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Semester Project Instructions
Overview
The semester project is a hands-on learning opportunity to reinforce the material learned throughout the course of this semester. The semester project work will allow you to bring to life some of the concepts taught during the course and galvanize your understanding of the material. In addition, the semester project work will provide you with practical skills and experience that are highly sought after in the work place. It may seem a little overwhelming at first, however, I will be your guide and I will be teaching you during your journey. This project will require a considerable amount of time to complete, so you should begin working on this by the second week of class. It will require that you conduct some research, apply newly obtained skills, and interact with your instructor. If you get stuck, remember, don’t spin your wheels or get frustrated – contact me for help.
Approach
· Each student will be assigned by the instructor to one project to work on (assignments will be available the second week of class – see full list below).
· You may work independently or select one other person in the class to work with. If you select one other person in the class to work with, both students must send the instructor an email by the end of the third week of class to confirm who their partner is and both students will receive the same grades for this assignment. Otherwise, I will expect you to complete your assigned project on your own.
· Research your selected project to fully understand it. You may do this by examining companies in that line of work or historical projects of a similar nature.
· Research the purpose and format of the various types of ‘project plan deliverables’ that you will produce (see below).
· Thoroughly review the materials that I have provided on Blackboard as a wealth of information is available that will assist you with your project.
· Communicate with your instructor on a regular basis as you will need to confirm your assumptions, gain clarity, and gather additional requirements
· Produce draft versions of your ‘project plan deliverables’ (see below) to share with your instructor as you progress to ensure that you are on the right track.
· Turn in the final version of your ‘project plan deliverables’ (see below) when they are due.
Project Plan Deliverables
1. Project Charter (Must use MS-Word or MS-PowerPoint)
· The project charter provides an overview of the project purpose and objectives (scope, cost, schedule)
· Project charters are an agreement between the client and the project manager as to what needs to be done, when, and how much it will cost.
· Project charters come in many forms, however, for this class I have provided the template that you must use.
2. Project Organizational Chart (Must use Visio or MS-PowerPoint)
· The project organization chart shows pictorially what roles are needed for the project and the reporting hierarchy
· Project organization charts differ from company organization charts. Company organization charts focus on formal position people hold within a company (i.e. Director of Marketing) rather than temporary roles people play on projects (i.e. Testing team leader, Project Manager, Construction Laborer, Quality Inspector, etc…)
· Project organization charts are a useful tool for team members to see where they fit into the big picture
3. Project Roles and Responsibilities (Must use MS-Word)
· Project roles and responsibilities describe what the specific duties are for each role on the project organization chart
· Project roles and responsibilities are a useful tool for team members to understand what they are expected to do during the project
· Project responsibilities are often bulleted one line sentences of a half dozen or more responsibilities that a role is expected to perform
4. Project Risk Register (Must use MS-Word or MS-Excel)
· Project risks identify what could potentially go wrong during the course of the project – not overall company risk.
· Generally this is in the form of a sentence or two which describes the risk and the impact (i.e. Management decisions are not made in a timely manner resulting in a delay in schedule)
· Your project should have a minimum of a dozen risks and they should be as specific as possible.
· Project risk management focuses on mitigation – minimizing the probability that a risk will occur and/or the impact if it occurs. It also focuses on contingency – what would you do if the risk actually occurred.
· Your risk register should include at a minimum for each risk identified: risk event description, probability, impact, risk response actions, and a contingency plan.
5. Project Schedule (MS-Project or MS-Excel)
·
The project schedule is an organized list of activities that need to completed for a project set against a timeline to allow progress tracking
· The Project schedule must include descriptions of the activities, estimated durations, precedence relationships, start date, finish date, milestones and assigned resources.
· The Project schedule should include at a minimum 50 activities and a maximum of 100 activities using a work breakdown structure format and a minimum of 5 milestones.
Note: This is an opportunity to explore the use of Microsoft Project – which is a highly sought after skill in the work place around the world. However, it will require additional time and self-training on your part. I will help you along the way. If you would prefer not to learn or use Microsoft Project, you have the option to create your project schedule using Microsoft Excel.
Projects List
#
Project Description
Cost
Duration
1
Construction of a small office building
$5M
18 Months
2
Construction of a community park
$3M
6 Months
3
Construction of a police station
$15M
18 Months
4
Construction of an amusement park
$100M
12 Months
5
Construction of a suspension bridge
$100M
36 Months
6
Accounting software implementation at a medium-sized company
$25M
18 Months
7
Development of a new experimental drug to treat asthma
$200M
48 Months
8
Convert data center from IBM servers to Dell servers
$30M
9 Months
9
Retrofit apartment building with new fire suppression system
$15M
4 Months
10
Relocate historical school house to a new location 2 miles away
$1M
3 Months
11
Construct a new McDonald’s restaurant
$5
6 Months
12
Development of a new experimental drug to treat diabetes
$200M
48 Months
13
Design and engineer a new all electric vehicle
$75M
24 Months
14
Design and engineer a new 15 speed automatic transmission
$35M
15 Months
15
Design and engineer an optical recognition automatic teller machine (ATM)
$10M
18 Months
16
Customer billing system software implementation at a large-sized company
$150M
24 Months
17
Construct 10 miles of a new expressway
$100M
48 Months
18
Construct 60 miles of new pipeline to transport natural gas
$75M
24 Months
19
Re-locate a major automobile manufacturing facility 50 miles away
$135M
6 Months
20
Construct a warehouse for an automobile parts supplier
$10M
12 Months
21
Construct a homeless center in Mexico
$30M
24 Months
22
Inventory Management software implementation at a Large-sized company
$20M
18 Months
23
Develop a new subdivision of homes in Lyon Township, MI
$60M
24 Months
24
Build a brand new factory in Michigan to manufacture wind turbine blades
$100M
36 Months
25
Host the special Olympics in Southfield, MI
$5M
18 Months
Professor Allen 4
>Instructions
Overview harm or assist e.g. a dangerous chemical, competitors, government.
itigation Strategy
” column of the risk plan template to determine a threshold that requires the development of a contingency plan. For example, a total score of or higher may be the threshold which triggers the need for a contingency plan to be developed. owever, there may be a need to develop a contingency plan for a risk event that scores much lower due to likelihood, but has a high impact. In the end, the project manager must be comfortable with the decision around when to develop a contingency plan.
