How to Fail a Project

This should be a great discussion/rant.

For me, it has always been the project manager. Sure, there can be flawed estimates/budgets, unrealistic expectations, and foolish clients, poor communication, but the PM is ultimately responsible. He has to address those issues. It is his team, his project.

Hi Guys,

I haven’t participated in a project which really failed. Although there were major serious problems or issues encountered, but those were resolved along the way.

The following is my the top 4 issues that were causing serious threat to the project(s):

1. Engineering & Design Issues for Construction contract only;
2. Poor management of Major Changes Orders/Variations;
3. Flawed Estimates/Budgets (Denis).
4. ROW Acquisition (New Expressway Construction).

Some other factors that if not properly taken into account that would potentially influence the outcome of the project:

1. Supervisors or members of the project management team especially new members that are not familiar with the manpower and equipment norms of the company;
2. Availability of competent skilled workers suited for the project;
3. Improper & Insuffecient construction Equipment and Tools (i.e. Insuffecient Tower Crane Hours for High Rise Bldg. Construction);
4. Physical Working Conditions;
5. Access to Work;
6. Construction Programme incl. Resource Loading & Unaccounted interruptions;
7. Materials Coordination & Availability;
8. Communication;
9. Workers Labour Union.


Regards,

Arman

Well this most certinly will be an interesting discussion thread to read indeed.

From my small amount of experience (6 years), the top ones are, in no particular order;

The management (PM’s, Resource managers, Maintenance managers, the whole lot of them), making rash decisions without considering the consequences.

The project team members doing extra work because they’re not fully across the scope of their work package.

The customer trying to slip in some extra scope, and the management allowing it so they appear to be helpful, and then the customer expecting this everytime. (and the management doing it everytime, then questioning why we’re 3 times over budget)

People thinking that planning is only a nice to have or worse still a hinderence to propper project management.

The fact that when you look at the mathematics in the schedule, 1 plus 1 will always equal 2 unles your the PM and then you want to make it equal ’E=MC2’, because that’s how fast you will have to work to recover the schedule because they weren’t familiar with the scope, specs, requirements or anything else to do with the project when they told the customer they could have the whole thing designed, built, installed & commissioned a week from Thursday just before lunch.

Then we could talk about lead times on equipment, and the PM that always asks why there is a lag of 6 months on ther logic between ordering and receiving the bits and pieces.

Then someone inevitably brings up the fact that we don’t have enough resources. Of course this is explained away by the fact that everyone always over estimates the jobs, so they put graduate engineers on the job and expect the design to get through on the first pass.

So as Dennis said in his post ’This should be a great discussion/rant’

So lets see what else we can list

Andy

No matter how hard we try, planning is not perfect, and sometimes plans fail.
Typical reasons why plans fail include:
Corporate goals are not understood at the lower organizational levels.
Plans encompass too much in too little time.
Financial estimates were poor.
Plans were based upon insufficient data.
Planning was performed by a planning group.
No one knows the ultimate objective.
No one knows the staffing requirement
No one knows the major milestone dates.
Project estimates are best guesses, and are not based upon standards or history.
Not enough time was given for proper estimating.
No one bothered to see if there would be personnel available with the necessary skills.
People are not working toward the same specifications.
People are consistently shuffled in and out of the project with little regard for schedule.

Hi Guys,

You seem to have covered quite a lot of ground already, but I don’t think anyone has mentioned projects which never should have been started int the first place. Usually these are a ’dream’ or an item on the wish list of a member or members of the Board of Directors.

These ’projects’ are usually not essential, frequently really bad ideas and sometimes downright disasters. It can be obvious, right from the start, that they are going to fail but because a member of the Board is pushing them, they get first call on resource. It’s not until a lot of money has been wasted that somebody with sufficient clout realises "Oops, we shouldn’t be doing this" and pulls the plug.

Chris Oggham

Hi,

Some basic terms:
1- Future value
2- Cost/Benefit ratio
3- Net present value
4- Feasibility studies
If misunderstood, can lead to project failure.

Regards,
Karim

Dear All,

Can we list down the specific metrics based on which we can say that a project has failed or is heading towards failure?

Rgds

All,

As the metrics by which project success is measured constantly changes, how do you know when you’ve failed?

Environmental impact and socio-economic impact are now just as important as measures of success as cost and schedule.

-unproper and unsufficient design during design stage.
-selection for unsuitable contractorduring tender stage.
-during construction stage:-
-lack of resources.
-lack of professional staff.
- bad management.
-no proper following up.
- no actions.
- slow actions.
- physical obstructions.
-adversed climatic conditions.

Remove one of the item in the equation:

Success = 4M+C

M1 : Material
M1 : Manpower
M1 : Machine
M1 : Method

and
C : Commitment

I’m sure your project fails.....

Jhonny,

"Planning was performed by a planning group"

Maybe you should give them a break!!!


