Discuss About The Managing Operational Risksduring Warehouse.
The company which is taken under research study deals with the supply of military equipment such as threat detection technologies security of homeland, and resilience applications and technologies. The company is looking forward to transform their headquarters which involves the relocation of the employees, and others. The company wants to complete the project within the approved budget by making use of project management techniques.
The aim of this project is to minimise the cost spent on relocation of the US head quarter of the company so as to provide the improved services to the customers.
The objective of this project is to resolve the challenges associated with the project due to the transformation of organization environment. The focus should be given on minimizing the operating cost, facilitating legal requirement, open job opportunities for the employees, providing enhanced services to the customers, managing the operational plan of the enterprise. The PM solution should be used for resolving the challenges associated with the company by developing proactive plan for communication management system, resources management system, quality management system, risks management system, and development of the operational program.
The scope of the project is to implement Project management techniques in for providing preferred solution to the challenges faced by the company in the relocation of their Headquarter. The synchronization of the project activities helps in eliminating the problem of over budgeting (Balley and Riffel, 2010). The project management techniques help in preplanning the activities related to scope management system, setting of company’s mission, scheduling of process, allocation of resources, communication management plan, procurement management plan, quality management plan and others.
The budget allocated for completing the project of relocation of company’s head quarter is about 12 Million dollar.
The time required for the relocation of the head quarter is about 8 months.
The development of the project management techniques helps in synchronizing the schedule of the processes undertaken(Embric, 2016). The work breakdown structure developed for the relocation procedures helps in completing the project on time and under the required budget because it focuses on preparing the process schedule with approximate time of completing the activities. The analysis of the critical activities makes the project to be completed on time. The cost estimation of the budget helps in completing the project under budget because the estimated cost of the project is always more than the actual cost of the project (EY Publication, 2012).
The challenges which company faces in the program of relocation is of company headquarter are increasing operating cost of the system, required changes in the human resource according to the state laws, transformation of the working culture of the enterprise, insecurity in the employees regarding their job, loss of productive work from the employees, incapability in providing efficient services to their customers, security associated with the relocation of explosive products, and changes in the SAP software regarding the account and financial statement of the enterprise (Bekefi, Epstein, and Yuthas, 2008).
|
Name |
Position |
Responsibilities |
|
KW Wuest |
Owner |
Requirement specification plan Problems encountered in the traditional working Requirement of renovation Details of new site location |
|
RS Agarrwal |
Sponsor |
Analysis of the cost estimation plan Approval of the budget on the basis of estimated cost |
|
R. S. Liang |
Financial Manager |
Updating the SAP system according to the new program Upgrading the database of the employees for retention |
|
K. Leo |
Accountant |
Prepares cost estimation plan of the project by focusing on the scheduled activities |
|
F. Thomson |
Quality manager |
Focuses on services provided to the customers |
|
T. D. Davies |
Procurement Manager |
Focuses on the supply of resources, equipment, threat detecting system, and others on the different location of the headquarter |
|
L. Chiang |
Project Manager |
Prepares a project schedule for the relocation of the hedquarter to different site location Analysis of the critical elements and processes of the project which can cause delay to the project |
|
B. Baggie |
Risks Manager |
Prepares the risk register Prepares risk analysis matrix Risk identification and mitigation plan |
The planning and scheduling of the project activities helps in completing the project on time and within the approved budget. The cost of underbudget can be utilized for other fruitful purposes like deployment of the training and development program for sharpening the skills and expertise of the working employees according to the legislation of the new state government policies framework for human resource management.
The analysis of the project helps in determining the risk associated with the operational plan of the enterprise. The expertise and the capability of the project manager are the major risks which is associated with the project completion. The high skills, experience, and capabilities helps in completing the project on time, under budget, and good quality output (Gosnik, 2015). The efforts of the project manager in the development of technical plan, scheduling of the processes, procurement plan, communication plan and others can be measured with the effectiveness and efficiency of the project manager. The deployment of project management tactics helps in analysing the probability and the frequency associated with different risks (Morris, 2013). The setting of priority on the basis of risks occurrence helps in removing and eliminating all the risks factors proactively. The qualitative and quantitative methodologies should be used for measuring the risks associated with the proposal of the project (Passenheim, 2015).
The qualitative techniques which are used for analysing the risk associated with the relocation of the headquarter are categorised as interview, questionnaire, observation, and survey.
Interview: The interview is organised with the owner of the company to know the requirement of relocation of the headquarters because it will affect the complete functioning of the enterprise. The specification of the requirement helps in analysing the risks associated with the project such as resistance from the employees, inclusion of change management, effects to the organization culture, inefficiency of the employees, and others. During the discussion, it is noticed that the project owner is looking forward for good project management techniques which are efficient for managing the state legislation
Questionnaire: The focused group is organised for the deployment of questionnaire to predict the challenges and problems which the employees face due to the relocation of the headquarter (Michalko, Malpas, and Arcolio, 2010). From the analysis, we have examined that the employees are cope up with some insecurity regarding their job due to the relocation process of the company which directly have an impact on their performance and productivity. The insecurity of the job arises due to the new policy framework of the state for human resource manager. The employees have raised the point of retention that they will not be provided with adequate amount due to the inefficiency in upgrading the SAP system.
