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