The Positional Risks in ACME Development Corporation ADC Project - Case Study Example

Running head: Group 3 Group Project Affiliation December 2008 This paper will discuss the risk responses against the identified risks in the ACME Development Corporation (ADC) project of software purchase. I will present the risk response and the Weighted Scorecard regarding the list of functional requirements for a scheduling tool that is needed to purchase for ADC. ACME Development Corporation (ADC) wants to buy the scheduling tool from any software company. Our aim is to identify the positional risks and the response to those risks for neutralizing them. For this purpose we have to plan and manage the project in such a way that our actions and responses are according to particular method and technique. So according to this argument we will use risk management plan to tackle all risks those are associated to ACME Development Corporation (ADC) project. We first identify the potential risks then response to those risks and then we have also developed Weighted Scorecard list of functional requirements for a scheduling tool you need to purchase for ADC. Here in this section I will present the finalized risk responses portion of the Risk Template. Here I will try to respond these risks in such a way that there is minimum risk during the project. It will facilitate in the smooth project development and less risk of project failure. RISK TEMPLATE: Risk item Likelihood Probability of occurrence Assumptions Response Project Scope of Work -Not clear, realistic, and complete with detailed responsibilities and acceptance criteria. 63 The nature of IT projects is that they seldom make schedule or budget goals. An incomplete or inaccurate SOW can really impact a projects schedule and costs through scope creep. Define the clear scope by the consultation to all project designers Human Resources - unreliable, not at required skill level, unavailable, unable to support the project for expected duration. 43 This a specialized SW application, there is not a large pool of qualified or trained resources to load and configure. We have to establish better recruitment plans Product - Does this implementation require any custom work that has not been proven or tested before? 38 ADC may require some special configurations to integrate with legacy systems and provide special user functionality. We have to adopt new ways of doing business and have to introduce new and affective technology for our working. Operations -Will the planned training and knowledge transfer be effective enough to support the new tool once it is live? 20 Depends on how complex the user interface is with the new SW application. PMs have not used such an application before so may take a bit more time to adap Have better requirements analysis Contracts - Do the project procurement contracts meet the needs of the project, schedule, cost and quality? 59 ADC is contracting many services for this project. If they are not accurate and detailed the services may not meet project expectations. Adopt the PMI PMBOK established standers for the procurement and contracts Contracts - Are the procurement contracts with proven, reliable, quality vendors? 40 ADC is not in the business of using IT services regularly so have not established solid reputations of the vendors or really know their experience levels on this type of upgrade. Follow all the slandered steps issued by the PMI PMBOK Product - Is the SW release an already proven application with all bugs worked out? 20 SW vendor is providing updates on release versions of the SW and all indications are it is stable and fully operational. implement the effete development design Engineering - Are there any interoperability issues with the new application? 44 Although bench tested and deployed to other customers SW has never been integrated with currentl ADC legacy systems. Comprehensive requirement analysis will provided the answer to these questions. Schedule - Does the proposed schedule contain any compressed intervals? 21 If there are any activities requiring a compressed interval to complete it could lead to additional cost and by possibly rushing quality could be impacted. The Schedule must the handled by some reputed scheduling software application like MS Project Logistics - Will the SW be onsite to start installation? 4 Unplanned for delays of the SW being delivered can impact the schedule slightly. Apply Integrated logistic approach for the management of the overall process Logistics - Will the new server be onsite to start installation? 4 Unplanned for delays of the HW being delivered can impact the schedule slightly. Better planning and server venders relationships will help in this scenario Resources - Are the hired contractors reliable, qualified and experienced to perform the installation? 27 In the contracting world there is much sub-contracting done, hence your really never sure of the quality of the resources that show up for a job. Selection of the human power (workforce) should be according to need of project Documentation - Is the installation and integration plan proven and accurate? 23 With any new application you can expect some documentation issues as far as accuracy or user friendly For this we have to document the each activity and share to all project team, so that they can have more better view of the project progress. Resources - Are the resources hired that start the project able to complete the project and be available longer if needed 20 You can loose valuable project and knowledge continuity if key people are changed out mid-stream of a project. Better and effect cost plan can manage such risks Product - The new server is DOA upon arrival. 5 There is a chance that HW sometimes arrives onsite deffective. Better and effect cost plan can manage such risks Schedule - Does the project schedule include many holidays causing lost work hours that may impact project completion? 