The Project risk management methodology - MyAssignmenthelp.com

Question: Discuss aboutThe Project risk management methodology. Answer: Proposal and feasibility An event is conducted based on the theme of green cars, in which the design is presented at exhibition of futuristic car designs. Six of the students of an academy wishes to create new green and budget electric car to start a new international business. In order to analyze if the project decision is feasible or not, SWOT analysis is conducted: Strengths Weaknesses 1. The Entrepreneurial Management Academy can access to the new market with advantage over the competitors those are not focused on green electric cars. 2. The Academy can charge premium on the products which are seen as eco friendly. 3. Green marketing of the electric cars builds of brand equity and loyalty among the customers. 1. Some of the team members have lack of knowledge on technical field 2. There is weak marketing communication channel. 3. There is low brand awareness about the electric cars. Opportunities Threats 1. Low taxes are to be given for the eco-friendly cars. 2. There are no charges for congestion. 3. The marketing to segment those are becoming more environment friendly aware. 1. There are rapid changes into the customer preferences. 2. There is uncertainty if green marketing activities are to be acceptable from the government side. 3. There is an increase into cost of inputs. From the SWOT analysis, it is analyzed that the project decision is feasible for the organization as it would adopt a green environment in the mind of people. The academy is characterized such an electric car which is environmental friendly. Plan (Schedule) Statement of work (SoW) The business needs a product development and launching of greencar which deliverables a pollution free car in the market. The period of time taken to conduct the work is 160 days, started from11st January and end date is 22nd August, 2018. The total budget of the project is $60,400. There is good employee and vendor relationship exists which is the main cause of successful completion of the work. Specifications of the project The specification of the project is based on development of Greencar. The environmental impact of the car is less pollution, renewable energy (recharge from solar energy), and manufactured using eco-friendly materials. The designing aspects are electric engine, braking system, motor controller, drive system. Work breakdown structure In table format, the WBS is: WBS Task Name 0 Greencar product development and launch 1 Idea generation 1.1 Identify the requirements of the customer 1.2 Evaluate the quality of existing products 1.3 Defining the objectives of new car 2 Concept design 2.1 Create idea generation 2.2 Refine the concepts 3 Feasibility study 3.1 Check for the strategic feasibility (SWOT) 3.2 Check the marketplace 3.3 Checking the technological capability 3.4 Checking for the financial feasibility 3.5 Checking for resources availability 3.6 Making the decision to proceed the greencar development 4 Detailed design 4.1 Setting the product specifications 4.2 Designing the key characteristics of the product 4.3 Product drawings 4.4 Product prototype 5 Testing of the product 5.1 Testing the product as per user satisfaction 5.2 Testing the key characteristics of the car 5.3 Identification of team for testing the car 6 Finalize design 6.1 Review the product design 6.2 Approval from the board 6.3 Revise the product design 6.4 Freeze the product design 7 Setting up the production of greencar 7.1 Procure the manufacturing abilities 7.2 Design the tools 7.3 Building the tools 7.4 Modification of the product 7.5 Obtain the equipments 7.6 Start up the production 7.7 Testing the plan 7.8 Verification of quality tolerances 7.9 Production in volume 8 Arrangement of the marketing 8.1 Identification of the key benefits of the product 8.2 Identification of potential users 8.3 Planning the marketing strategies 8.4 Production of brochures and adverts 8.5 Produce the advertising campaign 9 