Risk Status Report and Paper

Question :

The Quick Drop 100 transition team has met to identify project risks, explore contingency plans, and assign owners to watch for symptoms and address the risks. The team surfaced the following information:

1. Julie is scheduled for a one week vacation during month three of the project.

2. The supplier of a common set of hand tools for the manufacturing floor notified the Roto Air Purchasing department that the tools will not be available until one month after manufacturing is scheduled to start. Alternative suppliers are available.

3. The Human Resources department has indicated that despite their best recruiting efforts the two openings for skilled welders have resulted in no qualified local applicants.

4. The manufacturer of the custom-built rotor forming machine now expects to be one month past the last acceptable date for installing the machine. No other suppliers exist for this item.

5. Roto Air uses a Just In Time (JIT) delivery system for major components used at the Florida plant. Hurricane season often interrupts or delays deliveries during one of the scheduled months of the project.

Answer :

Part1: Status Report

1. Julie one week vacation can be classified as high risk because it will directly affect the outcomes of the project. During the three month of the project, it requires enough attention and proper management so that the project can be completed effectively and efficiently. One week vacation may affect the efficiency as well as effectiveness of the project hence; it is classified as high risk for the project in hand. 

2. Unavailability of the supplier of a common set of hand tools can be classified as low risk because there are alternative suppliers available in the market who can supply a common set of hand tools. However, it is important to test the quality of the common set of hand tools before using it. 

3. No local applicants for skilled welders can be classified into medium risk for the project because recruiting and selecting national or international skilled welders may take more time that may delay the delivery of the project. It may also cost more to the organization. Local welders have more knowledge and experience working in the given condition that may also improve the efficiency and effectiveness. 

4. There are no other suppliers of the custom-built rotor forming machine hence it can be classified as high risk because it can severely affect the project. The organization needs to find out substitute product or international suppliers who can supply the same product. But it very tough and cost and time consuming. 

Part2: Report

Introduction 

This paper has been developed to review the risk associated with a project and its impact on the project. This paper focuses on identifying the strategies that could be used to lessen the impact of identified risk. It is essential to identify the risk associated with the project so that effective strategies can be developed or formulated to mitigate the risk in order to improve and maintain the efficiency as well as the effectiveness of the project. Five risks have been identified by the team and these risks have been reviewed in order to come up with an action to reduce their impact on the project. Hence, in order to complete this paper, identified risks and their impact on the project have been discussed along with solutions to deal with the identified risks. 

Identified risks

The team has identified five major risks associated with the project which are as follows; 

1. Julie one week vacation

During month three of the project, Julie is scheduled for one week. It is classified as a high risk for the project considering its impact on the project. Julie one week vacation can significantly affect efficiency as well as the effectiveness of the project. For one week, Julie’s work will not be done that will hamper the progress of the project. It may also delay the delivery of the project along with affecting the quality of the project (Hopkin, 2018). Therefore, Julie one week vacation can be classified as high-risk for the project. 

2. Unavailability of the supplier of a common set of hand tools

The supplier has notified the manufacturing department of Roto Air that the common set of hand tools will not be available until one month after manufacturing is scheduled to start. It can also severely affect the efficiency of the project. The delivery of the project can be delayed. However, it has been classified as low-risk because alternative suppliers are available in the market who can supply the tools to the organization. The organization can seek a common set of hand tools from alternative suppliers that can avoid delays in the delivery of the project. However, the organization needs to test the quality of the product because it has not used the product of alternative suppliers (Hubbard, 2020). 

3. No local applicants for skilled welders 

Despite significant effort, the organization is not able to attract local skilled welders to apply for the opening. The organization is looking for local skilled welders for the project but there are no applicants. It has been classified as a medium risk because if the organization will not hire skilled welders, the delivery of the project will be delayed severely. Apart from this, the organization will have to go for either unskilled welder that is neither desirable nor a wise decision because it may also affect the project significantly. Moreover, the organization can also go for international skilled welders; which is a time taking process and requires more money (Aven, 2016). Thus, it will increase the overall cost of the organization along with the delay in the delivery of the project.

