PROJ420 – Project Risk Management
JC Gear Case Study
Risk: A Case Study: "Risk Options: The Automated Production Control System Case"
The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!
The JC Gear Company has decided to initiate a project aimed at automating its production planning and control system. Among the options, the company focuses on two alternatives: (1) purchasing the most suitable system off of the shelf and modifying it according to its individual production needs; or (2) developing a system
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To get a better handle on the options and the risks associated with them, the company estimates the severity of each event and calculates the level of risk (based on severity of the event and the probability of occurrence). The events are then ranked with those exhibiting the highest risks placed at the top of the list. Next, the source of high-risk events is investigated.
Due to the nature of its business, the company looks for technological risks generated by one or more of the following factors:
• Unproven technology;
• System complexity;
• Integration requirements;
• Physical or chemical properties;
• Modeling assumptions;
• Interfacing with other systems;
• Interfacing with operators, service personnel, and others; and the
• Operating environment.
The risk-management plan then starts by identifying each of these sources, their magnitude, their relation to the various design stages, and their possible effects on cost, schedule, quality, and performance. The next step is to look for modifications or alternatives that would permit risk reduction. The thoughtful selection of computer language or operating system may reduce some of the integration risks. If management decides to develop a new software package, contingency plans that cut expenses and development time at the cost of lower performance should be prepared. These plans are used in case the undesired event takes place. By preparing a contingency plan in advance, time is
Many types of risk are created – risk to the project, to the organization, to the employees involved and to the individuals supporting the change.
risks and determine the likelihood and consequence of that risk occurring during the project. The
In this report, we analysed and evaluate the project management of the case: The case, The PCNet Project (A): Project Risk Management in an IT integration Project. We had look into the project definition phase of the PCNet project and discuss some of the problems that emerged during the project in relation to project definition phase. We also evaluated the role of the PCNet project manager and discussed some of the core skillsets demanded by the job role. The risk management aspect of the PCNet project was also studied in our report. Lastly we made recommendations to address the dilemma faced by Jack Muller, the project manager for the PCNet project.
The course text discusses AS/NZS 4360 approach, which consists of a 5-phase process to manage and control risk. According to the text the risk management process phases are establish context, identify, establish and treat risk while continuously communicating, monitoring and reviewing risk (Cooper, 2005). The premise of risk management is to uncover and understand as much as possible about risks as early in the project as possible. The more one knows about risks the easier it is to make decisions for correct responses. The alternative to risk management is crises management, which in many instances is more costly, and more time consuming. Clements & Gido define a project as “an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resource “(Gido 4). I had many opportunities to develop a Military Retirement Ceremony, so I decided to approach it as a project risk management plan. At the time I did not know it but we were using the project risk management approach discussed in the text to address the risk associated with the event. The Military Retirement Ceremony project planning began the same as most projects do by determining the objectives. The objectives are described in terms of deliverable, schedule and budget. The sponsor and the customer must agree upon the scope of any project. In this project I worked along side the sponsors.
Identify a minimum of 10 project risks and when each will occur in the project life cycle, and then determine their impact and probability of occurrence.
Many risks are interrelated. Analyze the following compound risk: Unstable requirements with tight budget will likely cancel the project. Discuss the dependencies that exist between the two risks.
Identify the potential risks which affect the company and manage these risks within its risk appetite;
Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering
Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It
The global expansion project is for T-Mobile to expand its supply base into China in order to be successful in the global economy. Recognizing what the available alternatives are available when identifying risk can be beneficial to the project since the methods utilized can be easily accomplished. The responses for each identified risk may have an effect on the other areas with the project overall. The responses also assist in determining how reactive or proactive the project will be in the planning.
To begin the project implementation a thorough risk management system will need to be put in place in order to be able to mitigate any possible downtime due to any unforeseen issues that could potentially bring the project to a halt. In order for us to accurately assess and process a usable risk management system, the project manager will need to have a good understanding of all areas of the project, meet with stakeholders, developers, the project team, and any other parties involved to work out defined requirements and any limitations that the new software will not be able to deliver. In addition to this plan all relevant documents to the project should be reviewed for errors, and any contingency plans that need to be made will be discussed also. It is important for all parties involved in the project have at least one representative present during the risk
Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.
In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project
Intentions of the company are risky as it is increasing its sales from 1.2 to 3 million which is 2.5 times more as compare to its current sales , so accordingly this type of strategy includes high risk which are given as follows:-
The desire by Software enterprises to reduce risks and threats to the enterprise can be achieved, by various measures taken by the agency in assessing and solving the risk. Risks involved in Software enterprises are high enough to evolving technology which imposes more chance to the business. Reducing the risk by fifty percent could thus be rendered difficult, since risks involved are high, though; the risk could still be reduced with a smaller percentage than fifty, with effective measures taken during operations in the enterprise (Hall and Ramil).