Importance Of Risk Assessments In Project Management Information Technology Essay

The risk management progression begins by trying to engender a

Design is the craft of visualising concrete solutions that serve human needs and goals within certain constraints. (Goodwin, Kim. 2009). Human engineering combined with product and business knowledge to generate ideas and concepts and convert them into physical and usable objects or services is called as product or service design. A designer should be creative and have analytical ability to create a user friendly, efficient and good looking product or service. The product must be good in design, value function and appearance. (“Importance of product design”,

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Earning profit through satisfaction of the customers is the main target of the organisation. This is only possible if the product or service is designed well. Good design communicates the purpose of the product or service to its market and helps business to earn profit. We can say that the main objective of a good design is to satisfy customers by meeting their actual or anticipated needs and expectations. A good design of the product or service is only successful when it is delivered on time and cost is reasonable. Design helps business connect strongly with their customers by anticipating their real needs. As a result it enhances profitability to the business. (Slack, N. et al. 2010)

When Issigonis designed the Morris Minor, he was unaware of its vulnerability and the design was not fully successful. It was a heavy vehicle for its overall size, slow and poor at cornering. The Mini, by contrast was capable of very fast cornering and low weight. John Cooper, fitted large engines in the Mini and created the Mini Cooper and Cooper ‘S’ which, driven by Paddy Hopkirk among others, were hugely successful in rally sport. The model went on to win a total of 153 rallies in (1962) that year alone. This example shows the importance of the product or service design. (“Mini Cooper ‘S’ rally success,

3.1 Stages of Product or Service Design

As we can see that there are five stages of product or service design in figure 3.1 below. The designers should pass through those sequences of stages to get a final design of a product or service. But in practice, designers may sometime recycle or backtrack through the stages.

Figure 3.1 The stages of product or service design (Slack, N. et al., 2010)

First comes concept generation stage, which is the main root of the whole process. It is the development stage of the concept which is later screened to try to ensure whether it is feasible, acceptable and its vulnerability. Then concept is turned to preliminary design and goes through evaluation and improvement to see if the concept can be served better cheaply and easily. Then the concept is subject to prototyping and final design.

Concept Generation:

Generally, in some organisation concept is generated form the research and development (R&D) department. As its name states, research develop new knowledge and idea to grasp any opportunity or to solve any problem. And development is the attempt to try to utilize and operationalise the idea that come form research.

Ideas for new product or service concept can come form customers, competitors and staffs as well. Regular customer who gives feedback and complains gives us an idea about how to improve the product and service. Staff who meet the customers day to day knows what their customers want which may be helpful to generate new idea.

Concept Screening:

The main purpose of this stage is to take the flow of concepts and evaluate them because not every concept generated will necessarily be capable of further development into product and services. Best design is chosen among the several designs by evaluation of their value. From large number of design concepts only one design is selected form the evaluation screens. We have to think in terms of the following design criteria:

Feasibility: the ability of an operation to produce a process, product or service.

Acceptability: the attractiveness to the operation of a process, product or service.

Vulnerability: the risk taken by the operation in adopting a process, product or service.

Preliminary Design:

This is a stage after generating an acceptable, feasible and viable product or service concept, where first attempt of specifying the component products and services in the package and defining the process to create the package is done.

Specify the components of the package

Exactly what will go into the product or service will be defined in this stage. The order in which the component parts of the package have to be put together should be known earlier. Information of the constituent component parts of the product should be collected and the bill of materials (BOM), which is the quantities of each component part required to make the package should also prepared. For example, rifle shooting in adventure holiday, activities can be broken down into level one shooting practice and level two target shooting. Also the components for the rifle shooting (like a 22 air rifle, some shot, a back board, a target holder and card targets) are defined and bill of materials includes the quantity of those components. (Pycraft, M. 2000)

Reducing design complexity

When an organisation produces variety of goods and services with several ranges on those goods and services as a whole, it becomes complex and may increase costs. Designers as well as the producers want simplicity in their product and services. Designers adopt several approaches to reduce complexity in the design of the product and service. The three common approaches for the complexity reduction are:

Standardisation: This is all about variety reduction of the product or services. For example, garment manufactures produce cloths in only a limited numbers of sizes.