Regards,


Arman

Some very good comments,
But one missed which we see every day “Blame The Other Guy”
There are too many managers who do not take actions against idiots who can not do there job.
I have given up counting the actions which so many people let slip, "they did not have time" and "I forgot"; meanwhile the project is slipping as well.

Actions should be followed up promptly.
Blame should be added to the correct person.
Project Manager should cut off useless people from the project, send a message that if you do not do your job your out.

sory, I mean Johny, not Jhonny...

Dear All,

Can we note the metrics for project failure as follows:

1. Milestones Achievement Ratio (MAR) [Actual No. of Milestones achieved / Planned No. of Milestones Achievement] is consistently less than 0.70 (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

2. Schedule Variance (SV) [BCWP – BCWS] « 0 or < 0 ie., behind schedule consistently for more than 0.70 (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

3. Cost Variance (SV) [BCWP – ACWP]] « 0 or < 0 ie., overrun by more than 33% and the because of the overrun the project shall never have an NPV > 0 and / or IRR (Actual) shall be sufficiently less than IRR (projected).

4. Efficiency Ratio (ER) [Actual percent completion factor / Planned percent completion factor] is consistently less than 0.70 (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

5. Staff Productivity Ratio [Total Value of Work Done (including materials used in project) / Avg. no. of Engg. & Supervisors on site] is consistently less than USD 0.01 million (throughout 75% of the project duration) and can’t be made up sufficiently to finish the project in the remaining 25% duration.

Machine Downtime Ratio etc. can further included as a metric.

Please revert with your comments, suggestions, etc.

Plzzz note the corrections:

Metrics for project failure as follows:

1. Milestones Achievement Ratio (MAR) [Actual No. of Milestones achieved / Planned No. of Milestones Achievement] is consistently less than 0.70 (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

2. Schedule Variance (SV) [BCWP – BCWS] « 0 or < 0 ie., behind schedule consistently (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

3. Cost Variance (SV) [BCWP – ACWP]] « 0 or < 0 ie., overrun by more than 33% and the because of the overrun the project shall never have an NPV > 0 and / or IRR (Actual) shall be sufficiently less than IRR (projected).

4. Efficiency Ratio (ER) [Actual percent completion factor / Planned percent completion factor] is consistently less than 0.70 (throughout 75% of the project duration) and can’t be made up in the remaining 25% duration in spite of crashing the project.

5. Staff Productivity Ratio [Total Value of Work Done (including materials used in project) / Avg. no. of Engg. & Supervisors on site] is consistently less than USD 0.01 million (throughout 75% of the project duration) and can’t be made up sufficiently to finish the project in the remaining 25% duration.

Machine Downtime Ratio etc. can further included as a metric.

Where did you download that information from !!!

The threads asks why do projects fail.

A schedule variance just indicates that you are late, it doesn’t explain why.

Low productivity tells you that staff aren’t producing to the level of effort budgeted in the baseline, but it doesn’t explain why.

A bad planner can tell tou there is a delay.

An average planner can tell you the reason for a delay.

A good planner would know the reason for the delay and would suggest a course of action.

The threads asks why do projects fail.

A schedule variance just indicates that you are late, it doesn’t explain why.

Low productivity tells you that staff aren’t producing to the level of effort budgeted in the baseline, but it doesn’t explain why.

A bad planner can tell you there is a delay.

An average planner can tell you the reason for a delay.

A good planner would know the reason for the delay and would suggest a course of action.

Dear Oliver,

I had specifically noted let us first note in the first posting to this thread that let us first note the metrics or measurable parameters or identifiable signs for a project tending towards failure or failed. We can go into the specifics later.

I have not downloaded the information. I have only taken the liberty to extrapolate the ratios which we normally use to monitor the performance of our projects.

After 20 ish replies on metrics, i think we can now move onto the threads actual question.

Dear All,

Are we broadly in unison as regards once thing that NPV <0 or IRR(Actual) « IRR (Projected) necessarily implies project has failed?

If that is so, then Cash Outflows has necessarily far outstripped Cash Inflows.

Cash Outflows can be phenomenal if project has suffered Cost Overruns and Schedule Overruns.

Schedule Overruns possible if :

a. Delay owing to wanting of Statutory Approvals, Design Changes or Held-Ups, Insufficient Good for Construction Drawings in time, delay in payments (Consultant, Contractor etc).

b. Insufficient resources: equipment, manpower, materials. Can be due to improper lead time management.

c. Acts of God holding up project progress.

Project Management fallouts not considered since this is self-correcting in most cases.


Cost Overruns possible if:

a. Change in scope, variation, legislative changes, unbudgeted expenses (improper budget)

b. Project rendered operationally unproductive (exorbitant operational & maintenance cost)


Now, low Cash Inflows possible if:

a. Significant shift in target market due to change in demography, change in taste

b. Cheaper, better alternative(s) available in the market owing to technology shift


I have noted the maximum points I could generally visualize. Any more from your end would be most welcome.