16 Have a project that spans over many holidays can reduce available work hours to complete a project. A little time is also often required to get back up to speed after a long break. We have establish well suited time line and the strict obligations for its fulfillment Site Readiness - Is the install site properly engineered? 5 The new server should have a desginated spot for it normally shown in an approved floorplan. Site Readiness - Does the install site have the necessary power and ethernet connectivity? 12 The server may show up on time but if there are no identified and engineered power or LAN connections available this can cause a significant impact. Facilitate the PM team and provide them the maximum resources to mange there activities. Engineering - Does the network design contain all the required configuration information i.e. IP addresses? 23 There is always risk of IP addres conflicts. His can cause major network outages. Hire some well reputed network implementation teams. Schedule - Does the project schedule overlap any possible bad weather possibilities that may impact the schedule? 19 The project will run into the winter months. We have establish well suited time line and the strict obligations for its fulfillment Finance - Has the project budget been fully funded and funds available and committed to the project? 36 In serious bad economic times, this project is not mandatory to still operate and may be cancelled anytime. Better and effective cost plan never results in cost overrun. So need for the best quality cost plan. Finance - Does the project budget accurately reflect the projected project costs? 17 Sometimes costing is inaccurate or based on too optimistic scenarios and sets up a project to fail in meeting budget requirements. Better and effective cost plan never results in cost overrun. So need for the best quality cost plan. Resources - Will the Project Managers have available time for training while managing their projects? 48 PMs are extremely busy and overtasked with ongoing projects. It will also be difficult to get large groups of them free at one time for training. Design is backup of each project section so we have to establish more enhanced and quality design and can able to complete the project more effectively Operations - Will the IT operations team have the necessary skills to support the scheduling tool application once it goes live? 37 I do not see anything in our scope to indicate any training for actual application support. Selection of the human power (workforce) should be according to need of project Compliance with acquisition laws (Internal) 5 Acquisition laws are clear and complied Establish strict organizational ethical policies Demand shortfall effect software purchase project 30 Market for housing is volatile Implement enhanced market policy to tackle the Demand shortfall problem Social barriers in the area 5 Resistance unlikely Social barriers are tackled through customer and vender friendly business policy Regulatory barriers 10 Laws are unambiguous Regulatory barriers can be resolved by establishing a well suited organizational ethical policy Increased intensity of competition in technology 20 Attractive industry invites high and unexpected competition We have enhance our credibility regarding market place and customer attraction Obsolescence in technology 5 Technology is not disruptive in housing industry We have to adopt new ways of doing business and have to introduce new and affective technology for our working. Specialist attrition (Internal) 15 Adequate talent pool is not available in the country We have to establish better recruitment plans Infrastructural risks (non availability of power, water, gas etc.) 5 Developed countries have abundant infrastructure Try to establish more backup plan so that in lack of one resource we can use the alternative Quality of Vendor’s product 5 Vendor selection is scientific We have select better vendors by the detailed analysis and vendor selection process Timely Delivery of project 5 Penalty for time overruns incorporated in the contract We have establish well suited time line and the strict obligations for its fulfillment Cost overrun in project 5 Protected in the contract Better and effective cost plan never results in cost overrun. So need for the best quality cost plan. Cost overrun – Operational costs (internal) 5 Wage negotiations are periodical. Selection of the human power (workforce) should be according to need of project Quality of design (Internal) 5 Adequate engineering strengths resident in the company Design is backbone of any project so we have to establish more enhanced and quality design Uncertainty of cash-flows during project implementation 25 Volatile economy Better and effect cost plan can manage such risks Terrorist attack 2 With improved security systems, the risk is low Establish fool proof security both for information and territory This risk plan addresses some major risk those are related to this project. According to my responsibility I have tried to address these in such a way that there is minimum risk at least during the project execution. The first risk factor I have covered is the project scope of work; I have provided the solution to this factor by having the clear scope by the consultation to all project designers. Then the second risk factor is Human resources: here we have to establish better recruitment plans. By this we can engage better and experienced human resource. The proceeding factor is software product related. Here I have suggested adopting new ways of doing business and to introduce new and affective technology for our working. This will enhance our company performance. Then I have got the risk factor regarding the Operations, here I have