Project Risk Management Using the Project Risk FMEA

Abstract:

Identifying and mitigating project risks are crucial steps in managing successful projects. This article proposes the extension of the Failure Mode and Effects Analysis (FMEA) format to quantify and analyze project risks. The new technique is labeled the project risk FMEA (RFMEA). The RFMEA is a modification of the well-known process, product, and service FMEA technique. In order to use the FMEA format for projects, the detection value of the standard FMEA is modified slightly for use in the project environment. The new approach is illustrated in a case study from the electronics industry. By adding the detection value to the risk quantification process, another measure beyond the typical risk score is made available to the project team. The benefits of the RFMEA include an increased focus on the most imminent risks, prioritizing risk contingency planning, improved team participation in the risk management process, and development of improved risk controls.     

An Enterprise-Wide Knowledge Management Approach to Project Management

Abstract

Few research studies investigate the relationship between enterprise knowledge management (KM) and project management (PM). These studies have shown that today’s PM approaches do not sufficiently include the required KM processes to derive the highest value from project investment. This research highlights the potential benefits of implementing an enterprise-wide KM approach to project management. The relationship between the four KM pillars, as defined by Stankosky, and the PM knowledge areas, as defined by the Project Management Institute (PMI), are investigated. A survey questionnaire reveals significant positive relationships between the KM pillars and PM knowledge areas. The significance and the nature of this association support the study’s assertion that the management of projects improves as enterprise-wide KM processes and activities are increasingly used.     

Project Governance,Project Performance,and the Mediating Role of Project Quality and Project Management Risk: An Agency Theory Perspective

Abstract

Although project governance has garnered the attention of academicians, the area remains underdeveloped. This study measures the influence of project governance on project performance directly as well as through the mediation of project management risk and project quality and with moderation of project leadership. The survey yielded 354 responses from 132 Pakistani software firms, while SEM was applied using AMOS-21 for data analysis. This study finds that project governance has a significant positive influence on project performance directly and through mediation, whereas the moderation is insignificant. The findings will help not only Pakistan’s software firms but also those in developing countries to improve their projects’ performance through effective project governance.     

核电工程的项目风险管理

介绍了核电项目中风险的概念及风险的性质,针对核电项目的特点,提出了核电项目综合风险管理模型,探讨了风险的识别、估计、评价、规划、控制等有关问题及风险管理的理论基础。为了对项目风险进行动态的控制和管理,该模型增加了反馈与控制功能。     

Role of Organizational Project Management Maturity Factors on Project Success

The importance of projects has resulted in increased international standards, academic research, and education and training on project management concepts. However, studies show that the number of successful projects has not changed significantly. As conventional wisdom emphasizes organizational project management maturity, the aim of this research effort is to study the relations between project success and project performance factors, and organizational project management maturity.The results of this study suggest that having a project portfolio management function within the organization improves the likelihood of assigning priority for projects and meeting quality expectations and project objectives. The presence of formalized project management processes may influence the assigning of project priority and the use of project planning tools and techniques. Furthermore, organizations with project policies and procedures in place are more likely to require project managers to have their PMP certification. Results show that customer satisfaction is considered the most important project success factor and more so for organizations with portfolio management in place.     

Measuring Project Management Performance: Case of Construction Industry

This study develops construction-specific determinants and indicators of project management performance based on the 14 knowledge areas of the project management body of knowledge guide. Interrelations among the knowledge areas and influence of these factors on performance are investigated. Data collected from 121 construction projects are analyzed using structural equation modeling. Research findings suggest that project integration, communications, safety, risk, human resources, financial, and cost management have a direct impact, whereas scope and time management have an indirect effect on performance. The findings reported in this study are expected to help construction project managers devise and implement strategies and develop actions to improve project success. An engineering manager can use the framework developed in this research to define the underlying factors of efficient project management practices.     

Risk Identification in the Chilean Tunneling Industry

This article aims to identify the main risk factors that are threats to meet the objectives of tunnel construction projects by using the Chilean construction industry as a case study and proposes a methodology to evaluate risk factors in this type of project. Surveys were used to generate probability and severity indexes to rank 36 risk factors. Data were collected from 14 companies that are members of the International Tunneling and Underground Space Association. The results indicate that the main risk factors that hinder achieving the tunneling construction project objectives are (1) inaccurate cost estimation or lack of detail in budget preparation, (2) unexpected geological conditions, (3) inaccurate deadline estimation or insufficient breakdown of the project schedule, (4) frequent malfunction of construction equipment, (5) excessive delays in approval processes by government entities, and (6) unexpected soil conditions and water table. Furthermore, a comprehensive literature review is provided to compare these results to international perspectives to confirm the existence of risks inherent to tunnel construction projects. This article concludes with revisiting the risk factors, which are common for the construction industry in general.     

