Lecture Project management: A managerial approach – Chapter 6: Project activity and risk planning

Chapter 6 deals with project activity planning and presents tools useful in organizing and staffing the various project tasks. It also contains a short discussion of phase-gate management systems and other ways of dealing with the problems that arise when multidisciplinary teams work on complex projects.

Part II Project Planning Copyright 2015 John Wiley & Sons, Inc Project Management 6­2 Chapter 6 Project Activity  and Risk  Planning Copyright 2015 John Wiley & Sons, Inc Initial Project Coordination and the  Project Charter Early meetings are used to decide on  participating in the project Used to “flesh out” the nature of the  project Outcomes include:    – – – – Technical scope Areas of responsibility Delivery dates or budgets Risk management group 6­4 Outside Clients  When it is for outside clients,  specifications cannot be changed without  the client’s permission  Client may place budget constraints on  the project  May be competing against other firms 6­5 Project Charter Elements  Purpose  Objectives  Overview  Schedules  Resources  Stakeholders  Risk management plans  Evaluation methods 6­6 The Project Plan Addresses:        The process for managing change A plan for communicating with and managing  stakeholders  Specifying the process for setting key characteristics of  the project deliverable (technically referred to as  configuration management) Establishing the cost baseline for the project and  developing a plan to manage project costs Developing  a plan for managing the human resources  assigned to the project Developing a plan for continuously monitoring and  improving project work processes 6­7 The Project Plan Addresses: (cont)        Developing guidelines for procuring project materials  and resources Defining the project’s scope and establishing practices  to manage the project’s scope  Developing the Work Breakdown Structure Developing practices to manage the quality of the  project deliverables Defining how project requirements will be managed Establishing practices for managing risk Establishing the schedule baseline and developing a  plan to manage the project’s schedule 6­8 A Whole­Brain Approach to Project  Planning  Project managers typically use left side of  brain­ logical and analytical  Should also use right side – creative  A whole­brained approach is mind  mapping 6­9 Mind Mapping Advantages  It is a visual approach that mirrors how  human brain records & stores information  It helps tap the creative potential of the  entire project team – helps increase quantity and quality of ideas  Team members find it enjoyable  Helps generate enthusiasm  Helps obtain buy­in from team members 6­10 Project Risk Management  Projects are risky, uncertainty is high  Project manager must manage this risk  This is called “risk management”  Risk varies widely between projects  Risk varies widely between organizations  Risk management should be built on the  results of prior projects  Increased interest in risk management 6­27 Subprocesses of Risk Management        Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control The risk management register 6­28 Risk Management Planning  Need to know the risk involved before selecting  a project  Risk management plan must be carried out  before the project can be formally selected  At first, focus is on externalities – Track and estimate project survival  Project risks take shape during planning  Often handled by project office 6­29 Risk Management Planning  Types of risks Preventable Strategy External  6­30 Risk Identification  Risk is dependent on technology and  environmental factors  Delphi method is useful for identifying  project risks  Other methods include brainstorming,  nominal group techniques, checklists,  attribute listing, and EWS.   May also use cause­effect diagrams, flow  charts, influence charts, SWOT analysis 6­31 Qualitative Risk Analysis  Purpose is to prioritize risks  A sense of the impact is also needed  Each objective should be scaled and  weighted  Construct a risk matrix  Same approach can be used for  opportunities 6­32 Risk Matrix 6­33 International Project Risk Categories  Cultural  Political   Regional   Virtual  6­34 Quantitative Risk Analysis  More precise than qualitative  Typically more accurate  Three techniques: Failure Mode and Effect Analysis Decision Tree Analysis Simulation  6­35 Failure Mode and Effect Analysis List ways a project can fail Evaluate severity Estimate likelihood Estimate the inability to detect Find the risk priority number (RPN)  (RPN =  S   L   D) Consider ways to reduce the S, L, and  D for each cause of failure 6­36 A FMEA Example 6­37 Decision Tree Analysis 6­38 Risk Response Planning Threats – – – – Avoid Transfer Mitigate Accept Opportunities – – – – Exploit Share Enhance Accept 6­39 Risk Monitoring and Control  Monitoring covered in detail in Chapter 10  Control covered in Chapter 11 6­40 The Risk Management Register  Environments that may impact projects  Assumptions made  Risks identified  List of categories and key words  Estimates on risk, states of project’s  environment, or on project assumptions  Minutes  Actual outcomes 6­41 ... plan to manage the project s schedule 6­8 A Whole­Brain Approach to Project Planning  Project managers typically use left side of  brain­ logical and analytical  Should also use right side – creative  A whole­brained approach is mind ... results of prior projects  Increased interest in risk management 6­27 Subprocesses of Risk Management        Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis.. .Project Management 6­2 Chapter 6 Project Activity and Risk Planning Copyright 2015 John Wiley & Sons, Inc Initial Project Coordination and the  Project Charter Early meetings are used to decide on