This document provides an overview and introduction to a training session on time management, cost management, risk management, and procurement management. The session will cover key concepts related to developing project schedules, estimating costs, performing risk analysis, and managing procurement. It includes slides that define processes for time management, cost estimating and budgeting, risk planning and identification, and the role of an integrated master schedule in project communication and management.
The document provides an overview of project management modules and topics, including:
- Module 1 defines a project as a "temporary endeavor undertaken to create a unique product or service."
- Module 2 outlines the nine knowledge areas of project management according to PMI: integration management, scope management, time management, cost management, quality management, human resource management, communications management, risk management, and procurement management.
- Module 3 discusses the triple constraint of project management involving balancing the constraints of time, cost, and quality/scope.
- Modules 4 and 5 cover risk management and project selection methods such as payback period, net present value, weighted and unweighted selection criteria, and forced pair comparisons for priorities
This document provides an overview of risk and issue management best practices. It discusses key concepts like the differences between risks and issues, how to prioritize them, and the overall process of identifying, analyzing, taking action, monitoring, reviewing, and reporting on risks and issues over the lifecycle of a project. The goal is to familiarize workshop participants with a standardized terminology and approach to proactively manage risks and issues in order to minimize potential impacts on a project.
The risk management for projects attempts to recognize and manage potential and unforeseen trouble spots which may occur when the project is implemented. It identifies as many risk events as possible. Further classification of risk factors help in resolving it either by mitigation, avoiding, transferring or retaining .Methods of handling risk.
The document discusses project risk management. It defines risk as a function of uniqueness and experience. There are two types of risks: business risks relating to gains/losses, and pure risks which only have downsides. The risk management process involves identifying risks early and throughout the project. Risks can then be avoided, mitigated, transferred to a third party, or accepted. Common risk responses include changing plans to avoid risks, reducing probability/impact of risks, assigning risks to third parties, and simply accepting small risks. Preparing for risks requires analyzing and prioritizing them based on likelihood and impact.
This document provides an overview of project cost management. It covers definitions of key cost management terms, techniques for estimating costs such as analogous estimating, determining a project budget, and controlling costs over the lifetime of a project. The main techniques discussed are estimating costs, setting a cost performance baseline budget, monitoring project performance against the baseline through earned value management, and analyzing variances to manage project costs.
- A risk is an uncertain event that could impact plans if realized, while an issue is a risk that has already occurred. Risk management aims to prevent risks or minimize their impact.
- Agile risk identification occurs through requirements workshops, planning poker, daily scrums, sprint reviews, and retrospectives. Risks are assessed based on probability and impact.
- Common risk responses are mitigation, avoidance, containment, and evasion. Risks are regularly reviewed to ensure appropriate response and optimize the process.
- Agile addresses issues daily in scrums and tracks reoccurring issues using snakes or calendars to improve over time.
This document provides guidance on winning project work through effective bidding practices. It discusses establishing a bid strategy, categorizing projects based on complexity and risk to determine appropriate resources and governance, authorizing bids based on business risk, documenting bid requirements, estimating costs and contingencies, setting prices and payment terms, and getting final approval to submit bids. The key tasks for project managers in winning work include qualifying bids, defining project details, managing risks and costs, and gaining appropriate approvals.
The document provides an overview of project management modules and topics, including:
- Module 1 defines a project as a "temporary endeavor undertaken to create a unique product or service."
- Module 2 outlines the nine knowledge areas of project management according to PMI: integration management, scope management, time management, cost management, quality management, human resource management, communications management, risk management, and procurement management.
- Module 3 discusses the triple constraint of project management involving balancing the constraints of time, cost, and quality/scope.
- Modules 4 and 5 cover risk management and project selection methods such as payback period, net present value, weighted and unweighted selection criteria, and forced pair comparisons for priorities
This document provides an overview of risk and issue management best practices. It discusses key concepts like the differences between risks and issues, how to prioritize them, and the overall process of identifying, analyzing, taking action, monitoring, reviewing, and reporting on risks and issues over the lifecycle of a project. The goal is to familiarize workshop participants with a standardized terminology and approach to proactively manage risks and issues in order to minimize potential impacts on a project.
The risk management for projects attempts to recognize and manage potential and unforeseen trouble spots which may occur when the project is implemented. It identifies as many risk events as possible. Further classification of risk factors help in resolving it either by mitigation, avoiding, transferring or retaining .Methods of handling risk.
The document discusses project risk management. It defines risk as a function of uniqueness and experience. There are two types of risks: business risks relating to gains/losses, and pure risks which only have downsides. The risk management process involves identifying risks early and throughout the project. Risks can then be avoided, mitigated, transferred to a third party, or accepted. Common risk responses include changing plans to avoid risks, reducing probability/impact of risks, assigning risks to third parties, and simply accepting small risks. Preparing for risks requires analyzing and prioritizing them based on likelihood and impact.
This document provides an overview of project cost management. It covers definitions of key cost management terms, techniques for estimating costs such as analogous estimating, determining a project budget, and controlling costs over the lifetime of a project. The main techniques discussed are estimating costs, setting a cost performance baseline budget, monitoring project performance against the baseline through earned value management, and analyzing variances to manage project costs.
