Prof.

Belton, MPM Presented by; Christian Gonzalez Tamika Roland Angelica Casarez Teria Edwards

              

Project Background Scope Statement Currency Trend Analysis Investment Process Review Process RBS Organizational Chart RACI QFD Human Resource Plan Project Phases What is project risk management The process of project risk management Risk Strategies Probability and impact matrix

                

Plan risk response Scope of project risk management Initial risks Risk observations Risk register update Work performance information Impact and mitigation Monitor and control tools and techniques Current events Additional risks Risk 1 Risk 2 Risk 3 Schedule crash Project S-curve Lessons learned Work Cited
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M&K Corporation is a U.S. based company manufacturing various electronic products, including imaging devices, semiconductor devices, and automobile image sensors. M & K Corporation decided to open an automobile image sensors unit manufacturing plant in France in collaboration with a local company called Pajot Autos Ltd.

M& K Corporation will invest into Pajot Autos through a B to B venture to provide machinery for a new Auto image sensor unit in France with a budget of $50,000,000 and a 10 month duration.

Initial .7061

Current

Average .6970

Foreigners are allowed to own a maximum of 45% interest in a company. The intermediary allows for the investment and attaining majority voting rights. Risk; Inability to complete the investment due to French restrictions.
Mitigation; Applying to the Ministry of Economy, Finances and Employment, for authorization to set up a company.

Ministry of Economy, Finance, and Employment leads the foreign investment review process. Length of decision: Maximum of 2 months After the 2 months if no response is received then it is legally deemed as approved. Average expectancy of wait time is 2 weeks.

RBS Tasks 1.O International 2.0 Organizational 3.0 Technical 4.0 Internal 5.0 External 6.0 Legal 7.0 Project Management

Responsible PM Teria Teria PM Tamika Angelica PM

Backup Tamika Angelica Angelica Tamika Teria PM Tamika

Notify ----PM PM ----PM PM -----

Mr. Belton Stake- Holders/Sponsor M&K Corporation Pajot Autos

Christian Gonzalez Project Manager

Tamika Roland Project Coordinator

Teria Edwards HR Manager

Angelica Casarez Procurement Manager

Planning

Training

Documentation

Change Management

Interaction with Employees

Support Operations

ACTIVITY
Risk Management Lead technical support Procurement Management Human Resource Management Legal Research

CHRISTIAN TAMIKA GONZALEZ ROLAND R A A R

ANGELICA CASAREZ C C

TERIA EDWARDS I I

I I

C A

R C

A R

R: Responsible A: Accountable C: Consult I: Inform

Customer Focus

Time Efficiency

Teamwork Oriented

Documentation Oriented

All the project members will report to the PM at the end of the day via email/text/phone with their progress. Weekly meetings on Friday have been scheduled for all the team members to share their progress by means of;
 

Physical meeting Virtual meeting

Team meetings will encompass McGregors Effective Team management:

  

Informal, comfortable meetings Members listen to one another Team members are open in expressing feelings and ideas

Conflict management will be resolved through the following techniques:

 

Smoothing/Accommodating Collaborating

Phase 1initiation- This phase involves establishing the project team, SWOT analysis of team members, and assigning positions. Phase 2 planning- This phase involves brainstorming for project risks, establishing contingencies, mitigations, and backup plans as well as locations for budget and reserve analysis. Key activities include the firm fixed contract agreement outline. Phase 3 execution- This phase involves the construction. Phase 4 monitor and control- This phase involves monitoring the project scope, the project risks, and the budget to assure the project is within the fixed budget and its schedule. Phase 5 closing- pay off open procurements, update risk register and project documents, and lessons learned.

The purpose of Risk Management is to describe the methodology for identifying, trackingand mitigating.

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Track/Control M nit r risk indicat rs and m itigati n acti ns rrect f r deviati ns fr m planned risk acti ns

/ ck l a T r tro n Co
Im p le m ent

Id

Identify Search and l cate risks BEFORE they m aterialize

en

tif

C om m unicate

Plan

Com m unicate Inf rm ati n and feedback thr gh t all risk m anagem ent f ncti ns and r ject rganizati ns

An

Im plem ent Exec te decisi ns and m itigati n acti n lans

yz al

e
Analyze Pr cess risk data int inf rm ati n

decisi n-m aking

Plan Translate risk inf rm ati n int acti ns (m itigati ns)

decisi ns and

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Avoi . C anging t e project management plan to eliminate t e t reat entirely. r sf r. S ifting some or all of t e negative impact of a t reat to a t ird party. Mitig t . Reduction in t e probability and impact of an adverse risk event Accept. Allow it to occur.

