RISK MANAGEMENT FINAL PROJECT SLIDE SHOW

RISK MANAGEMENT FINAL PROJECT

PRMG-095

Presented to: - DR. Mohamed Abd Elghany GROUP :- ID:- FAHMY, AHMED EZZ-ELDIN

PROJECT DETAILS LOCATION: 9TH DICTRICT- 10TH OF RAMADAN-SHARQIA OWNER: CONTRACTOR: BUDGET: CONSULTANT:

Risk management processes

Risk management plan.

Risk identification.

Qualitative risk analysis.

Quantitative risk analysis.

Risk response plan.

Risk monitor and control.

Risk management planMethodol

ogyDuratio

nResponsibil

itiesProcess

BRAINSTORMINGDELPHI

3 DAYS FAHMY,AHMED EZZ-ELDINATTIA,MOHAMED EBRAHIM

KHEDR,GAMAL AHMEDRISK

IDENTIFICATION

PROBABILITY & IMPACT MATRIX

1 DAY FAHMY,AHMED EZZ-ELDINATTIA,MOHAMED EBRAHIM

KHEDR,GAMAL AHMEDQUALITATIVE

RISK ANALYSIS

EXPECTED VALUE ANALYSIS


KHEDR,GAMAL AHMEDQUANTITATIVE RISK ANALYSIS

RISK RESPONSE STRATEGIES


KHEDR,GAMAL AHMEDRISK RESPONSE

RISK MONITOR & CONTROL


KHEDR,GAMAL AHMEDRISK MONITOR &

CONTROL

RISK IDENTIFICATIONCATEGORY DEFINITION RISK TITLE RISK ID

Location There Are Many Conditions For Soil (Sand,

Clay, Mud)

Soil Conditions Problems R-1

Location Give A Clear Info. For The Project.

Site Layout R-2

Safety Change In Original Schedule

Late Delivery Of Material R-3

Safety Spoils Due To Change In Climate

Material Spoil Due To Weather

R-4

Safety Weakness Of The Soil Soil Collapse R-5Safety Stolen And Wasted

MaterialLose Of Material R-6

Cost And Time Trial To Transfer Risk Equipment Insurance Problems

R-7

Cost And Time Unstable Local Country Currency

Rise Of Currency R-8

Cost And Time Due To Variety Of Standard Living

Rise Of Salary R-9

Cost And Time Due To Change In Market Situation

Rise Of Material Price R-10

Cost And Time Due To Lack Of Moral Labor Strikes R-11Cost And Time Due To The Financial

SituationWage Payment Sys. R-12

RISK IDENTIFICATIONCost And Time The Force Vacations Of

Country CalendarVacations Policies R-13

Weather Due To Climate Conditions Wind Storm R-14Weather Due To Seasonal Condition Change In Climate R-15

Financial Due To Bad Financial Methodology

Company Bankrupts R-16

Design Due To Site Condition Design Change R-17

Design Due To Site Condition Lag Of Drawings R-18

Design Due To Site Condition Complicated Drawings R-19

Design Lack Of Experience Errors And Omissions Of Original Design

R-20

Design Matching With New Developments

Change In Clients Needs R-21

Design

Seeking For Reducing Cost Contractor Value Engineering Proposal

R-22

Design

Seeking For Increasing Safety

Continuous Changes In Legal Safety And Requirements

R-23

Arch. Design Lack Of Experience Arch. Lack Of Flexibility R-24

RISK IDENTIFICATIONArch. Design Lack Of Experience Arch. Is Not Fit For Purpose R-25

Political Due To Country Situation Change In Government Laws R-26Project Management Due To Lack Of R&D Shortage Of Fund. R-27

