Write A Short Note
Write A Short Note
Write A Short Note
- Bureaucracy Organizations
o Max Weber 1864-1920
o Prior to Bureaucracy Organizations
o European employees were loyal to a single individual rather
than to the organization or its mission
o Resources used to realize individual desires rather than
organizational goals
o Systematic approach looked at organization as a whole
- Administrative Principles
o Contributors: Henri Fayol, Mary Parker, and Chester I.
Barnard
o Focus:
Organization rather than the individual
Delineated the management functions of planning,
organizing, commanding, coordinating, and controlling
- Humanistic Perspective
o Emphasized understanding human behavior, needs, and
attitudes in the workplace
o Human Relations Movement
o Human Resources Perspective
o Behavioral Sciences Approach
- Abraham Maslows
Hierarchy of Needs
- Theory X& Y
o Theory X
o Dislike work will avoid it
o Must be coerced, controlled, directed, or threatened with
punishment
o Prefer direction, avoid responsibility, little ambition, want
security
o Theory Y
o Do not dislike work
o Self direction and self control
o Seek responsibility
o Imagination, creativity widely distributed
o Intellectual potential only partially utilized
o Few companies today still use Theory X
o Many are trying Theory Y techniques
- Project Plan
o Project Charter
o Project Description
o Scope Statement
o Work Breakdown Structure
o Cost Estimates and Schedule at WBS level
o Major Milestones and Target Dates
o Resource Plan
o Risk Plan
4. Write short note on project management phases, scheduling techniques,
planning objectives?
- Project management phases
o Understanding the nature of the project
o The role of the project manager
o Setting up the project
o Planning the project
o Controlling the execution phase of the project
o Using automated tools
o The personal qualities of the project manager
o Finishing the project successfully.
- Scheduling Techniques
o Mathematical Analysis
Network Diagrams
PERT
CPM
GERT
o Bar Charts
Milestone Chart
Gantt Chart
- Planning Objectives
- Agreements on:
o Scope
o Objectives
o Work activities
o Estimates
o Resources required
o Roles & responsibilities
o How to change & update the plan
Earned value
Simply, it is a project monitoring and measurement system that:
o establishes a clear relationship between planned accomplishments and
actual accomplishments
o reinforces and rewards good planning practices
Basic concepts of Earned Value Management (EVM)
o Each task in a project earns value as planned work is completed
o Earned value can be compared to actual cost and budgeted cost to
determine variance and predict future performance
The budgeted cost (e.g., dollars, person-hours, person-days, etc.) in terms of
your baseline plan/budget of the work performed up to a specified point in
time
o Also known as Budgeted Cost of Work Performed (BCWP)
Each task in the Work Breakdown Structure (WBS) is assigned a BCWP
based on its individual cost.
o Project BCWP is total of BCWP for all tasks required to complete the
project
Components
o Planned Value (a.k.a. BCWS)
o How much work (person-hours) you planned to have accomplished at
a given point in time (this is from the WBS in your plan)
o Actual Cost (a.k.a. ACWP)
o How much work (person-hours) you have actually spent at a given
point in time
o Earned Value (a.k.a. BCWP)
o The value (person-hours) in terms of your base budget of what you
have accomplished at a given point in time (or, % complete X
Planned Value)
Performance indices
Cost Performance Index
CPI = BCWP/ACWP
Schedule Performance Index
SPI = BCWP/BCWS
Analysis
CPI > 1.0 exceptional performance
CPI < 1.0 poor performance
Similar for SPI
Resource-Constrained Projects
Projects that involve resources that are limited in quantity or by their
availability.
Scheduling of activities requires the use of heuristics (rules-of-thumb)
that focus on:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number
The parallel method is used to apply heuristics
1. An iterative process that starts at the first time period of the
project and schedules period-by-period any activities scheduled
to start using the three priority rules.
14.What is risk? What are the benefits, goals and principles of risk
management? pp330-335
Benefits
Goal of Risk Management
The goal of risk management is:
o scientifically sound,
o cost-effective,
o integrated actions that reduce or prevent risks while taking into
account social, cultural, ethical, political, and legal
considerations.