- A risk is an uncertain event that could impact plans if realized, while an issue is a risk that has already occurred. Risk management aims to prevent risks or minimize their impact.
- Agile risk identification occurs through requirements workshops, planning poker, daily scrums, sprint reviews, and retrospectives. Risks are assessed based on probability and impact.
- Common risk responses are mitigation, avoidance, containment, and evasion. Risks are regularly reviewed to ensure appropriate response and optimize the process.
- Agile addresses issues daily in scrums and tracks reoccurring issues using snakes or calendars to improve over time.
This document provides guidance on winning project work through effective bidding practices. It discusses establishing a bid strategy, categorizing projects based on complexity and risk to determine appropriate resources and governance, authorizing bids based on business risk, documenting bid requirements, estimating costs and contingencies, setting prices and payment terms, and getting final approval to submit bids. The key tasks for project managers in winning work include qualifying bids, defining project details, managing risks and costs, and gaining appropriate approvals.
Increasing the Probability of Project SuccessGlen Alleman
This document discusses principles and practices for increasing the probability of project success by managing risk from uncertainty. It defines risk as the effect of uncertainty on objectives. There are two types of uncertainty - epistemic (reducible) and aleatory (irreducible). Risk from epistemic uncertainty can be reduced through work on the program, while risk from aleatory uncertainty requires establishing margins. The document argues that effective risk management is needed to deliver capabilities on time and budget by identifying risks, understanding their interactions and impacts, and implementing risk handling strategies. This increases the likelihood of project success by preventing problems, improving quality, enabling better resource use, and promoting teamwork.
This document discusses enhancing project team roles and responsibilities in project cost management. It outlines strategies for structuring an organization to achieve cost control goals, including establishing a cost control organization with clear cost codes and a budget matrix. It emphasizes the importance of planning, leadership, and maintaining good relationships with clients and subcontractors to optimize costs. Key aspects include defining a cost management strategy, organizing project teams with safety and quality as top priorities, conducting strategic hiring and reviews, and monitoring costs regularly against the budget.
Risk Management is a critical success factor for all project work.
Risk identification, quantitative and qualitative analysis, and risk response planning and execution is provided in this presentation
Here are the calculations based on the project status provided:
PV = $3,000 (Budget for sides 1, 2 and 3)
EV = $2,950 (100% of side 1 + 100% of side 2 + 75% of side 3)
AC = $2,950 (Actual cost spent)
BAC = $6,000 (Budget for all 6 sides)
CV = -$50 (EV - AC)
CPI = 0.99 (EV/AC)
SV = -$50 (EV - PV)
SPI = 0.99 (EV/PV)
EAC = $6,000 (No variance, so EAC equals BAC)
ET
Risk management involves identifying, analyzing, and responding to risks throughout a project's lifecycle to help achieve project objectives. It includes identifying potential risks, assessing their probability and impact, developing mitigation strategies, monitoring risks, and documenting the process. The key aspects of risk management covered in the document are defining risk, identifying common risk categories, assessing and prioritizing risks, developing mitigation plans, and establishing principles for an effective risk management process.
This document discusses cost management and control techniques for construction projects. It defines different types of costs including direct, indirect, fixed, and variable costs. It then explains various project selection techniques such as return on investment, internal rate of return, net present value, benefit-cost ratio, opportunity cost, and payback period. The document provides examples of how to use each technique to select projects. It also discusses future value and present value calculations. Finally, it covers key aspects of project cost management including estimating costs, determining budgets, and controlling costs.
The document discusses project risk management processes including planning risk management, identifying risks, performing qualitative and quantitative risk analysis, planning risk responses, and controlling risks. It provides details on the inputs, tools and techniques, and outputs of each process. The objective is to conduct risk management activities to increase the probability and impact of positive events and decrease the probability and impact of negative events on a project.
Estimate costs in fragile and transitional contexts - July - 2014Abdulrahman Ismail
The document discusses estimating costs for construction projects in fragile and transitional contexts using the three-point estimating technique. It explains that the technique uses optimistic, most likely, and pessimistic estimates to define a cost range and improve accuracy. As an example, the document applies the technique to estimate costs for a basic education project in Sudan. It calculates optimistic, most likely, and pessimistic cost scenarios accounting for risks like instability and variables like inflation. The final cost estimate of $157,192 is close to the most likely amount, demonstrating how the simple three-point technique can reliably estimate costs while considering the uncertainties of fragile contexts.
This document discusses project risk management. It defines risk as an uncertain event that can positively or negatively impact project objectives. Risk management is the systematic process of identifying, analyzing, and responding to project risks. The six processes of risk management are: 1) plan risk management, 2) identify risks, 3) perform qualitative risk analysis, 4) perform quantitative risk analysis, 5) plan risk responses, and 6) monitor and control risks. Tools used include risk breakdown structures, probability and impact matrices to assess risks, and decision trees to evaluate responses. The goal is to prioritize and respond to risks to help ensure project success.
