PROJ6003 Risk and Communication Management Assignment Sample
Learning Outcomes The Subject Learning Outcomes demonstrated by successful completion of the task below include:
a) Critically analyse and assess project risks and develop strategies using theoretical frameworks to justify decision making for successful project outcomes.
b) Critically evaluate and develop communication strategies to engage diverse stakeholders.
This assessment consists of a Group Report to demonstrate your understanding of risk and communication management. In groups, you will critically reflect and identify the risks in the Case Study provided using a probability and impact matrix for assessment of these risks. You will also assess and evaluate the impacts, propose response strategies and actions, and indicate how communication with stakeholders will be conducted regarding the risk management strategy. A complete Risk register should be provided as a Team output.
The rationale of this assessment is that you undertake a practical and value adding approach by considering that this risk report will be presented to key stakeholders. Team responsibilities and negotiation skills within the group are an important part of this assessment.
A. Risk Identification and Impact Assessment
Risk is an unknown occurrence that, when it does, may have a positive or negative impact on the goals of a project. It consists of three parts: 1. the likelihood of occurrence; 2. the effect on the project; and 3. the potential time frame if risk is not reduced. Any type of task or project for assignment help is vulnerable to a variety of dangers. Without careful planning, Project will inevitably get overwhelmed when various threats are presented (Project Management Institute, 2017). Project management includes risk management as a key component. In the current task, risk management is carried out by considering case study of The Boeing Dreamliner that is facing some of the risk and is required to be managed.
a) Identify possible risks for the Case Study and critically analyse the impact of these risks.
Technological risks: The 787 Dreamliner used cutting-edge and untested technology. Instead of increasing its involvement in the technology's design and testing, Boeing outsourced the majority of the work without the necessary coordination.
Security issue: Since various unresolved and dangerous issues, like as the stability of the composite material, the interchangeability of the engines, and the security of the flight computer systems, were uncovered much later, the actual launch date had to be rescheduled (Calleam Consulting, 2013).
Supply Risks: Boeing used a programme named Exostar to synchronise the efforts and advancements of numerous suppliers. However, this approach assumed that the providers would enter the required information on time and accurately. However, this didn't happen. As an example, Vought, a Tier 1 supplier, worked with its Tier 2 and Tier 3 suppliers using AIT as a system integrator. Due to cultural differences and a lack of control from Boeing, several of the lower Tier suppliers frequently failed to submit accurate and timely information, which ultimately led to a breakdown in the supply chain (Gregory, 2013).
Labor Risks: Since Boeing had a significant outsourcing policy, a walkout by about 25000 employees in 2008 delayed production. This showed how clearly Boeing had understated the effects of their outsourcing practises.
Management Risks: Despite the complexity of the project, the leadership team at Boeing lacked subject-matter experts in SCM. This was a risky move that didn't work out in the end.
Absence of monitoring team: the project observed the lack of absence of attention of the project manager and deputy manager that slowed down the decision making.
b) Use a Risk Probability and Impact (P&I) matrix to rate and prioritise risks.
1. Considering the likelihood of needing more workforce hours (Labour issue)
2. Possibility of wrong design (technological risk)
3. A delay as a result of judgments that were approved too slowly (Management risk)
4. No project manager and sole deputy manager missing due to illness (Absence of monitoring team)
5. Supply chain problems
6. Security issue
As per the risk analysis, the probability of different risk occurence is as follows:
Figure 1: Criteria for risk analysis
(Source: ProjectManager, 2018)
c) Develop appropriate response strategies, including a proposed course of action, to effectively manage each identified risk.
Analysis has identified six challenges that Boeing is currently facing as a result of the case study: (1) an unexpected fastener shortage; (2) an underestimate of the work involved in producing the flight codes; Problem of design (3); a management issue; (4) a need for immediate supply chain revival; and (5) labour issues (P6).