Sources of risk
Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience
CAUSE FACTORS
Human Error - an individuals actions or performance is different than what
is required and results in or contributes to an accident.
Material Failure/Malfunction - a fault in the equipment that keeps it from
working as designed, therefore causing or contributing to an accident.
Environmental Conditions - any natural or manmade surroundings that
negatively affect performance of individuals, equipment or materials and
causes or contributes to an accident.
SOURCES OF CAUSE FACTORS
Avoid
Reduce
Share
Insure
Accept
o with contingency
o without contingency
Contain
18.Write a short note on Pp. 365-369
Risk management plan.
o How you will identify, quantify or qualify risk
o Methods and tools
o Budgetyes budget
o Who is doing what
o How often
o When a risk is really a risk
o Reporting requirements
o Monitoring, tracking and documenting strategies
Identify risk
o Continuous, Iterative Process
o What is it and what does it look like
o The sooner the better
o The more the merrier
o A fact is not a risk
o Be specific
o Dont try to do everything at once
Identification techniques:
o Brainstorming
o Checklists
o Interviewing
o SWOT Analysis
o Delphi Technique
o Diagramming Techniques
Cause & effect Ishikawa or Fishbone
Flow Charts
Influence Diagrams
Risk response plan
Techniques/Strategies:
o Avoidance Eliminate it
o Transference Pawn it off
o Mitigation Reduce probability or impact of it
o Acceptance Do nothing
Strategy should be matching with risk
o Hint: Dont spend more money preventing the risk than
the impact of the risk would be if it occurs
The Risk Response Plan/Risk Response Register
Risk monitoring and control.
Continuous, Iterative Process
Done right the risk should NEVER occur
Someone is responsible
Watch for risk triggers
CommunicateCommunicateCommunicate
Take corrective action - Execute
Re-evaluate and look for new risk constantly
Tools:
Risk Reviews
Risk Audits
22.Write a short note on risk probability and risk severity. Pp. 401-457
Risk Probability
Frequent Individual: occurs repeatedly in career
All: continuously experienced
Risk Identification
Determine which risks might affect the project and document
their characteristics
Tools and techniques include: Documentation Reviews,
Brainstorming, Interviewing Key Experts, Assumption Analysis
Output: raw list of risks and associated symptoms or warning
signs (that require further analyses)
Risk Quantification
1. Qualitative Risk Analysis:
Assess the impact and likelihood of occurrence
Prioritize according to the potential effect on project objectives (e.g.
greater impact leads to a higher priority)
Sample risk probability ratings: 10% = surprised if it happens; 50% =
50-50; 80% = surprised if it does NOT happen
2. Qualitative Risk Analysis (continued):
The impact scale reflects the potential severity of the effect on the
project objectives: 1 = low severity; 2 = medium severity;
3 = high severity; etc.
Output: list of prioritized risks based on the probability times impact
Risk Response
3. Risk Response - Contingency Plans:
Develop contingency plans to reduce threats to the project objectives
Identify individuals to take responsibility for each critical risk response in
the form of a contingency plan
These plans are added to the project action list to be reviewed on a
regular basis
Several risk response strategies are possible. Select the most effective
strategy for each risk. The available strategies are:
Avoidance: change the project plan to eliminate the risk
or condition inducing risk
Transference: shift the consequences of the risk to
another party (e.g. insurance)
Mitigation: reduce the probability and/or consequence of
an adverse risk event to an acceptable threshold
Acceptance: a conscious decision not to change the
project plan
Control risks by continually monitoring and correcting risky conditions:
reviews, inspections, development of fall back positions, etc.
Impact
An estimate of the effect that the risk will have in relation to time, cost, quality,
safety or performance called for in the organizations objectives.
Bannisters Law
The difference in circumstances between a small and
a very large loss is often marginal.
Likelihood
An estimate of the chance that loss will occur in the future. Must be time bounded
(i.e. per year).
Murphys Law
If anything can go wrong, it will, usually at the most inconvenient time.