Defined
ikelihood
Impact to Critical Path or Field Work
0,000
$ 0,000 to 0,000
$ 500,000 Risk Plan es
Schedule Cost Quality Safety Scope Total Score H H H M L L 5
/1/ – / /11
Yes ERROR:#REF! 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: 0 Drivers to monitor: Page &P of &N
Y H H M L L H 75 ● ● ● Y H L H H L M 75 ● √ ● Y H L H H L M 75 ● √ ● Melton Y H H M L L H 75 ● ● ● Norlin Y H H L M L L 55 ● ● ● Norlin Y M H H H L L 51 ● ● ● Y H M L M L L 45 ● ● ● Norlin Y H M L M L L 45 ● ● ● Moccia Y M H M M L L 39 ● ● ● Y M M H L L M 39 ● ● ● Sitkauskas Y H M L L L L 35 ● ● ● Sitkauskas Y H M L L L L 35 ● ● ● Y H M L L L L 35 ● ● ● Y M L M L M L 27 ● ● ● Jamerson Y M L L M M L 27 ● ● ● Jamerson Y M M L L M L 27 ● ● ● Jamerson Y M M L L L M 27 ● ● ● Melton Y M M L L L M 27 ● ● ● Melton Y M M L L L M 27 ● ● ● Melton Y M M L M L L 27 ● ● ● Sitkauskas Y M L M M L L 27 ● ● ● Y M M M L L L 27 ● ● ● Switala Y M M L M L L 27 ● ● ● Melton Y H L L L L L 25 ● ● ● Switala Y M L L M L L 21 ● ● ● Sitkauskas Y M M L L L L 21 ● ● ● Melton Y L H H M L H 19 ● ● ● Y L H H M L H 19 ● ● ● Kret Y L H H H L M 19 ● ● ● Melton Y L M H M L M 15 ● ● ● Norlin Y M L L L L L 15 ● ● ● Jamerson Y M L L L L L 15 ● ● ● Norlin Y M L L L L L 15 ● ● ● Jamerson Y M L L L L L 15 ● ● ● McCormick Y M L L L L L 15 ● ● ● Y L M H L L M 13 ● ● ● Norlin Y L H H L L L 13 ● ● ● Hull Y L H H L L L 13 ● ● ● Hull Y L M L H L L 11 ● ● ● Kret Y L H M L L L 11 ● ● ● Jamerson Y L H M L L L 11 ● ● ● Kret Y L M H L L L 11 ● ● ● Moccia Y L M H L L L 11 ● ● ● McCormick Y L M L M L L 9 ● ● ● Moccia Y L M L M L L 9 ● ● ● Moccia Y L M M L L L 9 ● ● ● Hull Y L M M L L L 9 ● ● ● Melton Y L M M L L L 9 ● ● ● Melton Y L M L L M L 9 ● ● ● Jamerson Y L M L M L L 9 ● ● ● Hull Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts Y L L M L L M 9 ● ● ● Melton Y L L H L L L 9 ● ● ● Kret Y L L H L L L 9 ● ● ● Kret Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Hull Y L L H L L L 9 ● ● ● Kret Y L L M L L L 7 Hull Y L L L M L L 7 ● ● ● Switala Y L L L L M L 7 ● ● ● Jamerson Y L L L L M L 7 ● ● ● Jamerson Y L L M L L L 7 ● ● ● Kret L L L L L L 5 ● ● ● Sitkauskas (SH) L L L L L L 5 ● ● ● McCormick Y L L L L L L 5 ● ● ● Sitkauskas Y L L L L L L 5 ● ● ● Sitkauskas Y L L L L L L 5 ● ● ● Sitkauskas Regardless of rating this issue should be tracked closely Y L L L L L L 5 ● ● ● Melton Y 0 ● ● ● Y 0 ● ● ● Norlin See # 88 Y 0 ● ● ● Norlin 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● 0 ● ● ● Detroit Edison Confidential Page &P of &N
# Detroit Edison Confidential Page &P of &N Risk Mitigation Results
Event Did not Occur / No Action Taken Event Did not Occur / Mitigation Succesful Risk Transferred Risk Avoided Risk Accepted Event Occurred – Impacts Mitigated Event Occurred – Treatment Ineffective Duplicate / Combined with Risk 0 0 0 0 0 0 0 0 # of Risk Events Identified and Closed (impact on outdoor construction work)
permits
High = 5 Components of a Risk L 3 3 3 2010 Q2 2010 Q3 2010 Q4 20 70 Begin Process Identify Key Stakeholders Plan and Schedule Risk Assessment Conduct Risk Identification Session Conduct Risk Quantification Session Develop Risk Response Strategy Develop Contingency Plan Send out Request for Updates Monthly Update Cycle Integrate Identified Risks into Forecast Integrate Identified Risks into Schedule Incorporate Risks into Status Update Compile Updated Risk Plan Update Risk Plan Update Risk Plan Repeat Monthly Update Cycle Until Project is Complete Provide Final Update to Risk Plan File Risk Plan in Historical Archive Monitor & Control Risks Update Risk Plan Publish Risk Plan Review Industry/ Vendor Information for Lessons Learned & Project Specific Risks to Consider Review Historical Risk Database For Related Risks Review Current Projects for Related/Common Risks Provide Input Provide Input Document Interdependencies in Work Scope
Risk Management Process Victor Allen April 3, 2 0 1 2
1 What are risks? Project Management Institute definition of risk: “an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective“ (i.e. scope, time, cost, quality, safety, etc…) 2 What are risks? Risk/Issue/Action? (Risk) Which of the following are risks? Which of the following are risks? Which of the following are risks? Which of the following are risks? Which of the following are risks? 5 Characteristics of a Risk Event Why do we manage risks? “If you don’t manage the risks, the risks will manage you” ~ Victor Allen Program Risk Manager Risk Management Database Risk Response Planning Reviews Internal Risk Management Framework The Risk Register Impacts Risk Register – Impacts Defined Responding to Risks What are you going to do to respond to this risk? The Risk Register 1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns – Negotiate contract with alternate vendor to perform services. The Risk Register The Risk Register Tips for Successful Risk Management 19 What outcomes or results do you want to see? < TITLE> What is the first step and last step in the process? What is off the table due to resources? Who is the end-user customer? A3 PROJECT CHARTER: Date: Sponsor: An A3 Project Charter is a visual tool for communicating critical project information on one page. It helps ensure all parties working on the project are clear about what they need to accomplish and their role in the project. Typical CI Project Benefits: Improved quality and timeliness of services Improved productivity and reduced service costs Redeploy staff resources to higher priority areas Enhanced service consistency Easier to onboard and train new employees Improved customer and staff satisfaction Increased capacity for improving work How will the project benefit/impact the end user customer (quality, timeliness, costs, results)? How will the project benefit/impact staff and stakeholders? How will the organization reinvest or reassign staff time that is saved? What new work will the organization take on because of freed up staff time? What are expected cost savings: <> one-time cost savings and <> ongoing/annual cost savings? 1 PROJECT MILESTONES & SCHEDULE < TITLE> Project Milestones Owner Proposed Date Actual Date A3 PROJECT CHARTER: 2 Client: Project: : Revision: Ideal State Gap to be Corrected Problem/Project Statement Major Risks Identified State Case for Change Key Business Assumptions Current Scope Statement 1 3 4 2 Date Prelim IRR = Project Charter Summarize Project End Requirements Identify key gaps between current state and ideal state Total Estimated Project Cost = Identify key project risks Identify the current state List key assumptions Date Summarize reason for project Briefly describe the scope of work. More detail will be provided on the second page State the problem or project Organizational Impacts List organizational impacts (or that there is no organizational impact). Excluded from Scope Itemize what is to be included in the scope of the project. Include product, and project inclusions. Identify roles and responsibilities for the project, i.e., managed completely, provide only resources, etc.
Risk Management Process Victor Allen April 3, 2 0 1 2
1 What are risks? Project Management Institute definition of risk: “an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective“ (i.e. scope, time, cost, quality, safety, etc…) 2 What are risks? Risk/Issue/Action? (Risk) Which of the following are risks? Which of the following are risks? Which of the following are risks? Which of the following are risks? Which of the following are risks? 5 Characteristics of a Risk Event Why do we manage risks? “If you don’t manage the risks, the risks will manage you” ~ Victor Allen Program Risk Manager Risk Management Database Risk Response Planning Reviews Internal Risk Management Framework The Risk Register Impacts Risk Register – Impacts Defined Responding to Risks What are you going to do to respond to this risk? The Risk Register 1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns – Negotiate contract with alternate vendor to perform services. The Risk Register The Risk Register Tips for Successful Risk Management 19
Divisional Information Officer · Resolve issues regarding policy, process and procedures that cannot be resolved at lower levels
· Provide project budget
· Assist in risk mitigation, when necessary
· Assist in corrective action decisions, when necessary
Project Sponsor(s) · Actively demonstrate support for the project on a regular basis
· Resolve issues regarding policy, process and procedures that cannot be resolved at lower levels · Meet with Interim Leadership Team at regularly scheduled intervals
· Assess project progress and take appropriate action
Project Steering Committee · Resolve issues regarding policy, process and procedures that cannot be resolved at lower levels · Communicate key messages and decisions within respected organization
· Sub-team to review and approve requests to customize application
Interim Leadership Team · Overall Scope Definition
· Review and Resolve issues regarding policy, process and procedures that cannot be resolved at lower levels
· Risk management (risk planning, risk identification, risk quantification, risk response development, and risk control ) · Identification and creation of project contingency plans
· Resource acquisition (people, time, budget and materials)
· Communication to all stakeholders
· Manage the overall project schedule, budget, and scope
· Ensure project quality standards and procedures are being followed and contribute to overall program quality management
· Review Key Deliverables
· Take corrective action, when appropriate.
