- The forth part is the risk monitoring to determine how effective the risk responses are. RISK ASSESSMENT METHODOLOGY - Risk assessment process -- Risk models define the factors such as threat, vulnerability, likelihood, impact, etc. to be assessed. Definitions of each factor needs to be defined before assessing to clearly define the risk.
It is used to develop features and goals for product and process, in identifying critical of product/process factor, designing customaries the potential problems, establishing the control to prevent the errors and prioritizing the process submit to ensure reliability. FMEA most commonly applied but not limit to design (DFMEA) and manufacturing process (PFMEA). Design failure mode and effect analysis (DFMEA) identify the potential failure of design before they occur. DFMEA then goes to establish a potential effects of the failures, there causes, how often and when they might occur and their potential seriousness. Process failure mode and effect analysis (PFMEA) is systemized group of activities intended to recognized and evaluated the potential failure of a product/process and its effect .indentify action which could eliminate or reduce the occurrence or improve the defect ability, document the process and track change to avoid the potential failure cause.
Setting the objectives must be done before management can identify potential events affecting their achievement. • Event Identification – management identifies potential events that could affect the entity either adversely or presents an opportunity and emanates from internal and external sources. • Risk Assessment – consideration of the extent to which potential events have an impact on the achievement of the organizations objectives. Evaluate the risks that have been identified in order to form a basis for determining their management. • Risk Response – after the determination of relevant risk, management determines how it will respond.
Determining Earned Value is a managerial accounting technique. Measuring Earned Value as work progresses is an essential project management technique”. No major differences in stating the Earned Value concept according to the available references in that regard as (Ernst, 2006) also touched on the basic concept of the Earned Value Management as “A management tool that integrates the technical, cost and schedule parameters of a project. During the planning phase, an integrated baseline is developed by time phased budget resources for defined work. As work is performed and measured against the baseline the corresponding budget value is “earned”, consequently Earned Value metric cost and schedule variances can be determined and analyzed, from these basic variance measurements the project manager can identify significant drivers forecast, future cost and schedule performance and construct corrective action plans to get the project back on track.
The plan details specific actions that relevant parties may consider to help identify, access, and the threats to the given project. Often, the risk management plan comes as a subsidiary of the main project management plan and specifically concerned about managing the risk within and without the project (Blyth, 2012). A risk management plan can be understood as a response plan for the project owners specifying how to act, once the risk
To estimate the completion time must be more realistically and efficiently. The time frame is to define a work package and milestone to achieve targets. The costs are budgeted and keep tracking to ensure the project cost within the budget. It should not be fixed as baseline until after the completion of the engineering phase. Project manager must be able to exert interpersonal influence, excellent communication and strong leadership skills.
However re-planning is perhaps not always possible due to project constraints such as being too far into the project to make changes and having a strict timeline to adhere to meaning any change results in a delay and expense . External dependants such as companies involved in a project rely on an accurate time line and incorrect prioritising can create risk to the overall delivery of a project. Understanding the severity of project decisions in relation to risk and then prioritising risk based decisions on a project can help to mitigate downtime or loss on a project (Thomset, 2010). When a challenge presents itself it is at the discretion of the project manager to handle it in relation to the critical effect to the project with continuity of the project being at the forefront. Project managers must have a good understanding of the principles and practice of prioritising work regardless of challenges (Newton, 2013).
This is the stage where the project plan from the plan phase is put into execution as found by. During project execution, it is important for the project management team to ensure that proper and effective communication is achieved among the workers of the project. It is through effective communication and relations that will help project management team to create teamwork within the organization. Teamwork will help project management team to perform various activities of the project effective and ensure project development is completed within the time allocation. Thus, effective downward, upwards and horizontal communication must be enforced during project development process.
Risk Risk management is the ongoing process to identify, analyze, assess, and treat loss exposures and monitor control and financial resources to mitigate the adverse effects of loss. Acceptable risk The degree of potential losses that a society considers acceptable given existing social, financial, political, social, technical and environmental conditions.
By being fully aware of its function and implications is an important aspect of the project manager’s role and responsibility. The triple constraint is meant to be an asset to the project manager’s arsenal and should not be viewed as a hindrance. This assignment has shown about how and the importance of comprehensive evaluation on the Triple Constraint (Time, Cost, Scope) in a project under uncertainty situation. We introduce an index called as Project Reliability.