Chapter 10 - Risks and quality Flashcards
Define a risk
A risk is a binary, uncertain event with an uncertain consequence, the outcome is hard to predict exactly.
Define an uncertainty
Uncertainties relate to known events that have different outcomes depending on internal and external circumstances. Usually evaluated with PERT
How much time should be set aside for risk management?
15-20% of the project time.
What is risk management?
A proactive work method for identifying and managing internal and external threats to the success of the project.
It consists of risk identification, qualitative and quantitative risk analysis, risk response planning and risk mitigation (done in conjunction with execution).
what are the three C’s of risk management?
Condition - What?
Cause -Why?
Consequence - How?
Explain the process of risk identification
Brainstorming is a good method for identifying risks. It’s an iterative process, begins at idea stage. usually performed by the project group with the pm.
Name some examples of risk categories
- Risks related to technology, quality and execution
- Risks related to project management
- Organizational risks
- External risks
Explain the mini risk method
Both probabilities and consequences are evaluated and rated on a scale from one to five. The risk value is calculated by multiplying “likelihood” by “consequence”
Explain the maxi risk method
Expands the mini risk method to evaluate the consequences in three dimensions - time, quality, resources. This gives three different risk values for each event. Gives good overview for which governing parameter has the highest level of risk.
Explain the opportunity and risk matrix
An opportunity is a “positive risk”. in the opportunity and risk matrix an opportunity is something positive that might occur as a consequence of some action.
Give four examples of strategies for risk action
Avoid risks - change the project plan to eliminate the risk or protect the project from the effect of the risk.
Transfer risks - shift the risk to a third part such as an insurance company
Reduce risks - ameliorate the effect of an identified risk by implementing actions that decrease the likelihood and/or consequences of the risk.
Accept risks - no changes are made to the project plan following risk identification
What is a contingency reserve?
A way to minimize the consequences of cost and/or scheduling risks.
What is the knee?
The knee describe the limit where the positive benefits of investing in quality starts to pan out, i.e it doesn’t pay off to invest more.
What is the cost of poor quality?
Visible cost for correcting problem + Cost for impaired reputation.
What is continuous improvement?
Act -> Plan -> Do -> Check, a cycle. (s 241)
Explain lean
It’s a philosophy on how you streamline production flows and build only what is necessary. Everything that doesn’t create benefits is eliminated and everyone os responsible for halting production if something goes wrong.
What is quality management?
Quality planning, quality assurance and quality audit. It’s usually cheaper to avoid mistakes than to correct errors, so it pays of to invest in preventative quality work.
Explain FMEA
Failure Mode Effect Analysis - A method for locating and eliminating errors before they can occur. The purpose is to answer a number of questions in a general questionnaire about the risks that might occur and their effects. (s. 244-245)
Explain quality planning
The quality level should be determined with the project goal and time and resources available taken into account. Higher quality requirements demand more time and resources. One step in quality planning is determining the quality standard the project should follow.
What is the delphi method?
A way to achieve agreement on a solution to a problem. It involves a group of specialists taking part in a meeting anonymously. A meeting coordinator uses a questionnaire to gather thoughts on the question to be analysed. The answers are compiled and circulated among the experts for further comments. Agreement can be reached after a few cycles.
what is the 80/20 rule?
About 20 percent of all events that occur contribute to about 80 percent of the outcome.
What is the six sigma method for?
It’s a method for quality improvement in projects and processes focused on decreasing variations and error sources. Name from standard deviations, only 3.4 errors in a million outcomes fall outside the tolerance area of +-6 standard deviations, given a normal distribution.
What is important when i comes to change management?
- to decide upon routines and document in the project management plan how changes will be handled
- traceability
Which changes should the pm have mandate to decide on?
Changes that doesn’t affect the goal, delivery time or budget.
