TO ENSURE THAT IT COMPLIES WITH

REQUIREMENTS THROUGH ON-SITE VERIFICATION ACTIVITIES LIKE INSPECTION OR
EXAMINATION. A FUNCTION, PROCESS, OR STEP IN THE PRODUCTION PROCESS MAY BE THE
FOCUS OF AN AUDIT, WHICH MAY ALSO APPLY TO THE ENTIRE ORGANIZATION. SOME AUDITS
HAVE SPECIFIC ADMINISTRATIVE OBJECTIVES, SUCH AS DOCUMENT, RISK, OR
PERFORMANCE AUDITS, OR THEY MAY FOLLOW UP ON CORRECTIVE ACTIONS THAT HAVE
BEEN TAKEN AND ARE COMPLETE.
AN AUDIT AS A "SYSTEMATIC, INDEPENDENT AND DOCUMENTED PROCESS FOR OBTAINING
AUDIT EVIDENCE AND EVALUATING IT OBJECTIVELY TO DETERMINE THE EXTENT TO WHICH
THE AUDIT CRITERIA ARE FULFILLED." THERE ARE THREE MAIN TYPES OF AUDITS:
 THERE ARE THREE MAIN TYPES OF AUDITS

PROCESS AUDIT: THE PURPOSE OF THIS KIND OF AUDIT IS TO CONFIRM THAT PROCESSES ARE
OPERATING WITHIN PREDETERMINED PARAMETERS. IN ORDER TO ASSESS COMPLIANCE WITH THESE
STANDARDS AND THE EFFICIENCY OF THE INSTRUCTIONS, IT COMPARES AN OPERATION OR METHOD
TO PREDETERMINED GUIDELINES OR REQUIREMENTS.
• PRODUCT AUDIT: IN THIS KIND OF AUDIT, A SPECIFIC GOOD OR SERVICE, SUCH AS HARDWARE,
PROCESSED GOODS, OR SOFTWARE, IS EXAMINED TO DETERMINE WHETHER IT COMPLIES WITH THE
STANDARDS.
• SYSTEM AUDIT: A MANAGEMENT SYSTEM AUDIT THAT IS PERFORMED. IT CAN BE CHARACTERIZED
AS A DOCUMENTED ACTIVITY CARRIED OUT TO CONFIRM, THROUGH THE EXAMINATION AND
ASSESSMENT OF OBJECTIVE EVIDENCE, THAT PERTINENT SYSTEM ELEMENTS ARE APPROPRIATE AND
EFFECTIVE AND HAVE BEEN DEVELOPED, DOCUMENTED, AND PUT INTO PLACE IN ACCORDANCE AND
IN CONJUNCTION WITH SPECIFIED REQUIREMENTS.
 PROJECT AUDIT COMPONENTS

REVIEW OF THE SELECTION CRITERIA FOR THE PROJECT. THE PROJECT'S PLACE IN THE ORGANIZATION'S
PRIORITIES IS BEING REEVALUATED BY CHECKING THE ORGANIZATIONAL CULTURE TO SEE IF IT SUPPORTS
THE KIND OF PROJECT BEING CARRIED OUT, A REVIEW OF THE PROJECT TEAM'S PERFORMANCE AND THE
NUMBER OF STAFF MEMBERS NEEDED TO MEET ITS NEEDS. A REVIEW OF OUTSIDE FACTORS THAT MIGHT
ALTER THE PROJECT'S DIRECTION OR LEVEL OF IMPORTANCE. A REVIEW OF ALL ELEMENTS IMPORTANT TO
THE PROJECT AND PROJECT MANAGEMENT IN THE FUTURE.
TYPES OF PROJECT AUDITS:
• IN-PROCESS PROJECT AUDITS: ALLOW FOR CORRECTIVE CHANGES IF CONDITIONS HAVE CHANGED AND FOR
CONCENTRATION ON PROJECT PROGRESS AND PERFORMANCE.
• POST-PROJECT AUDITS: TAKE A BROADER AND LONGER-TERM VIEW OF THE PROJECT’S ROLE INTHE
ORGANIZATION AND EMPHASIZE IMPROVING THE MANAGEMENT OF FUTURE PROJECTS.
 AUDIT REPORT

