Stages Of Risk Management And Quality Management For Product Development Companies

Identification, Assessment, Analysis, Management and Evaluation as the Stages of Risk Management

The table below illustrates the bottom up budget for the whole project.

Task Name	Duration	Scheduled Start	Scheduled Finish Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Resource Names	Cost
Setting Up An Employee Lounge	60 days	Mon 5/7/18	Fri 7/27/18		$18,403.00
Requirement Identification	6 days	Mon 5/7/18	Mon 5/14/18		$3,184.00
Identify The Specifications	2 days	Mon 5/7/18	Tue 5/8/18	civil engineer,Interior designer,Project manager	$1,232.00
Discuss With The Stakeholders	2 days	Wed 5/9/18	Thu 5/10/18	Project manager,project owner,project sponsor	$1,472.00
Document The Requirements	1 day	Fri 5/11/18	Fri 5/11/18	Project manager	$240.00
Deploy Requirements	1 day	Mon 5/14/18	Mon 5/14/18	Project manager	$240.00
Milestone 1: Requirement Identified	0 days	Mon 5/14/18	Mon 5/14/18		$0.00
Implementation Phase	20 days	Tue 5/15/18	Mon 6/11/18		$3,552.00
Construct Electricity Points	1 day	Tue 5/15/18	Tue 5/15/18	electrician	$88.00
Install Light	2 days	Wed 5/16/18	Thu 5/17/18	electrician	$176.00
Install Kitchen Appliances	2 days	Fri 5/18/18	Mon 5/21/18	electrician	$176.00
Purchase Cup Boards And Bench Tops	1 day	Tue 5/22/18	Tue 5/22/18	Interior designer	$184.00
Install Sink	1 day	Wed 5/23/18	Wed 5/23/18	civil engineer,Labour	$272.00
Tiles Fitting	3 days	Thu 5/24/18	Mon 5/28/18	civil engineer,Labour	$816.00
Painting And Decorating	7 days	Tue 5/29/18	Wed 6/6/18	Interior designer	$1,288.00
Purchase Tables And Chairs	2 days	Thu 6/7/18	Fri 6/8/18	Interior designer	$368.00
Signage	1 day	Mon 6/11/18	Mon 6/11/18	Interior designer	$184.00
Milestone 2: Implementation Phase Completed	0 days	Mon 6/11/18	Mon 6/11/18		$0.00
Procurement Plan	18 days	Tue 6/12/18	Thu 7/5/18		$7,179.00
Identify The List Of Suppliers	7 days	Tue 6/12/18	Wed 6/20/18	civil engineer,Project manager	$3,024.00
Discuss With The Stakeholders	3 days	Thu 6/21/18	Mon 6/25/18	Project manager,project owner,project sponsor	$2,208.00
Choose Suitable Supplier	1 day	Tue 6/26/18	Tue 6/26/18	Project manager	$240.00
Develop Contract & Send Requirement	4 days	Wed 6/27/18	Mon 7/2/18	Project manager	$960.00
Delivery & Payment	3 days	Tue 7/3/18	Thu 7/5/18	Project manager,supplier[1]	$747.00
Milestone 3: Procurement Phase Completed	0 days	Thu 7/5/18	Thu 7/5/18		$0.00
Maintenance Phase	16 days	Fri 7/6/18	Fri 7/27/18		$4,488.00
Monitor All The Amenities	2 days	Fri 7/6/18	Mon 7/9/18	Project manager	$480.00
Identify Faulty Equipments	3 days	Tue 7/10/18	Thu 7/12/18	civil engineer,Interior designer,Project manager	$1,848.00
Take Feedback From Employees	5 days	Fri 7/13/18	Thu 7/19/18	Human resource manager	$720.00
Apply Changes	6 days	Fri 7/20/18	Fri 7/27/18	Project manager	$1,440.00
Milestone 4: Maintenance Phase Completed	0 days	Fri 7/27/18	Fri 7/27/18		$0.00

The stages of risk management are identification, assessment, analysis, management and finally evaluation. In the identification phase, all the stakeholders as per the project plan would be involved in assessing the risk that may impact the final outcome of the project.

Using the project management principles for risk assessment, the table below illustrates the key risks.

