Project Risk Analysis

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9 hours 53 minutes
Video Transcription
Hi, guys. I'm Katherine MacGyver, and this is your lean six Sigma green belt. Today we're going to go over Project Risk, which so this is going to be the last of the project management tools to the traditional waterfall tools that we cover in this course.
But I want you to be familiar with the idea of project risk analysis and what we mean by risks. When we're talking about projects, I want you to understand the Project Management Iron Triangle and then the purpose of a risk register.
So when we talk about project risk analysis, what we're doing is is looking at the project itself and asking ourselves, What are the risks that are associated with it? And the traditional risks are kind of an inverted version of the Iron Triangle, where
the Iron Triangle says that there are three components to every project. It's going to be fast,
cheap or good. If your project is not fast, that's a risk, because now you're risking miss deadlines, delays and project completion. If your project is not cheap, what you're going to hear is is this project went over budget.
Many of the larger projects have a tendency to have kind of runaway costs. Associate ID,
which is bad. It's not what we want. And, of course, if it's not good, it means that it's lower quality, and we risk having to redo parts of the project. So what the iron Triangle tells us is that within a project you can always have
two aspects. You could be fast and cheap or cheeping good or fast and good,
but you can never have all three to have a successfully completed project. So with that, I much rather think of it this way.
A za faras being able to be really, really clear, good and cheap, good and fast, fast and cheap and what the implications are. So now we're talking about expensive, slow or low quality. These tend to be where you see the majority of your project risks.
There are, of course, other risks associated like technology changes or
changing customer requirements. But you don't necessarily see those is often in lean and six Sigma projects. Those tend to be more massive multi year, multi organization project management projects where you get technology changes in the middle of it.
So with that, I think of the iron triangle anytime you give
your project estimates, when you think about what is most important for this project and how you choose where you're going to invest, your resource is
when we talk about a potential project risks we want to start thinking about. How do we capture those and mitigate those? So he This graph is from the Project Management Body of Knowledge, which is the compendium for your certified project management. So your project management professional
Andi Zehr the things that you want to think about and talk through with your team
as you're kind of doing your inception of your project. These will be factors in your charter or your risk register. So, of course, scope. We know that scope creep is the enemy of all Goodling six signal projects, and that really relates toe Unrealistic expectations. Communications. Um,
how you communicate with your stakeholders, how frequently you don't want your stakeholders to come back and say, I have no idea what's going on with this project,
so make sure that you're communicating at the right interval in the right way, with um, procurement, not necessarily as much of a thing in Lean six Sigma. It's whether or not, you can get the supplies or materials that you need. Human resource is, um, I generally don't necessarily think of this as much of a lack of leadership
as I think this is the lack of engagement for your print, your project team members and that may or may not come back to their bosses.
Support of the project.
An adequate planning that's going to relate to where we are as faras are improving control phases and implementing our solutions for traditional project management. Inadequate planning has a lot to do with timing and sequencing lack of standards. We covered costs and time
we covered. Quite a bit of this has to do with
EST imitation in kind of you don't know what you don't know, But with these potential project, you're going to want to make sure that you are very clear in your expectations. So, for example, I'm a lean six Sigma practitioner and have been running projects for
ah, long time. Even with that, every time that I take a project and do an estimated timeline,
I like to add on 30 to 40% because there are always going to be they will be inherent variables that he didn't account for in my project, like team members going on vacation. Or we weren't able to collect data as fast as I thought that we could in our measure phase. So adding that
a little bit of cushion and buffer for you as a practitioner will give you some breathing room
when you go back and you start reporting on your tollgate to your sponsors,
so your risk register is a document that captures your project risks and mitigation land. So if you are risk for having your project go over time or have delays in completion than what you're gonna want to do is, of course capture. You think that this may be a risk,
and what are you going to do,
offset that? So in traditional project management, we have this idea crashing the project where you take out everything that doesn't need to be done in this project, so that you can get to that completed line or you bring in additional resource is
where we can get back on track. You can reevaluate your project scope, but for the important things in your risk register is that it is a living document, and you want to make sure
that you're going back and taking a peek at it. So what did we think could go wrong and what has or hasn't gone Ron or what's changed throughout the course of the project? This is very important as far as a waterfall project management tool. So I'm going to kind of give you the sideways wink and tell you that if you do choose to be certified,
this made show up on your greenbelt certification exam
as a tool independent from your f mea, which we will talk about a later in your course.
So with that today, we went over project risk analysis. You understand that at the beginning of your project, you're gonna work through with your project team, everything that could go wrong. And what are you guys going to do to either prevent it or fix it once you're there and you are really clear on the Iron Triangle that you can either be fast, cheaper, good, but you can never have
all three of them, so you have to choose which to
wisely. So with that, that's going to wrap us up on our project management tools and we're going to shift into our measure phase and talk about designing a data collection system in our next module.
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