Project Risk Management Essay Example for Free

Project luck Management EssayI.IntroductionI am the Project Manager developing the Boeing 787 Dreamliner. The development of this state-of-the-art aeroplane result include an international team of aerospace companies led by Boeing. The advances in this airplane will curve the use of fuel by 20%, increase cargo capacity, increase nautical miles in a mid-range airplane, and improve passenger comfort. Boeing expects sales of 3,500 units over the next 20 years. (Norris Wagner, 2009)To really understand the impact of bigeminal providers, along with the logistics to coordinate assembly, I will illustrate, discuss, and provide a conclusion using two finis tree analyses. The first wrongdoing tree will detail the delivery system and put the adversity that could result in delivery failure. The second fault tree details the lack of tote to set the airplane. Both pose results that have the potential to financially impact the project. The fault tree diagram will provide a visual re presentation of the risk and help analyze the behave by sounding backwards to identify the root cause. II.Fault Tree OneIII.Discussion of Fault Tree OneThere be over 40 Companies/Business Units contributing to the success of developing the 787 Dreamliner. Nine of the Companies/Business Units are primed(p) outside of the United States. Given these two elements alone there are a number of faults that could cause the final assembly and closing date to be impacted. The first probable cause for missing the completion date is the supply chain. The supply chain flow ensures the material is available according to the inventory levels to dwell building. Supply chain push systems help keep inventory levels set according to bugger offual agreements. When the part throughput of the component is less than 95%, the demand is increased.Quality measures are in place to alert the provider when the throughput is less than 95% as desired but additional demands with reduced quality requirements keep the provider from delivering. Original plans called for specific manufactured items for each component yet the supplier elected to use a less expensive alternative which isnt meeting quality requirements. To help mitigate the supplier risks, assure the suppliers attitude to safety, quality, and environmental aspects to delivering components. Another treatment would be to appoint an onsite supplier affaire manager responsible for signing off on any supplier and/or design changes. It would alike be helpful to have back to back contracts with sub-contractors.IV.Fault Tree deuceV.Discussion of Fault Tree TwoIn the second fault tree I illustrated the impact of promote on the delivery of the 787 Dreamliner. The trade union movement to assemble the airplane components at the Boeing facility in Everett is critical to ensure the on-time delivery of the airplane. The union labor to assemble the Dreamliner is under contract review, the contract will expire two months prior to the fir st assembly. The issue of the machinist contract and failure to arrive at a new mutually acceptable contract would lead to a possible strike. Discussion between the labor union and the company would be need to mediate the dispute. The lack of a compromise would cause a significant impact on the plan completion date. However, negotiations to resolve this dispute are required to ensure employees feel fairly compensated and do not walk out during assembly.The use of risk treatment should provide a minimum of high-octane operation of the organization, internal controls, and compliance with the laws and regulations. To assist with labor treatment risk, re-allocate internal staff and cross make grow non-union members to complete the assembly of the airplane. Assess the technical skills required, develop a skill requirement profile for assembly, and identify other critical skills required for replacement. Treatment could also include the establishment and maintenance of an internal/ o uter skill profile of current, previous, and potential employees to assist should a labor strike occur.VI.ConclusionsAbove I solitary(prenominal) identified one risk analysis technique however there are many others available. more are qualitative and dont show the dependencies between events. The tree technique I use above takes into consideration the logical combination of causes that contribute to the identified failed event. The fault tree technique brings adequate understanding to the nature of the failure and how to manage the failed event(s).Fault tree one helped me identify that an onsite supplier impinging manager would have eliminated the failure along with standard work, forms and signatures to authorize such changes to the bill of material for the component. Similarly, fault tree two identified adequate compensation as the root cause of the delivery/labor failure. Treatment of the risk could have included managing the risk earlier in the contract and/or establishing a contract bridge or extension to avoid a strike.VII.Works citedCortez, A. (2010). The complete idiots guide to risk management. radical York, NY Penguin Group. Fraser, J., Simkins, B. (2010). Enterprise risk management. Hoboken, NJ John Wiley Sons, Inc. Kerzer, H. (2011). Project management metrics, kpis, and dashboards. Hoboken, NJ John Wiley Sons, Inc.Norris, G., Wagner, M. (2009). Boeing 787 dreamliner. Minneapolis, MNZenith Press. Schuyler, J. (2010). risk and decision analysis in projects. (2 ed.). Newtown Square, PA Project Management Institute, Inc.Turner, A. (2011). The birth of the 787 dreamliner. Kansas City Andrews McMeel Publishing.