Procurement Management Importance of Project Procurement Management Procurement means acquiring goods and/or services from an outside source Other terms include purchasing and outsourcing Debates on Outsourcing Some companies, such as Wal-Mart, prefer to do no outsourcing at all, while others do a lot of outsourcing. GM recently announced plans to switch from outsourcing 90% of IT service to only 10% Most organizations do some form of outsourcing to meet their IT needs and spend most money within their own country Why Outsource? To access skills and technologies To reduce both fixed and recurrent costs To allow the client organization to focus on its core business To provide flexibility To increase accountability PM Network – Risks of Outsourcing Boeing’s Dreamliner Following suit and not minding risks Vendor Issues Misunderstanding Information Exchange Schedule Overruns PM Network – The More the Merrier More providers, more problems Differing methodologies and tools Service and Operating Level Agreements Find a balance that works for the organization Contracts A contract is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them Contracts can clarify responsibilities and sharpen focus on key deliverables of a project Because contracts are legally binding, there is more accountability for delivering the work as stated in the contract Project Procurement Management Processes Project procurement management: Acquiring goods and services for a project from outside the performing organization Processes include: Planning procurement management Conducting procurements Controlling procurements Closing procurements Planning Procurement Management Identifying which project needs can best be met by using products or services outside the organization Types of Contracts: Fixed Price (or lump sum) Cost Reimbursable Time and Material Unit Price Point of Total Assumption The Point of Total Assumption (PTA) is the cost at which the contractor assumes total responsibility for each additional dollar of contract cost Contractors do not want to reach the point of total assumption, because it hurts them financially, so they have an incentive to prevent cost overruns The PTA is calculated with the following formula: PTA = (ceiling price – target price)/government share + target cost Cost Reimbursable Contracts Cost plus incentive fee (CPIF Cost plus fixed fee (CPFF) Cost plus percentage of costs (CPPC) Contract Clauses Contracts should include specific clauses to take into account issues unique to the project Can require various educational or work experience for different pay rights Often includes: Termination clause Limitation of liability clause Tools and Techniques for Planning Purchases and Acquisitions Expert judgment Market research Make-or-buy analysis: General management technique ...

1. Procurement Management
Importance of Project Procurement Management
Procurement means acquiring goods and/or services from an
outside source
Other terms include purchasing and outsourcing
Debates on Outsourcing
Some companies, such as Wal-Mart, prefer to do no outsourcing
at all, while others do a lot of outsourcing.
GM recently announced plans to switch from outsourcing 90%
of IT service to only 10%
Most organizations do some form of outsourcing to meet their
IT needs and spend most money within their own country

2. Why Outsource?
To access skills and technologies
To reduce both fixed and recurrent costs
To allow the client organization to focus on its core business
To provide flexibility
To increase accountability
PM Network – Risks of Outsourcing
Boeing’s Dreamliner
Following suit and not minding risks
Vendor Issues
Misunderstanding
Information Exchange
Schedule Overruns
PM Network – The More the Merrier
More providers, more problems
Differing methodologies and tools
Service and Operating Level Agreements
Find a balance that works for the organization

3. Contracts
A contract is a mutually binding agreement that obligates the
seller to provide the specified products or services and obliga tes
the buyer to pay for them
Contracts can clarify responsibilities and sharpen focus on key
deliverables of a project
Because contracts are legally binding, there is more
accountability for delivering the work as stated in the contract
Project Procurement Management Processes
Project procurement management: Acquiring goods and services
for a project from outside the performing organization
Processes include:
Planning procurement management
Conducting procurements
Controlling procurements
Closing procurements
Planning Procurement Management

4. Identifying which project needs can best be met by using
products or services outside the organization
Types of Contracts:
Fixed Price (or lump sum)
Cost Reimbursable
Time and Material
Unit Price
Point of Total Assumption
The Point of Total Assumption (PTA) is the cost at which the
contractor assumes total responsibility for each additional
dollar of contract cost
Contractors do not want to reach the point of total assumption,
because it hurts them financially, so they have an incentive to
prevent cost overruns
The PTA is calculated with the following formula:
PTA = (ceiling price – target price)/government share +
target cost
Cost Reimbursable Contracts
Cost plus incentive fee (CPIF
Cost plus fixed fee (CPFF)
Cost plus percentage of costs (CPPC)