Negative
Avoid Transfer Mitigate Accept

Positive
Exploit Share Enhance Accept

xploit. Used to ensure t at t e opportunity is realized. Sh re. Allocating some or all of t e owners ip of t e opportunity to a t ird party w o is best able to capture t e opportunity for t e benefit of t e project. h ce. Used to increase t e probability and/or t e positive impacts of an opportunity. Accept. Take advantage of it if it comes along, but not actively pursuing it.

Negative risk strategy: Mitigate Positive risk strategy: Exploit Enhance

Probability and Impact Matrix

Probabilit y .90 .70 .50 .30 .10 Threats .05 .04 .03 .02 .01 .05 .09 .07 .05 .03 .01 .10 .18 .14 .10 .06 .02 .20 Opportunity .05 .04 .03 .02 .01 .05

.36 .72 .72 .36 .18 .09 .28 .56 .56 .28 .14 .07 .20 .40 .40 .20 .10 .05 .12 .24 .24 .12 .06 .03 .04 .08 .08 .04 .02 .01 .40 .80 .80 .40 .20 .10 Impact on objectives (scope, time, cost, quality)

I ts 11.5.1

T ls & Tech iq es 11.5.2

.1 trategies f r egati e risks .2 trategies f r siti e risks . ti ge t res se strategies ert j g e t .

O t ts 11.5.
1. Risk register updates 2. Risk related contract decisions 3. PMP updates 4. Project document updates

1. Risk register 2. RMP

I cl es the strategy a acti t be e, wh is i g it, a

ite s t a whe .

ress the strategy,

itigati

Identify the risks that have the potential of affecting the project both internally and externally.

INITIAL 5 PROJECT RISKS

02 Foreign Politics US based Co. are only allowed to own no more than 49% of a French Co. Governmental restriction for US based Co. Probability: .90 Mitigation: Collaboration with Pajot Autos

Risk ID 01 Probability: .70

Risk Schedule

Risk Description Delay of approval

Trigger

Government approval process not completed within three days of deadline Mitigation: Communicate with Ministry Regular revisions of timeline with current changes. Cultural Differences Cultural differences conflict with project work

03

International

Probability: .31 04 Quality

Mitigation: Integrate cultural differences for cultural acceptance. Not meeting all quality standards( ISO 2000 and BS 15000. Not meeting minimal standards during monitoring and control process.

Probability: .31 05

Mitigation:Provide MTR along with the certificate of compliance for quality assurance HR Management Expert judgments willing to perform international duties. Lack of Experts willing to work on an international endeavor.

Probability: .23

Mitigation: Internal Experts will be allocated initially.

Monitor and Control inputs Update of the risk register Review of the Project Management Plan Work Performance Information Performance Reports Review

RISK ID 01

RISK LEGAL

DESCRIPTION Shareholders legal responsibilities Foreign country y y

ELEMENTS

AGREED IMPACT PRIORITY Cost Management HIGH .8 Time Management Environment Weather Accessibility Contract Management Medium .5

RISK SCORE .64

02

PHYSICAL LOCATION PROCUREMENT RISK

03 RISK ID

y y

Machinery Labor

y y y y

.64

HIGH

.8 IMPACT

.64 RISK SCORE .48

DESCRIPTIO ELEMENTS N (GDP), inflation and Consumer Price Index (CPI) Raising the retirement age to 62.Threats of strikes and a raise on taxes

AGREED PRIORITY Medium

001

CURRENT ECONOMIC STATUS

.6

002 RISK ID 003

Moodys S & P Current AAA France is more MEDIUM .6 .48 rating likely than the US RISK DESCRIPTION ELEMENTS AGREED IMPACT RISK to keep it PRIORITY SCORE Government Restrictions y Adding Med-High .8 .64 restrictions to US corporations and tourists

Deliverables- as discussed in the register the weather has caused a secondary(delay in machinery) and residual risk(unavailability of expert judgment). The fall in operational cost allowed for the contingency to cover the cost that incurred. The off-shore team is ahead of schedule