This document outlines a risk and issue management process. It defines risks and issues, and describes objectives to identify and manage risks, provide a standard reporting format, and escalate risks and issues as needed. It provides guidance on roles and responsibilities, the risk/issue workflow including escalation procedures, and a process for quantitatively assessing impact and prioritizing risks and issues based on timing, financial impact, probability, and scope of impact. Project managers are responsible for identifying, logging and resolving risks and issues, while the PMO provides oversight and escalates significant risks and issues to higher governance levels.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Workshop project risk management (29 june 2012)bfriday
The document discusses project risk management tools used by Bronwyn Friday, the Group Manager of Risk at John Holland Group. It provides an overview of Bronwyn's background and experience in risk management. It then discusses tools and best practices for project risk management, including qualitative and quantitative risk assessment tools, risk registers, and risk identification methods like brainstorming workshops.
In this presentation, we will discuss about risk, project risk and four broad strategies to handle risk. We will also talk about the role of buffers and contingency plan in risk management, project tracking meetings.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
The role of Risk Assessment and Risk Management is to continuously Identify, Analyze, Plan, Track, Control, and Communicate the risks associated with a project.
The Webster’s definition of risk is the possibility of suffering a loss. Risk in itself is not bad. Risk is essential to progress and failure is often a key part of learning. Managing risk is a key part of success.
This document describes the foundations for conducting a risk assessment of a large-scale system development project. Such a project will likely include the procurement of Commercial Off The Shelf (COTS) products as well as their integration with legacy systems.
Management of risk affects the success and financial viability of a project. Internal risks, which are generally within the control of a construction organisation, are cost and schedule overrun. External risks include market conditions, government policy and natural disasters.
This article describes the management of internal risks through integrated schedule and cost analysis as these are areas that can be managed effectively by a construction organisation with minimal set up cost.
The types of project referred to in this article can either be design-and-build or build-only projects. Other forms of procurement such as Build-Operate-Transfer (BOT) will attract different risks which are not considered herein.
This document provides a risk management plan for the construction of a shopping mall project. It identifies major risks such as political, economic, natural disaster risks. It describes the risk management process from risk identification to completion. Key risks identified include cost overruns, staff unavailability, and stakeholder responses. The plan outlines risk monitoring and management approaches, including using a building management system to monitor technical systems and focus on risk points. It will be revised monthly. The goal is to identify and reduce risks that could negatively impact the project.
This document discusses risk management, cost control, and communication in construction projects. It describes how risk management involves identifying, assessing, and treating risks through various models and communication is key. It also explains that cost control is important for meeting project goals and involves establishing budgets, monitoring costs, and controlling changes. Effective risk management, cost control, and communication are important for construction project success.
The document discusses project management certification and professional development. It provides information on several certification programs including:
- The International Project Management Association (IPMA) which offers 4 levels of certification and defines competency levels.
- The Association for Project Management (APM) in the UK, which is aligned with IPMA. APM offers qualifications from introductory to senior practitioner levels, and its certifications are undergoing revision to include a new entry level.
- Requirements to maintain certifications include continuing professional development hours and recertifying after a number of years.
The document also discusses APM's corporate membership, accreditation, and competence framework which is mapped to the IPMA competence baseline and
Most Popular 20 Evergreen Project Management TermsSHAZEBALIKHAN1
Project management requires a deep understanding of the jargon and terminology for effective implementation of practices. The article presents 20 popular and common terms of project management
Increasing the Probability of Project SuccessGlen Alleman
This document discusses principles and practices for increasing the probability of project success by managing risk from uncertainty. It defines risk as the effect of uncertainty on objectives. There are two types of uncertainty - epistemic (reducible) and aleatory (irreducible). Risk from epistemic uncertainty can be reduced through work on the program, while risk from aleatory uncertainty requires establishing margins. The document argues that effective risk management is needed to deliver capabilities on time and budget by identifying risks, understanding their interactions and impacts, and implementing risk handling strategies. This increases the likelihood of project success by preventing problems, improving quality, enabling better resource use, and promoting teamwork.
This document discusses enhancing project team roles and responsibilities in project cost management. It outlines strategies for structuring an organization to achieve cost control goals, including establishing a cost control organization with clear cost codes and a budget matrix. It emphasizes the importance of planning, leadership, and maintaining good relationships with clients and subcontractors to optimize costs. Key aspects include defining a cost management strategy, organizing project teams with safety and quality as top priorities, conducting strategic hiring and reviews, and monitoring costs regularly against the budget.
Risk Management is a critical success factor for all project work.
Risk identification, quantitative and qualitative analysis, and risk response planning and execution is provided in this presentation
Here are the calculations based on the project status provided:
PV = $3,000 (Budget for sides 1, 2 and 3)
EV = $2,950 (100% of side 1 + 100% of side 2 + 75% of side 3)
AC = $2,950 (Actual cost spent)
BAC = $6,000 (Budget for all 6 sides)
CV = -$50 (EV - AC)
CPI = 0.99 (EV/AC)
SV = -$50 (EV - PV)
SPI = 0.99 (EV/PV)
EAC = $6,000 (No variance, so EAC equals BAC)
ET
Risk management involves identifying, analyzing, and responding to risks throughout a project's lifecycle to help achieve project objectives. It includes identifying potential risks, assessing their probability and impact, developing mitigation strategies, monitoring risks, and documenting the process. The key aspects of risk management covered in the document are defining risk, identifying common risk categories, assessing and prioritizing risks, developing mitigation plans, and establishing principles for an effective risk management process.