5. Contract Clauses
Contracts should include specific clauses to take into account
issues unique to the project
Can require various educational or work experience for
different pay rights
Often includes:
Termination clause
Limitation of liability clause
Tools and Techniques for Planning Purchases and Acquisitions
Expert judgment
Market research
Make-or-buy analysis: General management technique used to
determine whether an organization should make or perform a
particular product or service inside the organization or buy from
someone else
Exercise: Make-or-Buy Example

6. Assume you can lease an item you need for a project for
$800/day. To purchase the item, the cost is $12,000 plus a dai ly
operational cost of $400/day
How long will it take for the purchase cost to be the same as the
lease cost?
Contract Statement of Work (SOW)
A statement of work is a description of the work required for
the procurement
If a SOW is used as part of a contract to describe only the work
required for
that particular contract, it
is called a contract stmt
of work
Procurement Documents
Request for Proposals
Proposal
Requests for Quotes
Bid

7. Source Selection Criteria
It’s important to prepare some form of evaluation criteria,
preferably before issuing a formal RFP or RFQ
Beware of proposals that look good on paper; be sure to
evaluate factors, such as past performance and management
approach
Conducting Procurements
Deciding whom to ask to do the work
Sending appropriate documentation to potential
sellers
Obtaining proposals or bids
Selecting a seller
Awarding a contract
Approaches for Procurement
Organizations can advertise to procure goods and services in
several ways:
Approaching the preferred vendor
Approaching several potential vendors
Advertising to anyone interested

8. Seller Selection
Organizations often do an initial evaluation of all proposals and
bids and then develop a short list of potential sellers for further
evaluation
Controlling Procurements
Ensures that the seller’s performance meets contractual
requirements
Contracts are legal relationships, so it is important that legal
and contracting professionals be involved in writing and
administering contracts
It is critical that project managers and team members watch for
constructive change orders
Suggestions for Change Control in Contracts
Evaluation of any change should include an impact analysis.
How will the change affect the scope, time, cost, and quality of
the goods or services being provided?

9. Changes must be documented in writing. Project team members
should also document all important meetings and telephone
phone calls
Best Practice
Accenture developed a list of best practices from exper ienced
outsourcers throughout the world:
Build in Broad Business Outcomes Early and Often
Hire a Partner, Not Just a Provider
It’s More Than a Contract, It’s a Business Relationship
Leverage Gain-Sharing
Use Active Governance
Assign a Dedicated Executive
Focus Relentlessly on Primary Objectives
Closing Procurements
The project team should:
Determine if all work was completed correctly and satisfactorily
Update records to reflect final results
Archive information for future use
The contract itself should include requirements for formal
acceptance and closure

10. Tools to Assist in Contract Closure
Procurement audits identify lessons learned in the procurement
process
Negotiated settlements help close contracts more smoothly
A records management system provides the ability to easily
organize, find, and archive procurement-related documents
Chapter Summary
Project procurement management involves acquiring goods and
services for a project from outside the performing organization
Processes include:
Plan procurement management
Conduct procurements
Control procurements
Close procurements

11. 11/05/2019
Stakeholder
Responsibility
Stakeholder
Responsibility
Company Managers
Build up product functional, development, Innovate, calculate
budget, financial analysis, performance analysis
Program Manager
The group/person who have de the right control all the project
clap switch, and all relative activities
Suppliers
Business cooperate partner, supply chain for product
Project Management Office
Resources, technical tools, rights, policies are necessary, PMO
use to make a great connection between each section for the
product
Customers
Who use the final product, usually give feedback for the product
Portfolio Manager
Developing strategies, making promotion, Ad. and Media.
Workers
Who create the clap switch, manufacturing, test product quality.
Other
Consults, government policies, communities, and any relative
office/departments.
Project Stakeholder Management Tabular Example：

