Develop the risk management plan.

| December 3, 2015
  1. Week Four:

 

  1. Develop the risk management plan.

 

1)     Identify at least five specific risks that are applicable to the Riordan project.

2)     Create a risk assessment matrix table in Microsoft® Word. For each risk identified

 

  1. a) quantify the likelihood and probability of the risk occurring.
  2. b) identify the effect of the risk.
  3. c) provide an overall risk assessment score.
  4. d) estimate when the risk could occur.
  5. e) explain how you would mitigate each risk.

 

  1. Develop the change control management plan.

 

3)     Describe how changes to the project scope, timeline, and budget for the Riordan project will be requested, reviewed, approved, reported, and communicated.

4)     Identify who will be responsible for managing the change control process, reviewing and approving the change requests, and communicating the approved changes to project stakeholders.

 

5)     Explain the role of change control management and discuss how changes to the project schedule and project budget will be managed.

 

 

Attachments:

 

 

 

 

<Project Name>

Risk Management Plan

Version <1.0>

<mm/dd/yyyy>

 

 

VERSION HISTORY

[Provide information on how the development and distribution of the Risk Management Plan up to the final point of approval was controlled and tracked.  Use the table below to provide the version number, the author implementing the version, the date of the version, the name of the person approving the version, the date that particular version was approved, and a brief description of the reason for creating the revised version.]

Version # Implemented

By

Revision

Date

Approved

By

Approval

Date

Reason
1.0 <Author name> <mm/dd/yy> <name> <mm/dd/yy> Initial Risk Management Plan draft
1.1 <Author name> <mm/dd/yy> <name> <mm/dd/yy> <reason>
           
           
           
           

UP Template Version: 11/30/06

 

Note to the Author

 

[This document is a template of a Risk Management Plan document for a project. The template includes instructions to the author, boilerplate text, and fields that should be replaced with the values specific to the project.

 

  • Blue italicized text enclosed in square brackets ([text]) provides instructions to the document author, or describes the intent, assumptions and context for content included in this document.

 

  • Blue italicized text enclosed in angle brackets (<text>) indicates a field that should be replaced with information specific to a particular project.

 

  • Text and tables in black are provided as boilerplate examples of wording and formats that may be used or modified as appropriate to a specific project. These are offered only as suggestions to assist in developing project documents; they are not mandatory formats.

 

When using this template for your project document, it is recommended that you follow these steps:

  1. Replace all text enclosed in angle brackets (i.e., <Project Name>) with the correct field values. These angle brackets appear in both the body of the document and in headers and footers. To customize fields in Microsoft Word (which display a gray background when selected):
    1. Select File>Properties>Summary and fill in the Title field with the Document Name and the Subject field with the Project Name.
    2. Select File>Properties>Custom and fill in the Last Modified, Status, and Version fields with the appropriate information for this document.
    3. After you click OK to close the dialog box, update the fields throughout the document with these values by selecting Edit>Select All (or Ctrl-A) and pressing F9. Or you can update an individual field by clicking on it and pressing F9. This must be done separately for Headers and Footers.
  2. Modify boilerplate text as appropriate to the specific project.
  3. To add any new sections to the document, ensure that the appropriate header and body text styles are maintained. Styles used for the Section Headings are Heading 1, Heading 2 and Heading 3.  Style used for boilerplate text is Body Text.
  4. To update the Table of Contents, right-click and select “Update field” and choose the option- “Update entire table”
  5. Before submission of the first draft of this document, delete this “Notes to the Author” page and all instructions to the author, which appear throughout the document as blue italicized text enclosed in square brackets.]

 

TABLE OF CONTENTS

 

1   INTRODUCTION.. 1

1.1         Purpose Of The Risk Management Plan. 1

2   risk management Procedure.. 1

2.1         Process. 1

2.2         Risk Identification. 1

2.3         Risk Analysis. 1

2.3.1    Qualitative Risk Analysis. 1

2.3.2    Quantitative Risk Analysis. 2

2.4         Risk Response Planning. 2

2.5         Risk Monitoring, Controlling, And Reporting. 2

3   Tools And Practices. 2

risk management plan approval.. 3

APPENDIX A: REFERENCES. 4

APPENDIX B:  KEY TERMS. 5


1          INTRODUCTION

1.1         Purpose Of The Risk Management Plan

[Provide the purpose of the Risk Management Plan.]