This document discusses cost management and control techniques for construction projects. It defines different types of costs including direct, indirect, fixed, and variable costs. It then explains various project selection techniques such as return on investment, internal rate of return, net present value, benefit-cost ratio, opportunity cost, and payback period. The document provides examples of how to use each technique to select projects. It also discusses future value and present value calculations. Finally, it covers key aspects of project cost management including estimating costs, determining budgets, and controlling costs.
The document discusses project risk management processes including planning risk management, identifying risks, performing qualitative and quantitative risk analysis, planning risk responses, and controlling risks. It provides details on the inputs, tools and techniques, and outputs of each process. The objective is to conduct risk management activities to increase the probability and impact of positive events and decrease the probability and impact of negative events on a project.
Estimate costs in fragile and transitional contexts - July - 2014Abdulrahman Ismail
The document discusses estimating costs for construction projects in fragile and transitional contexts using the three-point estimating technique. It explains that the technique uses optimistic, most likely, and pessimistic estimates to define a cost range and improve accuracy. As an example, the document applies the technique to estimate costs for a basic education project in Sudan. It calculates optimistic, most likely, and pessimistic cost scenarios accounting for risks like instability and variables like inflation. The final cost estimate of $157,192 is close to the most likely amount, demonstrating how the simple three-point technique can reliably estimate costs while considering the uncertainties of fragile contexts.
This document discusses project risk management. It defines risk as an uncertain event that can positively or negatively impact project objectives. Risk management is the systematic process of identifying, analyzing, and responding to project risks. The six processes of risk management are: 1) plan risk management, 2) identify risks, 3) perform qualitative risk analysis, 4) perform quantitative risk analysis, 5) plan risk responses, and 6) monitor and control risks. Tools used include risk breakdown structures, probability and impact matrices to assess risks, and decision trees to evaluate responses. The goal is to prioritize and respond to risks to help ensure project success.
This document outlines a risk and issue management process. It defines risks and issues, and describes objectives to identify and manage risks, provide a standard reporting format, and escalate risks and issues as needed. It provides guidance on roles and responsibilities, the risk/issue workflow including escalation procedures, and a process for quantitatively assessing impact and prioritizing risks and issues based on timing, financial impact, probability, and scope of impact. Project managers are responsible for identifying, logging and resolving risks and issues, while the PMO provides oversight and escalates significant risks and issues to higher governance levels.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Workshop project risk management (29 june 2012)bfriday
The document discusses project risk management tools used by Bronwyn Friday, the Group Manager of Risk at John Holland Group. It provides an overview of Bronwyn's background and experience in risk management. It then discusses tools and best practices for project risk management, including qualitative and quantitative risk assessment tools, risk registers, and risk identification methods like brainstorming workshops.
In this presentation, we will discuss about risk, project risk and four broad strategies to handle risk. We will also talk about the role of buffers and contingency plan in risk management, project tracking meetings.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
The role of Risk Assessment and Risk Management is to continuously Identify, Analyze, Plan, Track, Control, and Communicate the risks associated with a project.
The Webster’s definition of risk is the possibility of suffering a loss. Risk in itself is not bad. Risk is essential to progress and failure is often a key part of learning. Managing risk is a key part of success.
This document describes the foundations for conducting a risk assessment of a large-scale system development project. Such a project will likely include the procurement of Commercial Off The Shelf (COTS) products as well as their integration with legacy systems.
Management of risk affects the success and financial viability of a project. Internal risks, which are generally within the control of a construction organisation, are cost and schedule overrun. External risks include market conditions, government policy and natural disasters.
This article describes the management of internal risks through integrated schedule and cost analysis as these are areas that can be managed effectively by a construction organisation with minimal set up cost.
The types of project referred to in this article can either be design-and-build or build-only projects. Other forms of procurement such as Build-Operate-Transfer (BOT) will attract different risks which are not considered herein.
This document provides a risk management plan for the construction of a shopping mall project. It identifies major risks such as political, economic, natural disaster risks. It describes the risk management process from risk identification to completion. Key risks identified include cost overruns, staff unavailability, and stakeholder responses. The plan outlines risk monitoring and management approaches, including using a building management system to monitor technical systems and focus on risk points. It will be revised monthly. The goal is to identify and reduce risks that could negatively impact the project.
This document discusses risk management, cost control, and communication in construction projects. It describes how risk management involves identifying, assessing, and treating risks through various models and communication is key. It also explains that cost control is important for meeting project goals and involves establishing budgets, monitoring costs, and controlling changes. Effective risk management, cost control, and communication are important for construction project success.
The document discusses project management certification and professional development. It provides information on several certification programs including:
- The International Project Management Association (IPMA) which offers 4 levels of certification and defines competency levels.
- The Association for Project Management (APM) in the UK, which is aligned with IPMA. APM offers qualifications from introductory to senior practitioner levels, and its certifications are undergoing revision to include a new entry level.