Thanks and Regards,
Dev

Adding to what I had said, Cost Overruns possible due to Scheudule Overruns in the form of very high IDC (Interest During Construction).

As most of the reasons/factors for delay are the same, can we rank it as to which one is the least and the most? For me the most is too much politics.. :-)

Project fails , if the owner gives you the unrealistic completion date.

Take this case, A project is suppose to finish one year duration , then the owner will tell you, I need it to complete it within one month.

I would ask you , can you do it?

Even, you allocate thousands of battalion resources , this won’t work, if it has space constraint.

this is just a simple example...
Sure ,all got what i mean.....

for me, it all rest back to decisions; if the desicion maker decided to use a bad plan, then the project fails; otherwise it won’t

Ref: "Project Management - A System Approach to Planning, Scheduling, and Controlling, Eight Edition.(Section 11 - Planning)"

"11.15 WHY DO PLANS FAIL?"
No matter how hard we try, planning is not perfect, and sometimes plans fail. Typical reasons include:
 Corporate goals are not understood at the lower organizational levels.
 Plans encompass too much in too little time.
 Financial estimates are poor.
 Plans are based on insufficient data.
 No attempt is being made to systematize the planning process.
 Planning is performed by a planning group.
 No one knows the ultimate objective.
 No one knows the staffing requirements.
 No one knows the major milestone dates, including written reports.
 Project estimates are best guesses, and are not based on standards or history.
 Not enough time has been given for proper estimating.
 No one has bothered to see if there will be personnel available with the necessary skills.
 People are not working toward the same specifications.
 People are consistently shuffled in and out of the project with little regard for schedule.

Rodel,
In your list, not even a seasoned planners could follow those rules,
So what is the use to have planners? NOTHING!!, CONSIDERED AS FUTILE.

Ref: Project Management - A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition

There are four basic reasons for project planning:
 To eliminate or reduce uncertainty
 To improve efficiency of the operation
 To obtain a better understanding of the objectives
 To provide a basis for monitoring and controlling work

Plan for a year or more!

Not work your plan!

Your Project Will Be!!

Unsafe
Late
Over Budget

You will have to get everyone to buy into the plan. Show them why they need a plan. This is one way to Fail a Project! You would be suprised how many time I get asked why do I need a plan, I been doing this for 20 years.

Thanks Rodel, for reminding me of the basic reasons for planning.

Rodel Marasigan wrote: Ref: Project Management - A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition

There are four basic reasons for project planning:
 To eliminate or reduce uncertainty
 To improve efficiency of the operation
 To obtain a better understanding of the objectives
 To provide a basis for monitoring and controlling work

On a different level, I would list out three major reasons

1.Wrong People
2.Wrong Place
3.Wrong Customer

Cheers,
Vamsi

there is a say
" YOU FAIL TO PLAN YOU PLAN TO FAIL "
that’s simple

What is project?

What are the fundmental of project?

The traditional way for measuring project success

Project completed within budget, within quality and within schedule is considered project success.

How to fail????

BLOW THE BUDGET TO THE SKY by adding unreasonable variation orders.

DO NOT PREPARE BASELINE SCHEDULE in Primavera P3, the 12 months project schedule will extent to 5 years

DO NOT SEND THE QA/QC guys/gal to the site. Bribe them, intoxicate them with alcohol, give them lot of girls/lady/woman to play around at site office, organize a gmabling den at project site.

Best ingredient to fail a project.

Cheers,

Sensie

F..K around with the client

do not hire the engineer to run the project,

instead,

give it to the housewives, labourer,

Downgrade the project manager to foreman

Assing ehem, ehem, ehem, etc. from planning planet to to run the project

Cheers,

Sensei

Three interesting posts; but what happened to Charlie/Joseph and who is Sensie/Sensei?

Chris Oggham

Chris,

Learn a little oriental language and....

You know the answer

Cheers,

Sensei

Typical Charlie, can’t answer a straight question.

Typical Charlie, talks out of his @rse.

there is another simple way to fail a project
GO TO SLEEP !!!

Hi Oliver,

I couldn’t agree more. This time, though, I think it could be a little more serious, Charlie has taken to calling himself Sensei (when he spells it right) Sensie (when he doesn’t).

I could say unkind things like he’s delusional, believing he has abilities that he clearly doesn’t, but somehow I can’t. I get this picture of Charlie instructing his project team to call him "Sensei" and I imagine the reaction of a team of British brickies and I fall about laughing. They’d call him something alright, but it wouldn’t be Sensei - I wonder if Planning Planet could offer a prize for the most imaginative suggestion?

