Post on 07-Apr-2018
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Stage 4: TerminationStage 4: Terminationand Closureand Closure
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Complete TestingComplete Testing Testing should constitute 30Testing should constitute 30--
45% of any new product45% of any new product
development projectdevelopment project Module and regression testingModule and regression testing
Just the final system test andJust the final system test and
acceptance testing is doneacceptance testing is doneafterwardafterward
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Obtain signatureObtain signature
SignoffsSignoffs From customerFrom customer
From stakeholdersFrom stakeholders
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Get paidG
et paid Contractually, you need someContractually, you need some
legally binding arrangement thatlegally binding arrangement that
legally obligates the customerlegally obligates the customer
to payto pay
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Contract typesContract types Fixed priceFixed price
Contractor assumes all of the riskContractor assumes all of the risk
Contract must produce a specificContract must produce a specificdeliverable within a specific time for adeliverable within a specific time for aspecific pricespecific price
Cost ReimbursementCost Reimbursement Also known as Cost PlusAlso known as Cost Plus
These are the extremesThese are the extremes There are many possibilities betweenThere are many possibilities between
these twothese two
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Cost ReimbursableCost Reimbursable
ContractsContracts Cost plus incentive fee (CPIF): theCost plus incentive fee (CPIF): the
buyer pays the seller for allowablebuyer pays the seller for allowable
performance costs plus aperformance costs plus apredetermined fee and an incentivepredetermined fee and an incentive
bonusbonus
Cost plus fixed fee (CPFF): the buyerCost plus fixed fee (CPFF): the buyer
pays the seller for allowablepays the seller for allowable
performance costs plus a fixed feeperformance costs plus a fixed fee
payment usually based on apayment usually based on a
percentage of estimated costspercentage of estimated costs
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Cost ReimbursableCost Reimbursable
ContractsContracts Cost plus percentage of costsCost plus percentage of costs
(CPPC): the buyer pays the seller(CPPC): the buyer pays the seller
for allowable performance costsfor allowable performance costsplus a predeterminedplus a predetermined
percentage based on total costspercentage based on total costs
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Time and MaterialTime and Material
ContractsContracts Commonplace in informationCommonplace in information
technologytechnology
Are a hybrid of fixed price andAre a hybrid of fixed price and
cost reimbursable contractscost reimbursable contracts
Contractor is reimbursed forContractor is reimbursed for
specific performance (time), andspecific performance (time), andfor his material costsfor his material costs
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Contract Types VersusContract Types Versus
RiskRisk
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Statement of WorkStatement of Work
(SO
W)(SO
W) A statement of work is a descriptionA statement of work is a description
of the work required for theof the work required for the
procurementprocurement Many contracts, or other mutuallyMany contracts, or other mutually
binding agreements, include SOWsbinding agreements, include SOWs
A good SOW gives bidders a betterA good SOW gives bidders a better
understanding of the buyersunderstanding of the buyers
expectationsexpectations
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Statement of WorkStatement of Work
(SO
W) Template(SO
W) TemplateI. Scope of Work: Describe the work to be done in detail. Specify the hardware and
software involved and the exact nature of the work.
II. Location of Work: Describe where the work must be performed. Specify thelocation of hardware and software and where the people must perform the work
III. Period ofPerformance: Specify when the work is expected to start and end,working hours, number of hours that can be billed per week, where the work must
be performed, and related schedule information.
IV. Deliverables Schedule: List specific deliverables, describe them in detail, andspecify when they are due.
V. Applicable Standards: Specify any company or industry-specific standards thatare relevant to performing the work.VI. Acceptance Criteria: Describe how the buyer organization will determine if the
work is acceptable.
VII. Special Requirements: Specify any special requirements such as hardware orsoftware certifications, minimum degree or experience level of personnel, travel
requirements, and so on.
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Sell the next project toSell the next project to
the Customerthe Customer Especially if the previousEspecially if the previous
contract was a fixed price onecontract was a fixed price one
And, there was a lot of WouldntAnd, there was a lot of Wouldnt
it be really neat ifs after theit be really neat ifs after the
project began executionproject began execution
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Hold formalHold formal--post projectpost project
meeting (Postmeeting (Post--Mortem)Mortem) Discuss what went wellDiscuss what went well
Discuss what went not so wellDiscuss what went not so well
Discuss what could be improvedDiscuss what could be improved
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Document LessonsDocument Lessons
LearnedLearned How could we have managedHow could we have managed
better?better?
What would we do next time?What would we do next time?
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Populate historyPopulate history
datab
asedatab
ase For task durations, especiallyFor task durations, especially
Or, to be used to verify taskOr, to be used to verify task
durationsdurations
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Notes on shorteningNotes on shortening
project durationsproject durations This must be done in the Planning andThis must be done in the Planning and
Budgeting stageBudgeting stage
CrashingCrashing Reducing the duration of tasks on theReducing the duration of tasks on thecritical pathcritical path
FastFast--trackingtracking Starting tasks soonerStarting tasks sooner
Adding resourcesAdding resources
Checking for parallelismChecking for parallelismopportunities in the scheduleopportunities in the schedule
Removing SafetyRemoving Safety
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More techniques forMore techniques for
shortening projectsshortening projects Scrub the requirementsScrub the requirements
Remove from the requirementsRemove from the requirements
those items that add little or nothose items that add little or novaluevalue
Remember the Pareto principleRemember the Pareto principle
80% of the value comes from 20%80% of the value comes from 20%
of the functionalityof the functionality
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Thats IT folks!!Thats IT folks!!
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