ASSIGNMENT -10 MODULE- 11

SUBMITTED BY: PHANI KUMAR COURSE-PROJECT MANAGEMENT Based on the business identify potential risks. The Project based organization has always in risk to meet their targets or customer expectation. Some of the potential risks associated with our projects are follow:o Selection of Suitable or competent contractor o Land acquisition & approval o Material Receipt Delay o Inspection o Construction of Mode of Transport till Site o Weather Conditions o Customer & Other Govt. Bodies Involved. Selection of Suitable or Competent Contractor AS we are dealing in heavy engineering works, so to find the competent Single contractor is a difficult task. Even if we might find him, the quotations are too high to justify. So finding a competent contractor is a typical task, or we have to Contract to more than single party for individual works. Land Acquisition & approval Land Acquisition & approval is a process for acquiring of land for project, the land belong to government, forest department or private , So to convinced them & get the land is a potential risk. If we are not able to get the approval & clearance we might get delay in project. Material Receipt Delay- Always vendors are chased up for material dispatch on time, but due to unconditional delays if he is not able to dispatch the material on time, the project has to suffer a delay. Inspection Inspection is a critical process of project, any wrong inspection or approval the faulty equipment would lead to delay in project & increase in cost. So inspection is a time consuming process. Constructions of Mode of Transport till Site Generally Sites are selected in remote areas to save the cost of land & to get other benefits by government for development of rural sector. So to reach the site, material receiving & start the work a good road transport is required, for that approval from local authorities are required which may take time. Weather Conditions weather contributes a lot in project completion on time, if project is started in rainy seasons the continuous rain would interrupt the work. Similarly other conditions also taken care off in contingency planning.

 Customer & Other Govt. Bodies Involved.- Continuous involvement of customer or government is also leads to delay in projects as they interfere the work & leads to unnecessary issues leading to delay in work. Which risks are high probability risks & likely to have a greater impact. Land acquisition & approval Inspection Selection of Suitable or competent contractor Make a probability & impact matrix keeping in mind the above factors. resource Probability Impact 1 0.9 0.1 0.2 0.3 0.4 0.5 0.6 2 0.8 0.1 0.2 0.3 0.4 0.5 0.6 3 0.7 0.1 0.2 0.3 0.4 0.5 0.6 4 0.6 0.1 0.2 0.3 0.4 0.5 0.6 5 0.5 0.1 0.2 0.3 0.4 0.5 0.6 6 0.4 0.1 0.2 0.3 0.4 0.5 0.6 7 0.3 0.1 0.2 0.3 0.4 0.5 0.6 Based on probability & impact matrix quantify potential risks. Risk Selection of Suitable or competent contractor Land acquisition & approval Material Receipt Delay Inspection Construction of Mode of Transport till Site Weather Conditions Customer & Other Govt. Bodies Involved. How much money should your contingency reserve contain? Probability Impact Cost ( +ve or ve) 750000 Expected Monetary Value 112500(-) 1250000(+) 5000(-) 61250(+) 75000(-) 12500(-) 5000(-)

0.7 0.7 0.7 0.7 0.7 0.7 0.7

0.8 0.8 0.8 0.8 0.8 0.8 0.8

0.9 0.9 0.9 0.9 0.9 0.9 0.9

Probability 15% 50% 10% 35% 15% 5% 10%

Risk

Selection of Suitable or 15% competent contractor Land acquisition & 50% 2500000 approval Material Receipt Delay 10% 50000 Inspection 35% 175000 Construction of Mode 15% 750000 of Transport till Site Weather Conditions 5% 250000 Customer & Other Govt. 10% 500000 Bodies Involved. The Contingency plan is Rs. 1101250 against 50, 00,000/- Rs Project.