Revisión - W2_Kloppenborg_2024

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Kloppenborg, T., Anantatmula, V. S., & Wells, K. (2018)

Week 2

Project Risk Planning

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Process

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Incorporate response plans into the overall project management plan.

Reduce overall project risk to an acceptable level.

Decide how to respond to each risk.

Use qualitative and quantitative approaches.

Analyze risks in terms of probability and impact

Identify risks.

11-1 Risk Management Planning

TECHNICAL OBJECTIVES:

• Select and use an appropriate quantitative risk analysis tool if qualitative risk analysis is not sufficient.

BEHAVIORAL OBJECTIVES:

• Determine an individual's propensity to accept risks and use that to devise strategies on which risks to accept.
• Determine an organization's propensity to accept risks and use that knowledge to devise strategies on which risks to accept.

MAIN OBJECTIVES:

• Describe how to plan risk management, identify risks, analyze risks, and create response plans for identified risks.
• Identify and classify project risks and complete a risk register.
• Describe various ri sk assessment techniques and indicate when each is appropriate to use.
• Prioritize each risk in a project using an appropriate assessment technique and develop and defend at least one strategy for each of the high-priority risks.
• Compare and contrast various strategies for addressing risks.

Chapter Objectives

Careful planning and proactive actions can significantly reduce the negative impact of risks on projects.

Outcomes of effective management

Risk management adapts according to the nature and scope of the project.

Adaptability according to the project

• Identify: Recognize potential risks.
• Analyze: Evaluate the probability and impact of risks.
• Respond: Develop strategies to mitigate risks.

Components of risk management

It is crucial to ensure the success of projects, especially in environments prone to adverse events.

Importance of risk management

Project Risk Planning

PROJECT SUCCESS MEASURES (Kloppenborg, T., Anantatmula, V. S., & Wells, K., 2018)

These measures help assess the overall success of a project and provide valuable insights into areas for improvement in future projects.

Refer to the criteria used to determine the success of a project. These measures can vary depending on the perspective of the stakeholders involved. Some common project success measures include:

PROJECT SUCCESS MEASURES

11-1a Roles and Responsibilities

• Broad participation in risk management activities is encouraged.
• The plan should define who is responsible for each risk management activity.
• In large projects, subject matter experts may be involved at many points.

11-1b Categories and Definitions

• Risks can be categorized by when they occur in the project lifecycle and by which project objective they may impact.
• They can also be classified as external or internal to the organization and as operational or strategic.
• They can be categorized based on what is known and what is unknown about each risk.

F. Continuously updated risk register

E. Understanding cause-and-effect relationships.

D. Review of project documents.

C. Information gathering using brainstorming and other techniques.

B. Involvement of experts in technical areas.

A. Specific risk identification.

Involves determining which risks could impact the project and documenting their characteristics

11-2 Identify Risks

11-2a Information Gathering

• In risk identification, information gathering is crucial and often begins with categorizing risks or considering project stages. Led by the project manager or a facilitator, this involves brainstorming and asking "What could go wrong?" for each Work Breakdown Structure (WBS) activity. Using sticky notes to list one risk per note can help in later analysis. Adhering to traditional brainstorming principles, valuing each idea and evaluating risks later, even seemingly minor ones, is essential. While technology enables collaboration with global teams, it requires careful planning. Exploring variations and combinations of risks can reveal new threats. Other methods such as stakeholder interviews, SWOT analysis, the Delphi technique, and structured reviews are also effective for identifying risks in complex projects. Recognizing that risks can be both threats and opportunities is crucial, requiring consideration of both aspects during risk identification.

11-2b Reviews

• A project manager and their team can review various project documents to identify potential risks. Assumptions and the Work Breakdown Structure (WBS) are especially important in this process, as each incorrect assumption becomes a project risk. The list of assumptions and constraints in the project charter should be updated and critically examined during risk management planning. It is essential to strike a balance between the extent of reviews and the amount of useful information for identifying risks. Identifying many possible risks, even if some turn out to be unimportant, is preferable to not identifying a major risk.

11-2c Understanding Relationships

• Project managers can identify risks by understanding the cause-and-effect relationships of risk events. They use techniques such as flowcharts to visualize resource and delivery flows, and root cause analysis to determine the fundamental reasons affecting risks. They also consider trigger conditions, which are circumstances that trigger risk strategies or actions, such as when a key supplier stops communicating, which could affect material delivery. These methods help better understand risks and take preventive measures.