Commonality: This helps simplifying design complexity by using common elements within a product or service.

Modularisation: Designing standardised ‘sub-components’ of a product or service which can be assembled in different ways is the main principle of modular design. For example, a package holiday industry can assemble holidays to meet a specific customer requirement. (Slack, N. et al., 2010)

Define the process to create the package

The bill of materials and the product or service structure specify what has to be put together and this stage is to specify how the process will put together the various components to create the final product or service. We show the flow of materials or people through the operation and identify the different activities that take place during the process. Simple flow charts, routing sheets and process flow charts help us examine the process before any product or service design is finalised. (Pycraft, M. 2000)

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Design evaluation and improvement:

In this stage preliminary design can be improved before the product or service is tested in the market. In other words, it involves re-examining the design to see if it can be done in a better way, more cheaply or more easily. Typical techniques that can be used in this stage to evaluate and improve the preliminary design are:

Quality function deployment (ensures that the eventual design of a product or service actually meets the needs of its customers)

Value engineering (try reducing costs, and prevent any unnecessary costs, before producing the product or service)

Taguchi methods (tests the robustness of a design i.e. it assumes that the product and service should still perform in extreme conditions.)

Prototyping and final design:

This stage involves providing the final details which allow the product and service to be produced. It is risky to go to full production of the product or service before testing it out. So it is appropriate to turn the improved design into a prototype so that it can be tested. Many retailing organisations pilot new products or services in a small number of stores in order to test customers’ reaction to them. A fully developed design for the package of products and services are then finalised and delivered them to customers. (Pycraft, M. 2000)

4.0 Basic Layout Types

The layout of an operation or process means, how its transformed resources (raw materials and components that can be transformed into end products) are positioned relative to each other and how its various tasks are allocated to these transforming resources (building, machinery and people). (Slack, N. et al. 2010)

According to Slack 2010, most practical layouts are derived from only four basic layout types. They are:

Fixed-position layout

In fixed-position layout, transformed resources do not move between the transforming resources. In this layout the product or recipient of the service is too large to be moved conveniently, it might be too delicate to move. The main product being produced is fixed at a particular location. Resources, such as equipment, labour and material are brought to that fixed location. For example, building a ship – the product is too large to move.

Figure 4.1 Fixed-position layout (

Functional layout

Functional layout can also be called as process layout. In this layout types similar operations or machines are located as per their functions or processes. This is because it is convenient to group them together, or that the utilisation of transforming resources is improved. For example, all lathes are kept in one location and drilling and milling work are done in other location. Greater flexibility and scope of expansion exist in this layout.

Figure 4.2 Functional layout (

Cell layout

Cellular layout can also be called as group layout because in this layout machines are grouped according to the process requirements for a set of similar items (part families) that require similar processing. Processes are grouped into cell using a technique known as group technology (GT). Group technology involves identifying parts with similar design characteristics (shape, size and function) and similar process characteristics. This type of layout is an attempt to reduce the complexity of process layouts. (“Layout”,

Figure 4.3 Group technology or cellular layout (

For example, in the figure 4.3 lathe, mining and drilling work is done in cell 1 and 3 and lathe, mining, grinding and assembly is done in cell 2. This shows parts, which are similar in design or manufacturing operations are grouped into one cell or one family.

Product layout

Product layout can also be called as line layout. In this layout, machine and operating facilities are located as per the sequence of operation on parts. In other words, transforming resources located as per the convenience of the transformed resources. The transformed resources flow as in a line through the process. This type of layout is preferred when production volume is high, demand is stable, part variety is less and the production is continuous.

Figure 4.4 Product layout (

For example, in the figure 4.4 product A require same sequence of process i.e. lathe, mining, lathe, drilling and grinding.