Lean, Six Sigma, and the Supply Chain Operation Reference Model are the three main approaches that are frequently employed in the industry to solve challenges (SCOR). The examination of how well each of the six concerns are resolved using the aforementioned models, analysis discover that none of them, by themselves, are sufficient.
As can be observed from the table above, Lean approach cannot resolve problems P2 and P6, Six Sigma cannot resolve problems P2, P4, and P6, and SCOR cannot resolve problems P1, P3, and P6. However, the Convergence model, which combines these three strategies, is effective in resolving all six problems. For instance, implementing six sigma standards at the supplier's facility or effective lean production procedures could very well alleviate the issue of a fastener shortage during the assembly phase. SCOR, which provides a top down analysis and incorporates the well-known concepts of business, process, and benchmarking into a cross functional framework, can address the issue of underestimating of the work content in the flight codes (Shenhar et al., 2016). Lean and Six Sigma can both help with the body structure issue by assuring improved production methods and higher quality requirements at the supplier end. The SCOR method would address the issue of Management expertise (Slayton & Spinardi, 2016). Boeing were guilty of using the three strategies inconsistently to address the labour issue, which ultimately resulted in employee dissatisfaction. Therefore, in this instance, the converging model that creates better synergy would be successful.
Strategies for managing risk in context of case study
In order to reduce the cost of the 787 project from $10 billion to $ billion and the timeline from 6 years to 4 years, Boeing devised an unconventional supply chain where approximately 70% of the whole work was outsourced. The objective was to maintain low manufacturing and assembly costs while dividing the financial risks associated with advances among the suppliers. Some of the primary traits of the unconventional supply chain include the following:
Outsourcing: Boeing developed ties with 50 crucial Tier-1 vendors as part of the establishment of a tier-based supply chain system. These vendors then acted as integrators, assembling various parts and component parts produced by Tier 2 and Tier 3 suppliers. Boeing reasoned that by doing this, the development period would be cut in half because numerous vendors would build parts simultaneously, reducing lead time and cost (Moll & Harrigan, 2018). In order to collaborate with the suppliers, Boeing used Exostar, a web-based platform created to improve supply chain visibility and bring all the key business functions together.
Reduced Financial Risks: As part of a risk-sharing agreement that Boeing mandated, suppliers consented to withhold payment until the first 787 was shipped to customers. The purpose of this clause was to support the Tier-1 suppliers who were awarded larger contracts for the production of aircraft and to improve relations between Boeing and the suppliers (Paul, 2018).
• Increasing Production Capacity without Increasing Costs: Due to Boeing's decentralized production strategy, 787 projects didn't necessitate additional capital investment, and the Dreamliner could be assembled at the factory in a world-record-breaking 3 days (Paul, 2018). The manufacturing capacity will rise as a result of the large cycle time reduction.
d) Create a complete Risk Register for the Case Study.
On the basis of risk register, suitable explanation is given below:
1. Potential for extra man hours: Preventing this danger from happening is the greatest line of action to take. This risk must be reduced from the start because it is one of the biggest dangers. The chance requiring more man hours should be considered from the start of the project, and cash should be allocated in case it happens (Project Management Institute, 2021).
Additional work should be done, such as double-checking all variables and periodically updating project information, to stay up to date on the project's development. This can give a head start on the requirement for more man hours and give time to take the necessary measures. Since the event in the case study has already occurred, a mitigation strategy must be employed to weigh all available options and select the best course of action to minimize the risk's potential effects.
2. Incorrect Design: The case study also raised the issue of incorrect design. Unfortunately, it seems that the main reason for this was that the design team wasn't included in earlier stages of Dreamliner project. This type of risk only frequently materializes if the team is not responsive from the beginning of the project. Although the risk is categorised as "may occur," if it does, it might lead to high cost overruns and schedule delays, which would not be appropriate for the organisation in charge of the project (Association for Project Management, 2020). The wisest line of action in this situation is to be avoided.
With reference to the case study, no option is available than to adhere to the Accept method. In addition, accept that it has occurred, and manage this risk.