A risk is an event or condition that, if it occurs, could have a positive or negative effect on a project’s objectives. Risk Management is the process of identifying, assessing, responding to, monitoring, and reporting risks. This Risk Management Plan defines how risks associated with the <Project Name> project will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored throughout the lifecycle of the project and provides templates and practices for recording and prioritizing risks.

The Risk Management Plan is created by the project manager in the Planning Phase of the CDC Unified Process and is monitored and updated throughout the project.

The intended audience of this document is the project team, project sponsor and management.

2          risk management Procedure

2.1         Process

[Summarize the steps necessary for responding to project risk.] 

The project manager working with the project team and project sponsors will ensure that risks are actively identified, analyzed, and managed throughout the life of the project.  Risks will be identified as early as possible in the project so as to minimize their impact.  The steps for accomplishing this are outlined in the following sections.  The <project manager or other designee> will serve as the Risk Manager for this project.

2.2         Risk Identification

Risk identification will involve the project team, appropriate stakeholders, and will include an evaluation of environmental factors, organizational culture and the project management plan including the project scope.  Careful attention will be given to the project deliverables, assumptions, constraints, WBS, cost/effort estimates, resource plan, and other key project documents.

A Risk Management Log will be generated and updated as needed and will be stored electronically in the project library located at <file location>.

2.3         Risk Analysis

All risks identified will be assessed to identify the range of possible project outcomes.  Qualification will be used to determine which risks are the top risks to pursue and respond to and which risks can be ignored.

2.3.1        Qualitative Risk Analysis

The probability and impact of occurrence for each identified risk will be assessed by the project manager, with input from the project team using the following approach:

 

Probability

  • High – Greater than <70%> probability of occurrence
  • Medium – Between <30%> and <70%> probability of occurrence
  • Low – Below <30%> probability of occurrence

 

Impact

Impact H      
M      
L      
  L M H
  Probability
  • High – Risk that has the potential to greatly impact project cost, project schedule or performance
  • Medium – Risk that has the potential to slightly impact project cost, project schedule or performance
  • Low – Risk that has relatively little impact on cost, schedule or performance

Risks that fall within the RED and YELLOW zones will have risk response planning which may include both a risk mitigation and a risk contingency plan.

2.3.2        Quantitative Risk Analysis

Analysis of risk events that have been prioritized using the qualitative risk analysis process and their affect on project activities will be estimated, a numerical rating applied to each risk based on this analysis, and then documented in this section of the risk management plan.

2.4         Risk Response Planning

Each major risk (those falling in the Red & Yellow zones) will be assigned to a project team member for monitoring purposes to ensure that the risk will not “fall through the cracks”.

For each major risk, one of the following approaches will be selected to address it:

  • Avoid – eliminate the threat by eliminating the cause
  • Mitigate – Identify ways to reduce the probability or the impact of the risk
  • Accept – Nothing will be done
  • Transfer – Make another party responsible for the risk (buy insurance, outsourcing, etc.)

For each risk that will be mitigated, the project team will identify ways to prevent the risk from occurring or reduce its impact or probability of occurring.  This may include prototyping, adding tasks to the project schedule, adding resources, etc.

For each major risk that is to be mitigated or that is accepted, a course of action will be outlined for the event that the risk does materialize in order to minimize its impact.

2.5         Risk Monitoring, Controlling, And Reporting

The level of risk on a project will be tracked, monitored and reported throughout the project lifecycle.

A “Top 10 Risk List” will be maintained by the project team and will be reported as a component of the project status reporting process for this project.

All project change requests will be analyzed for their possible impact to the project risks.

Management will be notified of important changes to risk status as a component to the Executive Project Status Report.

3          Tools And Practices

A Risk Log will be maintained by the project manager and will be reviewed as a standing agenda item for project team meetings.
risk management plan approval

The undersigned acknowledge they have reviewed the Risk Management Plan for the <Project Name> project.  Changes to this Risk Management Plan will be coordinated with and approved by the undersigned or their designated representatives.

[List the individuals whose signatures are desired.  Examples of such individuals are Business Steward, Project Manager or Project Sponsor.  Add additional lines for signature as necessary. Although signatures are desired, they are not always required to move forward with the practices outlined within this document.]