Arrangement of distribution 9.1 Establishment of sales chain 9.2 Establishment of business procedures 9.3 Setting up the technical support and capabilities 9.4 Write the user manual 9.5 Write the service manual 9.6 Obtaining the capabilities of staff 9.7 Market growth 9.8 Market maturation 10 Market decline 10.1 Declining the sales 10.2 Refresh of the product 10.3 Launching the product 10.4 Differentiating the service 10.5 Launching the new products 11 Withdrawal of the product 11.1 Decision to withdraw 11.2 Achieve the documentation 12 Final closure 12.1 Final sign off the project 12.2 Final submission of report Schedule, milestones and dependencies WBS Task Name Duration Start Finish Predecessors 1 Idea generation 11 days Thu 1/11/18 Thu 1/25/18 1.1 Identify the requirements of the customer 2 days Thu 1/11/18 Fri 1/12/18 1.2 Evaluate the quality of existing products 5 days Mon 1/15/18 Fri 1/19/18 2 1.3 Defining the objectives of new car 4 days Mon 1/22/18 Thu 1/25/18 3 1.4 Milestone 1: Completion of idea generation 0 day Thu 1/25/18 Thu 1/25/18 2 Concept design 5 days Fri 1/26/18 Thu 2/1/18 2.1 Create idea generation 3 days Fri 1/26/18 Tue 1/30/18 4 2.2 Refine the concepts 2 days Wed 1/31/18 Thu 2/1/18 6 2.3 Milestone 2: Completion of concept design 0 day Thu 2/1/18 Thu 2/1/18 3 Feasibility study 23 days Fri 2/2/18 Tue 3/6/18 3.1 Check for the strategic feasibility (SWOT) 5 days Fri 2/2/18 Thu 2/8/18 7 3.2 Check the marketplace 5 days Fri 2/9/18 Thu 2/15/18 9 3.3 Checking the technological capability 3 days Fri 2/16/18 Tue 2/20/18 10,4 3.4 Checking for the financial feasibility 4 days Wed 2/21/18 Thu 3/1/18 11 3.5 Checking for resources availability 3 days Fri 3/2/18 Tue 3/6/18 12 3.6 Making the decision to proceed the greencar development 1 day Fri 2/2/18 Fri 2/2/18 7 3.7 Milestone 3: Completion of feasibility study 0 day Fri 2/2/18 Fri 2/2/18 4 Detailed design 23 days Mon 2/5/18 Wed 3/7/18 4.1 Setting the product specifications 4 days Mon 2/5/18 Fri 2/9/18 14,3 4.2 Designing the key characteristics of the product 5 days Mon 2/12/18 Fri 2/16/18 16 4.3 Product drawings 6 days Mon 2/19/18 Mon 2/26/18 17 4.4 Product prototype 7 days Tue 2/27/18 Wed 3/7/18 18 4.5 Milestone 4: Completion of product prototype 0 day Wed 3/7/18 Wed 3/7/18 5 Testing of the product 11 days Thu 3/8/18 Thu 3/22/18 5.1 Testing the product as per user satisfaction 3 days Thu 3/8/18 Mon 3/12/18 19,13 5.2 Testing the key characteristics of the car 6 days Tue 3/13/18 Tue 3/20/18 21 5.3 Identification of team for testing the car 2 days Wed 3/21/18 Thu 3/22/18 22 5.4 Milestone 5: Completion of testing of product 0 day Thu 3/22/18 Thu 3/22/18 6 Finalize design 13 days Fri 3/23/18 Tue 4/10/18 6.1 Review the product design 3 days Fri 3/23/18 Tue 3/27/18 23 6.2 Approval from the board 2 days Wed 3/28/18 Thu 3/29/18 25 6.3 Revise the product design 5 days Fri 3/30/18 Thu 4/5/18 26 6.4 Freeze the product design 3 days Fri 4/6/18 Tue 4/10/18 27 6.5 Milestone 6: Completion of finalize design 0 day Tue 4/10/18 Tue 4/10/18 7 Setting up the production of greencar 30 days Fri 4/6/18 Thu 5/17/18 7.1 Procure the manufacturing abilities 3 days Wed 4/11/18 Fri 4/13/18 28 7.2 Design the tools 6 days Mon 4/16/18 Mon 4/23/18 30,21 7.3 Building the tools 3 days Tue 4/24/18 Thu 4/26/18 31 7.4 Modification of the product 6 days Fri 4/27/18 Thu 5/17/18 32 7.5 Obtain the equipments 4 days Fri 4/6/18 Wed 4/11/18 27 7.6 Start up the production 2 days Thu 4/12/18 Fri 4/13/18 34 7.7 Testing the plan 10 days Mon 4/16/18 Fri 4/27/18 35 7.8 Verification of quality tolerances 9 days Mon 4/30/18 Thu 5/10/18 36 7.9 Production in volume 5 days Fri 5/11/18 Thu 5/17/18 37 7.10 Milestone 7: Completion of setting up the production of greencar 0 day Thu 5/17/18 Thu 5/17/18 8 Arrangement of the marketing 35 days Fri 5/18/18 Thu 7/5/18 8.1 Identification of the key benefits of the product 8 days Fri 5/18/18 Tue 5/29/18 38 8.2 Identification of potential users 4 days Wed 5/30/18 Mon 6/4/18 40 8.3 Planning the marketing strategies 6 days Tue 6/5/18 Tue 6/12/18 41 