Planning for Unknowns - Essay Example

PLANNING FOR UNKNOWNS (Project Management Options) ID number: of Human Resources of University (affiliation)Location of University:Date of Submission: February 09, 2014Estimated Word Count = 322 (text only)Planning for UnknownsEvery project that is of a certain magnitude will always entail some type of risks which are usually its cost overruns, project delays, resources become scarce or unavailable, workers get sick or suddenly quit without reason, and even the weather cause throw it off schedule.

All these risks can be mitigated through careful planning and analysis by looking at potential problems on how they are likely to occur (a probability of it happening) and its possible impact (how serious its negative consequences will be on the entire project). Any probability or chance of variability from what is planned is considered a risk and there are three general kinds of risks:a. Known “known” risks – these are risks identified already (full information available)b. Known “unknown” risks – risks known but not a project reality (partial information)c.

Unknown “unknowns” - risks overlooked by project managers (total no information)In this case where a major hurricane hit the work site, then it is a good case of unknown “unknowns” which nobody may have foreseen (or complete uncertainty) and the best way to be able to deal with this type of risk is setting up a contingency budget (Futrell, Shafer, & Shafer, 2002, p. 591). So if this contingency fund is available, then the strategy would be different. A contingency reserve budget will allow for greater flexibility.

The plan will be to hire additional workers to beef up the manpower and allow continuously working even at nights so as to make up for the lost time of ten days. This allows for project completion on the original due date but there will be cost overruns because of added manpower but the target date will be met. The reserve budget can pay for the additional workers to accomplish more work output and also pay for extended working time by effectively doubling it by working even at night time.ReferenceFutrell, R. T., Shafer, D. F., & Shafer, L. I. (2002).

Quality software project management. Upper Saddle River, NJ, USA: Prentice Hall Professional.