ITP-5 Part II Project Risk Assessment

ITP-5 Part II Project Risk Assessment

Executive Summary

Purpose

The aim of this Workload and Breakdown Structure (WBS) is to determine and organize the total scope of Mamma Mia’s Bakery expansion project. The file seeks to assign the project’s tasks in a timeline thoroughly and thoughtfully. The tasks range from software development to implementation besides fitting or aligning the timeframe to the scope. The project’s structure concentrates on the project’s deliverables and the time allocation that every task requires for successful completion. Critical to note also is that the project also engrosses the automation of a bakery and sandwich through modernization as well as renovations of information technology systems, in line with keeping up with the competitive IT needs.

Problem Statement

Mamma Mia has plans to expand her Bakery. She is eying a proximate vacant store for the purpose. The Bakery’s renovation is on the cards in a bid to introduce new services and serve more clients. Currently, the business does not use any computer software for any operation. All tasks are handled manually. Internally, Mamma Mia relies on paperwork while externally; the use of phones comes into the mix paper documentations. As such, as part of the planned renovation, Mamma Mia has decided to include the installation of an IT system to optimize space in her business operations besides enhancing efficiency. Presently, Mamma Mia’s Bakery has no networking infrastructure.

Overview of Solution

Mamma Mia has a plan to double the store’s size besides implementing an IT solution.

Project Scope

The scope of Mamma’s Bakery and Sandwich Shoppe expansion project entails implementing an IT infrastructure consisting of POS and ERP systems. New hardware will also be implemented, including two workstations, 2 iPad’s and an all-in-one printer, which will computerize and modernize Mamma Mia’s workplace.

Conclusion

To achieve her business goals, Mamma will have to launch her project effectively and successfully.

Questions

1. Which risks (and associated tasks) would be the most threatening to the success of the project, and why? This discussion should be very specific to tasks and their associated risks.

The most threatening risks are those with “high” risk ratings. The first one is the organizational risk of the underestimation of the project’s milestones or critical dates. This risk may lead to late commencement and or delay to important dates to complete the project.

The second threat is a project risk of not having a proper feedback mechanism. This case would lead a project astray due to a lack of project adjustments or project modifications based on improper feedback.

The third one is a technical risk of wrong selection of IT solutions for website presence. This risk would mean financial losses; hence, an increase in the project’s budget besides causing delays in completion.

Lastly, there are also project risks of prioritizing the wrong deliverable and delays in hardware supplies. These risks are likely to delay the completion of or halt the project, which may come with budget increases.

2. Which top THREE mitigations (and associated tasks) and risk handling plans should be implemented, and why? Remember that mitigation actions will affect cost, schedule and/or scope – so discuss what can you AFFORD to do based on the likelihood and impact of the risk?

As illustrated in (1) above, the organizational risk of underestimations in the project’s milestones or key dates is among the top three threats of this project. Its mitigation plan will entail the Project Manager or Solutions Matter Expert explaining the project’s schedule for the team. With an estimated cost of $180.00 for 3 hours, the plan is achievable.

The second one is the project risk of not having a proper feedback mechanism. Its alleviation strategy will entail the Project Manager or Solution Matter Experts adjusting the scope. The mitigation will cost about $240.00 for 4 hours, which is affordable for Mamma Mia.

The third threat is the technical risk of wrong selection of IT solutions for website presence. To address the risk, the project Manager will prioritize project deliverables based on milestones/important dates established by Mamma Mia. This mitigation plan will also cost around $240.00 for 4 hours, which is achievable.

3. What are the TOTAL impacts on cost, schedule, and scope for the project if the recommended risk controls and mitigation actions are taken? If you use costs, how did you calculate the cost? Will the risk handling improve things or make them worse? That is, will the project cost more and/or be less successful because of risk handling, or will it cost less and/or be more successful because of risk handling?  How so?  Explain.

The total impact on cost is that the budget will increase because of the acquisition of the paraphernalia for the implantation the mitigation plan and system upgrades as well as the budget for employees’ salaries. The risk controls and mitigation will also increase the project scope because they mean extra tasks. Equally, the project schedule will also be expanded to accommodate the mitigation tasks unless labor is increased. Fortunately, the risk handling strategies will improve things. Before the projected risks occur, the mitigation strategies seem to make the project very expensive. However, the reality is that the project would be more costly if the risks are not mitigated, and they end up occurring because they will make the project fail. Project failure is associated with two drawbacks; (i) the fact that the failed project is a loss and (ii) the extra budget of repairing or re-launching the same project. On this ground, therefore, the mitigation strategy will increase the project’s cost, schedule, and scope, but it is worth because leaving out risk mitigation strategies is fatal.

4. How did you determine those costs and impacts? Please describe. What is the benefit of mitigating risks that are identified for mitigation?

Determining of costs requires that goals are set. This is to facilitate the budgeting of the project and to ensure that the estimated and provided financial plan is not exceeded. The total impact on the project’s costs is used to calculate the cost impact. The cost score is calculated by multiplying the cost of the task determined through the WBS at 100% by the risk impact probability.

5. If your project could only afford $20,000 for mitigation actions, which risks (identify associated tasks) would be implemented?

For this project, a mitigation strategy for the risk of not having a proper feedback mechanism would be prioritized in case of any risk handling budget insufficiencies. However, a budget of $20,000 is too little for such a project. Therefore, the strategy’s scope cut would be recommended to ensure that only necessary and significant mitigation plan’s tasks remain on board so that the budget is enough.

6. If your project could only tolerate a 5 day delay related to mitigation actions, which risks (identify associated tasks) would be implemented?

In this case, the same risk as in (5) above would be implemented. That is, a proper feedback mechanism would be prioritized in case of any risk handling schedule insufficiencies. The reason is that an appropriate mechanism of feedback will help in reducing the impact of the other risks, even if they may still occur. For instance, in case of any issues in the project schedule, proper feedback will ensure fast and easy communication for responses.

7. What would be the most expensive (time and or schedule) contingency action/plan? Identify the associated task and explain why this contingency would be more costly in terms of time or schedule.

The most expensive contingency action/plan for this project will be to the Project Manager, ensuring that the software trainer will conduct a face to face training with all employees, as well as a solution manual be given and left in the  Bakery for reference. Compared to when they are trained at once in a hall in one session, for example, evidently, face-to-face training of employees is time-consuming. This case will also mean a hefty salary budget because of the many hours that the software trainer will work. The cost of printing solution manuals makes the budget even bigger; hence, uneconomical.

8. How did you determine those costs and impacts? Please describe.

The costs and impacts were determined from the benchmarking conducted to determine cost estimations when handling scope creep.