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Questions and Answers
What is the symbol 'TS' representing in the given equation?
What is the symbol 'TS' representing in the given equation?
What is the purpose of Table A7.2?
What is the purpose of Table A7.2?
In the equation, what does 'Z' represent?
In the equation, what does 'Z' represent?
What is the purpose of Figure A7.3?
What is the purpose of Figure A7.3?
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What is the relationship between 'TE' and 'TS' in the equation?
What is the relationship between 'TE' and 'TS' in the equation?
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What is the concept behind Figure A7.2?
What is the concept behind Figure A7.2?
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What is the main purpose of probability analysis in project management?
What is the main purpose of probability analysis in project management?
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What is the primary application of Table A7.2 in project management?
What is the primary application of Table A7.2 in project management?
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What is the concept behind Figure A7.2?
What is the concept behind Figure A7.2?
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What is the relation between 'Z' and probability in the equation?
What is the relation between 'Z' and probability in the equation?
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Study Notes
Risk Breakdown Structure (RBS)
- A risk breakdown structure (RBS) is a hierarchical structure that breaks down risks into categories and subcategories.
- It is used to identify, categorize, and prioritize risks in a project.
Risk Assessment
- Risk assessment involves evaluating the probability and impact of each risk event.
- Scenario analysis is used to assess the significance of each risk event in terms of probability and impact.
- A risk assessment form is used to evaluate the severity, probability, and detection difficulty of risk events.
- The risk severity matrix prioritizes which risks to address.
Failure Mode and Effects Analysis (FMEA)
- FMEA extends the risk severity matrix by including ease of detection in the equation: Risk Value = Impact x Probability x Detection.
- FMEA is used to evaluate the risk of failure of a product or process.
Risk Response Development
- The four main strategies for responding to risks are:
- Mitigating Risk: reducing the likelihood or impact of a risk event.
- Avoiding Risk: eliminating or avoiding a risk event.
- Transferring Risk: passing the risk to another party (e.g. through insurance).
- Escalating Risk: notifying higher management of a risk event.
Contingency Planning
- A contingency plan is an alternative plan that will be used if a possible foreseen risk event becomes a reality.
- Contingency planning involves identifying potential risks and developing alternative plans to mitigate or respond to them.
PERT and PERT Simulation
- PERT (Program Evaluation and Review Technique) is a method for planning and controlling projects.
- PERT assumes each activity duration has a range that statistically follows a beta distribution.
- PERT uses three time estimates for each activity: optimistic, pessimistic, and most likely.
- PERT simulation involves computing the probability of meeting different project durations.
Activity Time Calculations
- The weighted average activity time is computed using the formula: te = (a + 4m + b) / 6.
- The variability in the activity time estimates is approximated using the formula: σ^2 = ((b - a) / 6)^2.
Probability of Completing the Project
- The probability of completing the project in a specified time can be computed using the formula: Z = (TS - TE) / σ.
- The Z value is used to determine the probability of meeting the project deadline using statistical tables.
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Description
This quiz assesses your understanding of risk assessment techniques, including scenario analysis and risk assessment forms. It covers the evaluation of risk severity, probability, and impact.