Signature:   Date:  
Print Name:      
Title:      
Role:      

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 


APPENDIX A: REFERENCES

[Insert the name, version number, description, and physical location of any documents referenced in this document.  Add rows to the table as necessary.]

The following table summarizes the documents referenced in this document.

Document Name and Version Description Location
<Document Name and Version Number> [Provide description of the document] <URL or Network path where document is located>

 


APPENDIX B:  KEY TERMS

[Insert terms and definitions used in this document.  Add rows to the table as necessary. Follow the link below to for definitions of project management terms and acronyms used in this and other documents.

http://www2.cdc.gov/cdcup/library/other/help.htm

The following table provides definitions for terms relevant to the Risk Management Plan.

Term Definition
[Insert Term] [Provide definition of the term used in this document.]
[Insert Term] [Provide definition of the term used in this document.]
[Insert Term] [Provide definition of the term used in this document.]

 

 

 

 

 

<Project Name>

Risk Management Plan

Version Number: 1.0

Version Date: <mm/dd/yyyy>

 

 

 

Notes to the Author

[This document is a template of a Risk Management Plan document for a project. The template includes instructions to the author, boilerplate text, and fields that should be replaced with the values specific to the project.

  • Blue italicized text enclosed in square brackets ([text]) provides instructions to the document author, or describes the intent, assumptions and context for content included in this document.
  • Blue italicized text enclosed in angle brackets (<text>) indicates a field that should be replaced with information specific to a particular project.
  • Text and tables in black are provided as boilerplate examples of wording and formats that may be used or modified as appropriate to a specific project. These are offered only as suggestions to assist in developing project documents; they are not mandatory formats.

 

When using this template, the following steps are recommended:

  1. Replace all text enclosed in angle brackets (e.g., <Project Name>) with the correct field document values. These angle brackets appear in both the body of the document and in headers and footers. To customize fields in Microsoft Word (which display a gray background when selected) select File->Properties->Summary and fill in the appropriate fields within the Summary and Custom tabs.

After clicking OK to close the dialog box, update all fields throughout the document selecting Edit>Select All (or Ctrl-A) and pressing F9. Or you can update each field individually by clicking on it and pressing F9.

These actions must be done separately for any fields contained with the document’s Header and Footer.

  1. Modify boilerplate text as appropriate for the specific project.
  2. To add any new sections to the document, ensure that the appropriate header and body text styles are maintained. Styles used for the Section Headings are Heading 1, Heading 2 and Heading 3. Style used for boilerplate text is Body Text.
  3. To update the Table of Contents, right-click on it and select “Update field” and choose the option – “Update entire table”.
  4. Before submission of the first draft of this document, delete this instruction section “Notes to the Author” and all instructions to the author throughout the entire document.


VERSION HISTORY

[Provide information on how the development and distribution of the Risk Management Plan will be controlled and tracked. Use the table below to provide the version number, the author implementing the version, the date of the version, the name of the person approving the version, the date that particular version was approved, and a brief description of the reason for creating the revised version.]

Version
Number
Implemented

By

Revision

Date

Approved

By

Approval

Date

Description of
Change
1.0 <Author name> <mm/dd/yyyy> <name> <mm/dd/yy> <description of change>
           
           

 


TABLE OF CONTENTS

1.0       INTRODUCTION.. 4

1.1         Purpose Of The Risk Management Plan. 4

2.0       risk management Procedure.. 4

2.1         Process. 4

2.2         ROLES AND RESPONSIBILITIES. 4

2.3         Risk Identification. 5

2.3.1    Methods for Risk Identification. 5

2.4         Risk Analysis. 6

2.4.1    Qualitative Risk Analysis. 6

2.4.2    Quantitative Risk Analysis. 6

2.5         Risk Response Planning. 6

2.6         Risk Monitoring, Controlling, And Reporting. 7

2.7         Risk Contingency Budgeting. 8

3.0       Tools And Practices.. 8

4.0       Closing a Risk.. 8

5.0       Lessons Learned.. 9

Appendix A: Risk Management Plan Approval.. 10

APPENDIX B: REFERENCES. 11

APPENDIX C: KEY TERMS. 12


1.0 INTRODUCTION

1.1    Purpose Of The Risk Management Plan

A risk is an event or condition that, if it occurs, could have a positive or negative effect on a project’s objectives. Risk Management is the process of identifying, assessing, responding to, monitoring and controlling, and reporting risks. This Risk Management Plan defines how risks associated with the <Project Name> project will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored throughout the lifecycle of the project and provides templates and practices for recording and prioritizing risks by the Risk Manager and/or Risk Management Team.

