Any project that is undertaken maintains a certain level of risk. Thus, it is imperative for the risk management to be utilized to mitigate risk that would hinder the project. The Unity Relocation Project holds several aspects of risk that, if not properly managed, would have devastating effects to the company. First, there are three areas of risk that in which controls have been implemented to prevent the project from getting off track. Those areas are the purchase of the new location that Unity International is moving to, the move itself, and the sales of the old location. Second, there is one area within the project that has failed to meet the requirements set forth by the scope which needs to be brought back online. This is the …show more content…
Furthermore, it would display the planned value for the new location at $300,000. Once the purchase has been made then the project manager would enter the amount into an earned value calculators chart to show the team the actual cost that occurred which would determine how much funds remain. Likewise, the time to completion can be calculated in the same way by subtracting how much time the project has left by how much time the purchase took. This would show the team whether they are on schedule or behind. Thus, by utilizing earned value management the team will understand whether the project is at cost and on time or not. The second element of the Unity Relocation project that maintains risk is the element of moving the organization from its old location to its new site. This aspect of the project could very easily encounter problems that would cause it to not occur within the timeframe established by the scope. If the relocation is completed in a timely manner then it will allow the new location to be operational sooner which would return Unity International into a place where they can start generating profits again. If the relocation is not completed in a timely manner then the organization will not be able to successfully operate their business causing a loss in profits. The relocation is set to occur over one month and move three departments of the company over this period. Hence, the project manager for this
Various documents such as a project scope statement, one-time cost or recurring cost worksheet can be created to list costs associated with the project. Other methods include the time value of money, which refers to comparing present cash outlays to future expended returns, and a break-even analysis in order to determine economic feasibility.
risks and determine the likelihood and consequence of that risk occurring during the project. The
Risk management attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented (Larson & Gray F, 2003). So, risk management will allow the project manager of “The Renovation of the Terminal B at LaGuardia Airport” identify as many risk event as possible, minimize their impact, manage response to those risks that do materialize, and therefore provide
The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!
Identify a minimum of 10 project risks and when each will occur in the project life cycle, and then determine their impact and probability of occurrence.
592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592
| Major risks that hinder the success of the project are based around the timeline. All micro projects and milestones are consecutive to each other. The largest variable within risk mitigation is the exterior construction. Risks can include but limited to: varance permits, weather, protesting, funds allocation, war, loss of materials, and human hazards and lawsuits/safety
It impacts the timeline, milestones, and schedule of the project. That in turn will also impacts the budget of the project.
The impact of Earned Value analysis in managing project cost control is undeniable. When EVM is implemented on a project, there are significant benefits to the project manager and the customer. Project manager benefits include increased visibility and control to proactively respond to issues that can impact project schedule, cost and objectives. Customer benefits include increase confidence in the PM’s ability to manage the project and track the progress of their project. Additionally, EVM provides a wealth of information for accountants. Accountants can use the data to report profitability to the investment community (Wilkens, 1991). There is a true connection between project management and corporate accounting. PMs use data provided by finance departments as inputs to determine cost performance of projects via EVM. This includes information used to create financial statements such as the cash flow statement, used to track the actual cash in hand. Said financial statements are to be crafted in compliance with the U.S. GAAP (generally accepted accounting principles). GAAP impacts every item on a qualifying financial statement. GAAP guidelines dictates how financial statements are produced every step of the way, covering hundreds of different components, according to Stanford University’s Cardinal Money Management website (Gresham, 2012). GAAP encompasses basic accounting principles and guidelines and detailed standards issued by the Financial Accounting Standards Board
Many risks are interrelated. Analyze the following compound risk: Unstable requirements with tight budget will likely cancel the project. Discuss the dependencies that exist between the two risks.
Following the bombing of Pearl Harbor in 1941 and the United States entering World War II, President Franklin D. Roosevelt signed Executive Order 9066 in 1942. This order led to the evacuation of over 100,000 Japanese Americans, both citizens and immigrants, to Relocations Centers located away from the Western coast of the United States. Life inside the Relocation Centers was complicated not only by the living and working conditions, but also by the many social, political, educational, and cultural dynamics among the different generations of Japanese Americans. (Kessler, 1988). Once released from the centers, the United States, through the Resettlement Program urged the Japanese Americans to settle throughout the country in hopes for better
This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project, I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher Place, Whalen Court, The Barn, Goldie’s Square, or Stadium Remodel.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and have not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed price contracts with little to no stipulations. For this project Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the
In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project
This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.