A LETTER FROM A COMPANY'S AUDITOR THAT SUMMARIZES THE FINDINGS OF THE

AUDIT PROCESS IS KNOWN AS AN AUDIT REPORT. IT EXPRESSES THE AUDITOR'S
JUDGEMENT REGARDING WHETHER THE COMPANY'S FINANCIAL STATEMENTS,
INCLUDING THE BALANCE SHEET, ARE IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES (GAAP) AND WHETHER THEY ARE FREE FROM
MATERIAL MISSTATEMENT.
 TYPES OF AUDIT REPORTS

CLEAN OR UNQUALIFIED REPORT - A CLEAN REPORT CERTIFIES THAT THERE ARE NO MATERIAL OMISSIONS
AND THAT THE COMPANY'S FINANCIAL STATEMENTS FULLY CONFORM TO GAAP.
QUALIFIED OPINION - IF THE FINANCIAL STATEMENTS CONTAIN MATERIALLY FALSE INFORMATION, BUT THEY
ARE NOT WIDELY APPARENT, IF THERE IS INSUFFICIENT EVIDENCE TO BASE THE AUDIT OPINION ON, BUT THE
POTENTIAL CONSEQUENCES OF ANY MATERIAL MISSTATEMENTS ARE NOT WIDESPREAD, THE AUDIT OPINION
SHOULD BE REJECTED.
ADVERSE OPINION - WHEN THE FINANCIAL STATEMENTS CONTAIN MATERIAL AND PERVASIVE ERRORS, THE
OPINION IS NEGATIVE. UNLESS THE PROBLEMS ARE FIXED, A NEGATIVE OPINION CAN HARM A COMPANY'S
REPUTATION AND EVEN HAVE LEGAL REPERCUSSIONS.
DISCLAIMER OF OPINION - IF AN AUDITOR: COULD NOT OBTAIN SUFFICIENT AUDIT EVIDENCE UPON WHICH TO
BASE AN OPINION; DID NOT RECEIVE SATISFACTORY RESPONSES TO THEIR INQUIRIES ; UNDISCOVERED
INACCURACIES MIGHT HAVE SIGNIFICANT AND WIDESPREAD EFFECTS. THIS MAY OCCUR IF THE AUDITOR WAS
PROHIBITED FROM ACCESSING SPECIFIC FINANCIAL DATA WHEN AN OPINION IS DISCLAIMED, IT MEANS THAT
THE COMPANY'S FINANCIAL SITUATION COULD NOT BE DETERMINED.
 PROJECT CLOSURE

THE FINAL STAGE OF THE PROJECT MANAGEMENT LIFECYCLE IS PROJECT CLOSING. AT THE END OF A
PROJECT, THE TEAM LOOKS OVER THE DELIVERABLES AND COMPARES AND TESTS THEIR QUALITY
AGAINST WHAT THE PROJECT WAS SUPPOSED TO ACCOMPLISH.
WHAT WILL HAPPEN IF A PROJECT IS NOT CLOSED PROPERLY?
WHEN A PROJECT IS NOT PROPERLY CLOSED, THE OPPORTUNITY TO LEARN FROM ITS PROCESS AND
OUTCOMES IS LOST. THE LIKELIHOOD OF ENCOUNTERING THE SAME CHALLENGES AND MAYBE LESS
MOTIVATED TEAMS INCREASES THE NEXT TIME WE BEGIN A PROJECT. WHEN WE FAIL TO PROPERLY
END A PROJECT, NO LESSONS ARE LEARNT, AND TEAM EFFORTS ARE NOT RECOGNIZED AND
HONORED. WHETHER THE PROJECT IS INTENDED FOR AN INTERNAL AUDIENCE OR AN EXTERNAL
ORGANIZATION, IT IS LIKELY THAT OUR CUSTOMERS MAY BE LESS PLEASED WITH THE RESULTS. THIS
IS TRUE REGARDLESS OF HOW WELL IT MEETS PROJECT CRITERIA OR HOW QUICKLY OUR CLIENT
RECEIVES OUR DELIVERABLES.
 TYPES OF PROJECT CLOSURE