Project Management Due To Demotivation Change Of Labor Productivity R-28

Project Management Due To Type Of Finance Type Of Contract R-29

Project Management Due To Inflexibility Of Work Schedule

Work Over Load R-30

Project Management Due To Inflexibility Of Work Schedule

Delay Due To Interference With Other Crews

R-31

Project Management Due To Over Load Absenteeism R-32

Project Management Unbalancing Between Skilled And Unskilled Persons

Crew Composition R-33

Project Management Due To Project Conditions Lack Of Flexibility Schedule R-34

Project Management Due To Lack Of Experience Subcontracting Problems R-35

Project Management Due To Unexperienced Management

Failure To Follow Methodology R-36

Commercial Due To Clients' Needs Production Oriented Marketing R-37

RISK IDENTIFICATIONCommercial Due To Clients' Needs Product Doesn't Sell R-38

Environmental Due To Environmental Conditions

Construction Environmental Factors

Affect

R-39

Communication To Avoid Unknown Sources Of

Communications

Visible Communication Chain

R-40

Executive Due To Personal Goals Stakeholders Conflicts R-41

Scope Due To Unclear Work Plan

Activities Are Missing From Scope

R-42

Resources Due To Unexperienced Workers

Learning Curve R-43

Resources Due To The Quality Of Resource

Resource Performance Issues

R-44

External Due To Project Condition

Technical Change Impact Project

R-45

RISK IDENTIFACTIONTechnical Due To Lack Of

TechnologyTechnology Components Are Not Fit For Purpose

R-46

Technical Due To Lack Of Trained Persons

Components Aren't Maintainable

R-47

Integration Delays To Infrastructure Such As Hardware Or Software.

Delay To Required IFailure To Integrate With Business

Processnfrastructure

R-48

Integration The Risk That Your Product Will Fail To Fit Into The

Existing Business.

R-49

Procurement Inability To Negotiate A Reasonable Price For

Contracts.

Failure To Negotiation A Reasonable Price For

Contractor

R-50

Procurement Your Vendors Develop Conflict With Each Other And

Cooperation Breaks Down.Conflicts Between Vendors

Leads To Project IssuesR-51

Stakeholders Due To Unprofessional Planning

User Interface Isn't Accessible

R-52

Qualitative Risk analysis PROBABILITY

IMPACT

Very Low

Low Moderate

High Very High

Very Low

Low 48 19,20,31,36,47,49

13,23,50 Moderate 1,5,22,29,4

4,45,464,7,18,34 24,43

High 11,16,30,32,41,52

9,10,40,42,51

2,3,8,25,26,28,39

14,15,38

Very High 12,17,21,27,35

6,37

learning curve:-

- Input: have the same person perform a task several times with additional repetitions.

Sensitivity analysis

Output: cost and time to complete the task will decrease when executing activities or any work of repetitive processes.

*This happens because:--workers become more familiar with the project characteristics and working conditions.

- the arrangement and distribution of workers,

materials and equipment are improved

compared to the past.

Errors And Omissions Of Original Design:-


Input: choose a good disgn firm.

Output: designs without any lags, changes or mistakes and with clear view.

Contractor Value Engineering Proposal:-


Input: early value engineering study in the first stages of the project.

Output: achieve customers’ requirements with less cost.

SCENARIO ANALYSIS We have made our

Bid for the tender and ours is the most suitable one, so they choosed our company for the project.

We start with”collecting preliminary information” for the site.

Then, we made “ a site visit” to investigate the neighbors and the permanent condition for the site.

Making a quick “site investigation” to determine the type of soil, we found it’s a very bad type.

We found a lot of obstacles such as : -lack of infrastructure (roads,electricity and water)

While construction phase we faced a problem with near neighbor “stakeholder”.

SCENARIO ANALYSIS The climate condition wasn’t

good and made a lot of waste in resources such as cement which had a big weight of material cost due to its high price at this period of time.

After two months of construction we faced a financial problem which forced us to make a loan.

Due to the lack of money for the salaries, many labors given up working for the project.

During working ,clients had a new change for the design which forced us to change the project design which made an adverse such as *changes in original schedule*change in resources requirements*the parallel execution of activities which planned to be executed in serial*the lack of labors moral due to the rework

The project had delayed for one more month due to design changes.

We brought new crews of labors to perform the remaining activities.

We had to work in “over time” method to make up for the delays occurred.

We had contracted with more than one subcontractor for some works.

We finished the project with delays in time and more than expected cost.

