Step 07: Exception Situation

Description

Objective

 

To       

 

            -  take corrective action when a project is off course,

 

in a way that

 

            -  minimizes impact to the project,

 

            -  gains agreement from all parts of the Project Organization,

 

so that

 

            -  the project can still be successfully completed.

 

Overview

 

The Project Initiation Report defines the project tolerances with respect to:

 

            -  cost,

 

            -  schedule,

 

            -  quality.

 

During the lifetime of a project it is possible that:

 

            -  a stage tolerance set by the Project Board is or will be exceeded,

 

            -  a major technical deviation is identified and recorded,

 

            -  an important dependency from another project is not available.

 

Their effect is that the current Stage Plan will not be met and so the Stage must be replanned in the light of the new situation.  This is done by preparing an Exception Report.

 

An Exception Report serves the essential purposes of any plan; it must contain all the information normally given in Stage plans since, after approval, it will replace the current Stage Plan. In addition it shows the effect on the project of exceptional situations; for this reason the exception plan includes information on the exception that has arisen, the options that have been examined and the action that it is proposed to take.

 

In addition to the information contained in the Stage Plan, an Exception Report contains the following:

 

            -  an explanation of why a given situation is an exception and the circumstances that led to the situation,

 

            -  a prediction of the schedule, cost, schedule, functional, quality and technical impact if no action is taken,

 

            -  the recommended recovery action (changes to scope, organization, budget, timescale, etc),

 

            -  the consequences of this corrective action on both the Stage Plan and the Project Plan,

 

            -  a recommendation.

 

The Exception Report is prepared by the Stage Manager and submitted to the Project Board at a Mid Stage Assessment (MSA).  Consideration should be given to both the project objective statement and the original Control Factors when considering recovery actions.  If approved it becomes the effective plan for the remainder of the stage.

Step 07:         Exception Situation

Task .010          Analyze Cause of Exception Situation

Confirm which component of the project is out of tolerance.  Ensure that the control measuring the tolerance is functioning correctly.

 

Analyze the causes of the Exception Situation. These may include:

 

            -  resource utilization and availablity,

 

            -  resource productivity and performance,

 

            -  external factors,

 

            -  under estimating,

 

            -  scope creep,

 

            -  quality issues requiring the rework of products.

 

Assess the impact on the project of doing nothing, and continuing with the original plan, with respect to:

 

            -  stage and project schedule,

 

            -  stage and project cost,

 

            -  scope,

 

            -  quality of development products,

 

            -  interproject dependencies, both business and technical projects.

Task .020          Create Exception Plan

Review, from the Project Initiation Report, the Project Objective Statement, Measures of Project Success and the Control Factors.  They will help to focus on identifying the most effective changes. 

 

Consider each aspect of the project, identify appropriate changes and define their probable impact.

 

Dimension of Scope

 

            -  functional,

 

            -  organizational,

 

            -  data,

 

            -  performance requirements,

 

            -  implementation environment,

 

            -  development products.

 

Plan

 

            -  identify new tasks and products,

 

            -  modify original  tasks and products,

 

            -  remove tasks and products,

 

            -  review resourcing,

 

            -  review workflow and task dependencies,

 

            -  re-estimate.

 

Organization

 

            -  review the effectiveness of the Project Board, Key Stakeholders, and Project Coordinators.

 

Schedule

 

            -  Recreate the stage and project  plans.

 

Cost

 

            -  Recreate the project budget.

 

Business Case

 

            -  Quantify the impact of the proposed changes on each benefit, and the on the time to break even.

 

Risk

 

            -  Conduct a risk analysis.

 

            -  Identify new project risks and appropriate countermeasures.

 

If there is a single course of action, prepare the Exception Situation Report  which summarizes:

 

            -  the causes and impact of the Exception Situation,

 

            -  recommends recovery actions,

 

            -  assesses the impact of the recovery actions,

 

            -  creates an Exception Plan which replaces the original stage and project plan.

 

If it is not clear what option should be taken, prepare an analysis of the options for the Project Board together with an outline Exception Report for each option.

Task .030          Prepare for Exception Assessment

Arrange a project assessment meeting of the Project Board to decide what course of action to take on the project.

 

Prepare an agenda and any presentation material that will be required to present the Exception Report to the Project Board in order for them to make a decision.

Task .040          Conduct Exception Assessment

Conduct the Project Assessment meeting.  The Project Board should make a decision on how to proceed with the project, that the Stage Manager and Project Team can follow.

Task .050          Follow-up Exception Assessment

Record the decision made by the Project Board and take the appropriate action.

 

In most cases, this will be a series of additional project activities that are required to address the causes of the Exception Situation. 

 

Execution of the Exception Plan may require invoking the Change Management process.