Title: Planning & Budgeting with Risk Week 8 Discussion Question – Case study - Pleasant View
Case Study – Pleasant View
Pleasant view project involves the design, erection and personalisation of individual dwellings based on land owned by Jim Staid of Staid and Son’s. This development of a Township will be called Pleasant View. Staid and Son’s has 35 years experience in the construction industry and has grown from what was once initially a 1 man firm run by Jim. After earning a good reputation in the local residential construction market Jim brought his 2 sons on board and the company now operates with its own crews in a matrix organisational structure, with 5 functional managers and 5 project managers.
The project is currently constructing its first property within the township; however the team has discovered new risks which will have an adverse effect on the project schedule. Additionally the project is currently running behind schedule and over budget.
There is also a request from the client to make changes to the layout and finishing of the rooms within the dwelling, the resources required to deliver the changes are not available from within the company, and the project sponsor has requested that the additional scope be included.
Measures and actions required to bring the project back on schedule and within budget The project team should convene a meeting which should issue tasks and areas of responsibility to each team member to be responsible for sections of the Project Plans, they should conduct a full investigation into the current status of project, and individuals should make recommendations to the team to implement appropriate risk responses and process improvements.
The team have discovered new risks that they were found by accident and not planned for. In order to ensure that there are no further surprises to be later discovered I’d recommend and full review of the Risk Management Plan to ensure identification of all risks. Furthermore the project is running behind schedule and over budget, in order to investigate and bring the project back on track the following documents and processes should be reviewed; •
Risk Management plan
Activity cost estimates
Activity duration Estimates
Cost management plan
Schedule management plan
Quality management plan
Human Resource plan
We should also review and reconsider;
Enterprise and environmental factors
Organisational process assets
The Risk Management Plan should identify how to approach the risk management activities for this project, including how to plan and execute those management activities. Tools and techniques used to identify risks include;
Checklist analysis – lists based on information gathered •
Diagramming techniques – cause and effect diagrams
information gathering such as SWOT analysis –, potential impact of risks by examining strengths, weaknesses, opportunities, threats
The additional risks should be analysed using either qualitative or quantitative techniques or both.
Qualitative risk analysis; using the risk register and the risk management plan we can identify risk assumptions. The impact of the risk can be measured using tools such as Probability and Impact Matrix - where risks are rated according to probability and impact. Risk Urgency assessment - for prioritisation based on time urgent activities, Risk Categorisation - assigning risks to previously identified categories and expert judgement are all techniques which can also be used.
Further analysis may be required in the form of Quantitative analysis; this would involve more detailed methodical analysis to establish the effect of the probability in the form of data analysing and modelling techniques such as EMV - Expected Monetary value analysis to calculate the expected value of the outcome when different...
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