Pasadena Foursquare Church Kitchen Renovation Project Essay

1. inst each(prenominal)ation1.1 Purpose of try vigilance1.1.1 Knowing and Controlling assays to stomach AssetsThe operation of happen focus instituted tothe befuddle with knowledge and tick over the adventure assign of the visualise. Not holyly determine adventures tail be removed. The likelihood of surpassing requirements bottom be messd off against the essay of surpassing the figure constraints. endangerment perplexity is a touch on subprogramd to balance the vomit up venture of exposure position across all meet re denotation beas, dictatorial the distribution and magnitude of the identified adventures against the cost constraints while obtaining the best achievable confidence in achieving high jut out consummation output. 1.2 essay wariness is a formulate squad Effort1.2.1 Integral Part of hold implementationIt is intended that jeopardy Management be an essential component in the befuddle autobuss tool kit. This involves considerin g pretend at the truly beginning of the take c atomic number 18 conceptualization. The take in features of venture vigilance (RM) action mechanism deep down the show be 1.Managed hazards are essential elements of the go for circumspection control offshoot 2.Cognizant personnel accept the cadence imposed to smash and maintain the chance disposition 3. count on Management aggroup patterns the effort and the figure carriage takes ownership of the plan 4. take a chance status reports are integral to the dispatch review process 5.Effective metrics are identified and delivered per the plan to all stakeholders These activities require require commitment from the catch manager, and the try Representative.1.2.2 A Team Effort insecurity Management is a squad effort. The cast off riskiness Representative is the coordinator of the risk circumspection application. All members of the realize team digest important roles in identifying, assessing, and introduce r isk, and in identifying the realistic approaches to dealing with risks that arenecessary for the project to make good risk determinations. put on the line decisions are supported by analyses and recommendations from the project team, but are ultimately make by the pouch Manager in the same manner as all cost, schedule and performance impact decisions are made.1.2.3 Integrated happen ViewThe gamble tip developed and managed through and through the RM Process is a composite of the risks being managed by all elements of the project. It includes in one aspire the management view for risks from independent judicial decisions, reviews, QA inspections, principles and policy, risk reviews, and residual risks from all project actions. Only in this way fucking it be managed as a comprehensive assessment of the liens on all project resource militia, which allows optimized decisions to use these reserves to mitigate risks.2. OBJECTIVES2.1 Objectives of bump ManagementThe overall obj ective of Risk Management is to identify and assess the risks to achieving project success, and to balance the moderateness of these risks (and so the conveyitional cost) against the acceptance and control of these risks (and hence a possible high degree of project performance objectives). To further these objectives, the take care Management process involves identifying risks to the success the project, understanding the nature of these risks, individually and in total, and acting to control their impact on the success of the project.3. put on the line MANAGEMENT OVERVIEW3.1 Definitions3.1.1RiskRisk is specify asThe combination of the likelihood of evanescerence of an undesirable event and the effect of the particular. This combination closures in a risk causticity, which isA measure of the risk magnitude. The higher risks dictate greater attention and urgency for action to mitigate. Risk severity is also influenced by the urgency of applying rough-and-ready mitigation s. Primary Risk isA risk which rates high on the severity weighing machine broadly speaking high levels oflikelihood and consequence A specific risk to a project, identified in this process as a risk item, has four components, namely the undesirable eventthe likelihood of pointthe severity of the consequences of the occurrencethe timeframe in which mitigation decisions are essentialResidual Risk isAn accepted performance or safety risk, which remains after all possible or practical measures declare been taken to reduce the severity. The confines is especially utilize in identifying the risk remaining from all discrepancies dispositioned as Use As Is or Repair and accepted single unsuccessful person poses, or early(a) decisions made which leave less than complete closure.The project risk position is defined asThe aggregate of the assessments of the individual risk items for the project, including the decisions made to mitigate, accept and control, or take additional risk. It is a tendency that this risk position be measurable relative to project reserves. 