Expected Value analysis

EV COST PROBABILITY %

CATEGORY RISK TITLE RISK ID

20,000 100,000 20 Location Soil Conditions Problems

R-1

100,000 250,000 40 Location Site Layout R-242,000 120,000 35 Safety Late Delivery Of

MaterialR-3

175,000 700,000 25 Safety Material Spoil Due To Weather

R-4

90,000 200,000 45 Safety Soil Collapse R-570,000 100,000 70 Safety Lose Of Material R-6

200,000 500,000 40 Cost And Time Equipment Insurance Problems

R-7

63,000 90,000 70 Cost And Time Rise Of Currency R-8

70,000 100,000 70 Cost And Time Rise Of Salary R-9350,000 500,000 70 Cost And Time Rise Of Material Price R-10

20,000 100,000 20 Cost And Time Labor Strikes R-1145,000 180,000 25 Cost And Time Wage Payment Sys. R-12

Expected Value analysis72,000 90,000 80 Cost And Time Vacations Policies R-13

2,000 10,000 20 Weather Wind Storm R-1414,000 20,000 70 Weather Change In Climate R-15

100,000 1,000,000 10 Financial Company Bankrupts R-16

35,000 70,000 50 Design Design Change R-17225,000 750,000 30 Design Lag Of Drawings R-18

30,000 120,000 25 Design Complicated Drawings R-19

160,000 1,600,000 10 Design Errors And Omissions Of Original Design

R-20

300,000 500,000 60 Design Change In Clients Needs R-21

36,000 45,000 80 Design

Contractor Value Engineering Proposal

R-22

120,000 200,000 60 Design

Continuous Changes In Legal Safety And

Requirements

R-23

60,000 150,000 40 Arch. Design Arch. Lack Of Flexibility R-24

40,000 200,000 20 Arch. Design Arch. Is Not Fit For Purpose

R-25

Expected Value analysis5,000 50,000 10 Political Change In Government

LawsR-26

350,000 500,000 70 Project Management Shortage Of Fund. R-27

18,000 30,000 60 Project Management Change Of Labor Productivity

R-28

120,000 400,000 30 Project Management Type Of Contract R-29

480,00 60,000 80 Project Management Work Over Load R-30

56,000 70,000 80 Project Management Delay Due To Interference With Other

Crews

R-31

3,600 12,000 30 Project Management Absenteeism R-32

21,000 30,000 70 Project Management Crew Composition R-33

14,000 40,000 35 Project Management Lack Of Flexibility Schedule

R-34

160,000 400,000 40 Project Management Subcontracting Problems R-35

260,000 1,300,000 20 Project Management Failure To Follow Methodology

R-36

120,000 200,000 60 Commercial Production Oriented Marketing

R-37

200,000 1,000,000 20 Commercial Product Doesn't Sell R-38

210,000 350,000 60 Environmental Construction Environmental Factors

Affect

R-39

Expected Value analysis14,000 20,000 70 Communication Visible Communication

ChainR-40

32,000 80,000 40 Executive Stakeholders Conflicts R-41

90,000 450,000 20 Scope Activities Are Missing From Scope

R-42

120,000 200,000 60 Resources Learning Curve R-43372,000 465,000 80 Resources Resource Performance

IssuesR-44

39,600 132,000 30 External Technical Change Impact Project

R-45

52,500 175,000 30 Technical Technology Components Are Not Fit For Purpose

R-46

24,150 241,500 10 Technical Components Aren't Maintainable

R-47

40,000 100,000 40 Integration Delay To Required Infrastructure

R-48

140,000 700,000 20 Integration Failure To Integrate With Business Process

R-49

72,000 120,000 60 Procurement Failure To Negotiation A Reasonable Price For

Contractor

R-50

76,000 190,000 40 Procurement Conflicts Between Vendors Leads To Project Issues

R-51

15,000 50,000 30 Stakeholders User Interface Isn't Accessible

R-52

Risk responseSOLUTION EV RESPONSE RISK TITLE RISK ID

Replacement Of Soil 0 Avoid Soil Conditions Problems

R-1

Improve Infra Structure 80,000 Mitigate Site Layout R-2

Earlier Order Of The Material

30,000 Mitigate Late Delivery Of Material R-3

Provide The Material With A Good Shelter

175,000 Accept Material Spoil Due To Weather

R-4

Support Aspects Of Drilling

0 Avoid Soil Collapse R-5

Hire A Security 0 Avoid Lose Of Material R-6Calculate The Impact Of

Risk And Compare It With The Cost Of The

Insurance

150,000 Mitigate Equipment Insurance Problems

R-7

- 63.000 Accept Rise Of Currency R-8Use A Fixed Salary 50,000 Mitigate Rise Of Salary R-9