The working structure of the organization helps in analysing the technical issues which exist with the enterprise. The operational risks associated with the working plan of the enterprise can be predicted through the observation of working culture
Sampling: The sampling method is used for analysing the changes in the organization culture due to the transformation of the head quarter to the new location. It helps in analysing the problem faced by the employees due to the relocation of the processes.
|
Risk |
Consequences |
Likelihood |
Probability |
|
Financial risks |
The over budgeting of the project can cause inefficiency in the project activity schedule (Gultie, 2013) |
Possible |
High |
|
Technical Risk |
The risk associated with the relocation of the technical equipment and expertise of the employees to handle it |
Probable |
Highly probable |
|
Expertise Labour Risk |
The new state is inefficient in providing expert labour for the organization due to poor education system (Kotonen, 2015) |
Probable |
Low |
|
Operational risk |
Employees are not able to carry out the organization plan efficiently (Lavell, 2014) |
Possible |
High |
|
Inaccuracy in the cost estimation plan |
Over budgeting of the cost will result in financial risks associated with the organization |
Probable |
Low |
|
Inaccuracy in the project scheduling activities |
Inefficiency in completing the project on time without any delay |
Possible |
Low |
|
Change in Organization culture |
Opposition from the employees due to diversification in the culture (Sirkin, Keenan, Jackson, 2015) |
Probable |
Medium |
|
Inclusion of new policy structure of the state government on human resource management program |
Insecurity of job in the employees |
Possible |
High |
|
Data loss |
The loss of data can occur due to the relocation of the operational working structure of the enterprise |
Highly probable |
High |
|
Loss of confidentiality of the information |
Relocation result in the data leakages from the database and the SAP system. |
Probable |
High |
|
Cultural diversification |
Inclusion of new employees can increases the diversification of the culture which can affect the working plan of the enterprise |
Possible |
Medium |
|
Unethical behaviour of the employees |
Effects the cultural aspect of the employees |
Possible |
Medium |
|
Time |
Delay in the project |
Probable |
High |
|
Legal Issues |
Change of state put their own rules and regulation for completing the operational plan of the enterprise |
Probable |
High |
|
Risk |
Consequences |
Risks management and Mitigation Strategies |
Consequences |
|
Financial risks |
The over budgeting of the project can cause inefficiency in the project activity schedule |
The scheduling of the project and development of the associated cost estimation plan helps in completing the project on time and within the cost |
The project is completed under budget of 3 million dollar which can be used for arranging training and development program for the working employees to enhance their expertise and skills to carry out their given task (Sanremo, 2014) |
|
Technical Risk |
The risk associated with the relocation of the technical equipment and expertise of the employees to handle it |
The use of ICT technology helps in providing facility of easy relocation of activities without any loss of data |
The operational plan of the enterprise will not be disturbed The customers are provided with quality of service |
|
Expertise Labour Risk |
The new state is inefficient in providing expert labour for the organization due to poor education system |
Arranging training and development program for the working employees to enhance their expertise and skills to carry out their given task |
Increased the working ability of the new employees |
|
Operational risk |
Employees are not able to carry out the organization plan efficiently |
Arranging training and development program for the working employees to enhance their expertise and skills to carry out their given task |
The operational efficiency of the enterprise can be improved by enhancing the expertise of the working employees |
|
Inaccuracy in the cost estimation plan |
Over budgeting of the cost will result in financial risks associated with the organization |
Analysis of the market cost of resources and equipment before estimating the cost with the scheduled process |
Helps in completing the project under budget because the estimated cost calculated for completing the scheduled project activities is more than the actual cost incurred on completing the project |
|
Inaccuracy in the project scheduling activities |
Inefficiency in completing the project on time without any delay |
Experienced project manager should be given responsibility of scheduling the processes, regular meetings should be arranged for knowing the requirement of the project, and preparing minutes of meeting for analysis |
Completion of the project within the budget and time |
|
Change in Organization culture |
Opposition from the employees due to diversification in the culture |
Arranging training and development program for the working employees to enhance their expertise and skills to carry out their given task |
Increasing the compatibility of the employees motivate the employees to give their best for the organization growth |
|
Inclusion of new policy structure of the state government on human resource management program |
Insecurity of job in the employees |
Retention bonus should be awarded New jobs should be created for the existing employees Providing adequate knowledge about policies and structure of the new state |
Increasing the productivity of the working employees |
|
Data loss |
The loss of data can occur due to the relocation of the operational working structure of the enterprise |
Back up data should be kept for overcoming the disaster |
On time retrieval of the required information |
|
Loss of confidentiality of the information |
Relocation result in the data leakages from the database and the SAP system. |
Use of encryption procedures and development of cipher text Deployment of the firewall |
No chance of data leakages |
|
Cultural diversification |