Uncertainty Analysis and Resource Allocation in Construction Project Management

Abstract

The premise of dealing with uncertainty in this article is to figure out the impact of uncertainties on project performance. This article proposes a framework for quantitative analysis that combines a fuzzy mathematics approach with system dynamics theory. Simulations generated using a model based on the framework show that uncertainties affect project performance by changing project parameters, and the mechanisms involved depend on the sources of the uncertainties. Furthermore, while technical and financial uncertainties mainly influence project costs, uncertainties related to markets, regulations, and organizational structures affect both project duration and cost. Finally, strategies for coping with uncertainties in a resource allocation perspective are presented.     

Assessing the Effectiveness of Quantitative and Qualitative Methods for R&D Project Proposal Evaluations

Abstract:

R&D project success and value is often difficult to predict at the proposal stage. Evaluation methods and their effectiveness vary considerably and are influenced by specific organizational cultures and managerial skill sets. A two-year field study examined the strength, challenges, and limitations of various R&D project evaluation and selection methods. The results suggest that for many project situations, the decision-making process must go beyond analytical methods. It should include both quantitative and qualitative measures and be linked with the internal and external support groups, as well as be strategically aligned with the enterprise. This article identifies specific managerial actions and organizational conditions for evaluating and selecting R&D proposals, aimed at optimizing future value and chances of success.     

Discussion on Project Interim Evaluation

1IntroductionAsaninlpo~tpartofPMtheory,PE,especiallythefeasibilitystUdyandthePPE,hasbasicallyformedatheoryandmethodsystem.Manyprojectlifecyclesaresimilartoeachotherfromthestalttotheend,includingProjectdetendnation,andthenundergotheProjectdefinition,m...     

Early Prediction of Project Duration: A Longitudinal Study

Using earned value management (EVM) protocols, numerous innovative models for the critical task of predicting project duration have been proposed in recent years. Due to the nature of EVM, these models, however, appear to be useful only after the project’s construction phase begins. The objective of this study is to examine the longitudinal relationships between completed project time and project variables’ performance prior to the construction phase and to model those useful relationships to predict completed project duration. The research results confirm the significance of scope, team, communication, risk, and innovation performance prior to the construction phase and reveal reasonable estimation accuracy and a relatively small difference in prediction rates between in-sample (88.13%) and out-of-sample (85.49%) data.     

Project Manager Skill Development: A Survey of Programs and Practitioners

Abstract:

This article reviews project management education, from graduate and certificate programs to organizational programs. It includes survey results of current practitioners with regard to project management training. It has been found that there are both graduate and certificate programs that cover the recommended project knowledge areas. Less than half of the organizations in the survey had any type of project management training program and 41% of project managers felt their organizations prepared them for their role. From those project managers who had been trained, 73% felt the training prepared them for their role. Recommendations are provided for employees, employers, and academia to help bridge the gap between current training and skills necessary for project managers. An overview of one program that has been developed is provided.     

Exploring the Relationship Between Multi-Dimensional Top Management Support and Project Success: An International Study

Abstract

The role of top management support in achieving project success has gained much attention in research and practice. A number of studies on single dimensional top management support have been conducted. In the engineering management literature, top management support has rarely been studied as a multi-dimensional construct. This research examines the relationship between multiple dimensions of top management support and project success. Different data analysis methods were employed to test the research hypotheses and to validate the multi-dimensionality of top management support. Findings indicate a significant and positive relationship between multi-dimensional top management support and project success.     

A Multi-Criteria Decision Analysis Technique for Stochastic Task Criticality in Project Management

Inherent in project management is the risk that a project fails to meet planned completion deadlines due to delays experienced in individual tasks. As such, certain critical tasks may be candidates for risk management (e.g., the allocation of additional resources such as labor, materials, and equipment) to prevent delays. A common means to identify such critical tasks is with the critical path method (CPM), which identifies a path of tasks in a project network that, when delayed, result in project delays. This work offers a complementary, stochastic approach to CPM that ranks tasks according to their effect on the project completion time distribution, when the distributions of task completion time are delayed. The new hybrid approach is based on the use of a Monte Carlo simulation and a multi-criteria decision analysis technique. Monte Carlo simulation allows for approximating the cumulative distribution function of the total duration of the project, while the multi-criteria decision analysis technique is used to compare and rank the tasks across percentiles of the resulting project completion time distributions. Doing so allows for different percentile weighting schemes to represent decision maker risk preferences. The suggested approach is applied to two project network examples. The examples illustrate that the proposed approach highlights some tasks as risky, which may not always lie on the critical path as identified by CPM. This is valuable for practicing managers as it allows them to properly consider their risk preferences when determining task criticality based on the distribution of project completion time (e.g., emphasizing median vs. upper tail completion time).     

