3110_Lecture_Ch07

3110_Lecture_Ch07 - Project Management Instructor: Dr. Vish...

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1 Project Management Instructor: Dr. Vish Hegde Lecture Chapter 7 ©All Rights Reserved by Dr. Vish Hegde 1 Risk Management Process • Risk – Uncertain or chance events that planning can not overcome or control. • Risk Management – A proactive attempt to recognize and manage internal events and external threats that affect the likelihood of a project’s success. • What can go wrong (risk event). • How to minimize the risk event’s impact (consequences). • What can be done before an event occurs (anticipation). • What to do when an event occurs (contingency plans). ©All Rights Reserved by Dr. Vish Hegde 2
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2 Risk Management’s Benefits • A proactive rather than reactive approach. • Reduces surprises and negative consequences. • Prepares the project manager to take advantage of appropriate risks. • Provides better control over the future. • Improves chances of reaching project performance objectives within budget and on time. ©All Rights Reserved by Dr. Vish Hegde 3 The Risk Management Process FIGURE 7.2 ©All Rights Reserved by Dr. Vish Hegde 4
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3 Step 1: Risk Identification • Generate a list of possible risks through brainstorming, problem identification and risk profiling. – Macro risks first, then specific events Example: Partial Risk Profile for Product Development Project ©All Rights Reserved by Dr. Vish Hegde 5 Step 1: Risk Identification - continued Risk Breakdown Structure ©All Rights Reserved by Dr. Vish Hegde 6
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4 Step 2: Risk assessment • Scenario analysis • Risk assessment matrix • Failure Mode and Effects Analysis (FMEA) • Probability analysis – PERT • Semiquantitative scenario analysis ©All Rights Reserved by Dr. Vish Hegde 7 Step 2: Risk assessment - continued Impact Scales ©All Rights Reserved by Dr. Vish Hegde 8
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5 Risk Assessment Form Step 2: Risk assessment - continued ©All Rights Reserved by Dr. Vish Hegde 9 Risk Severity Matrix Step 2: Risk assessment - continued ©All Rights Reserved by Dr. Vish Hegde 10
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6 Case Study: Coleman Foods Coleman Foods distributes a variety of food products that are sold through grocery store and supermarket outlets. The company receives orders directly from the individual outlets, with a typical order requesting the delivery of several cases of anywhere from 20 to 50 different products. Under the company’s current warehouse operation, warehouse clerks dispatch order-picking personnel to fill each order and have the goods moved to the warehouse
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This note was uploaded on 05/18/2011 for the course MGMT 3110 taught by Professor Hegde during the Fall '10 term at CSU East Bay.

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3110_Lecture_Ch07 - Project Management Instructor: Dr. Vish...

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