Inclusion of new employees can increases the diversification of the culture which can affect the working plan of the enterprise |
Training program for the ethical code of conduct which the employee should follow during the work place |
It generates the feeling of respect to the culture of other employees |
|
Unethical behaviour of the employees |
Effects the cultural aspect of the employees |
Training program for the ethical code of conduct which the employee should follow during the work place |
It generates the feeling of respect to the culture of other employees |
|
Time |
Delay in the project |
Experienced project manager should be given responsibility of scheduling the processes, regular meetings should be arranged for knowing the requirement of the project, and preparing minutes of meeting for analysis |
Completion of the project within the budget and time |
|
Legal Issues |
Change of state put their own rules and regulation for completing the operational plan of the enterprise |
Providing adequate knowledge about policies and structure of the new state Developing good and healthy relationship with the governmental agencies |
The legal obligation of the state government can be resolved by signing the agreement of policies and procedures |
During the course plan, we have analysed that the implementation of the project management techniques for transforming and relocation of the company US headquarter to different site location increases the effectiveness of the project to be competed with in time and under budgeted cost. The inclusion of project management techniques helps in predicting risks associated with the project at the initiation phase of the project which helps in mitigating at an early stage of the project so that no distraction occurred due to the new policy structure laid down by the state government in which head quarter is going to be transferred. The smooth functioning of the operational plan can be laid down by motivating the employees towards the work forum and demolish the threat of insecurity from their psychological attitude by providing them retention for relocation of their work place. The satisfied employees are able to show their full calibre and talent in the relocation procedures of the enterprise (Rothe, Christersson, Heywood, Sarasoja, 2015). The training and development program should be arranged for the employees so that they can sharpen their working tactics according to the requirement of the new project and human resource policies of the new state. The deployment of project management tactics helps in analysing the probability and the frequency associated with different risks. The setting of priority on the basis of risks occurrence helps in removing and eliminating all the risks factors proactively. The privilege should be given to the expertise and experience of the project manager because the implication of the risks can be reduced by deploying the effective schedule of processes with associated cost and time. The focus should be given on the requirement specification plan provided by the project owner because lots of risks can be predicted by analysing the requirement report. The specification of the requirement helps in analysing the risks associated with the project such as resistance from the employees, inclusion of change management, effects to the organization culture, inefficiency of the employees, and others. The strategic approach for eliminating the risks associated with the project helps in completing the project on time and within the expected cost incurred with the project activities. The analysis of the critical activities which are highlighted in the project activity schedule should be given priority over other processes so that it does not affect the working of the other undertaken process.
References:
Balley, M., and Riffel, M. (2010). Understanding and mitigating IT project risks. Retrieved from https://www.gfoa.org/sites/default/files/GFR_JUN_10_30.pdf
Bekefi, T., Epstein, M., and Yuthas, K. (2008). Managing opportunities and risks. 1st ed. Retrieved from https://www.cimaglobal.com/Documents/ImportedDocuments/cid_mag_managing_opportunities_and_risk_march08.pdf.pdf
Embric. (2016). Detailed risk management plan. Retrieved from https://www.embric.eu/sites/default/files/deliverables/D1.2_Risk%20Mgmt%20Plan%20.pdf
EY Publications. (2012). External Risks. Retrieved from https://www.ey.com/Publication/vwLUAssets/external-risks/$FILE/ey-insights-on-GRC-external-risks.pdf
Gosnik, D. (2015). Extended model of managing risks in new product development project. 1st ed. Retrieved from https://www.fm-kp.si/zalozba/ISSN/1581-6311/9_015-037.pdf
Gultie, E. (2013). Supply chain risks associated with relocating a production system in a foreign marketing. Retrieved from https://www.diva-portal.org/smash/get/diva2:621142/FULLTEXT01.pdf
Kotonen, T. (2015). Managing operational risksduring warehouse relocation project. Retrieved from https://www.theseus.fi/bitstream/handle/10024/136432/Thesis_with%20appendices.pdf?sequence=1&isAllowed=y
Lavell, A. (2014). Reducing relocation risks. Retrieved from https://www.ucl.ac.uk/bartlett/development/sites/bartlett/files/wp4_closure_rep_flacso_eng.pdf
Michalko, J., Malpas, C., and Arcolio, A. (2010). Research Libraries, Risks, and Systematic change. Retrieved from https://www.oclc.org/content/dam/research/publications/library/2010/2010-03.pdf
Morris, P. (2013). Research and the future of project management. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/17538371011014080
Passenheim, O. (2015). Project management. Retrieved from https://home.hit.no/~hansha/documents/theses/projectmanagement.pdf
Rothe, P, Christersson, M., Heywood, C., Sarasoja, A. (2015). Relocation management- challenges and service opportunities. Retrieved from https://www.prres.net/papers/ROTHE_Relocation%20management.pdf
Sanremo. (2014). Planned relocation disaster and climate change. Retrieved from https://www.unhcr.org/54082cc69.pdf
Sirkin, H., Keenan, P., Jackson, A. (2015). The hard side of change management. Retrieved from https://hbr.org/2005/10/the-hard-side-of-change-management
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