3.1.2Risk ManagementIn this context, risk management is defined asAn organized marrow of planning the risk management use ( political programning), identifying and measuring risks relevant to the give (Identification and Assessment), identifying, selecting and implementing measures for controlling these risks so as to control the project risk position (Decision-Making), and tracking the decisions made and the evolving risk status (Tracking). Project reserves nominate be identified in different ways and are managed by a number of effective tools and methods. The Risk Management methodology looks at two aspects of the Project risk position the risk to resource reserves and the measure of the project success criteria. The Risk Management methodology is establish on the project risk position, which is the understanding of the knowable risk, while acknowledging that on that point are in here(predi cate)nt unknown risk possibilities in any project, and must(prenominal) be acknowledged when judging adequacy of the reserves.3.1.3 pregnant RiskA significant risk is a risk considered by the Project Manager to requirefocused attention by the Project Management Team on a regular basis. This group is largely but not necessarily identically the group of yellow and red risks in the 5X5 risk matrix, although some green risks whitethorn be included if their mitigation time frame is near-term. These are also generally the risks which are inform at the regular monthly status reviews. The Significant Risk List (SRL) is the subset of all the project isks which are significant risks. Not all risks in the project risk are significant risks, but all risks should be rated consort to the 5X5 matrix3.2 significance Categories of RiskRisk consequences are assessed against three heavy categories called consequence categories1.The threat to achieving schedule2.The threat to achieving Scope o r Project Performance Success Criteria3. The threat to the project budgetThese categories may be expanded or added-to for instance, impact on facilities, or church activities .. and so on3.3 The 5X5 hyaloplasmThis project has adapted the 5X5 Risk Matrix, which defines the criteria for assessing risk likelihood and consequence for both(prenominal) project and implementation risk. Primary risks are generally considered to be those in the red zone of the 5X5 matrix.3.4 The Elements of the Risk Management ProcessThe Activities of the Risk Management Process for this project are described as1.Identifying and characterizing risks2.Prioritizing or rank risks3.Developing emf project responses to risks4.Making decisions utilizing existing resources to restructure the program to reduce the authorisation effect of the risks 5.Tracking the evolving risk exposure and iterating the above actions as contained6.Developing a plan for the above activities end-to-end the project life-cycle Each element of the Risk Management process requires interactions among the project team, and the process offers methodology and tools to enable effective communication and documentation. The prognosticate Below shows a process flow for the activity of risk management in the process.3.5 Risk Management in the Project Life-CycleThe figure above shows the periods of activity, and generally the times of inputs/outputs of the Risk Management Process, deep down the project life-cycle. Each Risk Management element extends through the entire life-cycle, and the major(ip)ity of effort shifts from planning through identification and assessment, decision making, to tracking as the project risk position changes and evolves. While the risk management process is serial, at that place is significant iteration and updating as the project progresses and matures and thus the identified risks change, are realized or retired, and new risks arise. As risk matures, probability of occurrence and/or impac t allow for change.Risks can reduce to the level of insignificance, where they are retired, or can increase to point of occurrence, or realization. Also, new risks can and leave alone be identified throughout the project life-cycle. The Risk Management process considers and responds to all of these outcomes by go to earlier activities for reconsideration and update. The projects Risk Management process can change significantly for operations, since more of the risk attention provide be associated with human factors, and an update to the RM Plan may be inevitable.4. THE RISK MANAGEMENT PROCESS IN PLANNING4.1 Understanding Risk in the Planning/ Proposal PhaseThe Project Management Team full treatment to define the requirements and time frames of the project. The pre-project activity involves concept defininition and exploratation with decisions made in the Project team as to the scope and budget with which the Plan & Design story Begins. In the Plan & Design Stage Each Project toil is analyzed by the Project Team and Make Or acquire Decisions are Madke based on the availibillity of Qualified Volunteers in the church community. secure Decisions are made for each outstanding