Impact and Mitigation PMBOK 11.5.2

Risk ID 01 Risk Category Schedule Delay In Approval Risk Description Mitigation: Communicate with Ministry Regular revisions of timeline with current changes. 02 Procurement

Delay in receiving all the procured

Mitigation: Reserve a backup supplier Draft all documentation ahead of schedule for any revisions prior to any negotiations. 03 Physical Weather poses a threat to project schedule Location Mitigation: allocation of additional time to the project schedule. Additional machinery to keep the project proceeding. (tarps, generators) 04 Mitigation: Negotiation with the consultant 05 Exploit: take advantage of the needed commerce Internal Expert Judgment Unavailable

Current AAA rating

Huge fall in operational cost

Risk audits- examine and document the effectiveness of risk responses in dealing with identified risk and their root causes, as well as the effectiveness of the risk management process.

Restrictions against US corporations establishing a business. Restrictions on work visas. Restrictions on tourism.

Due to amount of execution we fall under the restrictions.

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ACTIVE PROJECT RISKS

Risk ID 01 Probability: Active Risk Schedule Risk Description Delay of approval Trigger Government approval process not completed within three days of deadline Risk Owner: Christian Gonzalez Mitigation:Communicate with Ministry Regular revisions of timeline with current changes. Physical Location

03

Weather poses a threat to project schedule Mitigation: allocation of additional time to the project schedule. Additional machinery to keep the project proceeding. Risk Owner: Christian Gonzalez Delay in receiving all the procured Mitigation: Reserve a backup supplier Draft all documentation ahead of schedule for any revisions prior to any negotiations. Risk Owner: Angelica Casarez Expert Judgment Unavailable Mitigation: negotiate with the Consultant Risk Owner: Angelica Casarez

Trigger: Weather reduces the schedule by one week

Probability: Active

02 Procurement Trigger: If supplier materials become unavailable or supplies are not being delivered on time. Probability: Active 12 Internal

Trigger: machinery does not arrive as scheduled Probability: Active

RISK 1
Risk ID 01 Probability: Active Risk Schedule Risk Description Delay of approval Trigger Government approval process not completed within three days of deadline Mitigation: Communicate with Ministry Regular revisions of timeline with current changes.

MITIGATION/WORKAROUND
SUPPLY CHAIN MANAGEMENT

Pajot Autos M & K Co. 48% $18 mil Balis Co. 3%

RISK 2
03 Physical Location Weather poses a threat to project schedule

04

Procurement

Delay in receiving all the procurements

MITIGATION
The fall in operational cost allowed for the contingency to cover the cost that incurred. Due to the severe weather, backup suppliers were unable to ship. -Supplies were received 3 weeks later.

RISK 3
12 Internal Expert Judgment Unavailable Mitigation: negotiate with the Consultant Trigger: machinery does not arrive as scheduled

Probability: Active

Risk Owner: Angelica Casarez

MITIGATION
Negotiation: Extra Payment to the consultant for compensation for time needed. Consultant Constraints: Required expert judgment is needed in 4 weeks. Cost: $25,000 Allotted Time: 3 weeks

Infrastructure completion time: 2 weeks

Week 1 Planned Value: $550,000 Week 2 Planned Value: $610,000 Contingency Planned Value: $635,000 Time: 1 week

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THANK YOU
This concludes our presentation

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Angelica Casarez Teria Edwards Tamika Roland Christian Gonzalez

http://internationalelements.weebly.com/

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1.

http://www.herbertsmith.com/NR/rdonlyres/427381DC-A885-4330-B00741626773D38B/0/InvestinginFrance.pdf

2.

http://www.invest-in-france.org/Medias/Publications/862/doing-business-in-france-may2010_en.pdf

3.

http://www.globaltrade.net/international-trade-importexports/f/business/France/Investing.html

4.

http://www.invest-in-france.org/Medias/Publications/186/Corporate_Brochure_IFA.pdf http://www.bs15000.org.uk/
Goetsch, David L., Stanley Davis, and David L. Goetsch. Quality Management: Introduction to Total Quality Management for Production, Processing, and Services. Upper Saddle River, NJ: Pearson Prentice Hall, 2006.

5.

6.