11-2d Risk Register

• The risk register is a crucial document that contains the results of risk analysis and response planning. It details the identified risks, including their description, category, cause, likelihood of occurrence, impact on objectives, proposed responses, responsible parties, and current status. It is continuously updated throughout the project, adding new risks and more information about existing ones. As risks are addressed, they are removed from the register. In smaller projects, a spreadsheet can be used, while larger projects typically use databases.

11-3 Risk Analysis

• Every project team must diligently consider risks, which involves identifying a variety of risks and determining their significance. It is crucial to manage important risks carefully, while minor risks can be handled more informally. To do this, it is essential to have a thorough understanding of each risk and reliable data. Finally, it is necessary to adequately inform decision-makers about the important risks identified.

Process:

4. Continuous updating of the risk register with detailed information.

3. Quantitative analysis to numerically evaluate impact.

2. Qualitative analysis to prioritize risks.

1. Diligent consideration of risks.

11-3a Perform Qualitative Risk Analysis

11-3b Perform Quantitative Risk Analysis

• Qualitative risk analysis is crucial for prioritizing risks in a project by evaluating their probability and impact. It is necessary to distinguish significant risks from minor ones to manage them appropriately, using a scale of probability and impact. Cause-and-effect relationships should also be considered to better understand risks and develop effective responses. The fishbone diagram is a useful tool for identifying possible causes of a risk, breaking down the reasons until the root causes are found. This analysis helps project teams prepare for potential risk events and make informed decisions.

• Quantitative risk analysis involves numerically assessing the impact of risks on project objectives. It is used in large, complex, risky, or expensive projects to confidently predict the likelihood of completing the project as planned. Some common techniques include decision tree analysis, expected monetary value analysis, failure mode and effect analysis, sensitivity analysis, and simulation. These techniques help teams better understand risks and make informed decisions to mitigate them. Criteria for selecting an appropriate technique include leveraging team knowledge, quick responsiveness, determining cost and schedule contingency, promoting clear communication, and ease of learning and use.

• The risk register is updated with detailed information about the probability, impact, priority, and other relevant aspects of each risk, which helps the project team manage risks effectively.
• The Risk Register update process includes the following elements: probability and impact, priority, special attention, and the results of quantitative analysis.

11-3c Risk Register Updates

11-4 Planning Risk Responses

Planning Risk Responses

• Identification and Analysis of Risks
• Action Plan Development
• Maximizing Opportunities
• Mitigating Threats
• Creativity in Strategy Design

Strategies for Responding to Risks

• Avoiding the risk
• Transferring the risk
• Mitigating the risk
• Accepting the risk
• Investigating the risk
• Exploiting the opportunity
• Sharing the opportunity
• Enhancing the opportunity

Risk Register Updates

• Updating the risk register with response strategies
• Assigning responsible persons for strategy execution
• Agile projects often involve risks related to conflicts in development and business processes, as well as among people.
• Close involvement of the product owner in agile projects helps manage risks and detect issues quickly.

11-4 Planning Risk Responses

• Once identified and analyzed, risks in a project require an action plan. Planning responses involves developing options to maximize opportunities and mitigate threats to objectives. This process is crucial and can be creative, as teams design strategies to address each risk. Sometimes, multiple strategies are developed for a single risk, as one alone may not be sufficient. In some cases, it may be more effective to reduce the threat to an acceptable level rather than eliminate it completely.

Process:

4. Updating the risk register with strategies and responsible parties.

3. Evaluating strategies to respond to risks.

2. Designing strategies to address each risk..

1. Developing options to maximize opportunities and mitigate threats.

• The risk response planning process involves updating the risk register with the corresponding response strategies and assigning a responsible person to execute each strategy. In agile projects, risks are often related to conflicts in the development process and in business processes, as well as among people. The product owner should be closely involved throughout the project in agile projects, which helps manage risks and detect issues quickly.

11-4b Risk Register Updates

Strategies can also be applied to capitalize on opportunities, such as exploiting a new trend. It is important to assess each risk and choose the appropriate strategy based on the project's needs and stakeholders' interests. Common strategies for responding to risks include: avoiding the risk, transferring the risk, mitigating the risk, accepting the risk, investigating the risk, exploiting the opportunity, sharing the opportunity, and enhancing the opportunity.

