Term
| Where will You Look to find Risk Information for Risk Identification |
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Definition
• Brainstorming- involves multidisciplinary set of experts and project team
• Delphi Technique- uses project risk experts anonymously to reach a consensus
• Interviewing – interviewing experiences project participants, stakeholders, and subject matter experts
• Root cause analysis- identify a problem, discover the underlying causes that lead to it and develop preventative action
• Documentation Reviews – structured review of plans, assumptions, previous project files, agreements, etc
• Checklist Analysis- checklist based on historical info, and knowledge that has accumulated from previous similar projects and from other sources of info.
• Assumptions analysis- explores the validity of any assumptions as they apply to the project
• Diagraming techniques- Cause & effect diagrams, system or process flow charts, influence diagrams
• SWOT Analysis- Strenths Weaknessed Opportunities and Threats
• Expert Judgement- experts with direct experience with similar projects or business areas |
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Term
| Overall Goal of Risk Management |
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Definition
• Provide information in advance for management of risks
• To Minimize negatives, Increase positives, and be better prepared to manage risks |
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Term
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Definition
• Uncertainty that has the chance of occurrence and if it occurs will have a positive or negative impact on the project
• Risk = Loss x Likelihood or Loss x Probability or Gain x Probability |
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Term
| Risk Information Benefits/Uses |
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Definition
• Justifies project (in the war room)
• Lower costs, Less Chaos
• Project Priority and Management Support
• Fine Tuning Plans to reduce risk
• Establishing management reserve
• Project communication and control
• Schedule Budget and Resource control |
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Term
| Definition of a failed Project: Traditional; Standish Group’s |
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Definition
• Missed one or more constraints (time, cost, quality, scope)
• Standish Model-Mostly studied large IT projects- concluded that 75% projects fail, 25% of which are canceled before moving forward, and 50% of which are challenged either by budget or time |
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Term
| 5 of the many reasons Projects Fail or are Challenged/Impaired (see Standish Report) |
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Definition
• They are actually impossible
• They are overconstrained (challenged)
• They are not competently managed
• Too complex to manage
• Black Swans |
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Term
| 5 Reasons why we need Project Management / Risk Management is necessary |
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Definition
• Better communication
• Less re-work
• Lowered costs
• Reduced time
• Provides data for balance of power |
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Term
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Definition
| addition scope to a project without approval and/or without considering the impact on the Triple Constraints. |
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Term
| The three Major subdivision of Scope Risk |
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Definition
• Resource Risk
• Scope Change
• Scope Defects |
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Term
| The three major subdivision of Scope Change. |
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Definition
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Term
| The three major subdivision of Scope Defect |
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Definition
• Hardware
• Software
• Integration |
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Term
| What are the first things you do to handle scope creep |
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Definition
| evaluate potential alternatives, during scope definitions/requirements gathering, analyze and validate any claimed benefits, determine impact on all constraints, deal with it publically, take it to the Change Review Board, obtain approval |
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Term
| After you've made the first steps to handle scope creep, what changes do you make to the project |
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Definition
| Rebaseline, update triple constraints, publish new version/ new baseline, execute change |