 

Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems. IT system or application weaknesses must be identified on an associated plan of action and milestones (POA&M) and tracked in accordance with HHS POA&M guidelines. Appropriate protective measures must be taken to safeguard sensitive IT system or application weaknesses or vulnerabilities from unauthorized disclosure.

 

2.0 risk management Procedure

2.1    Process

[Summarize the steps necessary for responding to project risk.

The project manager working with the project team and project sponsors will ensure that risks are actively identified, analyzed, and managed throughout the life of the project.  Risks will be identified as early as possible in the project so as to minimize their impact.  The steps for accomplishing this are outlined in the following sections.  The <project manager or other designee> will serve as the Risk Manager for this project.

 

A distinction may need to be made between overall project risk management and IT system or application risk management. Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems.

 

2.2    ROLES AND RESPONSIBILITIES

 

Role Responsibilities
Business SME  (BSME) The BSME assists in identifying and determining the context, consequence, impact, timing, and priority of the risk.
Risk Manager or Project Manager (PM) The Risk Manager or PM is a member of the Integrated Project Team (IPT).  The Risk Manager or PM determines if the Risk is unique, identifies risk interdependencies across projects, verifies if risk is internal or external to project, assigns risk classification and tracking number.  During the life of the project, they continually monitor the projects for potential risks.
Integrated Project Team The IPT is responsible for identifying the risks, the dependencies of the risk within the project, the context and consequence of the risk.  They are also responsible for determining the impact, timing, and priority of the risk as well as formulating the risk statements.
Risk Owner(s) The risk owner determines which risks require mitigation and contingency plans, he/she generates the risk mitigation and contingency strategies and performs a cost benefit analysis of the proposed strategies.  The risk owner is responsible for monitoring and controlling and updating the status of the risk throughout the project lifecycle.  The risk owner can be a member of the project team.
Other Key Stakeholders The other stakeholders assist in identifying and determining the context, consequence, impact, timing, and priority of the risk.

2.3    Risk Identification

Risk identification will involve the project team, appropriate stakeholders,  and will include an evaluation of environmental factors, organizational culture and the project management plan including the project scope, schedule, cost, or quality.  Careful attention will be given to the project deliverables, assumptions, constraints, WBS, cost/effort estimates, resource plan, and other key project documents.

 

2.3.1 Methods for Risk Identification

The following methods will be used to assist in the identification of risks associated with <Project Name>:

  • Brainstorming
  • Interviewing
  • SWOT (Strengths, Weaknesses, Opportunities and Threats)
  • Diagramming

 

A Risk Management Log will be generated and updated as needed and will be stored electronically in the project library located at <file location>.

2.4    Risk Analysis

All risks identified will be assessed to identify the range of possible project outcomes.  Risks will be prioritized by their level of importance.

2.4.1   Qualitative Risk Analysis

The probability and impact of occurrence for each identified risk will be assessed by the project manager, with input from the project team using the following approach:

 

Probability

  • High – Greater than <70%> probability of occurrence
  • Medium – Between <30%> and <70%> probability of occurrence
  • Low – Below <30%> probability of occurrence

 

Impact

Impact H      
M      
L      
  L M H
  Probability
  • High – Risk that has the potential to greatly impact project cost, project schedule or performance
  • Medium – Risk that has the potential to slightly impact project cost, project schedule or performance
  • Low – Risk that has relatively little impact on cost, schedule or performance

Risks that fall within the RED and YELLOW zones will have risk response plan which may include both a risk response strategy and a risk contingency plan.

2.4.2   Quantitative Risk Analysis

Analysis of risk events that have been prioritized using the qualitative risk analysis process and their affect on project activities will be estimated, a numerical rating is applied to each risk based on quantitative analysis, and then documented in this section of the risk management plan.

2.5    Risk Response Planning

Each major risk (those falling in the Red & Yellow zones) will be assigned to a risk owner for monitoring and controlling purposes to ensure that the risk will not “fall through the cracks”.