8.4 Production of brochures and adverts 3 days Wed 6/13/18 Fri 6/15/18 42 8.5 Produce the advertising campaign 4 days Mon 6/18/18 Thu 7/5/18 43 8.6 Milestone 8: Completion of arrangement of the marketing 0 day Thu 7/5/18 Thu 7/5/18 9 Arrangement of distribution 35 days Mon 6/18/18 Fri 8/3/18 9.1 Establishment of sales chain 2 days Fri 7/6/18 Mon 7/9/18 44 9.2 Establishment of business procedures 8 days Tue 7/10/18 Thu 7/19/18 46,38 9.3 Setting up the technical support and capabilities 7 days Fri 7/20/18 Mon 7/30/18 47 9.4 Write the user manual 4 days Tue 7/31/18 Fri 8/3/18 48 9.5 Write the service manual 9 days Mon 6/18/18 Thu 6/28/18 43 9.6 Obtaining the capabilities of staff 7 days Fri 6/29/18 Mon 7/9/18 50 9.7 Market growth 2 days Tue 7/10/18 Wed 7/11/18 51 9.8 Market maturation 2 days Thu 7/12/18 Fri 7/13/18 52 9.9 Milestone 9: Completion of arrangement of distribution 0 day Fri 7/13/18 Fri 7/13/18 10 Market decline 21 days Mon 7/16/18 Mon 8/13/18 10.1 Declining the sales 2 days Mon 7/16/18 Tue 7/17/18 53 10.2 Refresh of the product 3 days Wed 7/18/18 Fri 7/20/18 55 10.3 Launching the product 7 days Mon 7/23/18 Tue 7/31/18 56 10.4 Differentiating the service 3 days Wed 8/1/18 Fri 8/3/18 57 10.5 Launching the new products 6 days Mon 8/6/18 Mon 8/13/18 58 10.6 Milestone 10: Completion of market decline 0 day Mon 8/13/18 Mon 8/13/18 11 Withdrawal of the product 7 days Tue 8/14/18 Wed 8/22/18 11.1 Decision to withdraw 4 days Tue 8/14/18 Wed 8/22/18 59 11.2 Achieve the documentation 5 days Tue 8/14/18 Mon 8/20/18 56 11.3 Milestone 11: Completion of withdrawal of the product 0 day Mon 8/20/18 Mon 8/20/18 12 Final closure 2 days Tue 8/21/18 Wed 8/22/18 12.1 Final sign off the project 1 day Tue 8/21/18 Tue 8/21/18 62 12.2 Final submission of report 1 day Wed 8/22/18 Wed 8/22/18 64 12.3 Milestone 12: Completion of final closure 0 day Wed 8/22/18 Wed 8/22/18 Slack time, earliest start and latest finish for the project WBS Task Name Early Start Late Finish Total Slack 1 Idea generation Thu 1/11/18 Thu 1/25/18 0 days 1.1 Identify the requirements of the customer Thu 1/11/18 Fri 1/12/18 0 days 1.2 Evaluate the quality of existing products Mon 1/15/18 Fri 1/19/18 0 days 1.3 Defining the objectives of new car Mon 1/22/18 Thu 1/25/18 0 days 2 Concept design Fri 1/26/18 Thu 2/1/18 0 days 2.1 Create idea generation Fri 1/26/18 Tue 1/30/18 0 days 2.2 Refine the concepts Wed 1/31/18 Thu 2/1/18 0 days 3 Feasibility study Fri 2/2/18 Wed 3/7/18 0 days 3.1 Check for the strategic feasibility (SWOT) Fri 2/2/18 Fri 2/9/18 1 day 3.2 Check the marketplace Fri 2/9/18 Fri 2/16/18 1 day 3.3 Checking the technological capability Fri 2/16/18 Wed 2/21/18 1 day 3.4 Checking for the financial feasibility Wed 2/21/18 Fri 3/2/18 1 day 3.5 Checking for resources availability Fri 3/2/18 Wed 3/7/18 1 day 3.6 Making the decision to proceed the greencar development Fri 2/2/18 Fri 2/2/18 0 days 4 Detailed design Mon 2/5/18 Wed 3/7/18 0 days 4.1 Setting the product specifications Mon 2/5/18 Fri 2/9/18 0 days 4.2 Designing the key characteristics of the product Mon 2/12/18 Fri 2/16/18 0 days 4.3 Product drawings Mon 2/19/18 Mon 2/26/18 0 days 4.4 Product prototype Tue 2/27/18 Wed 3/7/18 0 days 5 Testing of the product Thu 3/8/18 Thu 3/22/18 0 days 5.1 Testing the product as per user satisfaction Thu 3/8/18 Mon 3/12/18 0 days 5.2 Testing the key characteristics of the car Tue 3/13/18 Tue 3/20/18 0 days 5.3 Identification of team for testing the car Wed 3/21/18 Thu 3/22/18 0 days 6 Finalize design Fri 3/23/18 Mon 7/16/18 0 days 6.1 Review the product design Fri 3/23/18 Tue 3/27/18 0 days 6.2 Approval from the board Wed 3/28/18 Thu 3/29/18 0 days 6.3 Revise the product design Fri 3/30/18 Thu 4/5/18 0 days 6.4 Freeze the product design Fri 4/6/18 Mon 7/16/18 69 days 7 Setting up the production of greencar Fri 4/6/18 Wed 8/22/18 0 days 7.1 Procure the manufacturing abilities Wed 4/11/18 Thu 7/19/18 69 days 7.2 Design the tools Mon 4/16/18 Fri 7/27/18 69 days 7.3 Building the tools Tue 4/24/18 Wed 8/1/18 69 days 7.4 Modification of