Identifying project activities & planning project risk

Overview
Project Planning
Project launch meeting Project charter WBS RACI Matrix Integration Management

Project Risk Management

Project Planning

Project launch meeting

Outcome
(1) Projects scope is established (2) Responsibilities are accepted (3) Delivery dates & budgets are set by parent organization (4) A risk management group is created
Project Planning

Project Charter
Project Name: Project Customer:

Project Managers:
Mister Project Manager

ESB Career Fair

Purpose: Objectives: Overview: Schedules:

ESB Students

Connecting Companies & Students

X Companies; increase schools reputation; etc.

Knowledge & information from the previous fairs on campus; use contact details from companies 11/13 Companies contacted 12/13 Location reserved 01/14 Catering booked 02/14 Program chose 03/14 Brochure printed Project Manager; HR & Catering; Companies Manager; Logistics; Communication & Finance

Personnel: Resources:

Budget; +expense requirements; contractual items; cost monitoring; special resource req. (e.g. logistics etc.)

Risk Management Plan: Company cancel; weather conditions; technical issues; illness of personnel; catering del.
Evaluation Methods:
Generate standards lessons learned from previous fairs

Work Breakdown Structure

What is to be done? When is it to be done? Who is going to do it?

Some activities must be done sequentially & some simultaneously Details are uncertain and subjected to risk

Hierarchical Planning

Project Planning

Hierarchical Planning System

LEVEL 1: List major activities in general order LEVEL 2: Break each item into tasks LEVEL 3: Break each task into subtasks

Continue this way till there is no need to break it down further

Career Center Project Manager

WBS
Logistic Communication & Finance Auditorium Communication Finance

HR & Catering

Company Manager

Personal

Catering

IBM

Advisor

Food

Beverages

SAP

Car Park

Brochure

Invoice

Cook

Meat

Water

BCG

Building 5

PR

Price Calculation

Bartender

Salad

Wine

P&G

Cafeteria

E-Mail traffic

Costs & Revenue

Assistant

Fruits

Soda

Adidas

Interview room

Project Planning
helper Dessert Beer

Human Resources
OBS

Organizational Breakdown Structure

RACI MATRIX

Responsible, Accountable, Consult, Inform

APM

Agile Project Planning & Management

Project Planning

R
Responsible
Who is/will be doing this task? Who is assigned to work on this task

A
Accountable
Who will receive the consequences if this goes wrong? Who has the authority to take decision?

C
Consulted
Anyone who can tell me more about this task? Any stakeholders already identified?

I
Informed
Anyone whose work depends on this task? Who has to be kept updated about the progress?

Project Planning

RACI MATRIX
Subproject Career Center Project Manager HR & Catering Company Manager Logistic Communication & Finance

Determinate activities

A I A

R A R

I R C/I

I R C/I

I R C/I

I R C/I

Prepare tasks

Change processes
Implement change

R
Project Planning

Integration Management
Coordinating the work and timing of different groups Interface coordination is the process of managing this work across multiple groups Using MTs requires a clear structure

Outcomes of MT are worth the risks

Phases & Phase-Gates

1st Task
Phase Gate 1

2nd Task
Phase Gate 1

3rd Task
Phase Gate 3

Project Risk Management

Risk & Uncertainty

Risk
Easily Identifiable Can be defined Can appear and occur anytime

Uncertainty
Intangible Too many unknown variables Fades towards the end of the Project

Approaches & Planning for Risks

Approaches
Risk Transfer Risk Avoidance Risk Reduction Risk Acceptance Best Option:

Planning
Create Contingency Plan

Identify High Risks

Identify Budget Risks

Identify Resource Risks

Consult with other Sources Specify Risk Probability

Proactive Approach

Risk Identification
Risk depends on many factors e.g. technological, environmental How do environments interact Internal + External risks Delphi method for uncertainty Other methods Great success risk
Project Risk Management

Qualitative Risk Analysis

Prioritize risks Both threats & opportunities Precise probability? Subjective vs. Objective probability estimates, Fact vs. opinion Impact of the threat Risk Matrix Opportunity Matrix Project Risk Management

Quantitative Risk Analysis

Probability & Consequences

for project objectives

Project Risk Management

FMEA
Threat
1. Tight schedule 2. Cant provide all constructions 3. Low number of visitors 4. Costs escalate 5. Change of weather

Severity (S)
6

Likelihood (L)
7.5

Ability to Detect RPN (D)

2 90

8.5 4
5 2

5 8
3 5

4 5
7.5 2

170 160
112.5 20

RPN = S x L x D

Project Risk Management

Project

Probability

Outcome

-7.500
5%

+10.000
10%

= - 17.500
25%

-20.000

Risk Response Planning

Threats
Avoidance Transfer Mitigation Accept

Opportunities
Exploiting Sharing Enhancing Accept
Project Risk Management

Risk Monitoring and Control

Risk Reassessment

Risk audits

Variance and Trend Analysis

Reserve Analysis

Status meetings

Project Risk Management

The Risk Management Register

Environemts Assumptions Risks identified Categories & key words Estimates Minutes Outcomes
Project Risk Management