Content and Trends in Engineering Management Literature

Abstract

Analysis investigating subject content and trends in engineering management literature from 1993 to 2000 is reported. 479 articles from Engineering Management Journal and IEEE Transactions in Engineering Management were analyzed using content analysis of article subject classifications. Results indicate a consistent effort by engineering management researchers to apply technical skills in the larger context of answering the leadership and management questions facing technical organizations today. The preponderance of engineering management research in the manufacturing and services industry sectors was confirmed. These trends were identified: decreasing research attention in the subject of strategic planning; increasing research attention in the services industrial sector; and increase in the subject of innovation. Varying emphasis on the subject of total quality/quality assurance was seen throughout the time period of this research.     

An Innovative Distributed Project Control Approach: A Case Study of the Cassini Management Information System (CMIS)

ABSTRACT

The Cassini Project, a NASA-funded exploration mission to Saturn that is being managed by the California Institute of Technology's Jet Propulsion Laboratory for NASA, has developed a distributed project schedule control system for complex development programs. The system is called the Cassini Management Information System (CMIS). The system was built to make schedule control simple, user-friendly, and low-cost. CMIS is distributed across a local area network of PCs and Macintosh computers and consists of four major modules: schedule control, action item tracking, work package implementation plan, and budget tracking. This article focuses on the schedule control module of CMIS. CMIS was one of the innovations introduced in response to the decrees of the U.S. Congress, and subsequently NASA, to conduct space exploration on a fixed-price basis. This article summarizes CMIS development history as a schedule control tool, its key features, and its use by more than 130 engineers and managers.     

Modeling Government Subsidies and Project Risk for Financially Non-Viable Build-Operate-Transfer (BOT) Projects

Abstract:

Governments encourage private sector participation in building infrastructure through Build-Operate-Transfer (BOT) agreements. Large projects may be financially non-viable despite their net economic benefits for the host society. Host governments might subsidize initial private investments to create financial feasibility. Small-scale subsidies might not sufficiently reduce project risks to attract private investment; however, large percentage subsidies might result in loose profit structures, discouraging the pursuit of efficiency. This article applies Monte Carlo techniques to data from the Taiwanese West Corridor High-Speed Rail Project to assess the subsidy-risk trade-off relationship. The results provide guidance for public-private negotiations.     

Examining the State of Risk Management Research in New Product Development Process

New products are major sources of competitive advantage and success for a manufacturing enterprise. However, not all new product development (NPD) initiatives result in a successful product and are therefore a major cause of wasted resources. Furthermore, NPD processes are becoming increasingly complex and risky due to today’s globalized market and customers’ desire for technologically advanced products. While there has been a significant interest in academia about NPD risks, the existing literature is spread across multiple outlets, making it difficult for any practitioner or researcher to synthesize the current work. This article aims to minimize that gap by providing a comprehensive overview of current research activities in the field of risk management in NPD process in one place. The research design is based on mapping and classification of the existing body of knowledge into the domains of NPD risk analysis and management. The article analyzes the contemporary NPD risk analysis methods on three fronts: risk identification, risk assessment, and risk mitigation. Based on the review, the article then identifies and discusses several key areas for future research significant to engineering management practices. Finally, an integrated framework is presented to provide a holistic approach toward risk management in the NPD process, followed by the practical implications for engineering managers and practitioners.     

Management of Risk in Projects

ABSTRACT

Risk management identifies risks and determines how and by whom they will be borne, before damage occurs. Forty-five contracts were studied during a sabbatical leave in Canada and the United States during the first half of 1991 to determine the bearer of several categories of risks under the terms of the contract. This article also discusses the ways of distributing the risks among the four parties: the owner, the designers, the contractor, and the project/construction manager.     

Intergroup Conflict Management Framework for Hong Kong's Manufacturing Industry

Abstract

An examination of 28 project leaders' and managers' opinions on conflict and conflict management practice in Hong Kong found that intergroup conflict is the most commonly experienced type of conflict, as more Hong Kong–based companies adopt a matrix or pseudo-matrix organizational structure. Although nearly 80% of the interviewees were not familiar with modern conflict management theory and practice as presented in contemporary literature, they tended to use what classic scholars in conflict management would call the “confrontation” mode in handling task-oriented conflict, and the “withdrawal” or “forcing” mode in handling emotion-oriented conflict. Short product development cycle time was found to have a very significant influence on the conflict management practices of contemporary project managers and project support personnel working in Hong Kong's manufacturing industry. We propose a conflict management framework based on our findings, and we discuss the concept of “cognitive-affective conflict.”