Project Risk Assessment and Decision Support Tools

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L Data consists of raw facts. Organized data becomes information. Valued information becomes knowledge. Applied project knowledge yields several courses of action. Determining a course of action renders a decision.

Allows multi-disciplinary< Allows people lower in the organization to make decisions once reserved for senior management. Allows your firm to make decisions faster and better than your competition.

It is better to move fast and make mistakes occasionally than to move too slowly. Juergen Schrempp  Chief Executive Officer   Diamler Chrysler AG   September 24, 1999

Digit: Any number from 0 through 9.     Digital: Pertaining to   data in the form of digits. Digital Computer: A computer that operates  with numbers, particularly    “0” and “1” to solve    problems that require exact answers.

Yes/no decisions that a   computer might make. Decisions are bold, fast   and often unpopular  (tough calls). Translates mountains of  data into detailed two  dimensional pictures

Area under review is less than adequate. Action is required. Area under review is adequate. Information is unknown, insufficient or inconclusive to make a decision. More information could either improve  or worsen the situation.        Not applicable to this situation. RULES: Only one color per shape. Even one red or blue dot can indicate a …

Diagnostic Color Coding Read More »

Decision Node: Indicates a choice to be made Example: Terminate the project. Random Variable Node: Indicates an uncertain parameter or event. Example: Government intervention – slows full scale production. Horizontal Line: Indicates probabilistic dependence. Vertical Line: Separates the categories from each other.  

Serves as a central data repository. Simplifies the project’s context. Focuses the search for actual or potential problems. Allows users to see connections. Provides a multi-dimensional overview of Senior   Management, the Project Manager, the Project Team, Internal/External Support, and the infrastructure of the project’s nuts and bolts. Permits the user to add additional nodes. …

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PROJECT VARIABLE ANALYSIS DISADVANTAGES: Project variable analysis could present a bewildering collection of templates, categories, color codes and symbols, requiring specialized training. The same results could be interpreted differently by different people. This is not a quick fix solution. It could appear that project information is being force-fitted into somebody else’s pattern. The model may …

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THEORY:  All known project variables are known.   ADVANTAGES: All variables can be considered impartially. Minimizes prematurely “Jumping to Cause (pointing in a pre-chosen direction)”. Easy to learn. Studies have shown that the brain finds information easiest to absorb through  pictures. Simple to present. Proper diagnosis combined with effectively implemented corrective action and senior management …

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