12. Santya Hosan
Tony Mac
Karl Eliot
Catherine Jay
Project Role
Program manager
Portfolio manager
Distributor
Supplier
Interest
Sounds Control and electric circuit are the core system for Clap
Switch
Clap switch users, Cooperate organization
Set up local stores in different area
Product part supply chain for Clap Switch
Project knowledge
Must be extremely know each section of build up a clap switch
requirement
Must be extremely having knowledge on regulate rights, and
most necessary strategies back up.
Necessary strong marketing strategy and research background
Do not required too much knowledge, but required strong
technical skill and, some contractual obligation
Expectation
Deliver professional core system, which are sounds control
system and electric circuit, meet the expectation requirement
Make sure clap switch pass the test and do evaluation.
Make sure each distributor/ local store is all set before
operating the business. Make sure shipping timely
Needs more information specific details about parts and design
clap switch model
Impact
High-clap switch is funding sounds control and electric circuit.
Can be develop more in the future
High-It’s necessary to have a strong government/law/right

13. Background, and has a good communication with cooperate
partners
Low- It’s not necessary, but could be more helpful for gain
more resources and opportunities
High-shipping and delivery timely.
It’s the basic of clap switch
Good quality of each simple part
Stakeholder Register
Stakeholder
Unaware
Resistant
Neutual
Supportive
Leading
Santya Hosan
Program manager
C
C/D
Holley Shann

14. Coustumer/User
D
C/D
Nancy Zac
Business Director
C/D
C/D
Peter Giles
Testing sound control system
C
C/D
Aria Irenne
Testing electric circuit system
C
C/D
Laura Jin
Operation director
D
Lisa Brown

15. Distributor manager
C/D
Interpersonal Skills
Description
Build Brand Reputation
Make good connection with relative communities and think
about every partner’s needs.
Build Costumer and cooperative partner trust
Good product quality is necessary, timely customer feedback,
make evaluation, meet costumers needs
Meeting & Share Idea
Communicate with co-workers, share any idea that would help
company/product develop more effective idea.
Overcome
When make decision making, need to meet with all relative
stakeholders to make decision making.

16. Clap Switch
Shipping
Delivery
Product
Quality
Product Manufacture
Parts Import
Supply Chain
Sound
Control
Electric Circuit
Product Quality
Electric Circuit

17. Sound Control
Line
Composition
Circuit
Module
Testing
Circuit
Quality Testing
Create
Module
Technical
Support
Personnel
John
Tony
Sarah Brown
Leo
Smith
Paul
Stuck
Luna
Dan
Department
Module Design
Marketing
Quality
Test

18. Manufacture
Sales
Activities
-
-
-
-
-
Design Clap Switch
R
A/R
R
Test Sounds control & electric circuit
R
R
R
Product Develop
R/A
R
C
R
Marketing Strategy
A
R
C
A/R
Advertise Develop
R
A

19. C
Distribution
A
C
C
Sell
R
Ship and Delivery
I
C
Human Resource Management Plan
Roles & Responsibilities
Depends on position
Assign individual work by company
Sign documents and making decision together
Require strong relative background/skill for positions, finish
task individually or by group
Organizational
Top-down format
Follow the rule
Staffing Management

20. Specific time and method for each position
Share resources & idea
Tanning employees, specially for manufacture and technical
group, from top to down
Criteria
Description
Availability
Consider whether the worker open to work on individual task or
share resources/cooperate with others
Cost
Assessment for each work / position budget, hire suitable
workers
Experience
If any relevant experience will be considering higher
opportunities and more chance to finish task timely
Ability
To see if the work can finish the task by require conditions.
Knowledge
Consider if the worker has strong relevant knowledge
background and experience to handle the task
· Specially for technical part
Skill
Require to training the workers for specially position and task:
manufacture，product design，quality test and any relevant
technical support
Attitude
Consider if the worker has a positive attitude when do works
and communicate with others
International
Culture background, time zone, diversity communicate skill

21. Selection criteria
11/11/2019
Effective communication program
A product manager (PM) should be able to interpret, translate,
and disintegrate complex concepts into something that the
audience can easily understand (they should be multilingual).
That is a primary skill that all PMs should have at the core of
their daily operations because this is the kind of communication
that enables them to work through the organization and
influence the facilitation of a product (Gwynn, 2019). In any
effective communication program, the key people to interact
with are these four categories: top management, colleagues,
diverse stakeholders, and consumers. Therefore for the
development of an effective program of communication that is
cooperative as well (for the clap switch), PM will have to find a
way to communicate with these relevant stakeholders.
Communicating with the top management
At this level of communication, the message is a very serious
and high profile, and therefore, PM for the clap switch should
find the best way to confidently and affirmatively break down
his message to the top managers. In doing this, PM will have
some Dos and Dons.
The Dos; in the category, the first thing to do is to ensure the
presentation and other documents reach them before the actual
meeting, also important is making some pre-printed materials
for them to go through in the course of the meeting quickly.
Secondly, PM should be well conversant with the information