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Term
| How to Implement a Change and Avert a Scope Creep: |
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Definition
1. Determine Requirements: Scope: perform Requirements Engineering or SH Analysis
2. Determine Alternatives
3. Develop WBS/RBS
4. Perform Risk Management
5. Estimate the Work (Bottom-up)
6. Determine Impact on Triple Constraints (3C)
7. Prepare a Document for Change Management/Review/Control: justifications, facts, risk, etc.
8. Present to CMB, CRM, or CCB
9. Obtain Approval, Buy-in
10. Obtain Signatures or Sign-offs
11. Rebaseline ALL Affected Documents
12. Publish the most current baseline version/s: Configuration Management
13. Implement and Verify Scope |
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Term
| How to manage scope creep |
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Definition
• Evaluate potential alternatives during Scope Definition / Requirements Gathering
• Manage Specifications Changes throughout Project
• Analyze/Validate/Verify all Claimed Benefits
• Determine Impact on all Constraints
• Deal with Scope Creep “publicly”
• Deal with Scope Creep as EARLY AS POSSIBLE
• Update Constraints (Schedule, Quality, Budget, Resources…)
• Re-baseline and Publish: Configuration Management |
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Term
| 3 consequences of Scope Creep |
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Definition
• Benefits may be over-estimated
• May require rework
• Makes Project Management more Difficult
• Most damaging with addition of NEW &/or Extensive scope
• May delay delivery of original benefits |
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Term
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Definition
• Progressive Elaboration
• New Opportunities
• Interesting Concepts & Ideas
• Undiscovered Alternatives
• Speculative Alternatives
• Unproven Solutions
• A Desire for the Better
• Desire for Praise, Acknowledgement, Appreciation, …
• Other Information: A Good Idea |
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Term
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Definition
• Legitimate Scope Requirements Discovered Late in Project: After Scope Base-lining
• If a mandate arises (new) or is discovered (was existing) that MUST be met in order to access the benefits of the Project, then the REQUIRED Scope Change is a Scope Gap |
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Term
| Managing against Scope Gap Or. How will you prevent/limit Scope Gap |
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Definition
• Expert Interviews: SMEs, Technicians, Programmers, Retirees, Co-workers
• Historical Information
• Anyone who has done Similar Project/s
• Brain-Storming (prevents “Blame-storming” later)
• Avoid the Missing Stakeholder Syndrome
• WBS: include the experienced & those who will do the work: one person must not do WBS!!!
• Thorough Scope Definition to a Level of Comfort (Work Package Level: 2 to 20 workdays) |
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Term
| Scope Dependency: how will you manage this to limit or eliminate impact |
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Definition
• Research will Provide Advanced Warning
Changes Rarely Occur Over-night: lead time
• Include Government and Legal Agencies
• Periodic Review of IT Infrastructure or any Other Dependencies/Needs: Reserve what you need
• Involve Stake-holders and SMEs in Planning, etc.
• Modify/Expedite Schedule to Beat the Anticipated Change
• Relocate Project: Use Alternative Solutions |
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Term
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Definition
• Proof of Concept
• Pilot Test
• Debug
• Avoid Unproven Solutions: leading edge, not bleeding edge
• SMEs: Experienced Consultants
• Use a Proven Solution and Upgrade Later |
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Term
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Definition
• Scope Verification
• Reference for Producing the Deliverables
• Managing the Project
• Team Building
• Documentation
• Lessons Learned
• Marketing/Sales |
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Term
| Why must the WBS/RBS be completed by more than one person |
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Definition
| The reason the project manager involves many people in the WBS is that it is necessary to know the breakdown of work to the smallest activities, often without direct experience or knowledge of the work involved. It is not possible to know all the risks with gaps in project understanding. Therefore it is necessary to involve the people with technical expertise and the people performing or managing the tasks. Their participation in this process will also encourage the necessary ownership related to getting tasks completed. |
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Term
| What skills/people should prepare the WBS |
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Definition
| The project manager and the project team should prepare the WBS. This should include a group or person with relevant training, knowledge or experience needed to exercise expert judgment. |
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Term
| In what 5 ways can a WBS help you in Risk Management |
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Definition
| Helps minimize Scope GAP, minimize Excess Work; minimize scope creep; develop schedule; determine scope; create network diagram; obtain accurate estimation; team-building; identify risks; |
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Term
| Can you think of other ways a WBS and/or RBS can be used for Risk Management? |
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Definition
| Identify dependencies, manage quality, create a framework to manage and control |
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Term
| Can you think of ways a Network Diagram can be used for Risk Management |
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Definition
| Also can identify dependencies, and can create resources in scheduling through identifying float, gives you an order or logical flow in which to do things, breaks up large/complex projects, illustrates multiple critical paths |
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Term
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Definition
| Work expands to fill the time available for it’s completion |
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Term
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Definition
| Bought into- Approved- Realistic- Formal |
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Term
| 3 major sources of schedule risk |
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Definition
• Delays
• Estimates, and
• Dependencies |
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Term
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Definition
a. Parts, Hardware, Software
b. Decision
c. Defects
d. Information |
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Term
| Solution for Delay Risk: Parts, Hardware, Software |
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Definition
• use local suppliers
• make the equipment/part
• order early
• ship express
• follow-up on shipment,
• have alternate sources
• contract arrangements
• service level agreements
• Escalation
• plan ahead, etc. |
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Term
| Solution for Delay Risk: Decision |
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Definition
Late escalation by Project Manager/Team
• Solution: (i) Escalate as soon as necessary; (ii) Set a Date for Escalation and keep it; (iii) Avoid Parkinson’s Law; etc.
