PM .pptx

Lecture 8 Risk management > identifying, analyzing, and responding to Project Risk [occurrence/probability] risk factors throughout the life of a pr...

Lecture 8 Risk management > identifying, analyzing, and responding to Project Risk [occurrence/probability] risk factors throughout the life of a project An uncertain event or condition that, if it occurs, 1. Risk Identification > brainstorming/ expert has a positive or negative effect on one or more option/ history project objectives. 2. Risk Assessment > likelihood/severity Risk Management attempts to recognize and 3. Risk Response Development > manage potential and unforeseen trouble strategy/contingency Financial risks: Financial 4. Risk Response Controlexposure > implement/ monitor Technical risks: Unproven technology At the initial concept, planning and Commercial risk: Profitability start-up phases of the project, the Execution risk: unique circumstances or chances of a risk event occurring uncertainties that are greatest but the cost is less Contractual or legal risk: strict terms and Risk Assessment: Purpose > Priorities the risks/ conditions are Eliminate improbable risks/ care on the important Two categories: Qualitative assessment >Consider each risk in a descriptive way Imagine characteristics and the effect Quantitative assessment > Goes at least one stage further than qualitative analysis Attempting to quantify the outcome of a risk event Qualitative Assessment starts by considering Mitigating Risks > safety training/ backup/ reduce possible risk events (failure modes) and then impact proceeds to predict all their possible effects Transferring Risks > insurance/warranties/shift to 3-party Sharing Risks > sub-con/joint ventures Retaining Risks > e.g. earthquake Lecture 9 Project scheduling > lies at the heart of project planning and subsequent monitoring control Gannt Chart > project update and control Project Network illustrate > independence of all task and work packages and basis for scheduling labour an equipment Mathematical derivation > best case, most likely and worst case Beta distribution > estimating activity duration Total slack> amount of time an activity can be delay so as to not delay Free slack> amount of time can be delay Least slack in common > critical path Crushing deadline> reduce project duration and meet tight deadline Lecture 11 S-curves (Graphical representation of Earned Value Management (EVM). The impact of time, cost, and project cumulative data) can identify positive or negative variance (budget performance are jointly considered in expenditures above or below projections), but EVM. Planned Value (PV) they do not allow us to make reasonable The planned time-phased baseline of interpretations A milestone is as anto the cause event of variance! or stage of the project that the value of the work scheduled. represents a significant accomplishment on the road to the An approved cost estimate of the project’s completion. resources scheduled in a ime-phased cumulative baseline. Benefits: Motivates team/coordinate/time for other party to Advantage play a part relatively little effort Involves Earned Value (EV) Considerable improvement on simple cost- Simply the percent complete times budget comparison its original budget. EV is the percent of the original Disadvantage budget that has been earned by Hard to predict/analysis > profitable actual work completed. outcome Not detailed Actual Cost (AC) Compare to value analysis unable to catch Actual cost of the work completed. issue The sum of the costs incurred in accomplishing work. S curve in project monitoring > To identify positive or negative variance in budget expenditure Key benefits of milestone analysis> Motivate team/ identifying key project review gates / coordination EVM > Schedule Variance (Deviation from the planned schedule) Cost Performance Index (CPI) > Cost efficiency