28.What are the tools and techniques to identify risk? Pp. 485-491
A range of tools and techniques is available for risk identification. These
fall into the following three categories:
o Historical reviews are based on what occurred in the past, either
on this project, or other similar projects in the same organization,
or comparable projects in other organizations., which would
o Current assessments rely on detailed consideration of the current
project, analyzing its characteristics against given frameworks and
models in order to expose areas of uncertainty.
o Unlike historical review approaches, current assessment techniques
do not rely on outside reference points, but are based purely on
examination of the project.
o Creativity Techniques A wide range of creativity techniques can
be used for risk identification, which encourages project
stakeholders to use their imagination to find risks which might
affect the project.
o The outcomes or effectiveness of these techniques depend on the
ability of participants to think creatively.
o These techniques can be used either singly or in groups, and
employ varying degrees of structure.
o These techniques depend on the ability of participants to think
creatively, and their success is enhanced by use of a skilled
facilitator.
o Each category of risk identification technique has strengths and
weaknesses, and no single technique can be expected to reveal all
knowable risks.
o Consequently, the Identify Risks process for a particular project
should use a combination of techniques, perhaps selecting one
from each category.
o For example, a project may choose to use a risk identification
checklist (historical review), together with assumptions analysis
(current assessment) and brainstorming (creativity).
29.What are the tools and techniques to perform quantitative /qualitative risk
analysis and what are the critical success factors? Pp. 492-513
Purpose and Objectives of the Perform Qualitative Risk Analysis Process:
a. The Perform Qualitative Risk Analysis process assesses and
evaluates characteristics of individually identified project risks and
prioritizes risks based on agreed-upon characteristics.
b. Assessing individual risks using qualitative risk analysis evaluates
the probability that each risk will occur and the effect of each
individual risk on the project objectives.
Critical Success Factors for the Perform Qualitative Risk Analysis Process
Use Agreed-Upon Approach The process is based on an agreed-upon
approach to this assessment that is applied across all of the identified risks in
any project.
By the nature of project risk, all risks may be assessed according to
probability of occurrence and impact on individual objectives should the risk
occur.
Other factors may be considered in determining the importance of a risk as
follows:
Use Agreed-Upon Definitions of Risk Terms
Collect High-Quality Information about Risks
Perform Iterative Qualitative Risk Analysis
The tools and techniques used for assessing individual risks will identify the
risks that are important to the projects success. This process is shown in the
following figure:
PERFORM QUANTITATIVE RISK ANALYSIS
Purpose and Objectives of the Perform Quantitative Risk Analysis
Process
The Perform Quantitative Risk Analysis process provides a numerical
estimate of the overall effect of risk on the objectives of the project,
based on current plans and information, when considering risks
simultaneously.
It is generally accepted that analyzing uncertainty in the project using
quantitative techniques such as Monte Carlo simulation may provide more
realism in the estimate of the overall project cost or schedule than a non-
probabilistic approach which assumes that the activity durations or line-item
cost estimates are deterministic.
It should be recognized that quantitative risk analysis is not always required
or appropriate for all projects.
Critical Success Factors for the Perform Quantitative Risk Analysis
Process
Prior Risk Identification and Qualitative Risk Analysis :
o The Perform Quantitative Risk Analysis process occurs after the
Identify Risks and Perform Qualitative Risk Analysis processes
have been completed.
Appropriate Project Model:
o An appropriate model of the project should be used as the basis for
quantitative risk analysis.
o Project models most frequently used in quantitative risk analysis
include the project schedule (for time), line-item cost estimates (for
cost), decision tree (for decisions in the face of uncertainty) and
other total-project models.
o Quantitative risk analysis is especially sensitive to the
completeness and correctness of the model of the project that is
used.
Commitment to Collecting High-Quality Risk Data:
o Often high-quality data about risks are not available in any historic
database and should be gathered by interviews, workshops, and
other means using expert judgment of those present. Collection of
risk data requires resources and time as well as management
support.
Unbiased Data:
o Success in gathering risk analysis data requires the ability to
recognize when biases occur and combating that bias.