These are the basic layout types used in any operations management. Some operations can also design hybrid layouts which combine elements of some or all of the basic layout types in different parts of the operation. This type of layout called as mixed layouts.


list of all probable risks that could affect the project (Gray & Larson 2008, pg 199). Whenever a new projects starts, it start with risk and uncertainty levels which sometimes create deadlocks for project completion. Risk management ensures if risks are evaluated and decreased as assessment carried, then it increased opportunities. This is for sure project management cannot eliminate all risk from the project but with good planning and statistics level of risk can be minimized, and which will acceptable for project making. Some of risk can be beyond the range of control which can affect the project length or budget, for that instance planning should carry out before those risk hit to project and prior to unwanted events occurring. Analysis and planning are the factor for key to success for project management. In the start of project major decision are carried out which impact on multiple stages for the project which base on incomplete information or inaccurate. To ensuring the best decision policy it is needed to have all risk assessment n the start of project as early as possible, to make the decision very powerful and effective. Risk can occur in any stage of the project some are associated with particular task and some are distinct and may originate outside the boundary of project management. (S. Nokes & S. Kelly, 2003, 2007)


To identify and prioritize the potential risks involved in undertaking a project management and to take actions to minimize the risk by developing a contingency plan.


Identifying and Prioritizing Risks

The most ideal and unique way to deal with risk is to identify and conduct the systematic research to phases of the project which could go wrong. Risk identification process for project can be conduct with three ideal ways which discuss below. (Harvard University press, 2006) Usually the project manager pulls together, during the planning stage, a risk management squad consisting of core team members and other relevant stakeholders. Participants are encouraged to keep an open mind and produce as many probable risks as possible. (Gray & Larson 2008, pp 199)

Mitigating Risk

Most of the authors wrote two basic strategies for mitigating risk:

Reduce the likelihood event occur during project

Reduce the adverse condition impact on project

Project team always takes care about such event which possibly can halt situation in projects. If likelihood events reduce it can eliminate the potential cost for another strategy. Probability to avoiding risk during projects is necessary; it is the responsibility of team to carry out research for risk assessment and work on them to eliminate or to reduce the size of risk. For avoiding risk there are some procedures to adopt in making project projects very strong. Such as avoiding risk, transferring risk, sharing risk, and retaining risk. These common terminologies are capable to avoid risk during project length and eventually give rise for project objectives. Gray, Larson, D. Lock (2008, 1988)

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Contingency planning for risk analysis

There is always an alternative plan if any possible risk arises in projects commonly known as contingency plan. In contingency plan table symbolize the proceedings to reduce or to mitigate the risk. Every project contingency plan in the start of it, and further more documented and clearly identified this plan include the cost, estimation and funding for avoiding risk. (S. Nokes, S. Kelly, 2007)

In the initiate of projects there are diverse risk identified in contingency planning which contain the list possible risk arise. The nature of project differ the risk identifications processes and their scheduling and costing.

Change control Management

For effective completion of project is to minimize risk and for minimization there is one change control, or change management control. It is the responsibility of the project manager to discover the change to minimize the negative impact for successful completion of project. In change control it is not possible that every single strategy materialized. Project change control management has different prioritize and capability to cope the project as change should applied in to it. (C.F. Gray & E.W. Larson, 2008)

Risk identification

The risk identification process should not be limited to just the core team. Input from customers, sponsors, subcontractors, vendors and other stakeholders should be solicited. (Gray & Larson 2008, pp 201). Risk identification sets out to identify the uncertainty level of exposure for any working organization. Most of literature writers have least attention to write over it. It is decided by most of the professorial who actually involve in massive projects commonly says, risk identification is most critical and time consuming job. In realistic approach it is not easy to have complete command over risk in project but perfect planning with perfect team members are combined to making the best in result with experience and practice. Usually it is very good result found when team members work closely and consider explicitly with concerned areas.

By breaking projects in different work pieces, as risk associated

Risk external to project and from its physical relation

Consider each single entity with project perspective to anticipate sources of claims.

