Ha 5 Wk 05 Mint Cake - Mamaral - 2012-03-05 Rev a
Marco Amaral – PBWRSK Module Hand-in Assignment 05 Week 05
Task 1 The PI Risk Matrix is displayed in Table 1. Table 1 – PI Risk Matrix
Prob Impact 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.1 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0.2 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.3 0.27 0.24 0.21 0.18 0.15 0.12 0.09 0.06 0.03 0.4 0.36 0.32 0.28 0.24 0.20 0.16 0.12 0.08 0.04 0.5 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.6 0.54 0.48 0.42 0.36 0.30 0.24 0.18 0.12 0.06 0.7 0.63 0.56 0.49 0.42 0.35 0.28 0.21 0.14 0.07 0.8 0.72 0.64 0.56 0.48 0.40 0.32 0.24 0.16 0.08 0.9 0.81 0.72 0.63 0.54 0.45 0.36 0.27 0.18 0.09
Task 2 The risk classification for Mint Cake scenarios based upon PI Risk Matrix is displayed in Table 2. Table 2 – Mint Cake Risk Classification
Prob Impact 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 R3 R1 R7 R4 0.1 0.2 0.3 0.4 0.5 R2 R8 R6 0.6 0.7 0.8 R5 0.9
Risk Legend
High priority Medium priority Low priority
Task 3 The rise in cost, in pounds, of each risk scenario for Mint Cake project, as well as the additional cost for high and medium risk scenarios are displayed below (Table 3, bold blue text). The referred PI Matrix is displayed in Table 3. Table 3 – Additional cost in pounds
Probability of occurrence 0.5 0.3 0.8 0.7 0.5 Relative impact on schedule 0.9 0.7 0.9 0.8 0.8 Cost of activity (pounds) $3,200 $2,200 $6,000 $1,500 $2,100 Rise in cost due to occurrence of risk 100% 40% 35% 45% 200% Rise in cost (pounds) $3,200 $880 $2,100 $675 $4,200 Total Additional cost (pounds)
Risk R2 R4 R5 R6 R8
$1,440 $185 $1,512 $378 $1,680 $5,195
Task 4 a) The additional cost for high and medium risk scenarios for Mint Cake project, considering the new scenario in which all the raw materials need are available (i.e. risks R2 and R4 are dismissed) are displayed below (Table 4a, bold blue text). Table 4a – Additional cost in pounds (raw materials available)
Probability of occurrence 0.8 0.7 0.5 Relative impact on schedule 0.9 0.8 0.8 Total
Task 1 The PI Risk Matrix is displayed in Table 1. Table 1 – PI Risk Matrix
Prob Impact 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.1 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0.2 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.3 0.27 0.24 0.21 0.18 0.15 0.12 0.09 0.06 0.03 0.4 0.36 0.32 0.28 0.24 0.20 0.16 0.12 0.08 0.04 0.5 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.6 0.54 0.48 0.42 0.36 0.30 0.24 0.18 0.12 0.06 0.7 0.63 0.56 0.49 0.42 0.35 0.28 0.21 0.14 0.07 0.8 0.72 0.64 0.56 0.48 0.40 0.32 0.24 0.16 0.08 0.9 0.81 0.72 0.63 0.54 0.45 0.36 0.27 0.18 0.09
Task 2 The risk classification for Mint Cake scenarios based upon PI Risk Matrix is displayed in Table 2. Table 2 – Mint Cake Risk Classification
Prob Impact 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 R3 R1 R7 R4 0.1 0.2 0.3 0.4 0.5 R2 R8 R6 0.6 0.7 0.8 R5 0.9
Risk Legend
High priority Medium priority Low priority
Task 3 The rise in cost, in pounds, of each risk scenario for Mint Cake project, as well as the additional cost for high and medium risk scenarios are displayed below (Table 3, bold blue text). The referred PI Matrix is displayed in Table 3. Table 3 – Additional cost in pounds
Probability of occurrence 0.5 0.3 0.8 0.7 0.5 Relative impact on schedule 0.9 0.7 0.9 0.8 0.8 Cost of activity (pounds) $3,200 $2,200 $6,000 $1,500 $2,100 Rise in cost due to occurrence of risk 100% 40% 35% 45% 200% Rise in cost (pounds) $3,200 $880 $2,100 $675 $4,200 Total Additional cost (pounds)
Risk R2 R4 R5 R6 R8
$1,440 $185 $1,512 $378 $1,680 $5,195
Task 4 a) The additional cost for high and medium risk scenarios for Mint Cake project, considering the new scenario in which all the raw materials need are available (i.e. risks R2 and R4 are dismissed) are displayed below (Table 4a, bold blue text). Table 4a – Additional cost in pounds (raw materials available)
Probability of occurrence 0.8 0.7 0.5 Relative impact on schedule 0.9 0.8 0.8 Total
References: MILOSEVIC, D. (2003). ‘Project Management Toolbox: Tools and Techniques for the Practicing Project Manager’. Wiley Publishing Inc. Hoboken, New Jersey. LEACH, LAWRENCE P. (2000). ‘Critical Chain Project Management’. Boston: Artech House, Inc. LEACH, LAWRENCE P. (2000). ‘Simplified Critical Chain Project Management (S-CCPM)’. Advanced Projects Institute.