Source	Probability	Impact	Priority	Strategy	Responsibility	Review
Increase in construction costs due to increase in raw material	3	3	9	Look at sourcing the materials from suppliers on beginning of build	Project Manager	On start of project
Increase in construction costs due to labour costs	3	4	12	Monitor the situation and have back up for labour costs	Project Manager and HR	Weekly
Delays due to incremental weather as the build is outside	4	5	20	Revise the timeline and communicate with suppliers and contractors	Project Manager	Weekly
Inferior quality materials used in build	1	5	10	Mitigated by involvement of Civil Engineer and Interior Designer in the start up phase	Project Manager	On commencement of the project
Delays in implementation phase that impact the subcontractors e.g. Electricity point installation is not completed in time for Light installation	2	4	8	Project Manager resourcing approved who will be on site to monitor the situation and ensure communication with all relevant parties	Project Manager	As is basis

The gantt chart below illustrate the resource and activity planned from design to maintenance phase. With the help of the Gantt chart the total proect will be segmented in small phases and the completon of te project will become much easier The details of te Gantt chart is shown below.

The diagram below illustrates the critical path which shows the shortest time the project can be completed along with the impact of any delays due to incremental weather or labour issues. As identified in the project plan the key resources are not constrained so the critical path does not include resourcing as a factor.

The critical path diagram should start at identification phase 6 days and you can have an EF (early Finish) of -1 day or LF (late finish) of +1 days. The next phase is Procurement for which you have scheduled 18 days and you could potentially have an early finish by shaving a few days with the procurement process or you could have delays which would mean a late finish. The implementation phase is for 13 days and given the fact that it is labour intensive we should finish on time or have a late finish by 2 days to account for weather etc. Maintenance phase would be unchanged and this would give you the critical path diagram to identify the shortest time to complete the project.

Project cost baseline is that specific part of the project baseline which handles the net money that the project manager has been predicted to cost and in other hand, money will be spent. This is an approved budget that is usually within time distribution format utilized for estimating, monitoring and controlling the overall cost performance of the project. For this particular project the cost baseline is as follows:

Task Name	hour	labour	materials	equipments	price	before project	week 1	week 2	week 3	week 4	week 5	week 6	week 7	week 8	week 9	week 1 0	week 1 1	week 12
Setting Up An Employee Lounge
Requirement Identification
Identify The Specifications	6	$0	$0	$0	$0	$0
Discuss With The Stakeholders	6	$0	$0	$0	$0	$0
Document The Requirements	8	$0	$0	$0	$0	$0
Deploy Requirements	8	$0	$0	$0	$0	$0
Milestone 1: Requirement Identified
Implementation Phase
Construct Electricity Points	8	$90	$0	$100	$190		$190
Install Light	8	$70	$50	$200	$320		$320
Install Kitchen Appliances	8	$50	$50	$20	$120		$120
Purchase Cup Boards And Bench Tops	7	$60	$60	$200	$320			$320
Install Sink	9	$50	$60	$80	$190			$190
Tiles Fitting	4	$80	$90	$50	$220						$220
Painting And Decorating	6	$200	$80	$300	$580								$580
Purchase Tables And Chairs	8	$300	$60	$200	$560											$560
Signage	7	$50	$60	$0	$110												$110
Milestone 2: Implementation Phase Completed
Procurement Plan
Identify The List Of Suppliers	7	$0	$0	$0	$0													$0
Discuss With The Stakeholders	9	$0	$0	$0	$0													$0
Choose Suitable Supplier	4	$0	$0	$0	$0													$0
Develop Contract & Send Requirement	6	$20	$0	$0	$20													$20
Baseline							$630	$510	$0	$0	$220	$0	$580	$0	$0	$560	$110	$20
Accumulative							$630	$1,140	$1,140	$1,140	$1,360	$1,360	$1,940	$1,940	$1,940	$2,500	$2,610	$2,630

Figure 2: S curve for the baseline cost of the project

(Source: Created by author)

References

Amrollahi, A., Ghapanchi, A. H., & Talaei-Khoei, A. (2014). Three decades of research on strategic information system plan development.Communications of the Association for Information Systems, 34(1), 84.

Braglia, M., & Frosolini, M. (2014). An integrated approach to implement project management information systems within the extended enterprise.International Journal of Project Management, 32(1), 18-29.

Coronel, C., & Morris, S. (2016). Database systems: design, implementation, & management. Cengage Learning.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. pearson.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Larson, E. W., & Gray, C. (2013). Project Management: The Managerial Process with MS Project. McGraw-Hill.

Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), 202-217.

Schwalbe, K. (2015). Information technology project management. Cengage Learning.

Verzuh, E. (2015). The fast forward MBA in project management. John Wiley & Sons.

Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. AMACOM Div American Mgmt Assn.

Nanda, V. (2016). Quality management system handbook for product development companies. CRC Press.

Schwalbe, K. (2015). Information technology project management. Cengage Learning.

Tornabene, C., Hussain, M. M., Crowe, T., Cohen, N., & Panzer, J. (2012).U.S. Patent No. 8,103,729. Washington, DC: U.S. Patent and Trademark Office.

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