· Report project status to project sponsors and steering committee
· Coordinate and manage the efforts of all teams
· Manage stakeholder expectations
· Ensure good communication both vertically and horizontally throughout the project
· Establish project standards and procedures
· Facilitate project meetings with Executive Sponsors and Steering Committee
· Establish quality measures for the project
Technical Team Leader · Define Technical Scope within area of responsibility
· Issue documentation and resolution within area of responsibility
· Risk identification and management within area of responsibility
· Identification and creation project contingency plans
· Resource acquisition, people, time, budget and materials within area of responsibility
· Coordinate communication to all affected parties (business and technical) within area of responsibility
· Manages technical project team within area of responsibility
· Deliverable identification and creation within area of responsibility
· Takes Corrective action, when appropriate,within area of responsibility
· Report project status to Interim Leadership Team within area of responsibility
· Gain approvals for all deliverables within area of responsibility
· Assist in establishing project standards and procedures
· Follow up on action items from meeting minutes
· Facilitate project team meetings, as needed
· Ensure project quality standards and procedures are being followed and contribute to overall program quality management · Coordinate all project activities within area of responsibility
· Maintain project schedule within area of responsibility
· Reporting of budget and schedule variance within area of responsibility
· Documentation coordination and maintenance within area of responsibility
· Ensure all time spent on the project has been collected within area of responsibility
· Project meeting minutes
Business Project Leader · Lead business analysis effort performed by business analysts and subject matter experts
· Provide business representation and leadership for business areas impacted by the project within area of responsibility
· Control day-to-day aspect of the team within area of responsibility
· Coordinate, communicate, and actively engage all other teams to ensure synergy is achieved for the program as a whole
· Ensure good communication within your team and cross-functionally
· Regularly assess and ensure alignment of business processes across all business areas
· Ensure that project standards and practices are consistently followed
· Define Business Scope within area of responsibility
· Track and resolve issues within area of responsibility
· Risk identification and management
· Identification and creation of project contingency plans
· Resource acquisition, people, time, budget and materials within area of responsibility · Takes Corrective action, when appropriate, within area of responsibility
· Report project status to Interim Leadership Team within area of responsibility · Assist in establishing project standards and procedures
· Follow-up on action items from meeting minutes within area of responsibility
· Facilitate project team meetings
· Ensure project quality standards and procedures are being followed and contribute to overall program quality management · Collect project meeting minutes within area of responsibility
· Monitor project milestones and meet established deadlines within area of responsibility
· Manage the refinement of business requirements
Project Leader
· Control day-to-day aspects of combine or upgrade project team
· Perform project management processes
· Tracks and resolves issues
· Monitor milestones and meet established deadlines
· Execute formal and management reviews
· Manages refinement of models of business requirements
· Leads design and organization of procedures
· Analyzes technical business processes
· Communicates with Project Manager, Business Project Manager and Project Team
Business Partner (Business Team Members) · Familiar with business processes and customizations
· Assist in the creation of project deliverables
· Ensure communication to the Business Unit is occurring
· Identify and communicate project issues, risks, constraints and assumptions to the Project Manager
· Assist in risk mitigation, when necessary · Assist in issue resolution
· Assist in project scope definition
· Provide deliverable verification and acceptance
· Attend project team meetings
· Identify customizations and assist Developers in resolving issues
· Develop and execute test plans
· Modify and test queries
· Follow project quality standards and procedures
· Provide status of tasks and deliverables to Project Manager
Business Analyst · Familiar with business processes
· Assist in the creation of project deliverables
Technical Analyst · Creation of the project deliverables
· Ensure communication between all affected parties is occurring
· Identify and communicate project issues, risks, constraints and assumptions to the Project Manager · Coordinate with Project Leader and Business Partner to complete detailed test plans for all phases of testing
· Develop data verification and acceptance methods
· Develop procedures for handling test case failure
· Follow project quality standards and procedures · Provide status to Project Manager
Technical Developer · Creation of the project deliverables · Software development and analysis
· Regression / unit / system testing
· Work closely with functional resources to ensure business needs are met
· Document all changes
· Attend project team meetings
Database Administrator · Review scripts and modify, if necessary, for customer standards
· Monitor database and provide database support
· Perform backups, recoveries
· Troubleshoot and tune database
· Enforce standards
Systems / Web Administrator · Assess the server-related needs for team
· Develop and maintain web architecture design
· Manage logins, passwords and system security
· Manager server / system and web server
Network Administrator · Provide network and server support
· Design and support the existing and future LAN / WAN for PeopleSoft Internet Architecture
· Manage network security and connectivity
· Troubleshoot
· Set up workstations
· Network configurations
Training Team Leader · Assess training needs for project team members
· Develop training strategy for project team members
· Develop, coordinate, and recommend training for project team members
· Evaluate success of training for project team members and adjust, as appropriate
· Assess training needs for target training audience
· Develop training strategy for target training audience
· Develop, coordinate, and recommend training for target training audience
· Conduct training for target training audience, train-the-trainers, and others, as needed
· Evaluate success of training for target training audience and adjust, as appropriate
· Identify and assess various training delivery mechanisms
· Manage site selection and coordination of training equipment, materials, and supplies
· Enable the scheduling of employees for training
· Control day-to-day aspect of the training team
· Ensure good communication within area of responsibility
· Ensure that project standards and practices are consistently followed within area of responsibility
· Track and resolve issues within area of responsibility · Identification and creation of project contingency plans within area of responsibility
· Resource acquisition, people, time, budget and materials within area of responsibility · Report project status to Organization Readiness Leader within area of responsibility
· Gain approvals for all deliverables within area of responsibility · Establish quality procedures and standards for project deliverables within area of responsibility
· Coordinate all project activities within area of responsibility
Management Table (Change Review Board) · Review project budget
· Resolve issues regarding policy, process and procedures that cannot be resolved at lower levels · Review change requests that require changes to scope, time or budget
· PMT & business stakeholders and/ or their delegates comprise the CRB (composed of PMT, Business Unit, Others) and review and accept all project changes
· Review and Approve or Reject Requested “material” changes to a project considering impact to project and portfolio
· Approve/Reject requests to “re-baseline” a project schedule, budget, or scope
2
Risk Plan
Risk Event Description
What is the event?
A Source of a risk or hazard – the thing which has the potential
to
An Event or Incident – Something that occurs such that the source of risk has the impact concerned e.g. a leak, competitor expands into or leaves your market, new or revised regulations, or some level of observation reaching a particular trigger level.
A Consequence, outcome or impact on a range of stakeholders or assets e.g. environmental damage, loss or increase of market/profits, regulations increase or decreased competitiveness
Risk Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring?
There are two beneftits to identifying risk drivers:
– Focus attention on the probable root cause(s) to aid in developing a Risk Response Strategy
– Identify events or trends that should be monitored
Response/
M
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts?
Accept:
This response accepts or ignores the risk. This may be the appropriate choice when the impact or likelihood of the risk is so low that it does not warrant further attention or if you have no control whatsoever over the impact or likelihood of the risk. (e.g. the risk that your project will be terminated or be placed on hold due to a company merger).
Transfer:
This response involves moving all or part of the risk to another party. (e.g. purchase automobile insurance and transfer the risk to the insurance company, for a small monthly fee of course). Transferring risk comes with a cost.
Mitigate:
This response involves reducing the likelihood that the risk will happen, reducing the impacts of the risk or both. This is what most people are referring to when they are discussing risk management. Most risks can be mitigated with some effort. Although it is unlikely that you can reduce the impact and likelihood of occurrence to zero, this would in essence be eliminating the risk, it is often possible to significantly reduce them. For example, if you have a technical team member who is critical to the success of the project and if that person left, the project schedule would be at risk, you may be able to mitigate the risk by training a backup person to reduce the impact or offer that individual a bonus or incentive to stay reducing the likelihood of occurrence.
Avoid:
This response focuses on eliminating the risk from the project. This sounds like a great choice, so you might ask why we don’t choose this all the time. The reason, it often comes at great cost. To eliminate a risk generally requires that you remove the source of the risk from scope. For example, you may have a schedule risk associated with a new version of software that has not been released yet by the vendor. Although the customer may be expecting this software as part of their project, removal from scope would eliminate this risk.