NORMAL CLOSURE - WHEN A PROJECT IS COMPLETED ACCORDING TO PLAN, THAT IS THE USUAL CONDITION OF
PROJECT CLOSURE.
PREMATURE CLOSURE - NUMEROUS PROJECTS EITHER AREN'T GIVEN A CHANCE OR DON'T MANAGE TO
COMPLETE ALL OF THEIR DELIVERABLES. INSTEAD, BY REMOVING PROJECT COMPONENTS THAT WERE
INITIALLY IDENTIFIED IN THE PROJECT SCOPE, THEY ARE CLOSED BEFORE THEY ARE FINISHED. THIS MAY BE
DUE TO EXPENSES, SUCH AS WHEN THE CLIENT ALLOCATES LESS MONEY TO THE PROJECT OR WHEN THE
BUDGET HAS ALREADY BEEN USED UP.
PERPETUAL PROJECTS: SEEM TO GO ON FOREVER. THESE ARE INITIATIVES THAT HAVE EXPERIENCED
NUMEROUS SNAGS, HICCUPS, AND ISSUES. DUE TO CONSTANT CHANGES AND SCOPE SCREECHING, THESE
PROJECTS HAVE THE PROBLEM OF NEVER ACCOMPLISHING THEIR GOALS OR OBJECTIVES.
FAILED PROJECTS:FAR TOO OFTEN, PROJECTS FAIL. PROJECT FAILURE CAN HAVE MANY DIFFERENT REASONS.
THE PROJECT MAY BE PERMANENTLY KILLED IF THE CLIENT RUNS OUT OF MONEY, WHICH HAPPENS
FREQUENTLY.
 PROJECT CLOSURE PROCESS

TECHNICAL PHASE: IT PRODUCES A GENUINE SENSE OF COMPLETION (AND ACHIEVEMENT) AMONG THE TEAM
AND THE COMPANY.
LEARNING PHASE: THE PROJECT CLOSING LEARNING PHASE IS TIME ALLOCATED TO TEAM REFLECTION ON WHAT
YOU'VE DONE, HOW YOU'VE DONE IT, AND WHAT YOU'VE LEARNED NOW THAT THE PROJECT IS FINISHED. THERE
ARE SEVERAL APPROACHES TO PROJECT CLOSING THAT EMPHASIZE LEARNING AND GROWTH FOR BOTH THE
COMPANY AS A WHOLE AND INDIVIDUAL TEAM MEMBERS.
PEOPLE PHASE: THE PEOPLE PHASE MAKES YOU FEEL THINGS. THE PROJECT DELIVERABLES WERE MADE
POSSIBLE BY THE TEAM. RECOGNIZING THEIR WORK AND THE NEED FOR EMOTIONAL CLOSURE WILL MAKE
EVERYONE FEEL GOOD AND READY FOR WHATEVER COMES NEXT.
EACH PROJECT CLOSING STEP CONTRIBUTES TO THE DEVELOPMENT OF AN APPRECIATION, GRATITUDE, AND
ACCOMPLISHMENT-CENTRED WORKPLACE CULTURE. IF YOU TAKE THE TIME TO ACCOMPLISH THIS CORRECTLY,
ACCORDING TO YOUR UNIQUE SET OF CIRCUMSTANCES, YOU'LL HAVE CREATED THE CONDITIONS FOR NOT ONLY
MOVING ON BUT ALSO MOVING FORWARD.