Project Management in Practice

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Project Risk Management

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Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Sticky note technique Risk matrix template FMEA template Case exercise

Topics

Risk Identification

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Cause & Effect (“fishbone”) diagrams, Delphi method, Brainstorming, Nominal GroupBrainstorming, Creativity, Idea Generation Methods, mind mapping

http://bcs.wiley.com/he-bcs/Books?action=resource&bcsId=6542&itemId=0470533021&resourceId=25566

www.wiley.com/college/meredith student companion site, appendices, creativity & idea generation www.thebrain.com

http://www.mind-mapping.co.uk/make-mind-map.htm

Qualitative Risk AnalysisRisk Matrix

R-4Impact

Pro

bab

ilit

y

Low

Low

Medium

Medium

High

High

Quantitative Risk AnalysisFailure Mode and Effect Analysis (FMEA)

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Threat Name Severity, S Likelihood,LAbilityToDetect,

D RPN1 6 7 2 842 8 5 4 1603 4 8 5 1604 3 2 6 365 4 2 7 56

Severity of the impact, S, 1=no effect, 10=very severe effect

Likelihood of the threat occurring, L, 1=remote very unlikely, 10=almost certain

Ability to Detect, D, 1=detectability is almost certain, 10=failure will not be detected in time to avoid or mitigate

RPN=Risk Priority Number

Quantitative Risk Analysis

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We can also use other techniques (MC simulation, decision trees, . . .) to see possible effects of various time and cost estimates.

Risk Response Planning

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• Avoid

• Transfer

• Mitigate

• Accept

Project Risk Exercise

Warehouse Software Implementation Project• Divide into small groups• Read about the project

• Develop a list of five (5) project threats or threat areas

• A – Construct a risk matrix• B – Construct a FMEA table

Discuss and explain.R-8