 

For each major risk, one of the following approaches will be selected to address it:

  • Avoid – Eliminate the threat or condition or to protect the project objectives from its impact by eliminating the cause
  • Mitigate – Identify ways to reduce the probability or the impact of the risk
  • Accept – Nothing will be done
  • Contingency –Define actions to be taken in response to risks
  • Transfer – Shift the consequence of a risk to a third party together with ownership of the response by making another party responsible for the risk (buy insurance, outsourcing, etc.)

 

For each risk that will be mitigated, the project team will identify ways to prevent the risk from occurring or reduce its impact or probability of occurring.  This may include prototyping, adding tasks to the project schedule, adding resources, etc.  Any secondary risks that result from risk mitigation response will be documented and follow the risk management protocol as the primary risks.

 

For each major risk that is to be mitigated or that is accepted, a course of action will be outlined in the event that the risk does materialize in order to minimize its impact.

2.6    Risk Monitoring, Controlling, And Reporting

The level of risk on a project will be tracked, monitored and controlled and reported throughout the project lifecycle.  [Describe the methods and metrics that will be used to track the project’s risk status throughout the lifecycle as well as how this status will be reported to the stakeholders/ management.]

 

Risks will be assigned a risk owner(s) who will track, monitor and control and report on the status and effectiveness of each risk response action to the Project Manager and Risk Management Team on a <insert timeframe>.

 

A “Top 10 Risk List” will be maintained by the PM/Risk Manager or IPT and will be reported as a component of the project status reporting process for this project.

 

All project change requests will be analyzed for their possible impact to the project risks.

 

As Risk Events occur, the list will be re-prioritized during weekly reviews and risk management plan will reflect any and all changes to the risk lists including secondary and residual risks.

 

Management will be notified of important changes to risk status as a component to the Executive Project Status Report.  [State timeframe, i.e., every two weeks]

 

The Risk Manager (PM) will:

  • Review, reevaluate, and modify the probability and impact for each risk item [timeframe, as needed, every two weeks, etc.]
  • Analyze any new risks that are identified and add these items to the risk list (or risk database).
  • Monitor and control risks that have been identified
  • Review and update the top ten risk list [timeframe, as needed, every two weeks, etc.]
  • Escalate issues/ problems to management [List factors that would need to be escalated to management. Examples: documented mitigation actions are not effective or producing the desired results; the overall level of risk is rising.]

The Risk Owner will:

  • Help develop the risk response and risk trigger and carry out the execution of the risk response, if a risk event occurs.
  • Participate in the review, re-evaluation, and modification of the probability and impact for each risk item on a weekly basis.
  • Identify and participate in the analysis of any new risks that occur.
  • Escalate issues/problems to PM that,
    • Significantly impact the projects triple constraint or trigger another risk event to occur.
    • Require action prior to the next weekly review
    • Risk strategy is not effective or productive causing the need to execute the contingency plan.

 

Risk activities will be recorded in the <Document Name/ Risk Database Name> located on <full network path location>.

2.7    Risk Contingency Budgeting

A risk contingency budget can be established to prepare in advance for the possibility that some risks will not be managed successfully. The risk contingency budget will contain funds that can be tapped so that your project doesn’t go over budget.

 

There is a total of <$X> in the <Project Name> Project budget allocated for Risk Management activities.  These activities may include, but are not limited to, identifying, analyzing, tracking, controlling, managing, and planning for risks.  This also includes creating and updating the risk response strategies and contingency plans.

[Above is only an example of text that could be used.  Enter whatever information is appropriate to outline/ define the budget associated with the Risk Management activities on the project.]

 

3.0 Tools And Practices

A Risk Management Log will be maintained by the project manager and will be reviewed as a standing agenda item for project team meetings.

Risk activities will be recorded in the <Document Name/ Risk Database Name> located on <full network path location>.

 

4.0 Closing a Risk

A risk will be considered closed when it meets the following criteria:

 

  • <List the criteria when a risk can be closed>
  • <Who has the authority to close a risk? >

Examples:

  • Risk is no longer valid
  • Risk Event has occurred
  • Risk is no longer considered a risk
  • Risk closure at the direction of the Project Manager

5.0 Lessons Learned

 

The lessons learned will be captured and recorded in the <Document Name/ Risk Database Name/Lessons Learned document or folder> located on <full network path location>.

 

 


Appendix A: Risk Management Plan Approval

The undersigned acknowledge that they have reviewed the <Project Name> Risk Management Plan and agree with the information presented within this document. Changes to this Risk Management Plan will be coordinated with, and approved by, the undersigned, or their designated representatives.