the product Fri 4/27/18 Wed 8/22/18 69 days 7.5 Obtain the equipments Fri 4/6/18 Wed 4/11/18 0 days 7.6 Start up the production Thu 4/12/18 Fri 4/13/18 0 days 7.7 Testing the plan Mon 4/16/18 Fri 4/27/18 0 days 7.8 Verification of quality tolerances Mon 4/30/18 Thu 5/10/18 0 days 7.9 Production in volume Fri 5/11/18 Thu 5/17/18 0 days 8 Arrangement of the marketing Fri 5/18/18 Tue 7/24/18 0 days 8.1 Identification of the key benefits of the product Fri 5/18/18 Tue 5/29/18 0 days 8.2 Identification of potential users Wed 5/30/18 Mon 6/4/18 0 days 8.3 Planning the marketing strategies Tue 6/5/18 Tue 6/12/18 0 days 8.4 Production of brochures and adverts Wed 6/13/18 Fri 6/15/18 0 days 8.5 Produce the advertising campaign Mon 6/18/18 Tue 7/24/18 13 days 9 Arrangement of distribution Mon 6/18/18 Wed 8/22/18 0 days 9.1 Establishment of sales chain Fri 7/6/18 Thu 7/26/18 13 days 9.2 Establishment of business procedures Tue 7/10/18 Tue 8/7/18 13 days 9.3 Setting up the technical support and capabilities Fri 7/20/18 Thu 8/16/18 13 days 9.4 Write the user manual Tue 7/31/18 Wed 8/22/18 13 days 9.5 Write the service manual Mon 6/18/18 Thu 6/28/18 0 days 9.6 Obtaining the capabilities of staff Fri 6/29/18 Mon 7/9/18 0 days 9.7 Market growth Tue 7/10/18 Wed 7/11/18 0 days 9.8 Market maturation Thu 7/12/18 Fri 7/13/18 0 days 10 Market decline Mon 7/16/18 Mon 8/13/18 0 days 10.1 Declining the sales Mon 7/16/18 Tue 7/17/18 0 days 10.2 Refresh of the product Wed 7/18/18 Fri 7/20/18 0 days 10.3 Launching the product Mon 7/23/18 Tue 7/31/18 0 days 10.4 Differentiating the service Wed 8/1/18 Fri 8/3/18 0 days 10.5 Launching the new products Mon 8/6/18 Mon 8/13/18 0 days 11 Withdrawal of the product Tue 8/14/18 Wed 8/22/18 0 days 11.1 Decision to withdraw Tue 8/14/18 Wed 8/22/18 0 days 11.2 Achieve the documentation Mon 7/23/18 Mon 8/20/18 0 days 12 Final closure Tue 8/21/18 Wed 8/22/18 0 days 12.1 Final sign off the project Tue 8/21/18 Tue 8/21/18 0 days 12.2 Final submission of report Wed 8/22/18 Wed 8/22/18 0 days Resource and cost plan Estimates relevant for the project Estimation of both cost and schedule is relevant for this project. Cost estimation is required to determine the total cost needed to conduct the event on green cars. It is required to estimate strength and weakness of the project work. The accuracy of cost estimation makes the success of project. Schedule estimation is required to determine the start and end date of the project work. Without schedule estimation, how long the project will be taken is not estimated. When the project will finish within estimated schedule, then the project will success. Pricing estimation and resource allocation WBS Task Name Resource Names Cost 0 Greencar product development and launch $60,400.00 1 Idea generation $3,440.00 1.1 Identify the requirements of the customer Event Manager, Project Manager $960.00 1.2 Evaluate the quality of existing products Project Manager $1,200.00 1.3 Defining the objectives of new car Marketing Manager, Project Manager $1,280.00 2 Concept design $1,360.00 2.1 Create idea generation Project Manager $720.00 2.2 Refine the concepts Marketing Manager, Project Manager $640.00 3 Feasibility study $7,120.00 3.1 Check for the strategic feasibility (SWOT) Executive Manager, Marketing Manager, Project Manager $1,440.00 3.2 Check the marketplace Executive Manager, Marketing Manager $1,200.00 3.3 Checking the technological capability Executive Manager, Marketing Manager, Project Manager $960.00 3.4 Checking for the financial feasibility Project Manager $960.00 3.5 Checking for resources availability Executive Manager, Project Manager, Chartered financial accountant $2,160.00 3.6 Making the decision to proceed the greencar development Executive Manager, Project Manager $400.00 4 Detailed design $6,800.00 4.1 Setting the product specifications Executive Manager, Project Manager $800.00 4.2 Designing the key characteristics of the product Project Manager $1,200.00 4.3 Product drawings Designer, Project Manager $1,440.00 4.4 Product prototype