Subject: Project Management Hello, I was hoping you could write a letter to my team paper. I have attached the file which explains how the letter needs to be written. In the File "MGMT640 team 02 Ass
Project Plan for Low-cost housing
Athulitha Vuppu (1916316)
Manpreet Kaur (1814570)
Sonia Tyagi (1916269)
Maheeth Mundru (1813095)
University Canada West
MGMT 640: Project Management
Dr. Belay Gaga
December 13, 2020
Project Plan for Low-cost housing
Introduction
This paper is the continuation of the project plan for Low-cost Housing in India. In the previous paper, it is explained that our company “All India Construction Limited”, is working on a project for building low-cost housing for the less income people. Our preference for the location is South-India, with lots of business and consumer opportunities. In previous paper, the project plan talks about major milestones, deliverables, WBS (work breakdown structure), budget breakdown, constraints, assumptions, Communication plan, monitoring and evaluation plan. But in this document we have discussed about the major risks in our project. Some of them are internal and few of them are external. To overcome those risks a RBS (Risk Breakdown Structure), RRM (Risk Response Matrix), FRM (Failure Response Matrix) is performed, which will help our company to accomplish their goal.
Risk Identification
Risk Management is a part of the Project Management plan consists of three levels namely Risk Identification, Risk response, and Failure response. The step in the project plan includes:
Risk Identification with WBS Code.
Risk Assessment and Mitigation.
Risk & Failure of response Matrix
This paper is intended for providing a risk management plan for low-cost housing in Telangana, India with the sponsorship of Mr. Kamal Kath. Firstly, Low-cost housing WBS is presented, and then identified risks are listed for evaluation. For risk assessment, we need to rate the risks with the following factors mentioned below:
L - Likelihood of occurrence.
S - Severity of failure.
D - Difficulty in early detection.
RPN is risk prioritization and can be calculated by L*S*D. RPN is a tool to identify the risk and prioritize to find out which risk needs more attention and requires immediate action. After sorting out the risks, we need to identify the methods to lessen the impact of the risks. The next step is mitigation in which, we get new RPN value and it also includes contingency plans with strategic responses to reduce the risk.
Types of Risk
There are mainly two types of risk in the project which are external and internal.
External Risk
Risk # (2.4): The risk of a sudden increase in building material price that can cross the expected budget.
Risk # (4.1): The risk of mismanagement or inappropriate allocation of human resources by subcontractor causing execution delays.
Risk # (5.2): The risks of delays in building material delivery by vendors can exceed the project due date.
Internal Risk:
Risk # (0.1): The risk of issuing inaccurate CAD drawings with unclear specifications causing confusion at the site which may cause inappropriate erecting of the structure causing due date extension and unnecessary expenditure.
Risk # (0.3.1): Risk in identify the right team as an inexperienced team creating procedural delays.
Risk # (2.5): The risk of financial mismanagement and payment delays by the financial managers causes project delays.
RISK MITIGATION
External Risk:
Risk # (2.7): To mitigate the risk, we can pre-order the required building material, during the initial stages of execution. By this, we can reduce the likelihood and early detection difficulty.
Risk # (4.1): Change the subcontractor or assign the subcontractor a penalty in the contract for the delay of each day to decrease the likelihood. Also, giving due date sooner than the actual due date for early detection of the risk.
Risk # (5.2): To reduce the risk of delayed deliveries of building material by the suppliers. Fast-tracking must be done by site supervisors, he needs to order the material much earlier and if the vendor keeps on delaying, then it is a better place to order the material from other reliable suppliers.
Internal Risk:
Risk # (0.1): To mitigate the risk and reduce these possibilities of the inappropriate erection of the building structure, the technical drawings should be checked twice by an experienced team member and confirm that all specifications and details are appropriate and good for construction and also take the sign on the transmittal, of the person who dealt the drawing so that he will be responsible.