These general response strategies can be used in combination to address a single risk event. This may be done in the event that your chosen strategy is not working effectively or as a way to attack certain types of risks. For example, you may begin by mitigating a risk reducing both the likelihood and impact. The remaining risk could then either be avoided by a smaller scope reduction, transferred to a vendor or accepted.
Contingency Plan
What action(s) will be taken if this event occurs?
Complete the “Contingency Plan” column for all risk events that the Project Manager deems necessary to adequately address the risks of the project.
The contingency plan describes what needs to be done in the event that the risk actually occurs. When the risk event actually occurs, it is no longer a risk event; it is simply an event and may require a response or plan to be activated. The project manager will need to determine what the criteria are to trigger the need for a contingency plan. One method is to use the “
Total Score
8
5
H
Risk Timeframe
Critical date(s) or period of exposure
Some risks are related to specific events, milestone dates or time periods. These critical dates should be documented to focus attention on the associated risk at the appropriate time.
Impacts
Risk impact level Matrix
L
Low
Medium
High
Unlikely
Likely
Almost Certain
Impacts Low Medium High
Schedule
No
Potential to Affect Critical Path or Field Work
Certain to Affect Critical Path or Field Work
Cost
Less Than
$
1
0
10
$
50
Greater Than
Quality
Minor impact to product deliverables
Moderate impact to product deliverables
Major impact to product deliverables
Safety
No Impact to worker safety
Minor impact to worker safety
Major impact to worker safety
Scope
< 1%
2% to 5%
> 5%
H
M
Y
L No
Project Name: Risk Plan
Date: ##/##/##
Impacts
#
Risk Event Description
What is the event?Category
Sub-project, Project Phase, Location etc.
(Optional)
Likelihood
Risk Event Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring?
Response/ Mitigation Strategy
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts?
Contingency Plan
What action(s) will be taken if this event occurs?
Owner
Risk Timeframe
Critical date(s) or period of exposureOrganizational or Cross-Project Impacts
Comments
Status
1
Insufficient number of skilled internal technical resources available to support the development of the new system.
Development
7
Drivers to monitor:
– Development schedules slips
– Excessive overtime is needed to keep pace with the schedule
– High number of quality errors discovered during the testing cycle
Drivers that have occurred:
–Planned Actions:
– Train additional internal resources
– Hire additional contractors
– Add contingency to the budget to allow for overtime work
Completed Actions:
–Planned Actions:
– Outsource portions of the development to an outside vendor
– Adjust project schedule and budgetJane Smith
3
11
6
30
ERROR:#REF!
2 0
Drivers to monitor:
–
Drivers that have occurred:
–
Planned Actions:
–
–
Completed Actions:
–
Planned Actions:
–
–
3 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
4
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
5 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
6 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
7 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
8 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
9
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
10 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
11 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
12
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
13
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
14
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
15
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
16
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
17
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
18
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
19
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
20
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
21
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
22
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
23
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
24
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
25
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
26
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
27
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
28
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
29
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
30 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
31
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
32
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
33
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
34
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
35
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
36
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
37
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
38
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
39
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
40
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
41
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
42
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
43
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
44
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
45
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
46
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
47
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
48
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
49
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
50 0 Drivers to monitor:
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
51
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
52
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
53
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
54
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
55
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
56
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
57
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
58
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
59
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
60
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
61
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
62
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
63
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
64
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
65
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
66
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
67
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
68
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
69
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
70
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
71
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
72
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
73
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
74
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
75
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
76
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
77
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
78
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
79
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
80
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
81
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
82
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
83
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
84
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
85
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
86
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
87
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
88
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
89
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
90
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
91
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
92
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
93
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
94
–
Drivers that have occurred:
– Planned Actions:
–
–
Completed Actions:
– Planned Actions:
–
– ERROR:#REF!
Closed Risks
!Ox
Open Item
Completed Activity
Applies to All
H
M
L
AMI Project: Risk Plan
Date: 01/27/
2010
Applies to All Project List
#
Risk Event Description
What is the event? Applies to All Likelihood Impacts Total Score Risk Event Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring? Response/ Mitigation Strategy
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts? Contingency Plan
What action(s) will be taken if this event occurs? Owner
Risk Timeframe
Critical date(s) or period of exposure Comments
●
Schedule Cost Quality Safety Scope
√
68
Corporate financial position changes and does not support project execution plan
Norlin
4
System integration scope is not well defined
Melton
3
System integration costs are higher than expected
Combine 3&4?
1
Project may not be funded to end and benefits may not be realized
97
Inadequate # of IT human resources to support the project (project & operations)
53
Required firmware/software upgrade negatively impacts production devices
Moccia
86
Operational business units / contractors not staffed properly to support project
55
Lack of adequate vendor documentation
87
AMI failures or problems at other utility adversely affects project
Sitkauskas
6
MPSC disallows a component of the plan impacting benefit realization or cost recovery(example: remote disconnect)
57
Organization human resources not adequate to accept and utilize as required (too busy, other focus)
49
Catastrophic storm occurs impacting Communications (meters to AMI)
Switala
48
Catastrophic storm occurs impacting rollout schedule
Jamerson
105
Higher than expected work required at customer site due to aging infrastructure
101
Failure to follow proper installation procedures impacts customers
100
Higher than expected inclement weather conditions
96
Inadequately defined design freeze date & procedure
95
Later than expected IT system change
94
Higher than anticipated number of IT system changes
78
Loss of key personnel without effective knowledge transfer or replacement (DTE & Contractors)
59
Future state business processes not properly defined prior to milestone date
McCormick
56
Discover a problem in the field that was not anticipated causing cost and schedule overruns
7
Security vulnerability discovered with outward equipment(meters, cell relays, home area network, other)
104
DTE may not have adequate diagnostic tools to support post-meter installation
58
Ineffective change management strategy Leads to low employee engagement
May affect ability to realize benefits
2
New firmware technology does not perform to specifications
16
Itron is acquired by a competitor which leads to technology change
Kret
15
Itron goes out of business / defaults on contract
8
Security breach takes place with outward equipment(meters, cell relays, home area network, other)
Safety is M for SmartCircuits
108
Significant schedule delay may result in technology obsolescence
102
Customer complaints may be higher than expected
98
Ineffective stakeholder engagement
73
Installation causes higher levels of property damage than projected
61
Takes longer than anticipated for Operations to understand and effectively utilize new technology & processes
39
DOE payments to DTE come in later than expected.
Hull
83
Project cost is grossly underestimated
70
DOE terminates grant for convenience
Would return to original project plan pre-DOE
34
DOE grant is not executed – Never reach agreement
Scope =H for other projects
81
Higher than expected failure rates of meters
43
Itron may not be able to keep up with the schedule
42
Itron may not provide materials according to the schedule
17
Itron could introduce security risk into product
9
DTE employee misuse role resulting in sabotage
107
Lack of effective Testing Plan
84
Itron system fails to perform according to standards
82
DOE(or other Federal) rule change impacts project execution plan
80
New technology standards require infrastructure change
79
Communication technology may change impacting meter operation / communication(AT&T)
72
Union employees go on strike
65
DOE rejects customer behavior study plan
Hull: Review Impacts
64
DOE rejects risk analysis/benefits plan
63
DOE rejects project execution
62
DOE rejects cyber security plan
52
Single point vulnerability with communications architecture
38
Supply chain does not do proper debarment due diligence
37
Supply chain does not include necessary flow-down provisions to vendors
36
DOE audit disallows some costs
35
Unanticipated action related to Davis-Bacon Act
33
Improper costs are included in DOE accounting
32
Time keeping for DOE reporting is inaccurate or incorrect
31
DTE time keeping system cannot provide necessary information for DOE Reporting
30
Accounting for DOE reporting is inaccurate or incorrect
29
DTE accounting system cannot provide necessary information for DOE Reporting
28
Vendors do not provide in kind-services (Cost share)
27
Terms of DOE grant are violated
26
Vendors / contractors do not provide timely info for DOE Reporting
25
Vendors / contractors do not provide proper info for DOE Reporting
24
DOE Reporting is not completed in a timely manner
23
Report to DOE is inaccurate
Regardless of Rating DOE related Items need to be closely tracked.
