I have observed that the term Project Risk is used very loosely. It is often confused with Issues or Problems. You would be wondering what is the difference between project management risk and issues. They are one and the same thing. But, they are not. I have given definition and a few examples project risk … Read more Dummies Guide To Project Risks & Issues – Examples & Definition
What is your Project Risk Management Strategy? “Duh! We will deal with the problem when it comes. Is there any other Project Risk Management Strategy?” In my experience “deal with the problem when it comes” is the most frequently used Project Risk Management Strategy (also called Project Risk Response Strategy). Most Project Managers (and other … Read more Change your Project Risk Management Strategy
Do you use Project Risk Response Strategies to avail Opportunities? Let us be frank here. Most of us never think about Project Risk Response Strategies for Opportunities. We usually ignore the Opportunities and think only about threats. Many of you would vociferously disagree with me. Well, I am not talking about Life Opportunities. In the … Read more 4 Project Risk Response Strategies for Opportunities
Pessimist – We are going Down. Optimist – We cannot go down any further. Now the only way is Up. Realist – Let us analyze the current situation and decide what best can be done. Humans, by nature, are usually optimistic. Project Managers (unless they are from another Galaxy) follow the same trait. Recently, I … Read more Why Optimism is BAD for the Projects?
A project is scheduled to FAIL from start. This is a very strong statement albeit true. I have noticed this phenomenon many times during my experience. Let me explain. Project Managers rarely understand good scheduling concepts/techniques. Even if they understand, good concepts/techniques are rarely used while developing project schedule. What are good scheduling concepts/techniques? These … Read more Did You Know That A project Is Scheduled To FAIL?
I have described Program Evaluation & Review Technique (PERT), Critical Path Method (CPM) and Standard Deviation in complete detail this post. I have talked about how they are related to each other and how they can be used together. What is Critical Path Method (CPM)? Critical Path is the Longest Path in the Project Network. … Read more The Ultimate Guide To Use PERT, CPM & Standard Deviation Together
You might be looking to understand the usage of standard deviation in PERT estimation formula. PERT is an acronym for Program Evaluation and Review technique. This technique is used to determine duration and cost estimates of a task. In this technique, a weighted average (mean) of three different estimates is used to determine the final … Read more How To Use Standard Deviation In PERT Estimation Formula?
Three point estimating can be done in two ways – one is by applying Beta Distribution technique, which uses PERT (Program Evaluation and Review Technique) formula and other is by applying Triangular Distribution technique, which calculates simple average. Just like any other estimation technique, 3-point estimation can be used for estimating duration or cost of … Read more How To Use PERT Formula In Three Point Estimating?
In my previous post I gave a brief on Procurement and Risk. I deliberated upon who (buyer or the seller) has more/less risk in contract types. The post was written to help PMP aspirants answer some tricky questions reared to Risk and Procurement in the exam. The post can be read by following the below … Read more Procurement – Some practical aspects
Types of Contracts and Risk A Question You are working for a Defense Contractor. Your company is bidding for a Government’s secret project called Project “Hush-Hush”. The Government has decided to outsource this project as a Fixed Price Contract. Who has more Risk for this Project? Defense Contractor Government All Projects are risky. Both Defense … Read more Which “Type of Contract” is More Risky?