22. about the product and be sure to support your facts with data
and videos (Harrison, 2019). This will show that PM had
thought through the entire process and is aware of the possible
outcomes. Thirdly, PM should be categorical about the
achievement of the goals and highlight from what perspective is
their support needed. Fourthly, ensure to fulfill the follow -up
requests and then provide a comprehensive update after that
meeting.
The Don’ts; the first thing is giving too much information to the
audience, instead focus on the important facts that can help
them in making decisions. Therefore, during the preparation,
ensure that your slide only contains the links of the product to
their objectives of the business. Secondly, giving surprises to
your audience with bad news as this would attract lots of
questions. Thirdly, wasting audience time especially due to
unpreparedness, never take their time for granted and therefore
should adequately prepare. And finally, ignoring the dynamism
presented in the room. Instead, be sure to understand the
reaction of the audience and adjust accordingly.
Communicating with your team
This category contains people PM meets, interacts with, takes
lunch, and at least once a week meets officially to discuss the
status and solve issues. However, when the achievement of the
agreed goals fails, PM needs to understand how he is going to
communicate with colleagues
The Dos; the first thing is to harmonize the standups by
allowing everybody to manage the project as well as the non-
engineers of the product. The second thing is regularly
reviewing the strategy and then be sure to give reasons for the
contextual changes as well as an update on the data as the
business progresses. Thirdly, make sure to take records on key
decisions and send them to the team because it is the
responsibility of the PM to do that. The fourth thing is to ensure
that no blockers are available by being proactive in the
facilitation of communication. If nobody understands a concept,
then bring them together and have a discussion with them and

23. then explain the way forward. Finally, ensuring colleagues’
motivation, and this can be done by having meetings that
appreciate their substantial contributions to the product’s
progress.
The Don’ts; the very first thing is making decisions in isolation
without engaging the others. This makes teammates lose the
sense of ownership in the product, and therefore, the decisions
are likely to bring a ripple effect. Instead, constantly update
them on the actions taken. Secondly, it is sending a request to
an assignee using a tool for project management without prior
notice. The assignee may consider this very rude, and therefore,
it is good to make prior communications to make the request
polite (Harrison, 2019). The third aspect is regarding the
product engineers as subordinates as opposed to partners. The
PM should instead regard these people as potential partners and
even seek their opinions in the decision-making process.
Finally, the ignoring to give updates to the colleagues (on the
changes on product specifics) after a meeting with the top
management. The PM should ensure the team gets updates and
reason for the changes in the specifications hence bringing
alignment to the process.
Communicating with stakeholders
Stakeholders are very vital in the lifecycle of the development
of a product, and they include both internal teams (the legal and
the finance) as well as the external teams (the partners of the
brand) (Ragini, 2019). Some of the stakeholders usually have
their needs changing with time, and therefore, this puts PM at a
position of being able to negotiate and minimize the changes.
After the changes have been negotiated, PM should find a way
to take the information to the engineers and designers to act on
the product.
The Dos; the first thing is to be able to show a good
understanding of their roles and field as well as showing
empathy to them. Secondly, PM should be able to predict the
changing dynamics of various discussions and, as such, apply
the relevant formats to different people and at the right times

