Lesson 9 Application

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among these three constrains identified in the Project Experience Risk Information Library (PERIL) database. (Kendrick, page 41) Therefore, identifying project scope is very important for project success. Project Scope risk consists of two major categories – changes and defects. Changes can be divided into scope creep, scope gaps, and dependencies subcategories. Scoop creep is the most serious category in the scope risk; scope gaps are the result of committing to a project before the project requirements are complete; and scope dependencies are due to external factors that affect the project and the least damaging among the three. Scope gaps were the top category of risk in the PERIL database. (Kendrick, page 48) Defining deliverables thoroughly for a project provides the project management team the first indication of the risks in proposed projects and is an essential tool to uncover these potential project risks.

Using a documented definition process, developing a straw-man definition document and adopting a rigorous evolutionary methodology are all useful techniques for managing scope risk.

Defect risks are categorized into software, hardware, and integration. Software problems and hardware failures were the most common types of defect risk, and integration defects were the third type of defect risk in the PERIL database. (Kendrick, page 44)

Technical project risk assessment is part of the earliest phase of project work. Risk framework, risk complexity index, and risk assessment grid are three methods that provide useful insight into project risk in the beginning stage.

Beside of change and defeat risks, market and confidentiality risks are two other scope risks. Market risk relates to features, to timing, to cost, or to almost any facet of the deliverable. Confidentiality is crucial to many high-tech projects. If confidential information is made public, its value cold decrease or vanish.

Overall, the chapter reveals some key ideas for identifying scope risks such as clearly defining project deliverables, setting limits on projects, decomposing project work into small, well understood pieces, assigning ownership for project work, and documenting risks.

5. What are the key ideas for identifying project schedule risks? (5 points)

Project managers in my office often need to deal with project schedule challenge. Kendrick discussed a great deal in Chapter 4 of his book regarding the project risk identification and management. The chapter first defines the three categories of schedule risk – delays, estimates, and dependencies – and the causes of these risks. Required parts, needed information, and slow decision processes are three main cause project delays. The author then explains the most visible type of schedule risk, estimating risk. Frequently, we incorrectly estimate the time needed to learn new skills or for a new person to master a technique. It is difficult to correctly estimate learning cure time, and the incorrect estimates cause serious schedule risks. Additionally, we are often too optimistic or overly pessimistic when estimating the time needed for the projects, which lead to unrealistic project completion target. As project managers, we cannot overlook the impacts from external factors other projects that compete the same resources, needed computer and other corporative supports that are not working, and legal issues that stop project progress. The author reminds the students to avoid the four estimation pitfalls: avoidance, optimism, lack of information, and granularity. Most importantly, Kendrick introduced some estimating techniques that project managers can use to manage project schedule risk. Utilizing historical data form previous projects and seeking expert judgment from others help to correctly estimate project schedule. Breaking long, complex projects into a series of much shorter segments is another effective way to minimize schedule risk. Project managers also can use computer software to reveal schedule impacts from uncertainties schedule and identify methods to mitigate the risks. The text also illustrates how to translate duration estimates and effort estimates to calendar estimates to account for all the days between the start and end of each activity of the project. In conclusion, the key ideas for identifying schedule risks include 1) determining the root causes, 2) identifying risk elements, 3) noting dependencies that pose delay risks, 4) identifying risky activities, 5) ascertaining risks, 6) recognizing the riskiest dependencies, and noting risks associated with lengthy projects.

6. What are the key ideas for identifying project resource risks? (5 points)

Having the sufficient resources is essential for a success in project management; however, resources are not always readily available. Thus, it is very important to know how to manage the risk arise from it. The author taught us the three categories of resource risk: people, outsourcing, and money. People risks frequently occur, and people are the most unstable resource among the three. You may permanently or temporarily loose staff member due to resignation, reassignment, health, or other reasons. Sometimes, the needed experts and staff may be shifted to support other projects. People may also not be motivated to perform. With the outsourcing trend in the modern days, risks such as late or poor output from outsource partner add to the resource risk list. Additionally, not having sufficient funding at the right time will stalls the progress.

Therefore, during the resource planning, a project manager needs to account for these risks. The project manager needs to identify the resource requirement in the early stage of the project. He/She can use histogram analysis to identify resource risks, improve schedule precision, build compelling evidence for budgets and schedules negotiations, and focus attention on project estimates. After identifying skill requirements, the project manager can actively recruit the needed personnel. He/She also needs to foster a good project environment and find ways to motivate his/her staff to develop and retain the team members.

The project manager is also required to have the needed skill sets to acquire services from other vendors to complete the projects. He should know how to procure and administrate contracts to minimize outsourcing risks. In addition, the project manager needs to be able to first identify potential funding risks, conduct good project estimates and budgets, and negotiate sufficient funding to run the project effectively.

To successfully execute projects, project managers must master the skills to identify resource risks,