[List the individuals whose signatures are desired.  Examples of such individuals are Business Owner, Project Manager (if identified), and any appropriate stakeholders.  Add additional lines for signature as necessary.]

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 

Signature:   Date:  
Print Name:      
Title:      
Role:      

 


APPENDIX B: REFERENCES

[Insert the name, version number, description, and physical location of any documents referenced in this document.  Add rows to the table as necessary.]

The following table summarizes the documents referenced in this document.

Document Name Description Location
<Document Name and Version Number> <Document description> <URL or Network path where document is located>
     
     

 


APPENDIX C: KEY TERMS

The following table provides definitions and explanations for terms and acronyms relevant to the content presented within this document.

Term Definition
[Insert Term] <Provide definition of term and acronyms used in this document.>
   
   

 

 

 

 

 

 

 

 

Riordan Manufacturing Project Management Plan – China Move

Week 2 Preparation

PM 571 – Project Management

November 23, 2015

 

 

 

 

Table of Contents

  1. Executive Summary. 3
  2. Business Objectives. 3
  3. Project Description. 4
  4. Project Approach. 8
  5. Communication Plan. 8
  6. Project Charter. 10
  7. Authorizations. 12
  8. Scope Statement Approval Form/Signatures. 13

 

 

 

Scope Statement

A.  Executive Summary

This project has been initiated to move the current operations to Hangzhou, China to Shanghai. The decision to move was based on two justifications; (1) Riordan’s Chinese partners and their facilities are currently located there and; (2) the Qiantang River which facilitates their shipping needs is located within the city’s limit which is adequate to accommodate the company’s shipping needs.

B.  Business Objectives

 

  1. Business Need/Opportunity/Objectives
  • Save time and money by eliminating the need to ship materials 180 km to ports in Shanghai, by moving the company’s operations to Shanghai.
  • An increase in production volume has created the need to use container shipping companies that use ports centrally located in Hong Kong as well as Shanghai resulting in significant cost savings
  • Operations can implement a more substantial urban infrastructure
  • Better marketing strategy to ship our Chinese products throughout Asia and Europe
  • River access to Hangzhou Bay would provide sufficient accommodations to handle the shipping needs
  • The overall cost savings and opportunity to better position the shipping far exceed the additional time and effort required with the extra logistical steps
  • An alternate solution would include transporting products by trucks to the Shanghai port and then loaded into containers that are shipped directly onto the ships to their final destination.
  • Without the move, Riordan Manufacturing runs the risk of remaining rigid in their Operations division and lose the opportunity and ability to expand and gain a greater market share.
  1. Product Description

Reduce operational expenses by relocating the current operational shipping facilities to Shanghai where cost savings can be obtained by using the ports that operate directly out of Shanghai and Hong Kong.

 

  1. Deliverables
  • Project-Related:
    • Relocation research documents
    • Operational procedures to enter/exit port
    • Port Mappings – shore locations, layouts, schematics
    • Permits / Certificate of Occupancy
    • Constructed production facility
  • Project Management Related:
    • Case study/business case/justification
    • Project Scope
    • Project Charter
    • Work Breakdown Structure
    • Overview Strategic Plan
    • Traceability Matrix
    • Communications Plan
    • Schedule
    • Cost Analysis
    • Risk Assessment
    • Status Reports
    • Lessons Learned

C.  Project Description

 

  1. Scope

 

In-Scope:

  • Relocate China Operations to Shanghai
  • Relocation moving costs for staff
  • Construction of new production facility
  • Transport of trucks, barges and containers to Shanghai port

Out of Scope:

  • Housing purchase/rental for staff
  • Sale of existing Operations facility
  • Secure interim move facility
  1. Requirements:

The requirements for making this relocation a reality include the following:

  • Comprehensive detailed move plan
  • Training and instructional move documentation for staff
  • Construction crew to build new production facility
  • Moving company to transport company equipment (trucks and barges) to Shanghai facility
  • Onsite oversight of the move and construction of new facility
  • Communication and coordination between staff and management and port authority
    • Increased shipping destinations
    • Production cost savings
    • Shipping time reduction
    • Streamline and simplify operations
    • Less rigid—more flexible operations
    • Opportunity to gain greater market share with expansion

 

  1. Acceptance Criteria

The success completion of the project will include the following criteria:

  • Operations are successfully relocated to Shanghai with minimum collateral damage
  • Successful move without an undue disruption in the operations of the organization for a significant length of time.
  • Evidence of operational efficiencies due to proximity
  • Additional cost savings are realized
  • New port location will accommodate increased production volume
  • Additional shipping destinations and locations are made available
  • Operational functions are streamlined and flexible
  • The return on investment exceeds the budget spent to complete project.