24. (Gwynn, 2019). Due to the varying roles, PM has the task of
accordingly adjusting the meetings. Thirdly, whenever the time
is right, PM should give leverage to teammates. For instance,
the engineers should be invited to a meeting to talk about the
impacts of change on the product. The fourth aspect is to
provide constant enlightenment to the stakeholders who often
are unaware of their effects on the development process.
Another crucial thing is ensuring to have good relationships
beyond the work environments (meetings) as this would help in
creating a good rapport between them. Lastly, PM should ensure
the utmost transparency across the organization by making
available all the updates on the product.
The Don’ts, the very first step, is overlooking the importance of
involving the stakeholders at appropriate stages. The PM should
know different investments by each stakeholder and, as such,
make a list of all the people to be included before a critical
decision is made. Secondly, prompting the stakeholders into
thinking their opinions were overlooked, and therefore the
briefed on the next steps. Ensure that every step is well
explained to them even if it was not their idea. The third thing
is letting it off your mind that stakeholders are not conversant
with the decisions making and priorities setting (Ragini, 2019).
The PM should never assume and instead should constantly
teach the stakeholders. Fourthly, is letting the stakeholders have
different understandings of decisions and next actions at the end
of a meeting. Make it a necessity at the end of every meeting to
inform the stakeholders of the conclusions and ensure they are
in agreement. Lastly, overlooking the need to enlighten the
stakeholder on specified deadlines and tradeoffs as well. The
PM should never wait to be asked; instead, they should provide
this information and also update the stakeholders on any
changes regarding timelines.
Communicating with customers
Another critical aspect of communication involves the
customers; this involves understanding their needs in your

25. company. The PM should also ensure they identify gaps existing
in the market and strive to fill them, and more importantly, PM
should ensure the product they are proposing will have the most
impact for the customers (Gwynn, 2019).
The Dos; PM should ensure they understand the problem of
users and figure out the “why “part later. To achieve this, PM
needs to understand the drivers of user-problems. Secondly, PM
should conduct goal-oriented research to establish what is most
valuable to customers in terms of benefits, and these results
should be relayed to the marketing team and other important
segments. Thirdly, PM should consider the copy of the email as
part of experiencing the product since the customers have it as
the first point of touch. Finally, PM should have empathy for
their customers. Reading the feedback and studies of users
enables the PM to have knowledge of the needs of their
customers as well as their behavior.
The Don’ts; the very first thing is leaving the messaging part of
a product until the near dates to launching. The PM should have
done at the beginning of the product design since it can be very
difficult as the product design (Ragini, 2019). Secondly, is
making an assumption that the position of a product to
customers will happen automatically with marketing. The PM
should instead be actively involved in the learning and
development of a prototype. The third thing is leaving in the
dark the team responsible for the success of the customers
during the launch of the product. The PM should ensure they are
informed to give them a good standpoint when presenting it to
the customers. Lastly, it is ruling out the need to have a rollout
just because the product is an internal issue. The PM should not
assume anything and should instead train internal users because
they are also actual users.
Conclusion
To conclude, a product manager needs to be well prepared,
diligent, cautious, conversant, and well versed with the
perspectives of the product and be able to engage all the parties
involved with utmost regard possible systematically. A PM

26. should understand that all the people involved in the process are
important stakeholders and should be engaged in every aspect to
ensure there is no fear of subordination. It is also very
important for the PM to observe due diligence, comprehensive
evaluation of all possible solutions to the problems, and a
layout of the decision making to explain the course of
development. Finally, the most important of all to know is your
target audience (stakeholders, teamma tes, customers) and the
best way to treat them since they are very integral to the
process.
Distribution Frequency
Project manager
Supplier
Technical
Finance
Marketing
Stakeholder
Defining Goals
Revision as need
✔
✔
Planning
Revision as need

27. ✔
✔
✔
Product Research
As appropriate
✔
✔
✔
✔
✔
Market Research
As appropriate
✔
✔
✔
✔
✔
Procurement
As appropriate
✔
✔
✔
✔
✔
Supplier
As appropriate
✔
✔
✔

28. ✔
✔
Risk Assessment
Weekly
✔
✔
✔
Budget
As appropriate
✔
✔
✔
✔
✔
Executing
As appropriate
✔
✔
✔
Buy Prototype
As appropriate
✔
✔
✔
✔
Design Voice Recognition & Controller Board
As appropriate

29. ✔
✔
✔
Advertising
As appropriate
✔
✔
✔
✔
implementation & Testing
As appropriate
✔
✔
✔
✔
Monitoring
As appropriate
✔
✔
Reporting and Documentation
Once
✔
✔
✔

30. ✔
✔
Employee Training
Weekly
✔
✔
Machine Maintenance
Weekly
✔
✔
✔
Evaluation
As appropriate
✔
✔
Implementing Reviews
As appropriate
✔
✔
✔
✔
Pros & Cons
As appropriate