Late response/approval from decision makers
• Solution: (i) ALWAYS Communicate DATE when Decision MUST be Received and Include Consequences (Impact).
• Propose a Decision with Justification |
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Term
| Solution for Delay Risk: Defects |
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Definition
o Request Testing/Commissioning by factory-certified technicians/engineers; escalate ASAP etc.
o Spare Equipment when/where for Critical |
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Term
| Solution for Delay Risk: Information |
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Definition
• Create required documents; use electronic storage or keep multiple hard copies; include these in your schedule; contract documents;
• Escalate: Propose a Solution with Justification
• Communicate Date Required and Consequence (Impact) if not received on time: To Protect You |
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Term
| 3 Types of Estimate Risks |
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Definition
1) Learning Curve
2) Poor Judgement
3) Deadline (top down imposed) |
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Term
| Solution for Estimate Risks: Learning Curve |
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Definition
• Training,
• Expert Judgment,
• Historical Information (yours and those of other companies)
• SMEs, Consultants,… |
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Term
| Solutions for Estimate Risk: Deadline (topdown/imposed) |
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Definition
• Prepare a BARF Schedule: WBS, RBS, etc.
• Have Core Facts (risks, WBS, RBS, historical information, etc.)
• Negotiate Constraints
• Get Help from Consultants and Experienced Project Colleagues including Stake-holders; etc….)
• Disclaimers |
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Term
| Solution for Estimate Risk: Poor Judgement |
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Definition
• Most Reliable (Best) Estimates are Based on Historical Data/Information/Experience
• Use WBS at Work Package Level
• Obtain Estimates from Activity Owners
• Review Your Estimates from Time to Time: Adjust for Progressive Elaboration: may need to Rebase-line the document
• Have a Reference (or Metrics) for Comparison |
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Term
| 3 types of Dependency Risks |
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Definition
a. Legal
b. Project
c. Infrastructure |
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Term
| What is the best method for estimating time/cost? |
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Definition
WBS & Historical Data
• Historical Data
• Decompose work to Work Package Level
• Delphi Technique
• Expert Judgment
• Parametric Estimation (Rule of Thumb): may be based on experience
• Pilot Tests; Models
• Proof of Concepts
• Progressive Elaboration: starting from initial launch |
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Term
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Definition
| used for reference to compare with Bottom-up Estimates |
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Term
| How will you manage a point of convergence to help prevent delay? |
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Definition
| I would calculate the network diagram forwards and backwards looking for the difference between the early finish date and the late finish dates derived by parametric estimation (determining float). |
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Term
| Major Sources of Resource Risk |
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Definition
Human Resources
Outsourcing Risk
Money |
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Term
| Subsource of Resource Risk: Human Resources |
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Definition
People:
Motivation – loss of team interest, cohesion
Late Start – staff not available when needed, e.g. due to delayed finish or early start of another project
Loss – permanent staff loss due to resignation, death, termination, etc.
