TITLE

PROJECT MANAGEMENT @ SIEMENS AND RISK MANAGEMENT OF

ASSOCIATED PROJECTS
OBJECTIVE

To understand Contracts, Contract Management and Financial Management of

Contracts

To undertake Risk analysis pertaining to the present status of the contracts under
study, at pre acquisition and post acquisition.

To study the various systems and processes in place for execution of the Contracts
and understand various stages of project management with reference to PM
guidelines.

To get insights into Siemens Ltd. Internal Controls & MIS system

To suggest any other analysis tool beneficial for the purpose of contract
management other than the present Risk Management Plan

PROBLEM
It is not possible to prepare a complete set of tools which are appropriate for all projects. Risk
Management deals with change, so that any tools can only be a guide or checklist or prompt list which
must continuously be re-examined and refined. It is important that risk management is adopted
throughout the project life cycle to allow review of the procedures in the light of experience. Also
confidentiality becomes a constraint in case of information disclosure

METHODOLOGY
The most important document to track progress in any Project is the MIS i.e Management
Information System Report. Siemens as per PM @ Siemens guidelines prepares PSRs (Project
Status Reviews) at frequent intervals to monitor the progress and status of the projects
periodically (usually monthly). It constitutes the following;

Master Data Sheet

Project Status Review

Payment Received Summary

PIP (Profit Improvement Plan)

Risk Management Plan

Claim Change Management

Overheads Detail

Detail of Bank Guarantees

Detail of Debtors

This is prepared by Project Engineer & Project Commercial. The project MIS reports are
reviewed to find potential risk factors and status of project on date. This is done along with
consultation with the Project Commercial Team. The idea is to find existing methods for Project
Risk Management.
For my Project purpose the most important documents forming part of MIS are the PSR Project
status Review sheet and the Risk Management plan sheet (refer annexure # 1 & 2). These are the
effective monitoring tools for the entire life cycle of a project from order booking to completion
on a periodic basis. Necessary action plan can be derived.
For these reasons it was important to take a closer look at Siemens guidelines for Project
mechanism and understanding of the already existing mechanism in place dealing with it. The
Risk Management sheet forming part of MIS discloses not only the Risk points but also measure
and action plan. The potential impact of the Risk variables is found in terms of rupee. These are
then assigned Probability values. Weighted impact is then calculated by multiplying probability
with respected Risk impact values.

Impact of risk (in rupee terms)* Probability of Occurrence (in %) = Weighted Impact on
Cost
Based on this weighted impact, an order of Priority in dealing with these factors are then
determined. Then, corresponding to each Risk, a suitable measurable action plan is stated.