31. ✔
✔
✔
✔
Integrated Testing
As appropriate
✔
✔
✔
✔
Promotion
As appropriate
✔
✔
✔
Closing
Once
✔
✔
✔
References
Gwynn, B. (2019). Getting to Effective Stakeholder
Communication. Retrieved 9 November 2019, from
https://medium.com/the-product-program/getting-to-effective-

32. stakeholder-communication-d3ecd3d6eda
Harrison, K. (2019). Nine top ways to develop an annual
communication plan | Cutting Edge PR Insights: Boost Your
Career. Retrieved 9 November 2019, from
https://cuttingedgepr.com/free-articles/nine-top-ways-to-
develop-an-annual-communication-plan/
Ragini. (2019). Marketing Communication: Meaning, Purpose,
Role, Process, and Strategies. Retrieved 9 November 2019, from
http://www.economicsdiscussion.net/marketing-2/marketing-
communication-meaning-purpose-role-process-and-
strategies/31623
Please read PPT, previous paper and instructions carefully
before start to work on this paper
Product: Product: Clap control home automation (clap switch)
Product Mission:
Provide a more convenient and fast way for daily life
- Please do the following :
Identify goods and/or services in your project that will be
obtained from an outside source and establish the register for
them.
If your project does not involve subcontracting for now, for
learning purposes, you should outsource at least one activity.
- Then
- Develop Contract Statement of Work (SOW)
- Prepare Procurement documents including request for proposal
and Quotes ( Bid)
- establish your selection (of subcontractors) criteria.
Running Head: RISK MANAGEMENT
1

33. RISK MANAGEMENT
9
10/28/2019
Risk Management Process
List and Description Components of Risk Management Process
Risk can be defined as events of uncertainty that bear positive
or negative impacts on the schedule, cost as well as the
performance of a project (Hillson, 2017). The negative impacts
are usually threats, while the positive impacts normally present
themselves as opportunities. Just like other important business
activities, the risk management process needs to be a process
that is easy to understand, follow-through, and above all, clear
in purpose. Similarly, the process must consist of reliable
inputs, properly-designed activities, and outputs of value-
adding nature. The risk management process has some major
components which include:
· Risk identification
· Risk assessment
· Risk response development
· Risk response control
Description of the Components
Risk Identification

34. Risk identification involves analyzing project activities to
single out factors that may result in risks. As initially indicated,
risks are not only negative impacts but also positive ones.
Therefore, the process of risk identification must target both
opportunities and threats that can influence the project process
either positively or negatively. The process of analyzing project
activities with the aim of identifying risks is carried following
four distinct steps. The first step involves creating a list of
threats and opportunities with the ability to positively or
negatively impacting on the project. The second step involves a
consideration of risks already maintained as well as managed in
the risk register. Every risk, when described, forms two parts,
risk statement, and the consequence. For instance, in our clap
switch project, there can be a risk that we may not finish on
assembling the motherboard as per the scheduled date, which
will automatically lead to failure to deliver the product on the
cost-bound date.
Risk Assessment
Once the risks have been identified, they are traced to
where they emanated from. This helps in informing the drivers
that triggered their occurrence. Dealing with a risk whose
source is known can be faster than dealing with one that is not
known yet. A risk assessment also involves attempting to know
the extent to which the identified risks have gone (Kivilä,
Martinsuo, & Vuorinen, 2017). With our project of clap switch,
we can assess the risks by measuring their extent of affliction
on various important project functions. For instance, on
technical requirements, we will look at issues such as whether
all the requirements as listed at the beginning of the project still
have requisite stability and whether we can resolve technical
uncertainties discovered.
Risk Response Development
In this component, risks have already been identified as
well as their driving factors and the extent to which the impacts
of these risks have gone. Armed with the right information
concerning the type of risk and their sources, the project team