- Requirements to maintain certifications include continuing professional development hours and recertifying after a number of years.
The document also discusses APM's corporate membership, accreditation, and competence framework which is mapped to the IPMA competence baseline and
Most Popular 20 Evergreen Project Management TermsSHAZEBALIKHAN1
Project management requires a deep understanding of the jargon and terminology for effective implementation of practices. The article presents 20 popular and common terms of project management
This document summarizes key processes for project planning. It discusses planning communication management to identify stakeholders' information needs and develop an effective communication plan. It also covers planning risk management to define the risk management approach and plan, identifying risks, qualitatively and quantitatively analyzing risks, and developing risk response strategies. Finally, it discusses other key planning processes like planning procurement management and stakeholder management.
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
The document discusses project risk management processes and their importance. It defines project risk management as involving identification, analysis and response to project risks. The key project risk management processes are risk identification, risk quantification, risk response development, and risk response control. These help manage threats and opportunities throughout the project lifecycle. Effective risk management can significantly reduce project problems and failures.
This document provides an introduction to project management. It defines a project as a temporary group activity designed to produce a unique product, service or result. Project management is explained as the application of knowledge, skills and techniques to execute projects effectively and efficiently. The document outlines key aspects of project management including project scope, time management, cost management, quality management, human resource management, risk management, and best practices. It also distinguishes between projects and operations.
This document discusses risk analysis and management for Engineering, Procurement, and Construction (EPC) projects. It defines risk and project risk, and describes the importance of risk management. It outlines various risks involved in EPC projects related to owners, contractors, government, climatic conditions, social factors, and shareholders. It then discusses techniques for risk analysis including using historical data, expert judgement, Delphi estimates, decomposition, activity sequencing, procurement planning, and project management. The key is to identify, assess, and control risks in order to prevent or decrease gaps between estimated and actual project costs, timelines, and quality.
Designed to provide comprehensive of the fundamentals of estimation & control, this masterclass covers many subtle and advanced estimating & control concepts for specific industry like Oil & gas which are “equipment-centric”, and this influence is important in the selection of estimating methodologies and techniques used in estimate preparation. This process will be covered from both the contractor and owner’s points of view, noting the similarities and differences in the respective approach of each.
An emphasis will be placed on examining the conceptual estimating methodologies that can assist in preparing accurate estimates at early design stages of project. The cost control process will be based on the concept of Plan-Do-Check-Assess of total cost management framework.
This document provides an overview of project risk management. It defines risk and discusses key concepts like risk appetite, tolerance, and threshold. It also categorizes examples of risks as external, internal, technical, and management-related. The chapter outlines the process for planning risk management, including inputs like the project management plan, charter, and stakeholder register. Tools and techniques for planning risk management include analytical methods and expert judgment. The main output is a risk management plan that defines the methodology, roles, budget, risk categories, and risk matrix to be used to manage project risks.
This document discusses risk management for projects. It defines risk as uncertain events that can positively or negatively impact project objectives. Risk management aims to recognize and manage potential issues. The key steps in the risk management process are: 1) identifying risks, 2) assessing risks through analyzing probability and impact, 3) developing responses like mitigating, avoiding, transferring or accepting risks, and 4) developing contingency plans. Contingency funds are also established to cover known and unknown risks. The overall goal is to reduce surprises and minimize negative consequences to improve chances of meeting project objectives.
Here are a few things that could be missing from the mitigation plan:
- Ownership - Who is responsible for implementing the mitigation actions?
- Timeline - By when will the mitigation actions be completed?
- Costs - What are the estimated costs to implement the mitigations?
- Assumptions - What assumptions are the mitigations based on?
- Effectiveness - How effective will the mitigations be in reducing the risk likelihood/impact?
- Constraints - What constraints or dependencies could impact the mitigations?
- Monitoring - How will progress on the mitigations be monitored and reported?
- Contingency - What contingency plans are in place if the mitigations are not fully effective?
This document discusses the importance of continuous risk management for project success. It outlines five key concepts for effective risk management: 1) hoping is not a strategy, 2) single point estimates are inaccurate, 3) integrating cost, schedule, and technical performance is essential, 4) a formal risk management model is needed, and 5) risk communication is critical. The document emphasizes that risk management requires identifying risks early, quantifying their potential impacts, and developing mitigation plans. An effective risk management process is proactive rather than reactive and considers uncertainties as well as known risks.
Earned Value Management (EVM) is an effective tool for project performance measurement that, if planned properly, can play a vital role for project success. EVM is based on scope, time and cost only while risks are not accounted for in planning process. Moreover, there are difficulties in acquiring real-time Actual Cost (AC) data for continuous monitoring and control, mainly due to the communication gap between engineers and accountants. Researchers have proposed different extensions of EVM for specific projects and in general. In order to apply the proposed EVM extensions, a real-time tourism facility project with sustainable energy & water resource at Kund Malir, Baluchistan is taken as a model. Costs, schedules, scope and risks are hypothetical in the model. Planned EVM is applied to the model with and without risks. Risk Costs and Scheduled Buffers are added in Planned Value (PV) calculations basing on probability-impact matrix factors. Furthermore, task level EVM models or Task-EVMs are integrated into Project-EVM or Master-EVM in order to minimize the problems being faced in acquiring real-time data. Industry specific application and research of EVM extensions proposed in this paper can be a good area for future research. Moreover, establishment of tourism facilities at unexplored or less explored areas of Sindh and Baluchistan can be another real-time research as well as a business project.