Conclusion
CHARTER

WBS

Project Planning

Risk Management

RACI MATRIX

Sources
Books
Project Management: A Managerial Approach- 8th ed./ Jack R. Meredith, Samuel J. Mantel // Hoboken, NJ : Wiley, 2012 James C. Taylor, PMP. Project Scheduling and Cost Control. Planning, Monitoring and Controlling the Baseline. Fort Lauderdale, Fla.: Ross. 2008 Kerzner, H. 2009. Project Management: A systems approach to planning, scheduling and controlling (10th ed.). Hoboken, NJ Wiley Meredith, Jack R. Project Management, A Managerial Approach. 8th. Singapore: John Wiley& Sons, 2012. 245- 249. Print

URL "New Production Management." Project Risk Management: A Proactive Approach. N.p.. Web. . November 8th 2013 http://www.newproductdynamics.com/project-risk-management.htm Examining Risk Priority Numbers in FMEA November 8th 2013. http://www.reliasoft.com/newsletter/2q2003/rpns.htm Project Management; Project Planning//Wikipedia- free encyclopedia [e], state on . November 8th 2013 http://en.wikipedia.org/wiki/Project_management Project Charter// Wikipedia- free encyclopedia [e], state on . tNovember 8h 2013 http://en.wikipedia.org/wiki/Project_charter Project Management; Project Planning//Wikipedia- free encyclopedia [e], state on November 8h 2013 http://en.wikipedia.org/wiki/Project_management

Sources
URL Project Management; Project Planning//Wikipedia- free encyclopedia [e], state on November 8h 2013 http://en.wikipedia.org/wiki/Project_management The Pace of Service: Community Project Management [e], state on November 8h 2013 http://www.thepaceofservice.com The Pace of Service: Community Project Management [e], state on November 8h 2013 http://www.thepaceofservice.com Project Risk Management: Risk Monitoring and Control [e] , state on November 9th 2013 http://faculty.kfupm.edu.sa/CEM/alkhalil/PDF_CEM_516/L07%20Risk%20Monitoring%20&%20%20Control.pdf

Handout
Project launch meeting: Held by Senior Management (SM), Project Manager and the managers from the functional areas Hierarchical Planning System: LEVEL 1: List major activities in general order LEVEL 2: Break each item into tasks LEVEL 3: Break each task into subtasks Continue this way till there is no need to break it down further WBS (Work Breakdown Structure) What is going to be done, by whom and when? Some activities must be done sequentially and some simultaneously Each detail is uncertain and subjected to risk Breaks tasks down into successively finer levels of detail Continues until all meaningful tasks or work packages have been identified These make tracking the work easier Human Resources: Organizational Breakdown Structure (OBS): Assigns the responsible organizational unit to each of the tasks in our WBS. Agile Project Planning: Small teams work on ongoing planning and have a continuing contact to the client (software projects). RACI Matrix: R - Who is/will be doing this task? Who is assigned to work on this task? A - Who will receive the consequences if this goes wrong? Who has the authority to take decision? C - Anyone who can tell me more about this task? Any stakeholders already identified? I - Anyone whose work depends on this task? Who has to be kept updated about the progress?

Introduce the project, clarify expectations of the organization, tie the project objectives to the organizational goals and strategy, show the commitment of SM to the project
Outcomes: (1) Projects scope is established (2) Responsibilities are accepted (3) Delivery dates & budgets are set by parent organization (4) A risk management group is created Project Charter: Proposal for a project that summarizes the main aspects of the project for approval Purpose: Brief description of the project addressed to SM and those unfamiliar with the project. Objectives: More detailed statement of the general goals (profit and competitive aims). Overview: Managerial and technical approaches (relationship of the project to available technologies). Schedules: Lists various schedules with milestone events/ phase-gates. Personnel: Personnel requirements (including special trainings, legal restrictions, when and in what number). Resources: Budget, contractual items, cost monitoring and control processes.

Risk Management Plans: Covers potential risks and potential lucky breaks.
Evaluation Methods: Evaluation standards (monitoring, collecting, auditing, lessons learned..).

14.11.2013

Verena Skarpil Sven hrlich Vladimirs Titovs Nino Samparisi

Difference between Risk & Uncertainty Risk Easily Identifiable Can be defined Can appear and occur anytime Uncertainty Intangible Too many unknown variables Fades towards the end of the Project Risk identification Risk depends on many factors e.g. technological, environmental How do environments interact Internal + External risks Delphi method for uncertainty Other methods Great success risk

Risk Response Planning Strategies for negative risk or threats: Avoidance Transfer Mitigation Strategies for positive risk or threats: Exploiting Sharing Enhancing Common approach: To accept risks To combine risk responses and conditions under which the occurred risk shall be responded

Risk Management Register

Environemts Assumptions Risks identified Categories & key words Estimates Minutes Outcomes

Qualitative & Quantitative Qualitative Prioritize risks Both threats & opportunities Precise probability? Subjective vs. Objective probability estimates, Fact vs. opinion Impact of the threat Risk Matrix Opportunity Matrix Quantitative Estimating the probability and consequences of risks and hence the implications for project objectives Using different methods:

FMEA

Decision tree
Verena Skarpil Sven hrlich Vladimirs Titovs Nino Samparisi

14.11.2013