3. Approval was time consuming: This risk can be easily addressed by utilizing the Transfer technique. A contingency provision can be introduced to the contract to ensure that the client offers their approval immediately or to provide compensation for delays that have a detrimental impact on the project since the client's consent is essential to the success of this project.
4. In the case study, the project was overseen by an assistant project manager because the project manager was not available. Workforce might become ill, leave their employment, or be unable to work, all of which are possibilities (Leroux, 2019). In any case, it could impede the project but is not expected to really hurt it. They should have a backup strategy in place though, just in case.
5. A policy of acceptance should be utilised if there are no supplies or equipment available, even though this is a rare occurrence. Project managers employ this technique when they are aware of the threat and wait to act until it manifests. It is necessary to take steps to make up the difference if this risk comes to pass.
6. The security risk is required to be avoided by having the technical expert that will handle down the issues in the system if it occurs. Investment is required to be made on the advanced system that has less threat of technical errors
Project management entails risk by nature. Risk can either be beneficial or harmful. Negative risks and their effects might hurt a project even as positive risks are beneficial for projects. For this reason, the project's risk management should be handled very seriously. Steps should be taken to limit or avoid negative risks and to develop plans for dealing with positive risk occurrences.
Negative risks were not adequately monitored in the case study. Because of this, they were surprised when it occurred, which caused stakeholder unhappiness and further slowed down the project. The situation would be very different if appropriate risk management measures had been taken from the start and these risks had been effectively disclosed among stakeholders. This instance demonstrated the value of risk management and gave project managers the chance to plan risk management procedures.
Heldman, K. (2013). PMP project management professional exam study guide (7th ed.). John Wiley & Sons. http://think.eblib.com.torrens.idm.oclc.org/patron/FullRecord.aspx?p=1215813
Project Management Institute. (2017). A guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). https://ebookcentral-proquest-com.torrens.idm.oclc.org/lib/think/reader.action?docID=5180849
Project Management Institute. (2021). A guide to the Project Management Body of Knowledge (PMBOK® Guide) and The Standard for Project Management (7th ed.). https://ebookcentral-proquest-com.torrens.idm.oclc.org/lib/think/reader.action?docID=6636132
Shenhar, A. J., Holzmann, V., Melamed, B., & Zhao, Y. (2016). The challenge of innovation in highly complex projects: What can we learn from Boeing's Dreamliner experience?. Project Management Journal, 47(2), 62-78.
Slayton, R., & Spinardi, G. (2016). Radical innovation in scaling up: Boeing’s Dreamliner and the challenge of socio-technical transitions. Technovation, 47, 47-58.
Moll, J., & Harrigan, F. (2018). We Went Too Far, and We Learnt From It: Management Control in the Development of the Boeing Dreamliner. In Accounting, Innovation and Inter-Organisational Relationships (pp. 104-129). Routledge.
Paul, S. (2018). Crisis in Boeing 787 Dreamliner: An Investigation from Project Management Control Perspective. International Journal of Human Resource Studies, 8(4), 242251-242251.
Gregory, M. (January, 2013). Boeing 787: Dreamliner's lithium ion batteries probed. BBC News. Retrieved from https://www.bbc.com/news/business-21059605
Calleam Consulting (February, 2013). Boeing Commercial Aeroplanes. Why do Projects Fail? Retrieved from https://calleam.com/WTPF/?p=4617
ProjectManager. (2018, July 3). Risk analysis how to analyze risks on your project - project management training [Video]. YouTube. https://www.youtube.com/watch?v=r5ZrPeQW8HQ
Leroux, A. (2019, August 3). A risk management plan in 6 easy steps [Video]. YouTube. https://www.youtube.com/watch?v=l2Sp-U3nZ6o
Association for Project Management. (2020, December 10). Project management: risk management | what is risk in project management? [Video]. YouTube. https://www.youtube.com/watch?v=G3_gBFFPQWY