activity. Rough Designs are theorise by the project team calling on Subject field Experts as required. Rough Order of Magnitude estimations are made on the cost of each task. RFPs are released to potential contract or propose candidates. Proposals are received and reviewed by the Project Team.The Designs are finalized, Schedules and budgets made and the defecate Break down sturcture and Gant Charts are updated with the project Base Line isestablished. It is at this point that the Risk List is established by the Project Team, twist inforomation from contractors, Subject Matter Experts and the Experience and judgement of the Project Team. The Risk List can then be used to identify the most inviting of a number of preferences in contractor selection, Design Changes, Scope Schedu le, Buget Needs. In addition to performance and needed resources, risk should be a major consideration in justifying the chosen creams. This requires specific identification of the apparent risks in each option mitigating them if possible in the process of maturing each option The relative weights of the risks combine with the weights of the performance and resource assessments in selecting the option to go forward.Fig 4-1 Accounting for Risk in Project Formulation4.2 utilize Risk in Establishing ReservesIn establishing the budget reserves for the project to be confirmed at the Permitting Phase, risks are used to define the risk exposure of the budget. Rrisks that are identified in the Planning Phase can be assessed for the potential cost, should they occur. This requires quantification of the risk consequence (in $) and the risk likelihood.4.5The Preliminary Risk Management PlanAt the end if Planning Phase, Preliminary RM Plan is drafted. The plan willing consist of all of the Risks associated with the poject and a specific plan for controlling Each SRL risk identified5. RISK MANAGEMENT IN IMPLEMENTATION5.1 Risk Management PlanningThe SRL will be reviewed and updated hebdomadally by the Project Management Team. Montly Status will be reported to all of the stakeholders. New Risks will probably imerge as the project progresses. Oportunity will be made to the Project Management Team Includint the Projec QA representative to add new risks the project Risk List. 5.1.1 Risk extenuationsThe following subjects are considered when documenting Risk mitigations. a)Map the project success criteria and project objectives into an overallapproach to risk Reflecting the prioritization of performance of project objectives and constraints, and weights the emphasis on the following avoiding risk, by minimizing risk through redesign, alternative developments, parallel developments, large margins, additional equipment to buffer constrained schedules, etc. accepting risk, b y developing chance plans and margin management criteria for exercise those plans, and/or allowing descope/ decrease in Project Performance return to trade against cost, schedule, and other resources or taking risk, by finding and incorporating high potential performance/cost/schedule benefits with acceptable additional risk to reserves or margins. .5.2 Risk Identification and Assessment5.2.1 Identification and Assessment RequirementsThe requirements in identification and assessment are to identify the risk items, to describe them sufficiently to allow assessment and decision-making, to identify practical mitigation approaches, and to develop the Significant Risk List (SRL), which is a list of the identified risks to the project and their decision-enabling selective in pution 5.2.2 Risk definitionEffective risk descriptions identify the root source of the risk concern (the Risk Condition), the event that is feared (Risk Event), and the risk Consequence to the project. The format is generally Because of (the condition giving risk to the risk), it is possible that (such(prenominal) and such event) will occur, with the consequence that (describe the impact e.g. delivery n weeks late, loss of xyz performance capability, need to build another component, etc.) Another, less favored, descriptive format sometimes used is If (such and such an event) occurs due to (the condition that ), then (describe the impact) Sometimes there will be further words needed to describe the uncertainty, apologise why the condition is present, and what other factors are need to be considered and why.5.2.3 InputsWhen the pre-formulation or early formulation phase feasibility demonstration and scope description results switch been approved, the required inputs for Risk Identification can be assembled. The culture needed for identifying and assessing risk include at least preliminary versions ofRequirements and Project Success CriteriaProject Management PlanProject RequirementsRisk Management PlanStaffing Plan/ key personnelSchedule/ Schedule driversbudget/ budget drivers5.2.4 Identifying Risk Items5.2.4.1 Risk Identification MethodologyThe first ill-use in developing the risk list is generally a brain-storming activity where potential risk items are identified by the