Buy A Material For One Year On The Beginning

Of The Project

250,000 Mitigate Rise Of Material Price R-10

Motivate The Workers 20,000 Accept Labor Strikes R-11

Good Financial Method 0 Avoid Wage Payment Sys. R-12

Risk response- 72,000 Accept Vacations Policies R-13- 2,000 Accept Wind Storm R-14- 14,000 Accept Change In Climate R-15

Good Financial Planning 70,000 Mitigate Company Bankrupts R-16

Choose The Perfect Design

15,000 Mitigate Design Change R-17

Choose A Good Design Firm

0 Avoid Lag Of Drawings R-18

Choose A Simple Drawing

0 Avoid Complicated Drawings R-19


100,000 Mitigate Errors And Omissions Of Original Design

R-20

Matching The Design With The Client Needs

200,000 Mitigate Change In Clients Needs R-21

Take The Step Of The Ve At The Early Start Of The

Project

30,000 Mitigate Contractor Value Engineering Proposal

R-22

- 120,000 Accept Continuous Changes In Legal Safety And

Requirements

R-23


0 Avoid Arch. Lack Of Flexibility R-24


0 Avoid Arch. Is Not Fit For Purpose

R-25

- 5,000 Accept Change In Government Laws R-26

Risk responseGood Marketing For The

Product290,000 Mitigate Shortage Of Fund. R-27

Motivate The Labors 10,000 Mitigate Change Of Labor Productivity

R-28

Good Study For The Contract Types

0 Avoid Type Of Contract R-29

Flexibility In Work Schedule 400,000 Mitigate Work Over Load R-30

Flexibility In Work Schedule 42,000 Mitigate Delay Due To Interference With Other Crews

R-31

Flexibility In Work Schedule 3,000 Mitigate Absenteeism R-32

Balance The Skilled And Craftsman Persons

0 Avoid Crew Composition R-33

Improve The Project Planning

9,000 Mitigate Lack Of Flexibility Schedule R-34

Choose A Qualified Subcontractor

0 Avoid Subcontracting Problems R-35

Good Planning 0 Avoid Failure To Follow Methodology

R-36

Dispose Production Oriented To Market Oriented

0 Avoid Production Oriented Marketing

R-37

Make The Product Salable 160,000 Mitigate Product Doesn't Sell R-38

- 210,000 Accept Construction Environmental Factors Affect

R-39

Good Communication With The Project Members

0 Avoid Invisible Communication Chain

R-40

Risk responseAchieve All The

Stakeholder Goals29,000 Mitigate Stakeholders Conflicts R-41

Good Scheduling For The Project With Clear Vision

60,000 Mitigate Activities Are Missing From Scope

R-42

Choose A Workers Which Done The Work Before For

Many Times

0 Avoid Learning Curve R-43

Use A High Quality Resources

295,000 Mitigate Resource Performance Issues

R-44

Use The Same Technique 30,000 Mitigate Technical Change Impact Project

R-45

Choose Fit Technology 39,210 Mitigate Technology Components Are Not Fit For Purpose

R-46

Use A Suitable Components For Our

Country

20,000 Mitigate Components Aren't Maintainable

R-47

Improve Infrastructure 36,000 Mitigate Delay To Required Infrastructure

R-48

- 100,000 Accept Failure To Integrate With Business Process

R-49

Choose A Good Contract 65,000 Mitigate Failure To Negotiation A Reasonable Price For

Contractor

R-50

Choose The Best Vendor 50,000 Mitigate Conflicts Between Vendors Leads To Project Issues

R-51

Achieve The User Requirements

15,000 Mitigate User Interface Isn't Accessible

R-52

Documents

RISK MANAGEMENT FINAL PROJECT SLIDE SHOW