Queuing – slip due to bottleneck; waiting to use equipment or to receive service
Temporary Loss – temporary staff loss due to illness, hot site, Jury Duty,… |
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Term
| Subsource of Resource Risk: Outsourcing Risk |
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Definition
• Late and/or Poor Output
• Turn-over: Unhappy Employees
• Requires Extensive Supervision
• Delayed Start – no control over this; other commitments; |
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Term
| Subsource of Resource Risk: Outsourcing Risk |
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Definition
• Late and/or Poor Output
• Turn-over: Unhappy Employees
• Requires Extensive Supervision
• Delayed Start – no control over this; other commitments; |
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Term
| Subsource of Resource Risk: Money |
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Definition
• Limited – what can this cause?
Prioritization: delay/abandon some projects
• Excessive – can be mismanaged
• Currency Changes –can affect budget
• Funds Transfer: can be delayed |
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Term
| Procurement Process Steps |
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Definition
• Develop Specification of Materials and/or Services Required
• Develop RFP
• Get Approval for RFP
• Get Approval to Publish/Advertise RFP
• Advertise RFP
• Hold Bidders Conference
• Issue Addendums/Addenda if Needed
• Receive Proposals
• Evaluate Proposals
• Select Vendor/s
• Negotiate Contract
• Recommend Award of Contract
• Obtain Approval to Award Contract
• Execute Contract
• Manage Contract/Procurement
• Close Contract/Procurement
• Conduct Lessons Learned |
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Term
| Best method to estimate time/cost |
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Definition
a. Bottom-up using WBS & Historical Information (best)
b. Parametric Estimation
c. Verify with Quotations from Contractors
d. and/or other realistic methods. |
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Term
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Definition
• Required Skills Lacking Committed Staff
• Resource Over-commitments
• All Activities with Insufficient Resources
• Uncertain Activity Effort / Duration Estimates
• Uncertain Activity Cost Estimates
• Understaffed Activities
• Contract Risks
• Unique Resources Needs and the Availability of the Resources
• Part-time Participants (Team, workers, stakeholders, government agencies..)
• City Lead-times for Plan Checks, Inspections, Approvals, Corrections, etc |
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Term
| Advantages of Outsourcing |
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Definition
• Less restrictive labor laws
• Less restrictive Environmental Laws
• Relieve local staff |
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Term
| Disadvantages of outsourcing |
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Definition
• Late/ Poor Output
• Turnover/ Unhappy Employees
• Less control over the project/ requires extensive supervision |
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Term
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Definition
| A temporary endeavor undertaken to create a unique product service or result |
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Term
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Definition
| a) a room where the co-located team meets or is located in while working on a project b) conference room allocated to bring together people for the project management of a particularly troubled project |
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Term
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Definition
| A component of the project, program or portfolio management plan that describes how risk management activities will be structured and performed |
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Term
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Definition
| Work Breakdown Structure/ Decomposing the work down into its smallest tasks |
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Term
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Definition
| An individual, group or organization who may affect, be affected by or perceive itself to be affected by a decision, activity or outcome of a project. |
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Term
| Risk Tolerant vs Risk Averse |
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Definition
• Risk Tolerant: An organization or individual willing to withstand a certain amount of risk
• Risk Averse: An individual or organization who does not want to take risks |
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Term
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Definition
| a solution to an unplanned problem or occurrence that will positively or negatively impact the project |
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Term
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Definition
| An event or occurrence that could effect the execution of the project that may be accounted for with a reserve. |
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Term
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Definition
| A hierarchical representation of risks according to their risk categories |
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Term
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Definition
| The sum of the products, services and results to be provided as a project |
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Term
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Definition
| the process by which the impact and probability of risks are increased or decreased as deemed negative or positive |
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Term
| Small Project vs Complex Project |
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Definition
• Small Project: Everyone does small projects with no real process or formality. A “just do it” approach works and mostly results in success.
• Complex Project: Much harder to define, but it is agreed that Project Management must be employed to minimize time and cost. Complexity is indicated by the diversity inherent in the project objectives and scope and by the number of organizations involved which is usually an indication of the number of required specialized skills, sources of technology, or sources of funding. Additional risks. |
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