key project personnel. These risks are characterized by two parameters the likelihood of an adverse event and the consequences of that event. Whenever a potential risk is submitted for consideration, it is accompanied by estimates of these two parameters. The risks are identified by the experts in the specific subject of the risk item that is, the key personnel submit candidate risks in their project areas of expertise. Risks may be suggested in areas outside their expertise, but they should be then presented to the expert in that area for concurrence. As these risk items are characterized, other data are needed which are described below.The mechanism for obtaining these submissions will vary. The brain-storming may occur as a group, or by e-mail, or separately in one-to-one discussions. The submissions should be standardized to remove very disparate interpretations of the rules onwards the first group consideration takes place. The following characteristics should be observed in the process. The candidate risks submitted by the team should be inclusive if the item magnate be a risk, input it. The Project Manager will go bad with the submitter to delete inappropriate risks or modify the assessment as needed. They should have a common basis for interpretations. This is accomplished by the Project Manager iterating with the specific group members The Project Manager may use team discussion to assess the risk list, and remove differences of understanding.5.2.4.2 Resources for Identifying Potential Risksa)External ResourcesRisks to the project may be identified through experiences of other projects, or the Construction application in generalb)Internal Resources referenc es and resources available within Church Comunity or within the project management team which are used to develop inputs to the Risk Identification and Assessment element include Expert JudgmentThe RM risk identification and assessment process relies heavily on the expert persuasion of the project implementers and their peers Schedule, west by south, Work Agreement AssessmentsOne can systematically fancy the planned work and identify uncertainties to which the project has high sensitivity, which can result in risk items to be assessed. Technical, and Design Organization AssessmentsFunctional gourmandize Diagrams, Requirements Flow-Down, Fault Trees, etc. are all systematic organizations of the planned harvesting which can be examined comprehensively for risk items. Review bill ReportsReview Board reports include recommendations and issues, as well as RFAs. Review Board can also consist of members or contracting companies.Residual RiskResidual risks, which are identified in many activities within the project as unavoidable risk remaining after all intelligent actions have been taken, should be carried in the risk data base. They should be considered for inclusions in the SRL if applicable, such that they would be reported at monthly and quarterly management reviews as accepted risk. Early in the project design activity, decisions such as allowing selected single failure points or marginal design against beat out case possibilities may be made with due consideration of the risk taken. These considerations should be retained in the residual risk descriptions and rationales.5.2.4.3 Categories of Risk assortment can be used to allow the aggregation of subsets of risks, and so provide sagacity into major risk areas in the project. Risk Source CategoriesA useful set of risk source categories identifies areas of the project where potential risk might reside for example performance, cost, Or schedule, constraints within which the project must work, to be consi dered. Other risk source categorizations which might provide insight include The project systems or subsystem area in which the risk is manifested, The WBS element primarily involved,Technology areas (if breaking technolgy is used with appliances etc..) Risk Source Categorization is optional.5.2.4.4 Risk StatusRisk status is the process for human body management of the risks, and also an indicator to external reviewers of the projects plans to deal with each risk.. For Risks that have been dispositioned, there are status classifications definitions are shown in the table below. explore A research category is assigned when more knowledge is required about the risk or the mitigation options. The objective is to move to mitigate, watch, or accept as soon as possibleACCEPT A risk is accepted if there are no practical mitigations identified. Depending on the severity of the risk, it may be needed to justify acceptance to the CMC as a Primary Risk. The risk is tracked for changes as t he project matures lessen A risk is in the mitigate category if there are funded actions under way to reduce the risk. This may have future decision milestones, or milestones where the mitigation risk reductions may be claimed -WATCH A risk in the watch category has known future points of change, and requires tracking and possible future reassessments. Candidate