Stage 4 Termination and Closure

8/6/2019 Stage 4 Termination and Closure

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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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Stage 4 Termination and Closure

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Transcript of Stage 4 Termination and Closure