presented the suggestion to have better requirements analysis. This will present us a clear picture of operation that we have to do. The most important factor I have got is the contracts of this software purchase process. I have researched well on this factor and concluded to adopt the PMI PMBOK established standards for the procurement and contracts. This standardizes as well as provides a correct and guided way for the contract fulfillment. Then the next are the engineering risk factors. Here I have suggested to have a comprehensive requirement analysis will provide the answer to these questions. Because this solution will presents a clear picture of facts regarding what to do. Next we have tackled the Schedule and deadline meeting risks. We have established well suited time line and the strict obligations for its fulfillment. These will garnets for the successful completion of the task. Financial and cost related factors are always significant in all projects. In this project I have decided to have a better and effective cost plan never results in cost overrun, so need for the best quality cost plan. The main risk which we have to tackle is the obedience with acquisition laws. We have to establish such organization that completes compliance to the ethical behavior and ethical working. For resolving all these risks we have to set up such environment that has complete compliance to all ethical problems and issues. Organizational ethical behavior leads to better working environment and better decision making. So the need for the ethical behavior is the vital in each organization. Demand shortfall effect software purchase project can result because of the volatile nature of the housing market. Any period during which our business comes in disaster then such period can be a hazard for this project implementation. So we have to plan and reserve resources that any type of market ups and downs can not affect the progress of this project. Social barriers are the vital measurement of each business. We have to establish such policy that is friendly to our customers, vendors and as well as for our employs, because some social barriers can create danger for our business. We are also obligate to follow the Regulatory barriers. Few of them can be problematic for our project working. But we have to take such action and have to develop such policies that are supportive to the regulatory barriers. As the intensity of competition in technology increases we are required better and effective new technology for the working and the management of our business. It will facilitate us in a number of ways, our credibility improves, and we become able to fight our competitors. This software development is a step towards this development. Obsolescence in technology is also a main factor for this project. As housing business did not need some higher technology, but in this new age the better and effective technology is needed for the business management and planning. So we are about to achieve this goal of new technology in management. Specialist attrition is also a risk for our business and project. We have to establish some effective recruitment criteria for the engagement of the better and talented workforce. Infrastructural risks can count in this business, because we have to do business depending on these elements. By lacking infrastructural elements the business can have an effect on the performance and overall working. This can also effect the development of software project. So we have to establish such policies and actions that can mediate these risks. The main risk is the quality of vendor’s product that they will deliver to us. We have to take some corrective action to establish such ways that can assist us in the development of this project. The vender selection, product quality and contracting are the issues that we need to address to resolve all the problems regarding the software quality. Timely delivery of project, cost overrun in project are factors that are mainly depended on the better planning and effective working on the cost and time scheduling. The enhanced and quality plan always leads to triumph in the project. So we also have to do some thing in this scenario to carry out better working plan. There is always risk present to the security of the information and infrastructure of the organization. These points also count during the risk mediation. We have to implement some corrective actions and polices so save and enhance to security of our organizational information. WEIGHTED SCOREBOARD Now I will discuss the weighted scoreboard that lists the functional requirements for a scheduling tool we need to purchase for ADC. There are two things in this weighted scoreboard: weights and Scores. Score: Score will help us in choosing whether the product meets the confirmed requirement as they evaluate the product. Weights: The weights help us in deciding the impertinence each functional requirement to the companys on the whole business processes, policies, and procedures. For this paper I have got the weights and I will now add the scores. Our team members and few other members are gathered. I have distributed the empty project functional requirement form and asked the members to give point to each requirement as viewing and deciding whether the product meets the stated requirement as they evaluate the product. There are five members in both weight allocations so I have also involved the five members’ team. I will use the stack of scorecards for each product, one from each member of the evaluation team. I will give this stack to the weights team. They will transfer the scores from the paper scorecards to the spreadsheet template. They then apply the weights (score x weight) to create the weighted scores and calculate a total for each scorecard (the sum of all weighted scores). I have five