22
Third party claims that the technology we are using violates a patent or trade secret
110
Project does not take appropriate steps to maintain confidentiality of Customer data
Would affect company not necessarily the project
60
Project Team not adequately trained in new processes & technology
51
Installer commits crime/fraud in the field
50
Safety incident occurs resulting in process change or training
40
Contractor/sub-contractor fails DOE audit
18
Interveners or grassroots groups negatively impact customer opinions
(SH)
12
DTE call center volume may increase due to 5,000 meter changes per day increasing wait time significantly
91
Negative media as a result of ineffective employment communications
67
Communication plan with regulators is inadequate (does not explain benefits and detriments of the system)
Regardless of rating this issue should be tracked closely
66
Communication plan with customers is inadequate (does not explain benefits and detriments of the system)
21
Prolonged data center outage impacts AMI system
106
Lack of effective Quality Management Plan
Stasek
See # 88
93
Project or vendor scope is not adequately defined
88
Inadequate project management
Need to expand
120
119
118
117
116
115
114
113
112
Legend
● Open Item
√ Completed Activity
Applies to All (Printable)
AMI Project: Risk Plan Date: 01/27/2010
Identified Risks that Apply to All Smart Current Projects
Risk Event Description
What is the event? Applies to All Likelihood Impacts Total Score Risk Event Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring? Response/ Mitigation Strategy
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts? Contingency Plan
What action(s) will be taken if this event occurs? Owner
Risk Timeframe
Critical date(s) or period of exposure Comments
●
Schedule Cost Quality Safety Scope √
68 Corporate financial position changes and does not support project execution plan Y H H M L L H 75 ● ● ● Norlin
4 System integration scope is not well defined Y H L H H L M 75 ● √ ● Melton
3 System integration costs are higher than expected Y H L H H L M 75 ● √ ● Melton Combine 3&4?
1 Project may not be funded to end and benefits may not be realized Y H H M L L H 75 ● ● ● Norlin
97 Inadequate # of IT human resources to support the project (project & operations) Y H H L M L L 55 ● ● ● Norlin
53 Required firmware/software upgrade negatively impacts production devices Y M H H H L L 51 ● ● ● Moccia
86 Operational business units / contractors not staffed properly to support project Y H M L M L L 45 ● ● ● Norlin
55 Lack of adequate vendor documentation Y H M L M L L 45 ● ● ● Moccia
87 AMI failures or problems at other utility adversely affects project Y M H M M L L 39 ● ● ● Sitkauskas
6 MPSC disallows a component of the plan impacting benefit realization or cost recovery(example: remote disconnect) Y M M H L L M 39 ● ● ● Sitkauskas
57 Organization human resources not adequate to accept and utilize as required (too busy, other focus) Y H M L L L L 35 ● ● ● Sitkauskas
49 Catastrophic storm occurs impacting Communications (meters to AMI) Y H M L L L L 35 ● ● ● Switala
48 Catastrophic storm occurs impacting rollout schedule Y H M L L L L 35 ● ● ● Jamerson
105 Higher than expected work required at customer site due to aging infrastructure Y M L M L M L 27 ● ● ● Jamerson
101 Failure to follow proper installation procedures impacts customers Y M L L M M L 27 ● ● ● Jamerson
100 Higher than expected inclement weather conditions Y M M L L M L 27 ● ● ● Jamerson
96 Inadequately defined design freeze date & procedure Y M M L L L M 27 ● ● ● Melton
95 Later than expected IT system change Y M M L L L M 27 ● ● ● Melton
94 Higher than anticipated number of IT system changes Y M M L L L M 27 ● ● ● Melton
78 Loss of key personnel without effective knowledge transfer or replacement (DTE & Contractors) Y M M L M L L 27 ● ● ● Sitkauskas
59 Future state business processes not properly defined prior to milestone date Y M L M M L L 27 ● ● ● McCormick
56 Discover a problem in the field that was not anticipated causing cost and schedule overruns Y M M M L L L 27 ● ● ● Switala
7 Security vulnerability discovered with outward equipment(meters, cell relays, home area network, other) Y M M L M L L 27 ● ● ● Melton
104 DTE may not have adequate diagnostic tools to support post-meter installation Y H L L L L L 25 ● ● ● Switala
58 Ineffective change management strategy Leads to low employee engagement Y M L L M L L 21 ● ● ● Sitkauskas May affect ability to realize benefits
2 New firmware technology does not perform to specifications Y M M L L L L 21 ● ● ● Melton
16 Itron is acquired by a competitor which leads to technology change Y L H H M L H 19 ● ● ● Kret
15 Itron goes out of business / defaults on contract Y L H H M L H 19 ● ● ● Kret
8 Security breach takes place with outward equipment(meters, cell relays, home area network, other) Y L H H H L M 19 ● ● ● Melton Safety is M for SmartCircuits
108 Significant schedule delay may result in technology obsolescence Y L M H M L M 15 ● ● ● Norlin
102 Customer complaints may be higher than expected Y M L L L L L 15 ● ● ● Jamerson
98 Ineffective stakeholder engagement Y M L L L L L 15 ● ● ● Norlin
73 Installation causes higher levels of property damage than projected Y M L L L L L 15 ● ● ● Jamerson
61 Takes longer than anticipated for Operations to understand and effectively utilize new technology & processes Y M L L L L L 15 ● ● ● McCormick
39 DOE payments to DTE come in later than expected. Y M L L L L L 15 ● ● ● Hull
83 Project cost is grossly underestimated Y L M H L L M 13 ● ● ● Norlin
70 DOE terminates grant for convenience Y L H H L L L 13 ● ● ● Hull Would return to original project plan pre-DOE
34 DOE grant is not executed – Never reach agreement Y L H H L L L 13 ● ● ● Hull Scope =H for other projects
81 Higher than expected failure rates of meters Y L M L H L L 11 ● ● ● Kret
43 Itron may not be able to keep up with the schedule Y L H M L L L 11 ● ● ● Jamerson
42 Itron may not provide materials according to the schedule Y L H M L L L 11 ● ● ● Kret
17 Itron could introduce security risk into product Y L M H L L L 11 ● ● ● Moccia
9 DTE employee misuse role resulting in sabotage Y L M H L L L 11 ● ● ● McCormick
107 Lack of effective Testing Plan Y L M L M L L 9 ● ● ● Moccia
84 Itron system fails to perform according to standards Y L M L M L L 9 ● ● ● Moccia
82 DOE(or other Federal) rule change impacts project execution plan Y L M M L L L 9 ● ● ● Hull
80 New technology standards require infrastructure change Y L M M L L L 9 ● ● ● Melton
79 Communication technology may change impacting meter operation / communication(AT&T) Y L M M L L L 9 ● ● ● Melton
72 Union employees go on strike Y L M L L M L 9 ● ● ● Jamerson
65 DOE rejects customer behavior study plan Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts
64 DOE rejects risk analysis/benefits plan Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts
63 DOE rejects project execution Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts
62 DOE rejects cyber security plan Y L M L M L L 9 ● ● ● Hull Hull: Review Impacts
52 Single point vulnerability with communications architecture Y L L M L L M 9 ● ● ● Melton
38 Supply chain does not do proper debarment due diligence Y L L H L L L 9 ● ● ● Kret
37 Supply chain does not include necessary flow-down provisions to vendors Y L L H L L L 9 ● ● ● Kret
36 DOE audit disallows some costs Y L L H L L L 9 ● ● ● Hull
35 Unanticipated action related to Davis-Bacon Act Y L L H L L L 9 ● ● ● Hull
33 Improper costs are included in DOE accounting Y L L H L L L 9 ● ● ● Hull
32 Time keeping for DOE reporting is inaccurate or incorrect Y L L H L L L 9 ● ● ● Hull
31 DTE time keeping system cannot provide necessary information for DOE Reporting Y L L H L L L 9 ● ● ● Hull
30 Accounting for DOE reporting is inaccurate or incorrect Y L L H L L L 9 ● ● ● Hull
29 DTE accounting system cannot provide necessary information for DOE Reporting Y L L H L L L 9 ● ● ● Hull
28 Vendors do not provide in kind-services (Cost share) Y L L H L L L 9 ● ● ● Hull
27 Terms of DOE grant are violated Y L L H L L L 9 ● ● ● Hull
26 Vendors / contractors do not provide timely info for DOE Reporting Y L L H L L L 9 ● ● ● Hull
25 Vendors / contractors do not provide proper info for DOE Reporting Y L L H L L L 9 ● ● ● Hull
24 DOE Reporting is not completed in a timely manner Y L L H L L L 9 ● ● ● Hull
23 Report to DOE is inaccurate Y L L H L L L 9 ● ● ● Hull Regardless of Rating DOE related Items need to be closely tracked.