Chris Oggham

Sensei’s definition:

Sensei (先生, Sensei?) is a Japanese title used to refer to or address teachers, professionals such as doctors and lawyers, politicians, clergymen, and other authority figures. It is also used to show respect to someone who has achieved a certain level of mastery in an art form or some other skill: accomplished novelists, musicians, and artists are addressed with the title in this way; for example, Japanese manga fans refer to manga artist Osamu Tezuka as "Tezuka-sensei." Sensei is also one of the common Japanese martial arts titles.

The Japanese expression sensei shares the same characters as the Chinese word, pronounced xiānsheng in Mandarin. Xiansheng is a courtesy title for a man of respected stature; its English equivalent is gentleman, or more commonly,– mister. It can also be attached to a man’s name to mean "Mr." Prior to the development of the modern vernacular, Xiansheng was used to address teachers of both genders; this has fallen out of usage in Standard Mandarin, though it is retained in some southern Chinese dialects such as Hokkien and Hakka where it still has the meaning "teacher" or "doctor". In Japanese, sensei is still used to address people of both genders. It is likely both the current Southern Chinese and Japanese usages are more reflective of its Middle Chinese etymology.


Uses in English

Sensei has also come to be used in English outside martial-arts and other similarly cultural contexts. In business and industry, sensei is often used to refer to an outside, third-party expert who coaches or advises on operational and organizational excellence. In particular, James Womack’s book Lean Thinking advises companies to seek out a "lean sensei" who can provide expert coaching on how to achieve organizational effectiveness. Lean sensei has since become a common for describing an expert who can provide advise on operational and organizational strategy.


Wikipedia link:
http://en.wikipedia.org/wiki/Sensei

Hi Karim,

Thank You.

You save lots of soul.

TO Chris and to some extent to Oliver,

Your hatred to me only show your level.

I dont have to waste my time with your post.

Also please don’t waste your time with my post.

It is not for both of you anyway.

This draw the line.

Cheers,

Sensei.

IT NOW STARTS OF HAVING WAR ...MY GOODNESS

Charlie,

I only post such replies because I fear that some of the people that are new to PPlanet might mistakenly think you know what you’re talking about.

Charlie,

Sorry to disillusion you, but I don’t hate you, but what I do find unacceptable are your attempts to pass yourself off as something you are not. As Oliver pointed out, this could be misleading for people who are new to Planning Planet.

I really do suggest that you accept situations as they are and not how you would like them to be.

Chris Oggham

CHIS,

YOU MEAN YOU LOVE ME???

YOU BECOME A HOMO

as in Homo Sapien,

I CANT BELIEVE IT.

Charlie,

At the risk of repeating my earlier post, I really do suggest that you accept situations as they are and not how you would like them to be.

As I stated previously, I don’t hate you; I think that you are rather silly and immature with an overinflated opinion of your own abilities and intelligence and an apparently inexaustable supply of opinions which range from the mildly bizarre to downright insane.

You can be an irritant in the same way as a stone in the shoe, but people don’t hate the stone, and people don’t hate you, so do us all a favour Charlie - grow up.

Chris Oggham

A farmer named Clyde had a car accident. In court, the
trucking company’s fancy lawyer was questioning Clyde.

Didn’t you say, at the scene of the accident, ’I’m fine,?"
asked the lawyer.

Clyde responded, "Well, I’ll tell you what happened. I had
just loaded my favourite mule, Bessie, into the..."

"I didn’t ask for any details", the lawyer interrupted. "Just
answer the question. Did you not say, at the scene of the accident, ’I’m
fine!’?"

Clyde said, "Well, I had just got Bessie into the trailer and
I was driving down the road...."

The lawyer interrupted again and said, "Judge, I am trying to
establish the fact that, at the scene of the accident, this man told the
Highway Patrolman on the scene that he was just fine. Now several weeks after
the accident he is trying to sue my client. I believe he is a fraud. Please
tell him to simply answer the question."

By this time, the Judge was fairly interested in Clyde’s
answer and said to the lawyer, "I’d like to hear what he has to say about his
favourite mule Bessie".

Clyde thanked the Judge and proceeded. "Well as I was saying,
I had just loaded Bessie, my favourite mule, into the trailer and was
driving her down the highway when this huge semi-truck and trailer ran the stop
sign and smacked my truck right in the side. I was thrown into one
ditch and Bessie was thrown into the other. I was hurting real bad and didn’t
want to move.

However, I could hear ole Bessie moaning and groaning. I knew
she was in terrible shape just by her groans. Shortly after the accident a Highway Patrolman came on the
scene. He could hear Bessie moaning and groaning so he went over to her. After
he looked at her, and saw her fatal condition. He took out his gun and shot
her between the eyes.

Then the Patrolman came across the road, gun still in hand,
looked at me, and said, "How are you feeling?"

"Now what would you say?

Just thought i’d lift the mood in this room !!!!