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Project Plan and Risk Management

Task:

Write the notes on "Project Plan and Risk Management" and write the table on risk register.

RISK REGISTER

Note: 

  1. To assess the probability and impact of a risk event, you may use a scale from 1 (lowest) to 5 (highest);
  2. To calculate the total score, first add the numbers for impact (e.g. 4 + 3 + 4 + 5 = 16), then divide the sum by 4 to get the impact score (as there are 4 factors; e.g. 16/4 = 4), then multiple the impact score and probability score (e.g. 4 x 4 = 16). 
Risk ID
Risk   Statement
Probability
Impact
Score
Response
Scope
Quality
Schedule
Cost
1
Heavy rain might   result in serious flooding
4
4
3
4
5
16
To mitigate the   risk of flooding, sand bags are to be placed within the site parameters























































 

Answer

Project risks

7.1 Project success measures 

The project of establishing a road accident sensor can be a successful one in spite of the high level requirements. As a matter of fact the major success of this project lies in the fact that it enables the organization to support the community safety initiatives that includes the road safety programs. This system can be considered as a life saving system that can be placed in the road guardrail and the traffic barrier in order to report possible accidents and this is also helpful in improving the road safety and providing immediate help to the victims (Liu & Yuliani, 2016). The success of the project depends on the following measures:

  • Proper sensor setup and calibration 
  • Behaviour of the driver
  • Accurate using of the traffic conditions
  • Using the inductive loops properly as performance baseline 

Apart from the functional accuracy it is important to analyse the risk factors and implement the measure properly for the success of the project. Another important fact is that the contract needs to be done with an appropriate supplier who can undertake the project effectively.

7.2 Project risk analysis

High-level risk is associated with conduction of this project. The risks that are associated with this project are listed below:

  • Financial risks

Major financial loss is associated with this project as failure of the product can lead to changing all the sensors. Along with the high production cost and the replacement cost inflation of currency can indicate higher production cost (Elzamly & Hussin, 2014). Higher production cost indicates that failure of a product can lead to a huge financial loss for the company. As this project is highly dependent upon the funding, insufficient funding or financial retreat by the sponsors can cause massive financial loss in undertaking the project.

From the table below high risk associated with the financial risks can be understood. 


  • Safety risks

Safety risks are also associated with the project that need to consider with great importance. Extreme weather can affect the sensors ((Elzamly & Hussin, 2014). At the time of installation, the risk of injury also needs to be taken under consideration. It is important to have enough workforce in case of any unplanned fault occurring suddenly.

  • Quality risks 

Quality risks need to be mitigated with sufficient tests on the product in order to ensure that the product is free of any possible manufacturing or installation failure.

 Inaccurate data of site can also lead to accident that needs to consider to mitigate the chances related to the failure of the product.

  • Deadline risks 

Deadline risks include extreme weather condition that can lead to extension of the current deadline and the parts of the sensor not arriving on right time can also be the moot reason of possible risk.

For the risk assessment table refer to the appendix



Risk ID
Risk Statement
Probability
Impact
Score
Response
Scope
Quality
Schedule
Cost
1
Heavy rain might result in serious flooding
4
4
3
4
5
16
To mitigate the risk of flooding, sand bags are to be   placed within the site parameters
2
Higher production cost can lead to a huge financial   loss
5
5
4
4
5
18
To mitigate the risk of higher production cost   alternative materials of modest price but equivalent performance can be used
3
Extreme weather might cause severe harm of the censors
4
3
3
4
4
14
An additional protection system can be installed to   resist the harms on the censors by extreme weather
4
Risk of Injury 
3
3
4
4
4
15
Auxiliary workforce needs to be prepared forecasting   this 
5
Manufacturing or installation failure
3
3
4
3
4
14
Regular and consistent test of the installed equipments   
6
Insufficient funding might lead to massive financial   loss
5
4
4
3
4
15
Ensure seamless distribution of funding throughout the   schedule
7
Sudden and unexpected fault
2
2
3
3
4
12
Precaution needs to be prepared in the planning phase


8.0 Project procurement


8.1 Outsourcing decisions

Successful orientation of the projects is an important factor. In order to conduct the project in time it is important to locate the packages and the equipments that are to be outsourced. It is better to outsource the packages as this organization cannot afford to produce the required material (de Araújo, Alencar & de Miranda Mota, 2017). Outsourcing the necessary material is cost effective and it also helps in avoiding production hazard. 

8.2 Supplier selection

In this particular project the chief equipments including the censors need to be outsourced from. Identifying the right supplier is important. For this particular project it is important to select the suppliers that are aware of the possible risks that are associated with this project as this is a high risk project (Allen, Herring, Moody & Williams, 2015). Apart from that it is also important that the suppliers aligning with the deadlines understand the importance of delivering the resources on time so that the risk of delayed deadline can be mitigated. RAS is a highly advanced technology, therefore the suppliers especially the suppliers of the censors need to have sound knowledge regarding the technology of RAS. This will help in successful handling of the outsourced technical equipments that are required for the project. 

8.3 Contract types

Different types of contracts have been analysed in order to understand the appropriate contract type for this particular project.  


Figure 1: Different contract types

(Source: Chen,  Klastorin & Wagner, 2015).

Cost Reimbursable contract can be an ideal one for this project as this is a high risk project and the scope of the work is not clear and is associated with various risk factors. Therefore, fixed price contract does not have the capacity to serve the required purpose. In this contract the buyer is going to pay all the cost and the buyer is going to be responsible for the associated risks. The seller will work for the fixed time and in this case the bill is going to be risen after the completion of the project (Allen, Herring, Moody & Williams, 2015). The fee is going to be indicative of the profit and the fee is going to be dependent upon the selected project performance for instance supplying the order in deadline in this case. 

Cost Reimbursable contract can proved to be effective for maintain the financial support that is required for the project. As it is evident from the image below for high risk projects like this one Cost Reimbursable contract can proved to be the appropriate one.


Figure 2: Benefits of Cost Reimbursable contract

(Source: Winch & Leiringer, 2016)


9.0 Justification of organizational capacity to undertake this project 

This project can be undertaken by this organization as this organization is financially well established for undertaking a high-risk project like this. Financial investment is important for this particular project as this project requires high-risk investment. As far as the project budget is concerned, the total cost is $64,240. This organization has the capacity for such huge investment.

Apart from the financial requirement this project also requires a highly trained and professional workforce that has sound knowledge regarding the sensors and other equipments. Along with that, effective planning and assessing possible risk are important factors in conducting the project successfully. In the duration of total 12 months, this organization has a proper project duration and schedule for every necessary step of the project. Apart from that the necessary shareholders can be contacted by this organization effectively in order to ensure the required support. As per the project management plan of this project the stakeholder analysis matrix that has been prepared enlightens every factors that are to be evaluated with effective research. Therefore, this organization has the capacity to effectively conduct this project.

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