Risk Management

Topics: Project management, Earned value management, Management Pages: 6 (2295 words) Published: October 29, 2012
The metrics that best work to measure Xemba Translations performance on this project is project diagnostic metrics. While not all risks of a project can be mitigated, using this objective data based on these metrics will make a huge difference to mitigate risk. Using diagnostic project metrics is like using a thermometer to assess the projects current status. This can help eliminate or mitigate the issue before it becomes unmanageable at the close of the project. This can help avoid the, should have, could have, would have moments that may happen once the project closes and gets reviewed from a retrospective project metric. With the diagnostic project metric when an issue does arise a contingency plan can be created if there is a trend toward a major risk as well. Diagnostic project metrics use current project statistics to gage where the project stands throughout the work of the project. This allows the project manager the ability to make better decisions along the route of the project to mitigate risk. Metrics that help improve the decision making, help aid to lower the risk of any project. Diagnostic metrics are comparative measures. The metrics compare a baseline (usually set at time of planning the project) to current project actuals. The actuals are compared to an earned value figure that is determined by where the project should be at that exact moment in time according to the project schedule. These diagnostic metrics will use the actual cost, earned value, and planned value to evaluate schedule variance, schedule performance, cost performance, and cost variance. Schedule performance and schedule variance will evaluate the earned value against the planned value. This will help show if the project is currently on schedule, or if not is it over or under schedule and by how much. Cost variance and cost schedule will reveal how the project is performing compared to the current cost and planned budget. These values will help the project manager assess if the project is on task, and if it is on budget. This will also help identify if changes need to be presented to upper management as to avoid going over budget, or over schedule. With better decision making and having the ability to minimize risk to the stakeholders the diagnostic metrics is the logical reason choice for this project. 1. These metrics would be appropriate to use for this project because project diagnostic metrics provide current data on project plan execution. These metrics are based on status collection and are used for plan variance analysis, and performance reporting. The key to using this metrics is the use of measurements of earned value management. This will give Xemba Translations the opportunity to define a set of measures that can give accurate picture of where the project stands according to the data received from the projects processes. This also marries nicely with the critical path methodology that Xemba Translations has used during its planning and work breakdown structure process. By using these forms of metrics it not only gives Xemba Translations more flexibility to view how the project is currently being assessed, it also takes the most advantage of the numbers Xemba Translations is currently producing in their status reports. These numbers assessed currently will be compared against the planned value to create the comparative metrics. The schedule variance, schedule performance, cost variance, and cost performance will be assessed to address where the project currently stands according to schedule and cost. The most important reason why these metrics will work best for this project is the ability to make better informed decisions because of the comparative data thus minimizing risk to the project. 2. The comparative data (analyzed below in the data section) reveals the important information that project managers need to make the informed decisions about the project. The Xemba Translations project’s current status based on these metrics...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Risk Management Essay
  • Risk Management Summary Essay
  • Risk Management Techniques Essay
  • Risk Management in Obstetrics Essay
  • Risk Management Strategies Essay
  • Risk Management and Warehouse Building Project Essay
  • Risk Management Process Essay
  • Insurance and Risk Management Iia Assignment Essay

Become a StudyMode Member

Sign Up - It's Free