Overall Project Risk Derived from Individual Risks:
o The Perform Quantitative Risk Analysis process is based upon a
methodology that correctly derives the overall project risk from the
individual risks.
o In risk analysis of cost and schedule, for example, an appropriate
method is Monte Carlo simulation.
o A decision tree is an appropriate method for making decisions
when future events are not certain, using the probability and
impact of all risks, and combining their effect to derive an overall
project measure such as value or cost.
Interrelationships Between Risks in Quantitative Risk Analysis:
o Attention should be given to the possibility that the individual risks
in the project model are related to each other.
Tools and Techniques for the Perform Quantitative Risk Analysis Process
Comprehensive Risk Representation
Risk models permit representation of many, if not all, of the risks that
have impact on an objective simultaneously. They also permit the
representation of both opportunities and threats to the projects
objectives.
Risk Impact Calculation
Quantitative models facilitate the correct calculation of the effect of
many risks, which are typically identified and quantified at a level of
detail below the total project, on the project objectives, which are
typically described at the level of the total project.
Quantitative Method Appropriate to Analyzing Uncertainty
Probability models use a quantitative method that addresses uncertainty.
Specifically, the methods should be able to handle the way uncertainty is
represented, predominantly as probability of an events occurring or as
probability distributions for a range of outcomes.
Data Gathering Tools
Data gathering tools used in this process include assessment of historical
data and workshops, interviews, or questionnaires to gather quantifi ed
informationfor example, on the probability of a risk occurring, a
probability distribution of its potential impacts on cost or time, or
relationships such as correlation between risks.
Effective Presentation of Quantitative Analysis Results:
Results from the quantitative tools are generally not available in
standard deterministic project management methods such as project
scheduling or cost estimating. include the following:
31.The objective of the Plan Risk Responses process is to determine the set of
actions which most enhance the chances of project success while complying
with applicable organizational and project constraints.
32.The planning entails agreeing upon the actions to be taken and the potential
changes to budget, schedule, resources, and scope which these actions might
cause planning.
33.The responsibility for monitoring the project conditions and implementing the
corresponding actions should be clearly assigned.
34.The risk owner is responsible for ensuring that the risk response is effective and
for planning additional risk responses if required,
35.All the approved, unconditional actions arising from risk response planning
should be integrated into the project management plan.
36.The corresponding organizational and project management rules should also be
invoked, including the following:
a. Project change management and configuration control;
b. Project planning, budgeting, and scheduling;
c. Resource management; and
d. Project communication
Critical Success Factors for the Plan Risk Responses Process
32. What are the purpose and objectives of the monitoring and
control process and what are the critical success factors? Pp. 532-
539
Critical Success Factors for the Monitor and Control Risks Process
Integrate Risk Monitoring and Control with Project Monitoring and
Control From the start, the project management plan should include the
actions required to monitor and control project risk.
Continuously Monitor Risk Trigger Conditions Risk response planning
will have defined a set of actions to be carried out as part of the project.
Maintain Risk Awareness Risk management reports should be a regular
item on every status meeting agenda to ensure that all team members remain
aware of the importance of risk management and to ensure that it is fully
integrated into all of the project management decisions.
Managing Contingency Reserves: Reserves may have been allocated
separately to cover time-related and cost-related risks.
Tracking Trigger Conditions Trigger conditions and the corresponding
metrics are defined during the Plan Risk Responses process. Tools are
required to evaluate and track these conditions against the project baseline or
specified thresholds, based on actual status.
Tracking Overall Risk Tools are required in order to determine, as the
project progresses, whether the responses are having the expected effect on
the projects overall level of risk.
Tracking Compliance In order to monitor the quality of the execution of
the risk-related plans and processes, a set of quality metrics such as degree
of variation from the baseline, should be tracked and recorded.
The final control action of risk monitoring and controlling is to record actual
data for future use. This includes all of the relevant information relating to
risk management from start to finish of the project.