This document provides a summary of a course on risk management. It outlines the course objectives, expected outcomes, skills developed, required materials, instructional methods, schedule, assessment criteria, resources, and instructor contact information. The course objectives focus on planning, identification, analysis, responses, monitoring and control of risks on a project. It will be taught through lectures, demonstrations, discussions, and projects. Assessment will include weekly assignments, projects, quizzes, and a final exam. The instructor can be contacted by email or during posted office hours.
This presentation talks about how risks in a project are analyzed and quantified. The presentation also discusses benefits of quantification of risks and the various tools at our disposal to manage risks effectively through quantification.
This document presents a case study evaluating an integrated schedule and cost risk analysis method using Monte Carlo simulation for a construction project in Vietnam. The study found the method to be effective compared to traditional approaches by identifying more risks and their impacts. It provides step-by-step guidelines for implementation. The analysis of a sample project found very low probabilities of completing on schedule and within budget. Simulated risk mitigation scenarios allowed analysis of strategies to improve outcomes. While effective, the author notes limitations and recommendations for refining and testing the approach in additional projects.
The document discusses risk management for a project called the GSCMP being undertaken by Healthy Living Pte. It identifies several risks for the project, including a lack of proper tendering process, risk of going over budget, lack of a testing plan, and lacking security/network skills. It outlines the risk management process, which includes planning, identifying risks through documentation review and meetings, analyzing risks, and developing a risk management plan and risk breakdown structure to monitor and address risks. The goal is to proactively manage risks to help ensure successful completion of the complex GSCMP project.
- Cost is one of 3 Triple constraints of the project. Managing costs of the project is very crucial and hardest part of the project. It spans across all phases of the project right from conception to closure of the project.
- Cost Management is not just controlling “Costs”; it involves definitive planning and preparing budgets. Collecting cost associated data. Comparing the data to prepared budgets and taking appropriate actions when needed.
- The process involved in estimating, budgeting, and controlling cost so that the project can be completed within approved budget.
- Value analysis (value engineering)
• Looking at less costly way to do the same work within the same scope
This document provides an overview of basic project management concepts. It discusses that a project has defined scope, time, cost, quality and resource constraints. The key aspects of project management include planning the work, working the plan, and endorsing the plan. The project manager's role is to manage expectations, direct the team, track progress, communicate status, and resolve issues. Effective project management balances the triple constraints of scope, time and cost. The project life cycle begins with initiation, which involves defining objectives, assembling a team, and getting approval. Planning then further develops the scope, schedule, budget, risks and other elements of the project.
1. Project Risk Management (25 Points)You have been tasked to.docxdorishigh
1. Project Risk Management (25 Points)
You have been tasked to manage a facilities construction project for a non-profit organization. Specifically, the organization is undertaking a large project to build a 6000 square foot office and an attached building with 20 hotel style rooms for its beneficiaries (building a shelter). The budget is tight and the organization needs to have these facilities as soon as possible. The project is in the planning stage and you have some requirements documents and funding available. How would you use risk management on this project? Why would you use risk management? What are your most important considerations? What are the steps of your risk management process (use any model you like ie PMP, textbook, DoD etc)? Provide a Risk Breakdown Structure for the project. What risk identification tools would you use on the project? Why?
Assume you are talking to a key stakeholder (donor) about your plan.
1. PROJECT RISK MANAGEENT (40 Points)
Meaning of Risk Management
Risk management is very important part of planning for project, the process of risk management is developed to reduce the risk of certain events happening which are having negative impact on overall project. Risk management is the identification, assessment and prioritization of risk followed by coordinated and economical application of resources to monitor, minimize, and control the probability and impact of negative outcomes.
0. How would you use risk management on this project?
Our proposed project of constructing 6000 square foot office and twenty hotel style rooms is in planning stage; this is a plus point for the management as they can develop detailed risk management activities.
Risk management depends on the understanding of the overall project in other words in order to develop detailed risk management activities the understanding of the project is very important. To use risk management for the project, we will create a detailed risk management plan which is also used to understand the whole project. The contents of risk management plan are as follows:
1. Project Description
· Project objective: to construct 6000 square yard office and 20 rooms building.
· External Dependencies: acquiring construction material, services of architects etc.
· Stakeholder analysis: reaction of local residents, local government regulations, negotiation with donors, requirement of client etc.
1. Risk Management scope and objectives
· Variance threshold: two main constraints in this project is time and funds. Calculated variance should be calculated for these two variables that is how long each activity could be stretched while keeping project feasible. By doing this we can identify the threshold of timing and budget after which project become in viable.
· Prioritization of project objectives: in order to complete the project in time, a schedule of activities required showing activities of project needs priority and others which could be delayed.