people on our evaluation team; I will have five totals for each product on our short list. Average the seven totals to obtain the products final score. WEIGHTED SCOREBOARD LIST OF FUNCTIONAL REQUIREMENTS FOR A SCHEDULING TOOL Functional Requirements Weight Score Weight*Score display and update project plan schedule 5 4 20 display and update planned work breakdown structure (WBS) 4 5 20 display and update project resources assigned to project 5 4 20 display and track materials shipping status 5 5 25 display key contacts for each project and contact information 3 4 12 able to set up and track on a per project basis 5 4 20 able to set key milestone dates that trigger automated alerts 5 5 25 auto alert system to trigger notifications to PM when dependencies are not met as pre-established 3 3 9 generate immediate notifications to PM on material shortages and est recovery dates 4 4 16 generic and flexible to later integrate in financial and procurement system SW 5 5 25 display dashboard type display of key project schedule indicators 4 4 16 able to set and establish performance metrics to capture key schedule performance indicators data 4 5 20 PM user friendly, easy to understand input requirements 5 4 20 input, display and manage project scheduling risks 4 4 16 users able to access remotely via web based or remote client application on desktop 5 5 25 the tool support multiple users accessing it at the same time no limitations 5 4 20 Now I will give the explanation of these scores. The first point is regarding the display and update project plan schedule. Here our analyst team understands its effectiveness and marked it to more score points because this factor is more impotent then lot of others. Next I have display and update planned work breakdown structure (WBS). Here this factor is more significant factor and also marked to some bigger numbers. The proceeding factor is regarding the display and update project resources assigned to project. The functional requirement, we can say have more priority to lot of others, because this display will expose the possible resources available. Then we have track materials shipping status. We have to mange this factor more than all, for this reason it have marked 25 the max points. The all members that are responsible for the marking of these factors have a positive understanding of all factors that the project needs for the successful completion of the project, so we can see the score distribution in a very efficient way. Then we got a less significant factor that is key contacts for each project and contact information. We have to purchase the software and related equipment, for this purpose we will contract with other companies; here we need to follow the standard guidelines so that we can have successful project completion. Then we have point regarding the capability to set up and track on per project basis footer. This factor is also an important point and for this reason got good points. The process of setting key milestone dates that triggers automated alerts, here this point needs more concentration and for this reason this factor got good score regarding its significance. Next point is the interoperability of the tool. We need such tool that must be operational with existing as well as new technology. This called the interoperability factor. We have to analyze this factor more critically to visualize the better working of the software in all environments. This point is also significant so this also got big secure. The basic motive behind this project development is to have an automated and standard working background. Generation of resource requirement, allocation based on constraints and leveling during the project, so we have to see the project development and its consequential effects to streamline our practice to have such facilities, this was also an impotent activity and all contributors have taken it seriously to give points. After the implementation of the system the main functional requirement is the facility to the users to access remotely via web based or remote client application on desktop. This is also a significant part of the overall functional requirements. So this factor also got good points. Next we have the tool support multiple users accessing it at the same time no limitations. This factor demands more reliability form the implementation points of view. We need more efficiency for the working after the implementation of software, so this also an important requirement that got good scores. After having these score I have calculated the weighted score product that shows the application features are most important to a business. Conclusion I have completed the risk responses portion of the risk template and the score portion of the Weighted Scorecard. Here I have to concentrate on the score and point allocation, because this is significant activity in the project development. I have tried to complete and mark the points according to the significance of the project factor, risk factor and requirement. I hope that the points that I have raised will facilitate in the successful completion the overall project. References 1. Retrieved on December 13, 2008. Retrieved from: http://faculty.fuqua.duke.edu/daweb/lexicon.htm 2. Retrieved on December 13, 2008. Retrieved from: http://www.mazur.net/works/svctaskqfd.pdf 3. Retrieved on December 13, 2008. Retrieved from: http://www.developer.com/mgmt/article.php/1488331 4. Retrieved on December 13, 2008. Retrieved from: http:/www.pmi.org 5. Retrieved on December 13, 2008. Retrieved from: http://www.elsevier.com/wps/find/journaldescription.cws_home/30435/description#description 6. Retrieved on December 13, 2008. Retrieved from: http://www.projectmanager.com 7. Retrieved on December 13, 2008. Retrieved from: http://mycampus.ctuonline.edu/courses/MPM665/P3/MPM665_p3ar.pdf Read More