mitigation options may be carried, and the risk may be re-categorized as the project evolves.5.2.5 Risk Item DescriptorsThe draft SRL should list each identified risk item, and for each item shouldinclude as a minimum Description of the adverse event (Condition, event, consequence) Context of the Risk (If warranted)Categorization in the categories chosenImplementation Risk Assessment-Consequence-Likelihood of occurrenceProject Risk Assessment-Consequence-Likelihood of occurrence(If quantified assessment is used)-Level of impact on resources (technical, cost and schedule) -WBS elements primarily affected-Task/ schedule elem ents primarily affectedMitigation Options Description of potential mitigation for consideration costs of identified mitigation optionsTimeframe Urgency of decisions for mitigation effectivenessTime window of potential occurrence if applicableResulting reductions in risk likelihood and impact if mitigation option is implemented Project personnel who are identifying risk items will drop off as much of this as is available at the time a risk is input to the project. Recording the likelihood and consequence descriptors require that the survey processes of risk assessment (described below) be gone through, and in general a first cut at each can be entered with the other data.Risk Description DataTimeframeImplementation (Schedule Or Cost) RiskProject Scope RiskMitigation DataRisk No. ennobleDescriptionImpactNear-term, mid-term, or far-termImplementationConsequence (Cost to recover)Likelihood (implementation)Risk CostProject Consequence (loss of performance)Likelihood (Project)Mitigati on OptionsMit.CostRisk ReductionFigure 5 Sample Risk Identification and Assessment Data ragRisk NumberAn ID number which can be used to find data in a data base. The number can be indexed to fence updates TitleA short reference for reports, etc.DescriptionText describing the condition or root cause, the feared event, and the consequence. (additional columns can be added here to denote classification schemes to be used. Some risk managers add a time-frame classification to highlight near-term risks from long-term risks. ImpactText that describes the change to the project due to the event described above. For implementation impact, the description might contend what would be necessary to recover. For a Project risk, the description might indicate the reduction in project capability to return Project results. Implementation Consequence A measure against the 5X5 assessment criteria (qualitative) or in resources expenditures (e.g. $) as a result of the impact described to get back on track.Implementation Likelihood A measure against the 5X5 assessment criteria (qualitative) or in percent ( decimal) of the described consequence being realized. Risk CostFor quantitative assessment, the product of the consequence in resource measure and the probability (e.g. $) Project Consequence A measure against the 5X5 assessment criteria of the degradation of Project return due to the event occurring. Project Likelihood A measure against the 5X5 assessmentcriteria (qualitative) or in percent (quantitative) of the described consequence being realized. Mitigation OptionsA description of one (or more) possible approaches to mitigating the risk Mitigation CostAn estimate of the cost in project resources to implement the mitigation Risk ReductionA description of the effect of the mitigation on the maestro risk assessments5.2.6 Risk Item Assessment5.2.6.1 qualitative AssessmentQualitative Risk Assessment is the assignment of adjective ratings to the degree of significance of all l ikelihood or consequence of occurrence. Criteria like High, Medium, and Low are generally used. Scales can have fewer gradations (i.e. high and low) or more (e.g. very high, high, significant, moderate, and low). Definition of these levels is essential, and some iteration and discussion will be needed before the team understands a common tone between assessed levels. Consequence of OccurrenceLevelProject Risk Level DefinitionsVery HighProject failureHighSignificant reduction in project returnModerateModerate reduction in project returnLowSmall reduction in project returnVery LowMinimal (or no) impact to projectLevelImplementation Risk Level DefinitionVery HighOverrun budget and contingency, cannot meet schedule with contemporary resourcesHighConsume all contingency, budget or scheduleModerateSignificant reduction in contingency or schedule slackLowSmall reduction in contingency or schedule slackVery LowMinimal reduction in contingency or schedule slackThe advantage of this qualita tive approach is that, while subjective, the project team can quickly get in tune with the distinction between levels by working through a number of risks together, and can then assess their own risks fairly consistently. The disadvantage is that the system does not straightforwardly allow adding-up or otherwise aggregating the total risk. Rather, a risk distribution is used to display the project risk position,as will be seen below.