11-4a Strategies for Responding to Risks

PMP/CAPM Study Ideas

Project managers strive to complete projects on time, within budget, and meeting quality standards and stakeholder satisfaction. Risks, which can be negative (threats) or positive (opportunities), can affect project objectives. Strategies for addressing threats include avoiding, transferring, mitigating, investigating, and accepting. Strategies for opportunities include exploiting, enhancing, sharing, investigating, and accepting. Risk management planning involves identifying and categorizing risks based on probability and impact, and actively planning for major risks. Exam preparation should focus on understanding how to categorize risks and being familiar with common quantitative assessments in risk management.

Project Quality Planning and Project Initiation.

Kloppenborg, T., Anantatmula, V. S., & Wells, K. (2018)

TECHNICAL OBJECTIVES:

• Base your complete project plan on Microsoft Project.

BEHAVIORAL OBJECTIVES:

• Determine an individual's propensity to accept risks and use that to devise strategies on which risks to accept.
• Determine an organization's propensity to accept risks and use that knowledge to devise strategies on which risks to accept.

MAIN OBJECTIVES:

• Define each core concept of project quality and explain why each one is vital in project planning and management.
• Explain what can be included in a project quality management plan.
• Compile a comprehensive project management plan, including all parts covered in the last several chapters.

Chapter Objectives

Project Quality Planning and Project Initiation

This chapter highlights the importance of quality planning in projects, especially in industries such as aerospace and defense. It mentions how firm-fixed-price contracts transfer risks to the subcontractor, emphasizing the need to understand quality requirements and technical performance before starting a project. It discusses supplier selection and the importance of adhering to quality requirements from the beginning of the project. Contemporary quality management concepts are also addressed, including approaches from gurus like Deming and Juran, as well as TQM, ISO, and Six Sigma. Key points include quality planning in complex projects, risk transfer in firm-fixed-price contracts, supplier selection based on quality and capability requirements, contributions of quality gurus and approaches like TQM, ISO, and Six Sigma, the importance of kickoff meeting and initial documentation, and integrating quality into project management.Quality management in projects is essential to ensure customer satisfaction and compliance with standards. Proper planning and understanding of quality risks and requirements are crucial to project success, especially in critical industries. The integration of modern quality approaches can significantly improve the effectiveness and efficiency of project management, ensuring deliverables that meet their intended purpose.

• Common characteristic of quality approaches: emphasis on human behavior
• Agile as a dramatic change in project management emphasizing behavioral possibilities

• Quality expectations in agile projects

• Quality planning for the entire project and for each iteration
• Conditions of acceptance as proxy for quality
• Impact of agile on project management and quality expectations

ISO 9001:2008

ISO 9001:2008

• Quality planning
• Quality control
• Quality improvement

• International Organization for Standardization (ISO)
• Evolution of ISO 9001
• Seven quality management areas with specific requirementsm ipsum dolor

• Lean manufacturing principles
• Sigma as a measure of variation
• Six Sigma quality as measured in parts per million
• DMAIC process (Define, Measure, Analyze, Improve, Control)
• Application to project quality management

• Emergence in the late 1980s
• Components of TQM
• Malcolm Baldrige National Quality Award key areas

Joseph Juran's Quality Trilogy

• Understanding variation
• Understanding companies as systems
• Need for insight and understanding of individual motivations

W. Edwards Deming's Profound Knowledge System

ISO 9001:2008

Total Quality Management (TQM)

Lean Six Sigma

Quality Gurus

Development of Contemporary Quality Concepts

12-1 Development of Contemporary Quality Concepts

12-2 Project Quality Basics

Quality gurus and frameworks provide insights into project quality from various perspectives, such as product, value, manufacturing, and customers. Project quality is defined as the characteristics that influence a product or service's ability to meet stated or implied needs. Customer satisfaction is the primary goal in most projects, highlighting the importance of meeting needs. To achieve this, it is essential to understand four contemporary basic concepts of project quality: stakeholder satisfaction, process management, fact-based management, and empowered performance.

PLAN-DO-CHECK-ACT MODEL (Kloppenborg, T., Anantatmula, V. S., & Wells, K., 2018)

Many models exist to guide the effort, improvement models such as DMAIC are usually based upon the plan-do-check-act (PDCA) improvement cycle, as displayed in this pic

12-3 Quality Management Plan

• The quality management plan establishes the acceptable level of quality, guiding how the project will meet this standard in its deliverables and processes. It includes the quality policy, reflecting the principles and expected benefits, aligned with the parent company's or clients' policies. It also describes the standards to be used, the quality baseline, and the process improvement plan. In summary, this plan is key to ensuring that products and services meet customer requirements, establishing standards, roles, responsibilities, and methods for control and continuous improvement.