4. No other suppliers of the custom-built rotor forming machine 

There are no suppliers of the custom-built rotor forming machine that has been classified as high-risk for the project because if the custom-built rotor forming machine will not be available the project could be severely delayed. Without this machine, the project cannot be completed hence the organization should ensure the machine is readily available so that the project can be completed within the given deadline.

5. Interruption or delays in deliveries due to hurricane season 

It is also a major risk associated with the project. Hurricane season can significantly affect the delivery of the project. It has been classified as the medium risk for the project because the organization can deal with this risk with an effective and appropriate plan. However, in some cases, the hurricane can damage severely that is very tough to deal with. Therefore, there is a need to develop contingencies plan to deal with hurricane season and ensure effective and efficient delivery (Giannakis & Papadopoulos, 2016). 

Options to project manager to lessen the impact of the identified risks

It is important to take appropriate actions to mitigate or reduce the impact of identified risks on the project in order to ensure on-time completion and high quality. There are several options available to the project manager that can be used to deal with the identified risks. The project manager can accept the risk, avoid the risk, mitigate the risk, or transfer the risk based on the impact of the risk (Sadgrove, 2016). As the identified risks have been classified as high-risk, medium-risk, and low-risk the project manager can select the best option for each of the risks to mitigate their impact on the project. 

All five risks identified in this report can severely affect the outcomes of the project and it is not desirable to accept the risk. The project manager can also not avoid the risk as these risks can be managed effectively and efficiently. So, either the project manager can mitigate their impact or transfer the risk to the third person. Hence, the project manager can take the following actions to mitigate the impact of the identified risks so that the project can be completed on time effectively. 

In order to mitigate the impact of Julie one week vacation, the HR manager can identify the potential candidate within the organization who can assume the role of Julie and execute the responsibilities appropriately. It is the responsibility of the HR manager to identify the qualified and experienced candidate within the organization and assign the job of Julie for a week (Hegger et al., 2016). It will also help the organization to handle such a situation in the future effectively and efficiently.

The second risk that is the unavailability of the suppliers of the common set of hand tools can be easily handled. The project manager can ask the project executive to test the quality of the tools of alternative suppliers in the market and use that for time-being. But it is very important to ensure the quality of the tools in order to ensure the quality of the project. In order to mitigate the impact of this risk, the project executive is responsible.

There are no local applicants for skilled welders despite a great effort by the organization. This is a major risk as it may delay the delivery of the project. Hence, the project manager should ask the HR manager to look for national or international skilled welders to work on the project and complete it within the given timeframe (Duong et al., 2019). However, it may cost more to the organization. It may also take more time but it is necessary to ensure human resources to do the work.

There are no other suppliers of the custom-built rotor forming machine that is the biggest issue for the organization to complete the project. Without the custom-built rotor forming machine, it is almost impossible to complete the project (Meraner & Finger, 2019). Thus, the project manager should make sure that the custom-built rotor forming machine is available from day one of the scheduling of the project so that the project can be completed within the given timeframe. The project manager can identify the substitute of it or international suppliers who can supply the custom-built rotor forming machine.

Interruption or delays in delivery due to hurricane season can also affect the project significantly hence the project manager needs to come up with a contingency plan to ensure smooth delivery of the project on time. The project manager should develop a better plan to ensure efficient and effective delivery without being affected by the hurricane season. 

Conclusion

Risk management is necessary for the effective and efficient delivery of the project. Almost every project is affected by some kinds of risk hence the project manager needs to conduct risk analysis assessment in order to identify the associated risk with the project and take appropriate actions to mitigate the impact of the identified risk.

References 

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.

Duong, T. T., Brewer, T., Luck, J., & Zander, K. (2019). A global review of farmers’ perceptions of agricultural risks and risk management strategies. Agriculture, 9(1), 10.

Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.

Hegger, D. L., Driessen, P. P., Wiering, M., Van Rijswick, H. F., Kundzewicz, Z. W., Matczak, P., ... & Larrue, C. (2016). Toward more flood resilience: Is a diversification of flood risk management strategies the way forward?. Ecology and Society, 21(4).

Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Hubbard, D. W. (2020). The failure of risk management: Why it's broken and how to fix it. John Wiley & Sons.

Meraner, M., & Finger, R. (2019). Risk perceptions, preferences and management strategies: evidence from a case study using German livestock farmers. Journal of Risk Research, 22(1), 110-135.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.