22 Third party claims that the technology we are using violates a patent or trade secret Y L L H L L L 9 ● ● ● Kret
110 Project does not take appropriate steps to maintain confidentiality of Customer data Y L L M L L L 7 Hull Would affect company not necessarily the project
60 Project Team not adequately trained in new processes & technology Y L L L M L L 7 ● ● ● Switala
51 Installer commits crime/fraud in the field Y L L L L M L 7 ● ● ● Jamerson
50 Safety incident occurs resulting in process change or training Y L L L L M L 7 ● ● ● Jamerson
40 Contractor/sub-contractor fails DOE audit Y L L M L L L 7 ● ● ● Kret
18 Interveners or grassroots groups negatively impact customer opinions (SH) L L L L L L 5 ● ● ● Sitkauskas
12 DTE call center volume may increase due to 5,000 meter changes per day increasing wait time significantly (SH) L L L L L L 5 ● ● ● McCormick
91 Negative media as a result of ineffective employment communications Y L L L L L L 5 ● ● ● Sitkauskas
67 Communication plan with regulators is inadequate (does not explain benefits and detriments of the system) Y L L L L L L 5 ● ● ● Sitkauskas Regardless of rating this issue should be tracked closely
66 Communication plan with customers is inadequate (does not explain benefits and detriments of the system) Y L L L L L L 5 ● ● ● Sitkauskas Regardless of rating this issue should be tracked closely
21 Prolonged data center outage impacts AMI system Y L L L L L L 5 ● ● ● Melton
106 Lack of effective Quality Management Plan Y 0 ● ● ● Stasek See # 88
93 Project or vendor scope is not adequately defined Y 0 ● ● ● Norlin See # 88
88 Inadequate project management Y 0 ● ● ● Norlin Need to expand
120 0 ● ● ●
119 0 ● ● ●
118 0 ● ● ●
117 0 ● ● ●
116 0 ● ● ●
115 0 ● ● ●
114 0 ● ● ●
113 0 ● ● ●
112 0 ● ● ●
Legend
● Open Item
√ Completed Activity
Mitigation Results
Other
Risks to Consider
Risk Categories to Consider
Capital Project Portfolio
1
Funding availability (likelihood of approval)
2
Project justification (IRR, need, fleet strategy…)
3
Timing of the project
4
Regulatory influence
5
Commitment to the project (FosGen, GenOpts)
Engineering
6
Overall project concept
7
Scope (definition, supporting documentation, realistic goals, stability…)
8
As-built conditions (known, assumed, documented…)
9
Technology (existing at DTE, established, new concept…)
10
Design (complexity, integration, past similar experience…)
11
Configuration management
12
ESO resources (availability, experience, knowledge, track record…)
13
A/E resources (availaibility, experience, knowledge, track record…)
14
Schedule (likelihood to meet agreed upon deadlines)
15
Cost (likelihood to control the engineering cost within the agreed upon budget)
Project Management
16
Project team composition (experience level, competence and skills, compatibility, track record…)
17
Roles and responsibilities (established, understood, agreed…)
18
Communication (stakeholders identified)
19
Scope (expectations understood and agreed upon, realistic goals, stability…)
20
Plant Management commitment to the project
21
Weather
22
Past experience on a similar project (lessons learned incorporated…)
23
Plant operational constraints
24
Outage constraints (limited flexibility and opportunities, labor and contractors mandates, micro management, additional requirements…)
25
Cost estimating (scope quality, WBS, task duration, unit costs, labor plan, outage project or not…)
26
Scheduling (scope, WBS, task duration, dependencies, integration with outage or plant operation…)
27
Adherence to the PMP process by all project team members
Supply Chain Management
Material
28
Lead time
29
Raw material (availability, cost fluctuation…)
30
Material origin (logistics, imports…)
31
Competitive situation
32
Vendor performance (level of service, reliability, track record…)
33
Technology (existing at DTE, established, new…)
34
Schedule (likelihood to meet agreed upon deadlines…)
35
On site storage requirements
Contracted Labor
36 Competitive situation
37
Vendor selection (new or well established relationship, past performance, reliability…)
38
Availability and workload (contractor, supervision, key personnel…)
39
Union labor (availability, productivity, skills…)
40
Safety record
41
Construction
42
Contract terms (firm bid, T&M, …)
43
Cost (potential for exceeding contracted labor budget…)
44 Schedule (likelihood to meet agreed upon deadlines…)
Construction
45
Access to site
46
Access to equipment (lifting, rigging, scaffolding…)
47 Weather
48
Safety requirements
49
Training requirements (safety and other)
50
Labor plan (DeCo labor or contractor)
51
DeCo labor (availability, crew consistency, productivity, …)
52
Lay down areas
53
Plant operational constraints (equipement availability, shut down potential…)
54
Outage constraints (limited flexibility and opportunities, equipment availability, shut down potential…)
55
Site conditions (soil quality…)
56
Cost (potential for exceeding the construction budget…)
57
Schedule (constraints, deadlines, key dependencies…)
Other
58
Soil Assessment
59
Excavation
60
Planning and Coordinating with Vendors
61
Inclement Weather
62
Regulations and Policy
63
Inadequate Bearing Soil Layer
64
Working on or near Water
65
Special Equipment Availability
66
Improper Engineering
67
Improperly Trained Workforce
68
Poor Planning
69
Communications Problems
70
Logistics
71
Theft
72
Craft Shortage
73
Permit Delay/Inspection Delay
74
Hazardous Materials
75
Missing/Inadequate Drawings or Specifications
76
Scope Creep/Change Requests
77
Late Delivery of Material/Supplies
78
Lay down/Confined Space
79
Contract Award Process
80
Technological Advancement
Score Defined
Medium = 3
Low = 1
Total Score = (Schedule + Cost + Quality + Safety + Scope) x Likelihood
Components of a risk
•A Source of a risk or hazard – the thing which has the potential to harm or assist e.g. a dangerous chemical, competitors, government.
•An Event or Incident – Something that occurs such that the source of risk has the impact concerned e.g. a leak, competitor expands into or leaves your market, new or revised regulations, or some level of observation reaching a particular trigger level.
•A Consequence, outcome or impact on a range of stakeholders or assets e.g. environmental damage, loss or increase of market/profits, regulations increase or decreased competitiveness
•A Cause (what and why) for the presence of the hazard or the event occurring e.g. design, human intervention, funding, prediction or failure to predict competitor activity, failure to or expansion of market presence
•Controls and their level of effectiveness e.g. detection systems, clean up systems, policies, security, training, and market research.
