Test 3

Stages of Risk Management

1. Risk ID 2. Analysis-prob. and consequences 3. Risk mitigation 4. Control and documentation

Resource Loading Charts

Analyze project resources against scheduled activities over the project's baseline schedule

Resource Constrained Scheduling

Assumes insufficient resources to meet peak project demands; schedule tasks to min. project duration while adhering to limited resources

Commercial Risk

Building a product people won't buy

Technical or Logic Constraints

Constraints related to the networked sequence in which project activities must occur

Contractual Risk

Contract language that exposes you to extra time, money, or penalties

CPM

Critical Path Method

Predecessor (leveling factor)

Delay tasks without dependencies first

Positive Slack

Delaying noncritical activities

Feasibility Cost Estimation

Done just before contract; high-level and company-specific analysis

Comparative Cost Estimation

Done later in sales cycle, based off of similar projects;+/-15%

A cost estimate includes (2)

Estimated and fixed costs

Financial Risk

Financial exposure when a firm has a project

Risk management focuses on: (2)

Known unknowns; proactive management

PERT

Program Evaluation and Review Technique

Opposite of proactive/risk management

Reactive/crisis management

ROM

Rough Order of Magnitude (+/- 30%)

Resource Constraints

The absence, shortage, or unique interrelationship and interaction characteristics of resources that require a particular sequencing of project activities

Resource Loading/Resource Allocation

The time individual resources (people, subcontractors, etc.) have committed to a project. The amounts of individual resources that a schedule requires during specific time periods.

Technical Risk

Unproven tech./complexity/design changes

Fixed Bid

bid from a vendor that contains costs that will not vary no matter what actual costs are incurred.

Constraints (leveling factor)

constrained tasks less likely to be delayed

Priority value (leveling factor)

delay lower priority tasks first

Start date (leveling factor)

delay tasks that start earlier

Total slack ((leveling factor))

delay tasks with more slack

Time-phased resources

describes amount of individual resources an existing schedule requires during specific time periods

Resource Constraining

don't exceed available resources

Execution Risk

poorly trained or insufficient personnel

Burdened Labor Rate

rate includes salary, benefits, and overhead costs, such as the individuals office space and equipment

Baseline

the approved budget/plan +/- approved change requests. Refers to planned hours and schedule

Resource Leveling

the process of shifting resource usage to distribute workload of team members and availability of equipment/critical resources