 

  1. Risk Assessment
  • Move will take longer than five year scheduled plan resulting in millions of dollars in cost overruns and expenditures and major profit loss
  • Staff turnover due to new location
  • Language barriers
  • Business etiquette differences

 

  1. Constraints
  • Five year timeframe
  • Limited budget
  • Only Operations department is moving

 

  1. Assumptions
  • Lot/space availability at Shanghai port
  • Government contracts have been signed
  • Permits have been secured
  • Ability to secure contracts with shipping companies in Shanghai
  • Increased production warrants move to Shanghai
  • Budget is secured by Business/Project Sponsor

 

  1. Critical Success Factors
  • Project schedule will be accepted
  • Organization management plan will be approved
  • Port contracts are approved
  • Lot / Land is available to build on

 

 

  1. Roles and Project Stakeholders

Roles & Definitions

 

 

Project Sponsor

 

Responsible for financing the project and supplying executive-level approvals. Is considered the key stakeholder as well as reviews, approves and sign-offs on the project deliverables.
Project Owner Responsible for initiating the projects providing funding, hires consultants, and reaps the rewards of the deliverables. Sets the ground rules and definitions for policies. Works with the Project Manager to make final decisions on major project issues surrounding policy.
Project Manager Responsible for overseeing project management functions. Responsible for creating all key documents including scope statement, project charter, project schedule, risk management plan, communications plan, monitors all task-related activities and tracks progress. Responsible for reporting status to all levels of the project team to ensure transparency.
Steering Committee Provides guidance in issue management and serves as the ultimate decision maker for items that exceed the Project Manager’s authority level. Serves as an advocate for stakeholders that do not sit on the committee.
Stakeholder Anyone that has a stake in the project’s success or failure. Provides the requirements necessary for the project’s completion. Majority of stakeholders for this project include the Operations team, vendors, the Shanghai port authority, project owner, project sponsor, customers, shipping companies, etc.
Team Member Anyone listed within the project plan either as a direct team contributor or managerial representative of that member. Provides analysis, designs documents that help to enhance the existing process.


D.  Project Approach

 

 Planned Approach

 

The project will be completed in phases including project initiation, project planning, project design, development, project execution and post implementation with a number of deliverables within. Among these categories are the structural part, the project initiation part, project planning part and project execution part. The activities are listed as follows:

 

Work Breakdown Structure

 

  Task      
  1.0 Management and Support – Initiation      
  1.1 Provide Project Management      
1.1.1 Evaluations & Recommendations      
1.1.2 Project Scope      
  1.1.2.1 Submit Preliminary    
  1.1.2.2 Project Team Selection    
  1.1.3 Approve Scope      
  1.1.4 Implement Scope      
1.1.5 Project Charter      
  1.1.5.1 Submit    
  1.1.5.2 Review    
  1.1.6 Approve Charter      
  1.1.7 Implement Charter      
  1.2 Provide quality control      
  1.3 Project Status Meetings      
  1.4 Materials and supplies      
  1.5 Transportation / Housing      
  1.6 Varied costs      
  1.7 Contractor Services      
  1.8 Risk Management      
  2.0 Physical Facilities – Planning      
  2.1 Planning      
  2.1.1 Define move strategy      
  2.1.2 Secure land / lot in Shanghai      
  2.1.3 Build new facility      
  2.1.4 Move plan      
  2.1.4.1 Conduct facilities inventory      
  2.1.4.2 Conduct applications inventory      
  2.1.4.3 Prepare move plan      
  3.0 Facilities Move      
  3.1 Site preparation  
  3.1.1 Prepare site plan  
  3.1.2 Prepare physical site  
  3.1.3 Provide Power  
  3.1.4 Connectivity  
  Obtain Certification of Occupancy  

 

E.  Communication Plan

 