•When could the risk occur and Where would it occur.List of Values
H ●
M √
Life of Project
2010 2010 3
2010Q1
2011
2010 Q2
2011 1/11
2010 Q3
20101201
2010 Q4
2010 Dec 1
2011
2010 Q1
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2011 12 01
2011 Q1
2011 Q2
2011 Q3
2011 Q4
Rd 2 Directions
1)
Major correction to wording
(“wordsmithing” can be done later)
2)
Does this risk apply to all SmartCurrent projects
(AMI, Smart Home, Smart Circuit)
3)
Identify Likelihood
*
# of Risks Identified
109
4)
Identify Impacts *
Available Time
240
5)
Identify Owner
Minutes/Risk
2.2
3.5
*
Risk Plan is a living document – these ratings can/will change
56%
New Process Map
Major Enterprise Projects
DRAFT:
<
Project Risk Plan Management : Process Map
Project Manager / Risk Plan Manager
Project Stakeholders
Risk
Owners
Financial Analyst
Scheduler
Monthly Update Coordinator
Training Session
My Definition of risk:
“A negative risk event is something that has not yet happened on your project, but if it did happen it would negatively impact your project to the extent that it would be worthwhile to reduce the likelihood that it will occur or reduce the negative impact if it occurred”
“A positive risk event is something that has not yet happened on your project, but if it did happen it would positively impact your project to the extent that it would be worthwhile to increase the likelihood that it will occur or increase the positive impact if it occurred”
3
4
An undesirable event that has not yet happened
(Issue)
An undesirable event that has happened and needs attention
(Action)
Work that needs to be done
The project may go over budget
I ran over a pot hole coming into work today and my tire is flat
Decisions in the site engineering area are not being made in a timely manner
Using unproven technology may require frequent re-design work resulting in a schedule delay
The project may go over budget
This is more of an impact than a risk. There are many reasons why a project may go over budget. The real question is what are the things that would cause you to go over budget? The answer to this question is the risk. Here are some examples of a better way to write this risk statement:
It may take more time than planned to secure internal employees to work on this project which will require us to hire consultants resulting in a cost overrun on the project.
The contractor productivity level may be less than quoted in the contract resulting in a cost overrun.
I ran over a pot hole coming into work today and my tire is flat
This is not a risk because it already happened. It has now become an issue that you have to deal with. Time to execute your contingency plan – hopefully you have a spare or AAA.
Decisions in the site engineering area are not being made in a timely manner
This is not a risk because it already happened. Decisions are already not being made timely, so the risk has occurred. It has now become an issue that you have to deal with.
Using unproven technology may require frequent re-design work resulting in a schedule delay
This is a risk.
Risk is clear and understandable to anyone who reads it
Risk describes the impact or “so what” factor
Risk has not yet happened
Risk is something your actually worried about.
Risk affects your project, not another project or the company in general
10
To improve our chance of project success
Meeting your objectives
Meeting your budget
Meeting your schedule
Working Safely
Delivering with quality
Satisfying your customers and stakeholders
Avoid surprises
11
“The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning” ~ Charles Tremper
Project Risk Manager(s)
Project 1
Project 2
Project 3
Risk Register
Risk Assessment Reports
Risk Scorecard
Processes and Methods
Mitigation Planning
Contingency Planning
12
External
Audit
DOE
Expert
Corporate Risk
General Audit
Compliance
13
Project X: Risk Plan
#
Risk Event Description
What is the event? Category
Sub-project, Project Phase, Location etc.
(Optional) Likelihood Schedule Cost Quality Safety Scope Total Score Risk Event Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring? Response/ Mitigation Strategy
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts?
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Contract H H M M M L 75 Drivers to monitor:
– Schedule slippages and missed milestones.
Drivers that have occurred:
– Re-work occurring.
– Change orders issued.
Planned Actions:
– Conduct weekly monitoring of schedule adherence.
– Implement change review process to manage scope, time, cost changes effectively.
– Develop and implement quality management plan for vendor work.
Completed Actions:
– Negotiate cost plus incentive fee contract based upon milestone completion
14
Risk impact level Matrix
Likelihood Low Medium High
Unlikely Likely Almost Certain
Impacts Low Medium High
Schedule No Impact to Critical Path or Field Work Potential to Affect Critical Path or Field Work Certain to Affect Critical Path or Field Work
Cost Less Than $ 250,000 $ 250,000 to $1,000,000 Greater Than $ 1,000,000
Quality Minor impact to product deliverables Moderate impact to product deliverables Major impact to product deliverables
Safety No Impact to worker safety Minor impact to worker safety Major impact to worker safety
Scope < 1% 2% to 5% > 5%
15
Risk: I may run out of gas on my way to work in the morning and be late for an important meeting which will make my boss very angry.
Responding to a risk mean that you are going to try one or more of the following:
Mitigate the risk: try to reduce the likelihood it will occur and/or the impact if it occurs (i.e. fill up your tank with gas the night before).
Transfer: give some or all of the risk to a third party (i.e. hire a cab)
Avoid: Eliminate the possibility (i.e. walk to work or stay at nearby hotel)
Accept: Do nothing and take your chances
16
#
Risk Event Description
What is the event? Contingency Plan
What action(s) will be taken if this event occurs? Owner
Risk Timeframe
Critical date(s) or period of exposure Organizational or Cross-Project Impacts Comments
– Complete work with internal resources. Jane Doe On-going No (01/12) Vendor has repeatedly failed weld inspections on structural steel.
17
Financial Analysis
#
Risk Event Description
What is the event? FA Review Required? $ Impact Source Probability Source EMV Comments
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Y $ 500,000 PM input 0.9 Default $ 450,000
18
Schedule Analysis Risk Closure
#
Risk Event Description
What is the event? Scheduler Review Required? Critical Path ? Scheduler Response\ Comments
(Activity #, Quantified impact etc.) Closure Statement Notes / Lessons Learned
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Y This risk will impact the Critical Path Built 20 days of contingency into the Schedule Steel Erection Work Package delays will impact Siding and Roof Construction Work Packages.
Executive Champion who understands Risk Management
Risk Manager who owns process, coaches and mentors
Good set of processes, tools, and templates
Risk Training for the team (concept and processes)
Make Risk Management a priority
Benchmark your process and effectiveness regularly
Establish Historical Risk Database and leverage the past
Work the Risk Plan
Develop Contingency Plans for high risk items
Don’t sweat the small risks
VISION OF SUCCESS
What does success look like for our customer?
What does success look like for other stakeholders (staff, partners)?
PROJECT MILESTONES & SCHEDULE
RESOURCES
Internal resources: needed to complete the project.
External resources: needed to complete the project.
Equipment: needed to complete the project.
Materials: needed to complete the project.
CONTEXT / ISSUES
What is the problem or opportunity and why is it important?
What is the purpose, the business reason for choosing this project?
What are the anticipated benefits to customers and staff from the project?
What performance measure needs to improve?
Note: The bulleted items in this document help to explain what the section is and what you should be thinking about when you fill this project charter out. The bullets are not meant to be addressed individually.
GOALS
What specific, measurable , attainable, relevant, time-bound results do you want or need to accomplish?
Show visually how much, by when, and with what impact.
NOTE: Be careful not to state a solution as a goal!
SCOPE (IN BOUNDS)
What is the program and geographic area?
NOTE: Be mindful of what you can realistically accomplish with available resources and time.
SCOPE (OUT OF BOUNDS)
What are the givens or assumptions for the project?
Record out of scope issues in a “Parking Lot”
Customers/Stakeholders
Who are other stakeholders who have a role or interest in the success of the process?
Team Members
Team Leader:
Team Members:
CUSTOMER REQUIREMENTS
What are the customers specific requirements or expectations?
Project Milestones
Owner
Proposed Date
Actual Date
Each milestone or significant accomplishment should be listed with the respective person or group responsible to complete it, and planned date. The actual date can be left blank.
VISION OF SUCCESS
RESOURCES
Time commitment for a 4 day Kaizen, excluding time to implement changes: Sponsor (6-10 hrs.); Team Leader (40 hrs.); Team Members (32 hrs.); Facilitator (40-50 hrs.)