• Documents the steps for analyzing processes for improvement
• Considers process boundaries, configuration, metrics, and targets

• Quality standards used
• Implementation of standards
• Quality baseline and methods of assurance and control

• Clear definition of project work
• Selection of quality standards
• Defined metrics for measuring quality

• Definition and principles
• Variability in its length and style
• Common terms: customers, process improvement, satisfaction of requirements

12-3 Quality Management Plan

Process Improvement Plan

Quality Baseline

Quality Management Plan Contents

Quality Policy

12-4 Quality Management

• Managing quality is using the quality plan and policy to create satisfactory outcomes for customers. Quality assurance focuses on improving processes to ensure error-free deliverables, using appropriate methods and proactive activities. Quality audits are key tools that allow reviewing the project to identify areas for improvement and meet standards. Preventive actions are taken when the project deviates from planning, while corrective actions are applied when the project has already deviated. Process analysis is used to improve understanding and efficiency of the process. Benchmarking is another useful method to improve processes by observing how another organization does it. Quality assurance is an ongoing process that seeks to improve the quality of the product or service for the customer.

12-5 Quality Control

• Quality control is responsible for verifying that deliverables are of acceptable quality, complete, and correct, through activities such as inspection, reviews, and testing. Its goal is to reduce defects and inefficiencies, improve the process, and satisfy the customer. Project managers focus on project inputs, processes, and outcomes. Some important terms include prevention vs. inspection, sample vs. population, attribute vs. variable, accuracy vs. precision, among others. In agile projects, quality is created and measured in small batches, with a focus on quick delivery and customer value.

12-6 Cost of Quality

• The cost of quality refers to the sum of the costs of ensuring that products meet quality standards and the costs incurred from not meeting these standards. Even with good inspectors, some errors can reach customers if the quality in project processes is poor. It is crucial that quality decisions are based on a comprehensive assessment of the costs associated with all relevant aspects of the project.

12-7 Developing the Project Management Plan

• In developing the project management plan, it is crucial to address all aspects of planning, such as scope, schedule, resources, and quality. In small projects, these elements may be combined, but in larger projects, they should be planned separately and then integrated into a unified plan. It is crucial to resolve conflicts, select a configuration management system, and apply sanity tests to ensure the plan is viable. Additionally, the needs and desires of all stakeholders must be considered, as well as the necessary flexibility to adapt to changes in agile projects.

12-8 Project Initiation

• Project initiation meetings are crucial for establishing a solid foundation of communication and commitment among all stakeholders. They allow for expressing needs and desires, understanding others', and addressing potential pain points. For them to be successful, the sponsor and project manager must establish clear direction during planning, the core team must commit first, and everyone must contribute to creating an atmosphere of trust. Typical activities include describing the project's importance, acceptance standards, and project plan.

12-9 Project Baseline and Communication

• Once the project plan is complete and accepted, it is established as a baseline, marking the transition between planning and execution. Many plans are developed iteratively and are considered drafts until key stakeholders commit to the details. Communication of the project management plan is crucial, and it should be properly disseminated to all stakeholders, even if they cannot attend the kickoff meeting.

12-10 Using MS Project for Project Baselines

• MS Project is a crucial tool for establishing and managing project baselines. It allows project managers to monitor and control project execution, ensuring that objectives are met and risks are minimized. Before creating a baseline, it is crucial to verify that elements such as quality activities, risk response plan, and realistic resource allocations have been incorporated. Once the initial baseline is established, subsequent baselines can be created if necessary. Visualizing baselines and variations through the Gantt Chart and Variance Table is crucial for understanding how the project is progressing relative to the original plan.

Reference

Kloppenborg, T., Anantatmula, V. S., & Wells, K. (2018)

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Usa este espacio para añadir una interactividad genial. Incluye texto, imágenes, vídeos, tablas, PDFs… ¡incluso preguntas interactivas! Tip premium: Obten información de cómo interacciona tu audiencia:

• Visita las preferencias de Analytics;
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• ¡Que fluya la comunicación!