1. ...
1. Project Risk Management (25 Points)You have been tasked to.docx
Presentation To Ipm 2008
1. CPM100E – Time, Cost, Risk and
Procurement Management
Presented by
Mark A. Buchholz, PMP
2008 Integrated Project
Management Conference
CPM100E - Time, Cost, Risk and Procurement Management slide 1
2. Lesson Overview
Time and Cost Management
The student will understand the concept of time
management
The student will understand the concept of cost
management
Risk and Procurement Management
The student will understand the value of risk
management to the project manager
The student will understand the role of procurement
management in the project office
The student will understand the implications of contract
terminations during project execution
CPM100E - Time, Cost, Risk and Procurement Management slide 2
3. Time Management
Project Time Management (PMBOK 3rd Ed, p. 123)
Activity definition – identifying the specific schedule activities that
need to be performed to produce the various project deliverables
Activity sequencing – identifying and documenting dependencies
among schedule activities
Activity duration estimating – estimating the number of work
periods that will be needed to complete individual activities
Activity resource estimating – estimating the type and quantities
of resources required to perform each schedule activity
Schedule development – analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the
project schedule
Schedule control – controlling changes to the project schedule
CPM100E - Time, Cost, Risk and Procurement Management slide 3
4. Time Management
Project time management
includes the processes to
accomplish timely
completion of the project
PMBOK 3rd Ed, p. 123.
Project Scheduling is the
process of sequencing and
timing when the work will
be performed
Scheduling is determining
“the When”
CPM100E - Time, Cost, Risk and Procurement Management slide 4
5. Time Management
The Project Scheduling Process
We need to know what we’re going to do
We need to know in what order we’re going to do it
We need to know how long each thing we’re going to
do is going to take
We need to know who’s going to do what needs to be
done
We need to arrange those things we’re going to do
according to how they relate to each other
Then over the course of the project we need to control
these things and our plan to do that
CPM100E - Time, Cost, Risk and Procurement Management slide 5
6. The Integrated Master Schedule (IMS)
The IMS is
The document which represents the Integrated Planning and
Scheduling processes
At the top level of the project
A Network diagram which encompasses all the scope, defines
when things will get done, and tracks how much work was
accomplished
CPM100E - Time, Cost, Risk and Procurement Management slide 6
7. The IMS is a Communication Tool
Enables communication by establishing a common
language
Shared understanding of tasks and relationships
Defines “what/who” impacts “my tasks”
Defines “what/who” “my tasks” impact
Enables use of project management language
Focus on planned start/finish versus actual start/finish
How much has been done, versus was planned to be done
Helps to answer the questions
When am I going to start?
When am I going to be done?
What does that mean to the next task?
CPM100E - Time, Cost, Risk and Procurement Management slide 7
8. The IMS is a Management Tool
Enables Baseline to be established
Establishes what was planned to be accomplished
Reference point from which to measure performance
Gives clear picture of slips and early starts
Clarifies task dependencies
Shows who’s responsible for what and when
Shows impact of extending task duration beyond the plan
Reliability of the IMS depends upon
Regular reporting: every day/week/two-weeks/month/etc.
Accurate statusing: how much of the planned work was
actually accomplished in that period
Project Management becomes pro-active not reactive
CPM100E - Time, Cost, Risk and Procurement Management slide 8
9. Cost Management
Project Cost Management includes the processes
involved in planning, estimating, budgeting and
controlling costs so that the project can be completed
within the approved budget (PMBOK 3rd Ed, p. 157)
Cost estimating – developing an approximation of the
costs of the resources needed to complete project
activities
Cost budgeting – aggregating the estimated costs of
individual activities or work packages to establish a
cost baseline
Cost control – influencing the factors that create cost
variances and controlling changes to the project
budget
CPM100E - Time, Cost, Risk and Procurement Management slide 9
10. Cost Estimating
We know what needs to be done
Scope defined in our WBS
Activities defined
Durations estimated
Resources assigned
Now it’s a “simple” matter of A times B equals C
Labor rates times the hours equals the cost
Add in all the “other” costs to get a total cost
Or you can use other methods to estimate cost
Analogous – using the actual cost of a previous project
Resource cost rates – research the market rates for materials
Bottom-up estimating – start with the lowest level tasks and
gradually add-up these costs
Parametric – use of historical data to statistically develop a cost
CPM100E - Time, Cost, Risk and Procurement Management slide 10
11. Cost Budgeting
Adding it all up to create the total cost for the project
Aggregate all the activity or WBS element costs
Apply a reserve margin to the total you develop to create a new
total cost
How much do you need to add in to accommodate the risk on
this project
Adding in funding for the “Unknown Unknowns”
Evaluate and reconcile against how much money is available
Establish a cost baseline
A time-phased budget – when the project will spend the money, i.
e. month-by-month, or quarter-by-quarter
Project funding requirements
Once a management reserve margin is applied, establish what
the total funds the project will need
CPM100E - Time, Cost, Risk and Procurement Management slide 11
12. Risk Management
Project risk management
includes the processes
concerned with conducting risk
management planning,
identification, analysis,
responses, and monitoring and
control on a project; most of
these processes are updated
throughout the project.