32. What are the inputs-tools-output for;
e. Plan risk management
f. Identify risks
g. Perform qualitative analysis
h. Perform quantitative analysis
i. Plan risk response
j. Control risk
33. What Do Many Risk Managers Do?
Buy Insurance
Supervise Safety
Handle Claims
Administer Insurance Policies
Report to Management on:
Losses
Insurance marketing results
Loss Prevention Programs
34. What Do Some Risk Managers Do?
Identify Hazard Related Exposures
Identify and negotiate insurance product solutions to finance related risks
and move them to third party insurers
Hope to get the policies in less than 6 months
Assess where prevention techniques are most useful and worthy of
resourcing and make the business case to management for funding
Aggressively attempt to minimize the payment of loss dollars for claims and
litigation, especially those self insured, to minimize the cost of risk.
Report to management of premium and claim dollars saved, losses prevented
and the total cost of risk against a typically industry based benchmark
Work with brokers and selected internal functions, to achieve all of the
above
35. What 2 Things Should Risk Managers Do?
Be well versed in all key aspects of core company operations, key staff
functions and business strategy, that generate or have the potential to
generate, the most significant exposures to the firm.
Apply a comprehensive and customized risk management model to all
significant or material risks, operational, financial or business/strategic and
regardless of whether insurable or not.
36. Write a short note on traditional Approach
Hazard Focused
Insurance solution oriented
Limited perspective on the risks of the entity
Heavily dependent on intermediaries
Low to medium management priority
No to low governance priority
Executable with dedicated, part time or outsourced resources
First, remember that each companys needs drive the response to this question.
Pros:
Narrow focus easier to execute well
Well understand sources of loss; readily available solutions to finance and
transfer
Much available talent to manage
Cons:
Ignores what are likely to be the most significant risks to the firm
Heavy dependence on third parties may jeopardize effectiveness
37. Write a short note on progressive Approach
Recognizes the need to look beyond insurable risks
Recognizes process ownership
Recognizes that process owners cant be risk owners and that risk owner
engagement is critical to successful risk management
Higher management and governance priority attached to managing risk
Less executable with heavy dependence on external sources of expertise
Success depends on full time dedicated, internal expertise trusted by
management and governance
Recognizes the need for alignment with key risk stakeholders
Pros:
More likely to be prepared for uninsurable events
More management and governance attention to risk issues
Less dependency or third party services
Cons:
Usually in the developing stage and often difficult to sell and gain
permanent traction with management
Difficult to find external sources of expertise that comprehensively
understand the firms exposures and how they can best be managed
38. Write a short note on advanced Approach (answers for Q33 to Q38: Pp.
548-565)
Full acceptance of need for comprehensive, state-of-the-art and urgent risk
management methods, tools and techniques
Clear delineation between process and risk ownership
Recognition of insurance as just one of many mitigation strategies
Typically complete integration with strategic planning processes
Pros:
Surfaces key risk issues quickly and effectively
Evidences engagement by all key risk stakeholders and owners
Minimizes the likelihood that risk values will exceed tolerances or that controls
will be less than effective
Cons:
Expensive to implement
Expertise difficult to find and keep
CRO as scapegate for all that goes wrong
42. What are the determinants of quality and cost of quality. Pp. 595-598
Determinants of Quality
o Quality of design
o Quality capability of production processes
o Quality of conformance
o Quality of customer service
o Organizational quality culture
Costs of Quality
Scrap and rework
rescheduling, repairing, retesting ....
Defective products in the hands of the customer
recalls, warranty claims, law suits, lost business ....
Detecting defects
inspection, testing .
Preventing defects
training, product/process redesign .
43. What are the quality tools 599=608
THE MAGNIFICENT SEVEN
1. Histograms and Statistical Graphical Data presentation.
2. Check sheet
3. Pareto chart
4. Cause-and-effect diagram
5. Defect concentration diagram
6. Scatter diagram
7. Control chart
44. Write a short note on:
a. Walter A. Shewart
Walter A. Shewart (1891-1967)
Trained in engineering and physics
Long career at Bell Labs
Developed the first control chart about 1924
Bell Telephones engineers had been working to improve the reliability of
their transmission systems.
In order to impress government regulators of this natural monopoly with the
high quality of their service, Shewhart's first assignment was to improve the
voice clarity of the carbon transmitters in the company's telephone handsets.
