Pm 595 Part 1 Essay

1665 WordsSep 15, 20127 Pages
PM 595 Project Risk Management Instructor: Project 1 Empire State Building Risk April 8, 2011 Table of Contents: Introduction: In part one of the project I focused on two potential risks, power outage and work stoppage. As a contractor constructing a facility as massive as the Empire State Building, I would need to be aware of many other risks in order to prevent them from becoming events. Anytime an event occurs, it requires resources to be realigned in order to fix the problem and get the project back on track. This results in a slip in the schedule and unnecessary funds being expended. If I am able to appropriately determine potential risks and build an effective Risk Management Plan, I can minimize the…show more content…
Risks vary in severity from temporary interruption of supply lines or isolated storm to total collapse of the structure, worker strike or sabotage. For this paper I will focus on two risks that could affect construction of the Empire State Building; power outage and work stoppage. Additonally, we will look at what mitigation actions could be incorporated to either reduce the probability of the risk occurring or limiting the impact it has on the overall project. The two risks will be illustrated using a Fault Tree diagram. Fault tree analysis was first developed by Bell Laboratories in 19621. It provides a structured format for “estimating the likelihood of the top even by tracing back the causes until it has identified simple events or component states for which the likelihood can be estimated2. In the process you continue to look for underlying causes until you have a clear idea of the failure and what may be done to manage or mitigate the failure. When developing the fault tree it is helpful to ask “why” to uncover an underlying cause. These causes are linked in the tree as “and” (where both items are necessary for the tree component to occur) and “or” (where either tree component can occur and contribute to the failure). An illustration presented by the authors of our text can be found on page 217. The top failure is the water is cold. Components that can contribute to this are either “there is no
Open Document