I am in need of two separate student responses Project management The responses can be 2 paragraphs each with references.
STUDENT RESPONSE 2
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements (“The PMBOK Guide”, 2013). Project management principles and systems can be used to support and administer total quality management programs and vice versa. Project management and total quality management are both management systems. The objectives of risk management are to increase the likelihood and impact of positive events, and decrease the likelihood and impact of negative events in the project. The process of determining which risks may affect the project and documenting their characteristics is identifying risks (“The PMBOK Guide”, 2013). The main point of this article was by identifying risks with the PRISM model, project profitability can improve. PRISM stands for Project Risk Identification, Selection and Management and it has been designed to help companies decide whether or not to pursue a project. In order to implement PRISM many tools are used, such as Utility Theory and Expected Monetary Value. A simple way to quantify the “expected monetary value” of a risk is to: Estimate the “risk event probability,” from 1 percent to 100 percent, of a certain risk occurring, estimate the “risk event impact” of the risk in dollar terms, and multiply the “risk event probability” by the “risk event impact” to calculate “expected monetary value” (Gump, 2001). This data and results should then be studied and a comparison will be made on which project has the greatest potential for success and profit.
This article is so important due to the fact that many companies go out of business within five years of their start up. The foundation of the PRISM model is based on the risk management process. The risk management process should include planning, identification, analysis, handling, and monitoring steps, which are implemented in that order. The risk management process should be continuous and have a form of feedback in terms of cost, technical, schedule, and risk-related performance (Kerzerm 2004). By developing the right questions to ask through doing the correct research and customization, the PRISM model should be able to identify the correct risks and opportunities that go with the project. After step one of identification, analysis and prioritization takes place. Companies that is able to successfully create a prioritized list of risks and opportunities, then they are able to provide an ideal foundation for developing risk mitigation strategies for each risk as part of your overall risk management plan. The company can develop an effective risk response to each identified risk and opportunity on a cost/time effective basis (Auchey, 2003).
The PRISM model is done at most companies internally or externally through an outside source. In order to be able to understand the correct risks and opportunities, many surveys are given that have answers based that can help gauge the environment to determine the best response. These responses can take the for of avoidance, transference acceptance, or mitigation. Finally, as with any aspect of a project, there must be documentation of the results for future project (Auchey, 2003). As lessons learned are documented, it is created a more accurate model in the future.
References
Auchey, F. L. & Auchey, G. J. (2003). Using PRISM model to improve project profitability. Paper presented at PMI® Global Congress 2003—EMEA, The Hague, South Holland, The Netherlands. Newtown Square, PA: Project Management Institute.
Gump, A. (2001). Using decision models in the real world. PM Network, 15(1), 43–45.
Kerzner, H. (2004). Advanced project management: Best practices on implementation (2nd ed.). Hoboken, NJ: John Wiley & Sons. ISBN: 978-0-471-47284-1
PMI. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th ed. Newtown Square, PA, USA: Project Management Institute (PMI)