Later he applied his statistical methods to the final installation of central
station switching systems, then to factory production.
When Dr. Shewhart joined the Western Electric Company Inspection
Engineering Department at the Hawthorne Works in 1918, industrial quality
was limited to inspecting finished products and removing defective items.
That all changed on May 16, 1924. Dr. Shewhart's boss, George D. Edwards,
recalled
"Dr. Shewhart prepared a little memorandum only about a page in length.
About a third of that page was given over to a simple diagram which we
would all recognize today as a schematic control chart.
That diagram, and the short text which preceded and followed it, set forth all
of the essential principles and considerations which are involved in what we
know today as process quality control."
Shewhart's work pointed out the importance of reducing variation in a
manufacturing process and the understanding that continual process-
adjustment in reaction to non-conformance actually increased variation and
degraded quality.
Shewhart framed the problem in terms of assignable-cause and chance-cause
variation and introduced the control chart as a tool for distinguishing
between the two.
Shewhart stressed that bringing a production process into a state of statistical
control, where there is only chance-cause variation, and keeping it in
control, is necessary to predict future output and to manage a process
economically.
Dr. Shewhart created the basis for the control chart and the concept of a state
of statistical control by carefully designed experiments.
While Dr. Shewhart drew from pure mathematical statistical theories, he
understood data from physical processes never produce a "normal
distribution curve" (a Gaussian distribution, also commonly referred to as a
"bell curve").
He discovered that observed variation in manufacturing data did not always
behave the same way as data in nature (Brownian motion of particles).
Dr. Shewhart concluded that while every process displays variation, some
processes display controlled variation that is natural to the process, while
others display uncontrolled variation that is not present in the process causal
system at all times.
Shewhart worked to advance the thinking at Bell Telephone Laboratories
from their foundation in 1925 until his retirement in 1956, publishing a
series of papers in the Bell System Technical Journal.
His work was summarized in his book Economic Control of Quality of
Manufactured Product (1931).
From the late 1930s onwards, Shewhart's interests expanded out from
industrial quality to wider concerns in science and statistical inference.
The title of his second book Statistical Method from the Viewpoint of
Quality Control (1939) asks the audacious question: What can statistical
practice, and science in general, learn from the experience of industrial
quality control?
b. W. Edwards Deming
Taught engineering, physics in the 1920s, finished PhD in 1928
Long career in government statistics, USDA, Bureau of the Census
During WWII, he worked with US defense contractors, deploying
statistical methods
Sent to Japan after WWII to work on the census
Japanese adopted many aspects of Demings management philosophy
Deming stressed continual never-ending improvement
Deming lectured widely in North America during the 1980s; he died
24 December 1993
Dr. Deming outlines his fourteen points for management.
He understood that managers of people need to understand that all
people are different. Not rank people but understand that largely the
area that he works in, and is the responsibility of management governs
the performance of anyone.
Below we can see what Dr. Deming taught in his style of
management.
Deming Chain Reaction
Demings System of Profound Knowledge
Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
Demings 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission statement and commit to
it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. 10. Eliminate exhortations for work force.
11. 11. Eliminate numerical quotas and Management By Objectives
M.B.O. Focus on improvement.
12. 12. Remove barriers that rob people of pride of workmanship.
13. 13. Encourage education and self-improvement.
1. 14. Take action to accomplish the transformation.
c. Joseph M. Juran
Born in Romania (1904), immigrated to the US
Emphasizes a more strategic and planning oriented approach to quality than
does Deming
Juran Institute is still an active organization promoting the Juran philosophy
and quality improvement practices
The Juran Trilogy
1. Planning
2. Control
3. Improvement
These three processes are interrelated
Control versus breakthrough
Project-by-project improvement
d. Philip B. Crosby
e. Armand V. Feigenbaum
f. Kaoru Ishikawa
g. Genichi Taguchi. Pp. 628-686
45. What re the elements of TQM? Pp. 689-695
46. Write a short note on project:
a. Quality planning
b. Quality assurance
c. Quality control. Pp. 639-738