(PMBOK 3rd Ed, P. 237)
The objectives of project risk
management are to
Increase the probability
and impact of positive
events
Decrease the probability
and impact of events
adverse to the project
CPM100E - Time, Cost, Risk and Procurement Management slide 12
13. Risk Management
Risk management planning – deciding how to approach, plan
and execute the risk management activities for a project
Risk identification – determining which risks might affect the
project and documenting their characteristics
Qualitative risk analysis – prioritizing the risks for subsequent
further analysis or action by assessing and combining their
probability of occurrence and impact.
Quantitative risk analysis – numerically analyzing the effect on
overall project objectives of identified risks
Risk response planning – developing options and actions to
enhance opportunities and to reduce threats to project
objectives
Risk monitoring and control – tracking identified risks,
monitoring residual risks, identifying new risks, executing risk
response plans, and evaluating their effectiveness 3rd Ed, p. 237
PMBOK
throughout
CPM100E - Time, Cost, life cycle
the project Risk and Procurement Management slide 13
14. Risk Management Planning
Deciding ahead of time how
the project team will handle the
process of risk management
Usually they will simply model
the behavior of their “parent”
organization
Will need to declare on the
project team who, how, and
when risk management
activities will occur
Its everyone’s
responsibility
Its continuous – But it has
to start early!
It must be integrated with
every other process that
the project team performs
Includes deciding on what
level of risk the project is
willing to assume
CPM100E - Time, Cost, Risk and Procurement Management slide 14
15. Risk Identification
Developing a list of what
could go wrong – within
reason (but seriously, dude,
the rain will never get that
bad)
Risk Register
List of identified risks
List of potential
responses
Root causes of the risk
Updated risk
categories
CPM100E - Time, Cost, Risk and Procurement Management slide 15
16. Qualitative and Quantitative Risk Analysis
Qualitative risk analysis – the focus is on whether the
risk event will occur
Quantitative risks – the focus is on the impact if the
risk does occur
Risk factor is probability times impact
Risk alpha has a probability of 3 with an impact of 4
therefore the RF is 12
Risk beta has a probability of 1 with an impact of 5
therefore the RF is 5
Risk gamma has a probability of 5 with an impact of 5
therefore the RF is 25
CPM100E - Time, Cost, Risk and Procurement Management slide 16
17. Risk Response Planning
We know something is going to happen.
We’re not sure when but we know it will hurt when it
happens
So what are we going to do when the risk event
occurs
Make it “hurt” less – Mitigate
Make it go away faster – Mitigate
Make it someone else’s problem – Transfer
Don’t do the thing that is most likely to cause it – Avoid
Have a plan – Contingency response strategy
Suffer the pain – Acceptance
CPM100E - Time, Cost, Risk and Procurement Management slide 17
18. Risk Monitoring and Control
We’ve figured it all out, we
have a plan, now its time to
watch, observe, and be
ready to act
Identify, analyze and plan
for new risks
Monitor triggers to see if a
risk event has occurred
Monitor the execution of
our risk response plans to
make sure that they really
are having the intended
effect
Determine if we need to
change how we are
managing risk
CPM100E - Time, Cost, Risk and Procurement Management slide 18
19. Project Procurement Management
Plan purchases and acquisitions – determining what to purchase or
acquire and determining when and how
Solicitation planning – plan contracting – documenting products,
services and results requirement and identifying potential sellers
Request seller responses – obtaining information, quotations, bids,
offers, or proposals, as appropriate
Source selection – select sellers – reviewing offers, choosing among
potential sellers, and negotiating a written contract with each seller
Contract administration – managing the contract and relationship
between the buyer and seller, reviewing and documenting how a
seller is performing or has performed to establish required corrective
actions and provide a basis for future relationships with the seller,
managing contract-related changes and when appropriate, managing
the contractual relationship with the outside buyer of the project
Contract closure – completing and settling each contract, including the
resolution of any open items, and closing each contract 3rd Ed, p. 269
PMBOK applicable to
the project or a project phase
CPM100E - Time, Cost, Risk and Procurement Management slide 19
20. What is a Contract
A contract is a legally
binding agreement between
two or more parties
Non-verbal
Verbal
Written
A contract has certain key
elements
Offer
Consideration
Acceptance
CPM100E - Time, Cost, Risk and Procurement Management slide 20
21. The Contracting Process
What do we need someone to provide for us
Services, product, support, etc
What are the terms by which we want them to provide it to us
What is it supposed to look like
When do we want it
What are the rules that have to be followed when they provide it
Make us an offer
Accept the offer
Make sure we get what we want when and how we need it –
enforce the terms of the agreement
When we’re done, make sure we’re really done
CPM100E - Time, Cost, Risk and Procurement Management slide 21
22. Questions and Contact Info
Questions/Answers?
Don’t forget to fill out the Course Evaluation Sheets
Contact:
Mark A. Buchholz, PMP
Account Manager, Acquisition Solutions, Inc.
Email: mbuchholz@acquisitionsolutions.com
CPM100E - Time, Cost, Risk and Procurement Management slide 22