a) With the help of the project management skills, identify three sources of risks at each phase of

woody project?
Opportunity phase.
Lack of manufacturing space. In the case when Bruce Sharpe saw that there was free
trade opportunities, he thought of expanding the manufacturing business. However when
it was passed on to the directors in the meeting, they agreed that the company would still
put on its existing property. This hindered production expansion of the company.
Relocation of the existing equipment. In the case relocating the existing equipment could
increase the costs of buying and selling property and even interrupt the production
process in the company hence delay in product delivery.
Resistance to change. In the case Cashman and Moneysworth felt strongly that they
should remain where they were since there was spare land on their property. However it
was risky because it was not convenient for plant expansion.
Project Concept phase.
Changing Technology. The change in technology lead to installation of semi-automatic
wood working production train requiring the development and installation of software
and hardware to run it. This is a source of risk because the software keeps degrading and
hardware needs continuous maintenance.
Planning phase.
Failure to involve production people is another source of risk because it delays progress
and it wastes time.
Excessive price and schedule. This amounted to $ 20m and 18 months schedule. This was
because all actual costs associated with the project would be recorded as part of the
companys normal book keeping.
Design phase
Lack of project management and experience. In the case, failure to understand the project
life cycle and control concepts lead to poor project management hence a risk of not
meeting deadlines.

 Limited time for project management. In the case, due to the fact that the software
program had to be rewritten which resulted in errors requiring increased debugging at
startup.
Lack of knowledge on review and approval procedures. In the case, this was brought
when faster and Leadbetter were on vacation and made manufacturing drawings for their
critical long- lead equipment awaiting for approval.
Construction phase
Changing production train specification. In the case, there was need to add another five
fit to the length of the new building.
Strained relations on the site. In the case, this was due to dissatisfaction with the
installation of the mechanical equipment for the dust free shop. Instead of discussing it
with the project manager, he discussed with the mechanical contractors with lead to
conflicts within the company.
Startup phase
Poor planning. In the case, neither Moneysworth nor the project manager had prepared
any meaningful planning for completion such as owners inspection and acceptance of
the building, testing, dry running and production startup of the production train. This lead
to the risk of late delivery of production train and maintenance shutdown
Missing customer delivery date is another source of risk in the case. This made some
general contractors to cancel their contracts and placed their orders millwork elsewhere.
b) Use the risks identified above to recommend risk management strategies that the project can
use to realize success.
Acceptance risk strategy.
Management decides not to change the project plan to deal with the risk. The management of
woody working company should not change the production train specification because it leads to
change of software program resulting in to the errors and debugging.

Mitigating risk strategy.

Woodys working company should take actions during the project planning to either reduce the
likelihood of a risk or reduce the impact of the risk. It should also emphasize on using experts for
all pre-commissioning activities for the project.
Transferring risk strategy.
Woodys working company should seek to shift the consequences of the risk to the third party
with the ownership of response. The third party will always need a premium for example
insurance strategy.
Avoidance strategy.
Woodys working company should eliminate some risks and to achieve this, it should change the
project plan to eliminate the risks, improving on communication and acquiring from the
expertise.
Ignoring risk strategy.
Woodys working company should pretend that the risks do not exist.
c) Suggest critical success factors for the project.
Encourage team commitment; The managers of woody working company should
encourage team commitment among team members in order to increase production
efficiency in the company.
Promote effective communication between managers and subordinates hence leading to
easy flow of work within woody company
Qualified personnel. Woody company should recruit employees with qualified skills,
knowledge and abilities which will lead to production of high quality products.
Monitoring and feedback. Woodys managers should carry out constant monitoring of
employees when given tasks and give them feedback on the subject matter for easy
monitoring of production and quality of the products.
State clear project objectives and mission. Woody company should state clear project
objectives and mission so that employees get to know what is expected of them.