Customer Service Manager, Designer, Tester $3,360.00 5 Testing of the product $2,320.00 5.1 Testing the product as per user satisfaction Designer, Marketing Manager, Tester $1,200.00 5.2 Testing the key characteristics of the car Tester $480.00 5.3 Identification of team for testing the car Project Manager, Tester $640.00 6 Finalize design $4,240.00 6.1 Review the product design Project Manager, Tester $960.00 6.2 Approval from the board Project Manager $480.00 6.3 Revise the product design Marketing Manager, Project Manager $1,600.00 6.4 Freeze the product design Customer Service Manager, Event Manager $1,200.00 7 Setting up the production of greencar $14,240.00 7.1 Procure the manufacturing abilities Event Manager, Executive Manager $1,200.00 7.2 Design the tools Designer $1,440.00 7.3 Building the tools Project Manager $720.00 7.4 Modification of the product Designer, Executive Manager $2,400.00 7.5 Obtain the equipments Marketing Manager, Project Manager $1,280.00 7.6 Start up the production Project Manager $480.00 7.7 Testing the plan Tester $800.00 7.8 Verification of quality tolerances Designer, Executive Manager, Tester $4,320.00 7.9 Production in volume Marketing Manager, Project Manager $1,600.00 8 Arrangement of the marketing $4,960.00 8.1 Identification of the key benefits of the product Project Manager $1,920.00 8.2 Identification of potential users Project Manager $960.00 8.3 Planning the marketing strategies Marketing Manager $480.00 8.4 Production of brochures and adverts Marketing Manager, Project Manager $960.00 8.5 Produce the advertising campaign Marketing Manager, Project Manager $640.00 9 Arrangement of distribution $8,880.00 9.1 Establishment of sales chain Customer Service Manager, Marketing Manager $480.00 9.2 Establishment of business procedures Marketing Manager, Project Manager $1,280.00 9.3 Setting up the technical support and capabilities Project Manager $1,680.00 9.4 Write the user manual Project Manager $960.00 9.5 Write the service manual Project Manager $2,160.00 9.6 Obtaining the capabilities of staff Executive Manager, Project Manager $2,000.00 9.7 Market growth Marketing Manager $160.00 9.8 Market maturation Marketing Manager $160.00 10 Market decline $4,480.00 10.1 Declining the sales Customer Service Manager, Project Manager $800.00 10.2 Refresh of the product Customer Service Manager, Executive Manager $960.00 10.3 Launching the product Marketing Manager $560.00 10.4 Differentiating the service Marketing Manager $240.00 10.5 Launching the new products Marketing Manager, Project Manager $1,920.00 11 Withdrawal of the product $1,280.00 11.1 Decision to withdraw Marketing Manager $320.00 11.2 Achieve the documentation Marketing Manager, Project Manager $960.00 12 Final closure $1,280.00 12.1 Final sign off the project Chartered financial accountant, Project Manager $560.00 12.2 Final submission of report Chartered financial accountant, Executive Manager, Project Manager $720.00 Risks affect cost and schedule The market risk affects the cost of equity funding which will directly affects the cost of the project. Scope change in the project also affects time and cost, as scope change will affect the activities of the project which will result into delay of the project plan. When the project will delay by 1-2 days, then it raises the total estimated cost off the project. Monitor performance in the project An activity schedule performance is done by noting of the dates the project begins and ends. The statuses of the individual activities are checked on regular basis to analyze if the project is on track or not. Cost and schedule variance metrics are required to check the progress of the project work. Bibliography Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute. Leach, L.P., 2014.Critical chain project management. Artech House. Lock, M.D., 2014.The essentials of project management. Ashgate Publishing, Ltd.. Marcelino-Sdaba, S., Prez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014. 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