35. decides on the best response approaches. The response
approaches are categorized into four categories, which include
avoiding, accepting, reducing, and sharing. Each response is
usually relevant to the type of risks identified.
Risk Response Control
Response control comes as the last component of the risk
management process and involves mitigation of the risks
identified. Going by the risks response selected, the proj ect
team identifies existing gaps from the risks management
capability of the team and enhances those capabilities so as the
risk response approach picked can fully be implemented.
Tools and Techniques Used in Risk Identification
The conventional practice of identifying risks is through the
review of project documents such as plans, files belonging to
previous projects, documentations, lessons books, articles, and
many others. The project team can create a list of threats and
opportunities with the ability to positively or negatively
impacting on the project (Iqbal et al., 2015). Also, a
consideration of risks already maintained as well as managed in
the risk register. Every risk, when described, forms two parts,
risk statement, and the consequence.
Information Gathering Techniques
Some of the information gathering techniques include
brainstorming, which is carried out by a group of individuals
focused on identifying project risks. Another obvious technique
that turns out to be very informative and effective is root cause
analysis. It involves classifying the identified risks, then tracing
them to their sources with the aim of knowing their causes
(Hillson, 2017). Lastly is the interviews, which are also another
traditional but still effective method of gathering information
related to risks identified.
Qualitative Risk Analysis
The qualitative risk analysis involves categorization of risks
that are highly specific with the project being undertaken with
consideration of the apparent impact the risks bear on the
budget and schedule of the project. For instance, in our project

36. of design and development of the clap switch, we realized the
initial design depended so much on unrealistic assumptions that
were only found with the prototype we used. During
implementation, we had to make adjustments that caused had a
significant effect on our project budget and schedule, as shown
below.
Project Schedule and Budget Table
10 days
10 days
10 days
10 days
Requirements elicitation
$180
$200
$100
$80
$00
$80
Design
Implementation
Testing

37. Project Closure
From the schedule and budget table, as shown above, all
activities were allocated ten days except testing and project
closure, which were all combined into a 10 day period split into
five days for each. However, due to the risk that took place
under the design activity as explained above, there was a need
for four extra days at the cost of $80. At the end of it, the
project cost shot-up from $560 to $640.
Risk event
Likelihood
Impact
When
R1
Business (competitor + supplier)
3
3
Executive
R2
Technical
4
5
Monitoring
R3
Organizational

38. 3
5
Planning
R4
Project Management
2
4
Executive
Project Management
R4
Technical
R2
Organizational
R3

39. Business
R1
Quantitative Risks Analysis
The quantitative risk analysis, on the other hand, involves
categorization of risks that are highly specific with the project
being undertaken with consideration of the apparent impact the
risks bear on their high probability of occurrence and impact on
the project Clap control home automation .
Contents of a Risk Response and develop a Risk Response
Going by the risks response selected, the project team identifies
existing gaps from the risks management capability of the team
and enhances those capabilities so as the risk response approach
picked can fully be implemented. As initially stated, we
accepted the risk as per the assessment outcome and redesigned
the product. This was on the backdrop of the development of the
clap switch when we realized that the initial design depended so
much on unrealistic assumptions that were only found with the
prototype we used.
Tools and techniques used to Control Risks
To fully put the mitigated risk under full control, the Risk
Response Plan Report was implemented fully. This was carried
out in full realization that there were no new risks recorded
until the project was brought to a closure. The project team
identified existing gaps from the risks management capability of
the team and enhanced those capabilities so as the risk response
approach applied to correct the risk could fully be implemented.

40. References
Hillson, D. (2017). Managing risk in projects. Routledge.
Iqbal, S., Choudhry, R. M., Holschemacher, K., Ali, A., &
Tamošaitienė, J. (2015). Risk management in construction
projects. Technological and Economic Development of
Economy, 21(1), 65-78.
Kivilä, J., Martinsuo, M., & Vuorinen, L. (2017). Sustainable
project management through project control in infrastructure
projects. International Journal of Project Management, 35(6),
1167-1183.

41. Please read PPT, previous paper and instructions carefully
before start to work on this paper
Product: Product: Clap control home automation (clap switch)
Product Mission:
Provide a more convenient and fast way for daily life
- Please do the following :
Identify goods and/or services in your project that will be
obtained from an outside source and establish the register for
them.
If your project does not involve subcontracting for now, for
learning purposes, you should outsource at least one activity.
- Then
- Develop Contract Statement of Work (SOW)
- Prepare Procurement documents including request for proposal
and Quotes ( Bid)
- establish your selection (of subcontractors) criteria.