Any staff or management issues will be communicated up the chain of command in the same manner, from staff members to departmental managers, to senior management. (Eric Kasten, (2012). The following strategies have been established to promote effective communication between all stakeholders:

  • The Project Manager presents the project status to the Project Owner on a weekly basis. In addition, impromptu meetings will be scheduled when necessary to address issues or changes occur. Monthly status reports will be delivered to all key stakeholders along with meeting minutes. The project manager provides a written status report to the Project Owner on a monthly basis and distributes the project team meeting minutes.
  • The Project Owner and Steering Committee will receive immediate notification upon issues impacting the project with all pertinent details to address and mitigate.
  • Project team status meetings will occur on a weekly frequency to review, update and provide progress on tasks, activities, issues and risks that impact the project and project schedule.
  • Status meeting minutes will be distributed to all key stakeholders including the Project Sponsor, the Steering Committee and project team members.
  • A project folder will be created and located on SharePoint to archive all project-related documentation and for auditing purposes.
  1. Stakeholder Analysis

 

Stakeholder(s) Deliverable / Document Type Frequency Communication Method Responsibility
Key Stakeholders

 

Project Kickoff Meeting Once Face-to-Face

WebEx

Project Manager
Project Manager

Client Sponsor

Client Owner

Project Status Weekly Face-to-Face

Email

WebEx

Project Team Leads, Consultant, Contractor
PMO Dashboard Content Weekly Email/WebEx Project Manager
Project Team Leads Project Status Weekly/As Needed Face-to-Face

Email

WebEx

Project Manager; Project Team
Sponsors Overview of Strategic Plan Once Presentation via

WebEx

Face-to-Face Presentation

Project Manager
Vendors Detailed Project Status Weekly Email Project Manager
Consultant Assessments/Survey (Preliminary and Final) Findings As Completed Face-to-Face

Email

WebEx

Project Manager

 

Project Team Project Status Weekly Face-to-Face

Email

WebEx

Project Team Leads, Project Manager

 

 

F.  Project Charter

 

Project Title: Move to Shanghai
Project Start Date: 11/23/2015
Project End Date: 12/30/2020

 

  1. Project Objectives

 

  • Save time and money by eliminating the need to ship materials 180 km to ports in Shanghai, by moving the company’s operations to Shanghai.
  • An increase in production volume has created the need to use container shipping companies that use ports centrally located in Hong Kong as well as Shanghai resulting in significant cost savings
  • Operations can implement a more substantial urban infrastructure
  • Better marketing strategy to ship our Chinese products throughout Asia and Europe
  • River access to Hangzhou Bay would provide sufficient accommodations to handle the shipping needs
  • The overall cost savings and opportunity to better position the shipping far exceed the additional time and effort required with the extra logistical steps
  • An alternate solution would include transporting products by trucks to the Shanghai port and then loaded into containers that are shipped directly onto the ships to their final destination.
  • Without the move, Riordan Manufacturing runs the risk of remaining rigid in their Operations division and loose
  1. Approach

 

The project will be completed in phases including project initiation, project planning, project design, development, project execution and post implementation with a number of deliverables within. Among these categories are the structural part, the project initiation part, project planning part and project execution part. The activities are listed as follows:

 


G.  Authorizations

 

Approval Matrix      
  Scope Statement Project Changes Project Deliverables
       
Project Manager X    
Project Sponsor X   X
Project Owner X X X
Stakeholders     X

 

 

 

H.  Scope Statement Approval Form/Signatures

 

Project Information:

 

Project Name:  
Project ID:  
Project Manager:  

 

This document provides approval for project deliverables and for the activities performed for this project. Your approval is represented by providing your signature and serves as acceptance of adequate performance mutually shared by all project stakeholders including quality of deliverables, costs and expenses of the project.

 

Stakeholder ________________________________________   Title _____________________

 

Signature __________________________________________   Date ______________________

 

 

Stakeholder ________________________________________   Title _____________________

 

Signature __________________________________________   Date ______________________

 

 

Stakeholder ________________________________________   Title _____________________

 

Signature __________________________________________   Date ______________________

 

 

Stakeholder ________________________________________   Title _____________________

 

Signature __________________________________________   Date ______________________

 

 

Stakeholder ________________________________________   Title _____________________

 

Signature __________________________________________   Date ______________________

 

I.  References

 

Eric Kasten, (2012. Basics of Project Management. Amazon Digital Services Publishing

 

 

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