External Resources:
Equipment:
Materials:
CONTEXT / ISSUES
GOALS
SCOPE (IN BOUNDS)
SCOPE (OUT OF BOUNDS)
Customers/Stakeholders
Team Members
Team Leader:
Team Members:
CUSTOMER REQUIREMENTS (CTQ)
1. Set project scope and goals (prepare Project Charter, engage team, collect data) Sponsor/Team Leader, Facilitator
2. Understand the current situation Facilitator/ Team
3. Analyze the current situation (root causes) Facilitator/ Team
4. Define a vision of success Facilitator/ Team
5. Generate, evaluate and select improvements Team/ Sponsor
6. Implement changes and make adjustments Team Leader/ Staff
7. Measure performance Sponsor/Team Leader
8. Document standard work and lessons learned Team
9. Sustain improvement Team Leader/Process Owner
Date:
Sponsor:
Date
Current
Performance Criteria
Target
Summarize Key Performance Requirements
Key Project Milestones
Approval
Init
Client:
Platform Manager/Director:
Included in Scope
Project Charter
5
6
Itemize what is not to be included in the scope of the project.
Training Session
My Definition of risk:
“A negative risk event is something that has not yet happened on your project, but if it did happen it would negatively impact your project to the extent that it would be worthwhile to reduce the likelihood that it will occur or reduce the negative impact if it occurred”
“A positive risk event is something that has not yet happened on your project, but if it did happen it would positively impact your project to the extent that it would be worthwhile to increase the likelihood that it will occur or increase the positive impact if it occurred”
3
4
An undesirable event that has not yet happened
(Issue)
An undesirable event that has happened and needs attention
(Action)
Work that needs to be done
The project may go over budget
I ran over a pot hole coming into work today and my tire is flat
Decisions in the site engineering area are not being made in a timely manner
Using unproven technology may require frequent re-design work resulting in a schedule delay
The project may go over budget
This is more of an impact than a risk. There are many reasons why a project may go over budget. The real question is what are the things that would cause you to go over budget? The answer to this question is the risk. Here are some examples of a better way to write this risk statement:
It may take more time than planned to secure internal employees to work on this project which will require us to hire consultants resulting in a cost overrun on the project.
The contractor productivity level may be less than quoted in the contract resulting in a cost overrun.
I ran over a pot hole coming into work today and my tire is flat
This is not a risk because it already happened. It has now become an issue that you have to deal with. Time to execute your contingency plan – hopefully you have a spare or AAA.
Decisions in the site engineering area are not being made in a timely manner
This is not a risk because it already happened. Decisions are already not being made timely, so the risk has occurred. It has now become an issue that you have to deal with.
Using unproven technology may require frequent re-design work resulting in a schedule delay
This is a risk.
Risk is clear and understandable to anyone who reads it
Risk describes the impact or “so what” factor
Risk has not yet happened
Risk is something your actually worried about.
Risk affects your project, not another project or the company in general
10
To improve our chance of project success
Meeting your objectives
Meeting your budget
Meeting your schedule
Working Safely
Delivering with quality
Satisfying your customers and stakeholders
Avoid surprises
11
“The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning” ~ Charles Tremper
Project Risk Manager(s)
Project 1
Project 2
Project 3
Risk Register
Risk Assessment Reports
Risk Scorecard
Processes and Methods
Mitigation Planning
Contingency Planning
12
External
Audit
DOE
Expert
Corporate Risk
General Audit
Compliance
13
Project X: Risk Plan
#
Risk Event Description
What is the event? Category
Sub-project, Project Phase, Location etc.
(Optional) Likelihood Schedule Cost Quality Safety Scope Total Score Risk Event Drivers
What are the conditions, actions, or events that are likely to trigger the risk event to occur or is a leading indicator to the risk event occurring? Response/ Mitigation Strategy
What action(s) will be taken to limit the likelihood of these event occurring or limiting the impacts?
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Contract H H M M M L 75 Drivers to monitor:
– Schedule slippages and missed milestones.
Drivers that have occurred:
– Re-work occurring.
– Change orders issued.
Planned Actions:
– Conduct weekly monitoring of schedule adherence.
– Implement change review process to manage scope, time, cost changes effectively.
– Develop and implement quality management plan for vendor work.
Completed Actions:
– Negotiate cost plus incentive fee contract based upon milestone completion
14
Risk impact level Matrix
Likelihood Low Medium High
Unlikely Likely Almost Certain
Impacts Low Medium High
Schedule No Impact to Critical Path or Field Work Potential to Affect Critical Path or Field Work Certain to Affect Critical Path or Field Work
Cost Less Than $ 250,000 $ 250,000 to $1,000,000 Greater Than $ 1,000,000
Quality Minor impact to product deliverables Moderate impact to product deliverables Major impact to product deliverables
Safety No Impact to worker safety Minor impact to worker safety Major impact to worker safety
Scope < 1% 2% to 5% > 5%
15
Risk: I may run out of gas on my way to work in the morning and be late for an important meeting which will make my boss very angry.
Responding to a risk mean that you are going to try one or more of the following:
Mitigate the risk: try to reduce the likelihood it will occur and/or the impact if it occurs (i.e. fill up your tank with gas the night before).
Transfer: give some or all of the risk to a third party (i.e. hire a cab)
Avoid: Eliminate the possibility (i.e. walk to work or stay at nearby hotel)
Accept: Do nothing and take your chances
16
#
Risk Event Description
What is the event? Contingency Plan
What action(s) will be taken if this event occurs? Owner
Risk Timeframe
Critical date(s) or period of exposure Organizational or Cross-Project Impacts Comments
– Complete work with internal resources. Jane Doe On-going No (01/12) Vendor has repeatedly failed weld inspections on structural steel.
17
Financial Analysis
#
Risk Event Description
What is the event? FA Review Required? $ Impact Source Probability Source EMV Comments
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Y $ 500,000 PM input 0.9 Default $ 450,000
18
Schedule Analysis Risk Closure
#
Risk Event Description
What is the event? Scheduler Review Required? Critical Path ? Scheduler Response\ Comments
(Activity #, Quantified impact etc.) Closure Statement Notes / Lessons Learned
1 Contracted vendor under performs resulting in schedule delays, rework and cost overruns Y This risk will impact the Critical Path Built 20 days of contingency into the Schedule Steel Erection Work Package delays will impact Siding and Roof Construction Work Packages.
Executive Champion who understands Risk Management
Risk Manager who owns process, coaches and mentors
Good set of processes, tools, and templates
Risk Training for the team (concept and processes)
Make Risk Management a priority
Benchmark your process and effectiveness regularly
Establish Historical Risk Database and leverage the past
Work the Risk Plan
Develop Contingency Plans for high risk items
Don’t sweat the small risksRoles and Responsibilities
· Provide project budget
· Assist in risk mitigation, when necessary
· Assist in corrective action decisions, when necessary
· Provide project budget
· Assist in risk mitigation, when necessary
· Assist in corrective action decisions, when necessary
· Meet with Interim Leadership Team at regularly scheduled intervals
· Assess project progress and take appropriate action
· Coordinate communication to all affected parties (business and technical) within area of responsibility
· Deliverable identification and creation within area of responsibility
· Gain approvals for all deliverables within area of responsibility
· Coordinate all project activities within area of responsibility
· Maintain project schedule within area of responsibility
· Reporting of budget and schedule variance within area of responsibility
· Documentation coordination and maintenance within area of responsibility
· Ensure all time spent on the project has been collected within area of responsibility
· Ensure communication to the Business Unit is occurring
· Identify and communicate project issues, risks, constraints and assumptions to the Project Manager
· Assist in risk mitigation, when necessary
· Assist in issue resolution
· Assist in project scope definition
· Attend project team meetings
· Follow project quality standards and procedures
· Provide status of tasks and deliverables to Project Manager
· Attend project team meetings
· Ensure communication between all affected parties is occurring
· Identify and communicate project issues, risks, constraints and assumptions to the Project Manager
· Follow project quality standards and procedures
· Provide status to Project Manager
· Risk identification and management within area of responsibility
· Coordinate communication to all affected parties (business and technical) within area of responsibility
· Deliverable identification and creation within area of responsibility
· Takes Corrective action, when appropriate, within area of responsibility
· Assist in establishing project standards and procedures
· Follow-up on action items from meeting minutes within area of responsibility
· Facilitate project team meetings
· Maintain project schedule within area of responsibility
· Documentation coordination and maintenance within area of responsibility
· Monitor project milestones and meet established deadlines within area of responsibility
