Chapter 10 - Risks and quality

Question 1

Define a risk

Answer 1

A risk is a binary, uncertain event with an uncertain consequence, the outcome is hard to predict exactly.

Question 2

Define an uncertainty

Answer 2

Uncertainties relate to known events that have different outcomes depending on internal and external circumstances. Usually evaluated with PERT

Question 3

How much time should be set aside for risk management?

Answer 3

15-20% of the project time.

Question 4

What is risk management?

Answer 4

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).

Question 5

what are the three C’s of risk management?

Answer 5

Condition - What?
Cause -Why?
Consequence - How?

Question 6

Explain the process of risk identification

Answer 6

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.

Question 7

Name some examples of risk categories

Answer 7

• Risks related to technology, quality and execution
• Risks related to project management
• Organizational risks
• External risks

Question 8

Explain the mini risk method

Answer 8

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”

Question 9

Explain the maxi risk method

Answer 9

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.

Question 10

Explain the opportunity and risk matrix

Answer 10

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.

Question 11

Give four examples of strategies for risk action

Answer 11

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

Question 12

What is a contingency reserve?

Answer 12

A way to minimize the consequences of cost and/or scheduling risks.

Question 13

What is the knee?

Answer 13

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.

Question 14

What is the cost of poor quality?

Answer 14

Visible cost for correcting problem + Cost for impaired reputation.

Question 15

What is continuous improvement?

Answer 15

Act -> Plan -> Do -> Check, a cycle. (s 241)

Question 16

Explain lean

Answer 16

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.

Question 17

What is quality management?

Answer 17

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.

Question 18

Explain FMEA

Answer 18

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)

Question 19

Explain quality planning

Answer 19

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.

Question 20

What is the delphi method?

Answer 20

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.

Question 21

what is the 80/20 rule?

Answer 21

About 20 percent of all events that occur contribute to about 80 percent of the outcome.

Question 22

What is the six sigma method for?

Answer 22

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.

Question 23

What is important when i comes to change management?

Answer 23

• to decide upon routines and document in the project management plan how changes will be handled
• traceability

Question 24

Which changes should the pm have mandate to decide on?

Answer 24

Changes that doesn’t affect the goal, delivery time or budget.

Question 25

What is a change review board?

Answer 25

An independent forum for assessment and decision-making regarding changes in the project. Supports the pm and steering committee when their competence is insufficient or when changes can affect other projects.

Question 26

Explain the difference between mandatory or voluntary change

Answer 26

A change can be mandatory because of external events or errors in what has been executed within the project.

Changes can also be voluntary - you want to improve the design, facilitate manufacturing or achieve better ergonomics

Question 27

What are the conditions for signing a contract?

Answer 27

• Something of value must be transferred between the parties
• the parties have the ability and capacity yo sign a contract
• What is stipulated in the contract is legal
• The terms must be communicated
• Both parties must have accepted the terms

Question 28

What is the purpose of a project review?

Answer 28

It is to identify areas of risks and flaws, in order to decrease or eliminate them before execution, if possible.

Question 29

What is project management maturity?

Answer 29

This is crucial to the success of a project. There are five levels of project management maturity:

1. Conscious - No established project process, unclear division of responsibility, events and individual choices determine the work and everything depends on the key personnel
2. Repeated - Several different project processes, projects begin through formal orders, unclear division of responsibility and unclear communications.
3. Defined - A common project process, committed managers, a project management office, status reports including risk, change management and quality governance
4. Controlled - The project process is integrated with other organisational systems, all projects use the processes, projects are governed by key figures and there is project portfolio management.
5. Optimized - A learning organization that continually improves its processes, with high flexibility and where management serves as a model.