(S.E. Donaldson and S.G. Siegel, 2007)

Risk Analysis

Analysis contains itself the identification description and estimation methods and techniques to deal with certain kind of risk. Project tenure increases when there is loop in planning and managing risk. Each project making stories risk identification takes place separately and one complete team work on it to judgment and help professionals to carry work smoothly. Each single task concerned with its own kind of risk and identifies in structure format. Risk table allocated for each risk its opportunities its threats, how to sort it out and certain level for individual risk to attain the risk priority. Risk identification and then its description is made due to project different areas such as operation and planning and testing.

Risk Treatment

Risk treatment is cycle to identify the risk measure and to implement for modifying risk. Risk treatment includes risk control and avoidance. This process refers those risks which are serious and which need to be solving by management bodies. Then management performs the priorities to handle with risk control actions.

Critical evaluation of RISK

Risk can be identifying by research for project which is to be develop, and identify risk in start of project is effective then risk identify post of planning. I have read in one article which was indicating the evolution for risk on personal experiences. That article performed ten identical rules to evaluating, Identify and for perfect cure to risk in project planning.

Risk management is one of the parts of risk

Identification of risk in start of project

Discuss about risk within team member

Threats and opportunities under consideration

Ownership issues limits

Risk prioritization

Analysis of risk

Planning and implementation of risk

Project agreed

Identification of risk with associated task

(Bart Jute, 2008)

Above ten rules are indicating the project lifeline on which project run effectively and generate the results as accordingly plan. Rules indicate the risk management should be embedding in project making from which any fault can be encountering those problems can easily sort out. While other end those projects which have no approach towards risk management , either they belief there planning will face no risk and they assume the over confident level in them in both cases sometimes project faces deadlocks and time schedule change the whole project and which result become sometime void on time.

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Planning should include risk assessment in start of project yielding project very strong, assessment of risk achievable with two sources team members and documentation. Team members have experiences and expertise which make project strong enough to be complete on time. And documentation is needed at every single step in project making. It is very easily to identify risk in broad cases, every single project comprises of so many risks from which manager or team members are aware but sometime it goes opposite to risk handlers to deal with risk. If risk is not communicated with team members and project leaders then sometimes project got sufficient problem which are unwanted. Once risk identify and there are some opportunities and threats, opportunities are always with projects but hidden to carry with them and makes most out of it assessment is needed, opportunities helpful for projects makes it strong.


Not least along with the areas of indistinctness and ambiguity are political environment in the project. It is common nature of the peoples give the impression of being good to their officers, or else they want relax life without any hassle, in addition several others intention may wish to hide the restrictions in their project tactics. It may because some of the project managers will able to move beyond the date line for his work, it is in interest of his own to keep continue rather to experience the distress and then project back on follow. It is seen, some of the project goes fail because there is project completion culture adopted by users, in which only project deliverable done on time but not the quality, standards and requirement.

To identify and understanding of the user requirements for projects, project scheduling, and project planning contingency planning, avoid risk and gather handsome resources are the essential part of project. These are the objectives usually carried out in the start.

To identify the project risk its importance and nature in completion of project, and extra risk about user requirements, budgeting, response change control are the legs of round table, table can be topple if these legs are not accurate. Absolute certainty of their consistency is of immense importance.

After that, I suggest in order to complete the Risk Assessment; all that need to be done is to perform the exploration of each single task and its uncertainty level. Each task gets its priority in project plan and notes them in contingency table. And if not do so then project may late as it is planned. Project late itself is not a risk it is an effect of task which could go wrong in during projects, so considered every single task in project which can delay the length.


In session like shared problem solving in which member of team spontaneously contribute ideas, people from different prospective and unique functions scenarios will have very sophisticated ways to minimize the impact of risk. It is very obvious that single person can never evaluate the things which possibly could go wrong. It is the responsibility of all members to generate the possible risk in to list in their own perspectives and underlying the problems. In addition, develop serious risk list and unify them in to manageable groups. Those groups try to find out the basis of risk and the possible outcomes to resolve them. In every projects things can change by timely manner once you sure from where the risk is arising then it is very easy to avoid them.


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