Project Risk Management

On Projects and their Core Principles


Academic Paper, 2015
17 Pages, Grade: 2,0

Excerpt

Table of Content

Executive Summary

1 Task
1.1 Core principles/characteristics of any project and their importance
1.2 Thescope oftheprojectin Task
1.3 Project Gantt chart and identification of the critical path
1.4 TheNetPresentValue
1.5 Project Risk Management of the Project in Task
1.6 Quality methods of the Project in Task

2 Task
2.1 Projectdescription
2.2 The Project Manager
2.3 TheTeam
2.4 Organizational Structure
2.5 Stakeholder
2.6 The Project Lifecycle
2.7 WorkBreakdown Structure
2.8 Networkplan
2.9 Riskmanagement

References

Appendix

Executive Summary

The following assignment demonstrates methods, tasks and participants of project management. The first part includes characterizations of projects and useful methods of project management. Concerning to a certain project, the scope, potential risks and methods are described. The second part ofthe assignment describes a project, its participants and methods used, to guarantee its success. In this aspect a special focus is laid on the project manager, as well as his tasks in project management.

1 Taskl

1.1 Core principles/characteristics of any project and their importance

A project is a temporary and unique activity that has an exact beginning and exact ending (Loosemore, 2003). Therefore a project has also a defined scope and planned resources, and suggests that it has to be completed in time. Furthermore a project passes different stages among its beginning and end, which is known as the project lifecycle. Any project is anytime goal-oriented and has its own budget to achieve its goals (Loosemore, 2003). This ensures the control, whether goals were achieved and to take possible adjustments, if necessary. A selected project team executes the project and the project manager is responsible for its success (Loosemore, 2003).

1.2 ThescopeoftheprojectinTask2

The scope of the project describes the work that needs to be done and includes the main objectives ofthe project (Pinto, 2012). To achieve a satisfactory result, the concrete assembly machines have to be safely transported within the allowed time of six month and the available budget of £ 900,000. When planning the time and budget, the possibility of unexpected events are taken in consideration and additional resources such as time and people for team meetings are additionally added.

1.3 Project Gantt chart and identification of the critical path

Abbildung in dieser Leseprobe nicht enthalten

The critical path, consisting of the activities A-C-F-G, is indicated bythe highlighted dark bars have to be finished as scheduled with no delay. When the weekends (Saturday, Sunday) are not taken into consideration, the project will have an estimated time of 26 days. A Gantt chart is a useful tool, to schedule projects. Compared with other methods, a Gantt chart is easy to understand and simplifies the communication with team members, as they can quickly understand what is need to be done (W. Andongndou, 2009).

1.4 The Net Present Value

The Net Present Value (NPV) identifies the present value of an investment by discounting all relevant cash flows (income from the project) to their equivalent present value. When the NPV is positive, the project should be accepted (Hoque, 2005). However it can still be turned down, ifthe risks are too large. In case that the NPV is zero the project brings in no surplus (Hoque, 2005). If the NPV is negative, it should be declined, but the project still can be justified on strategic grounds. The main advantages of this method are that it recognizes all cash flows and the time value of money with the result that it is more realistic than other methods (Nikbakht, 2006) that only take care of the liquidity.

1.5 Project Risk Management of the Project in Task 2

The concrete assembly machines have to be transferred in time, otherwise it could come to delay, which would confound the organization and causes losses. To avoid the risk, the project manager and the team members, should visit the area and learn about the weather conditions to develop a concept that guarantees a safe transport. Moreover it is important to know about the conditions of the road way and if detours have to be taken, to calculate the duration of the transport. Especially as the conditions in this area could be difficult, as well as the transfer takes place in the winter season. It is essential to find reliable forwarder. Another risky factor is that Kevin Lewis hopes for reasonable hours and less travelling. As the project requires visiting the area, it could come to a lack of motivation, which would affect the project negatively. It should be taken in consideration to bear the costs of a visit of his wife.

1.6 Quality methods of the Project in Task 2

To ensure that the project is completed successfully, the project manager has to work with different methods. A network plan is an encouraging method to schedule the work and to guarantee a clear overview of the timeframe of each activity and it also identifies the critical path (Schwalbe, 2013). Another quality method is the Work Breakdown Structure. The overall task will be divided in more specific tasks, which simplifies to monitor and control the process (Pinto, 2012). There is also a need of creating a risk, cost and communication plan, to ensure that the project manager can control and oversee the project and interfere in time (Westland, 2007). By creating plans he can make use of graphs and charts (University of Sunderland, 2005).

[...]

Excerpt out of 17 pages

Details

Title
Project Risk Management
Subtitle
On Projects and their Core Principles
College
University of Sunderland
Grade
2,0
Author
Year
2015
Pages
17
Catalog Number
V468818
ISBN (eBook)
9783668945241
ISBN (Book)
9783668945258
Language
English
Tags
Project, Projectmanagement, Projekt, Projektmanagement, Business, Management, Businessmanagement, BWL, GeneralBusiness
Quote paper
Rebecca Grill (Author), 2015, Project Risk Management, Munich, GRIN Verlag, https://www.grin.com/document/468818

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