Risk # (0.3.1): To mitigate the risk project manager should keep track of daily site updates and check the response of site supervision. Any doubt in his capability and performance in managing the site, immediately assign the task to the efficient site in-charge.
Risk # (2.5): To reduce the risk of payment delays and financial mismanagement by the financial managers which cause delays in project due dates. There is a need to follow record-keeping methods to keep track of financial dealings and keep the additional amount to avoid a shortage of money.
WBS (Work Breakdown Structure)
RBS (Risk Breakdown Structure)
Qualitative Analysis
We used the probability and impact matrix to analyze the Risk qualitatively, where three central components are considered: Probability, impact, and priority. After assessing the previous similar projects, a score probability score and impact score is assigned for each Risk.
Here, Risk is the multiplication of the Probability and impact.
Risk = Probability * Impact
| Risk Identified | Probability (1-9) | Impact (1-9) | Score (probability*impact) | Priority | |
| 1 | Increase in material price | 5 | 1 | 5 | 6 |
| 2 | Delays by supplier | 5 | 6 | 30 | 5 |
| 3 | Delays by subcontractors | 7 | 8 | 56 | 1 |
| 4 | Payment delay by the management | 6 | 6 | 36 | 4 |
| 5 | Designing error | 6 | 7 | 42 | 3 |
| 6 | Unsuccessful site management | 6 | 8 | 48 | 2 |
Probability and Impact Score: It is difficult to assign the Probability for the risks; that's why we used a similar previous project's risk assessment likelihood to give the probability score to the identified risks. The impact score is given to the risks after analyzing their effect on some of the project's significant aspects of the project, and among them, we considered cost, schedule and performance quality as the significant aspects that are affected by the risks. The Risk's priority is identified to take further action according to their overall score of Risk, and response for risk management can be taken. The Risk's overall score decides priority; the higher the overall score first will be the priority or vice versa. According to our assessment, delays by subcontractors consist of a score of 56, which is the highest among all the Risk's score. It will be difficult to find an experienced contractor at a low-budget project at a low price, which may cause a delay in the project. So, it is identified as the most prioritized Risk, which means we need to deal with this Risk first because it has the highest chances to affect the project as delay in the subcontractors' things will delay the entire project to meet the deadline. The second Risk, according to the overall score, is unsuccessful site management. The probability score is 6, and the impact score is also 8 for this Risk, which indicates that the Probability of having this Risk is relatively higher. The hiring of less experienced labour because of the low budget may lead to site management failure like how and where to store the resources when they are not required. Simultaneously, failing in this will lead to the waste of time, mismanagement of site, and resource allocation. The next major Risk is designing error in our project, which got an overall 42 with 6 for Probability and 7 for impact. It is required to assess the factors where designing errors can occur, such as if the team misinterpret the map of the construction site or structural design it may result in the wrong construction of room or a small part in the building, but it will lose a major amount of resources and disbalance the whole budget and time frame of the project. Furthermore, the management's payment delay is another significant risk in construction projects, which got a 36 overall score and 4th priority among all the risks. The delay in the financial system may delay the delivery of material or other human resources, which consequently will create a hurdle in the way to project success. The Risk of delay in the delivery of material has a high impact score (6). Once the project started, resource delivery should be continuous because a breakdown in delivery will affect the project completion inversely. The chances of occurrence are 5, which provides an overall score of 30 to the Risk, and hence it accounts for the 5th substantial Risk to be managed in the construction project. The last but not least important Risk in a construction project is a sudden increase in the material price. The probability score is high for it as things are getting costly daily, so the chances of rising prices are also high with 5 probability scores. But as we already considered this in the project's budget planning and will stock the required material at the initial stage, we consider the impact lower with one impact score. However, a large extension in material price will prove the budget plan wrong. That's why we need to allocate a response strategy for this Risk so that the entire project would be done without any constraint.
Risk Response Matrix
Failure Response Matrix
