The Essay On Risk Management's Impact On Project Cost.

Discuss about the Impact of Risk Management on Project Cost.

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In this new era of technology the process of electricity or power generation has become a very basic requirement for long-term sustainability of human.  Usage of natural renewable resources the process of power generation always cost lesser than the other processes. This particular project is focused on the generation of power basically from the wave energy. It has been that using the combination of an overtopping system and buoyant (offshore) moored devices, the power can be easily generated from the wave energy source. I have learned the basic needs and their real filed application that has to be considered for the successful accomplishment of the electricity generation using the ocean wave. It has also been learned the application of two of these devices successfully. The moored device is used for converting the natural energy to electrical energy whose operations are use to rise and fall of the swells for driving the pumps. The main components those have been used for the successful implementation of the ocean wave generation project are also being learned from this project in detail.

It is realized that the details formulae those have been used for the measuring the design, assembly, performance of the design. From the current condition of the renewable resources, it has been learned that over the coming next decade the net consumption of energy from all over the world is rising simultaneously. The traditional processes of energy conversion are currently obsolete since it affects the environment either negatively or positively. Many different renewable resources are there such as solar energy, biomass, ocean etc that are widely used for the generation of power and electricity. In order to complete the document within estimated time phase it is mandatory for the project manager to maintain some of the basic project management components. However, not only the project manager but also the project team members are also required to follow those processes for completing the project.

Version	Release date	Comments
0.1	19/07/2018	Helen created the template
0.2	29/07/2018	Completion of the template
0.3	18/08/2018	Approval of the template

I, Sufyan Patel, pursuing my Master’s degree in Manufacturing Engineering and engineering management from the University of Technology, Sydney. I think that with the successful completion of this course I shall be able to work in a diverse situation and workplace. I also feel that it will help me to increase my knowledge and skills for further sustainable career growth.

I am currently working for Red Lea Chickens as a supervisor since 9/3/2018 . In addition to this previously I worked as a production manager in Shimla Food Products (from 12/03/2014 – 30/09/2017). Being a regular student I am pursuing this degree in my own interest. I have completed my bachelors from Gujarat Technology University in Mechanical engineering and before that I have completed my diploma in Mechanical engineering from Gujarat Technology University. I have been appreciated for different activities during my university days. I am expecting that I will successfully complete this course so that I can get more opportunities in my career.

Background

As I have already been working for a company as a production manager thus in future I want to hold a higher designation. I think this course study will definitely help me to learn the details about managing project. I have also learned that way through which a project environment can be maintained  and will also become clear to me with the successful completion of the course. My objectives are as follows:

• To successfully accomplish the university course
• To learn how to manage a project environment
• To become a project executive

In order to successfully accomplish any project it is mandatory for the project team members to play their job roles properly so that the project manager can meet the project requirements and objectives within estimated time and budget. The integration of the topic groups is comprised of different processes. It is the role of the project group to work efficiently for their allotted job responsibilities to satisfy the consumers of the projects. For this course project topic “Ocean wave power generation” it is defined that, if all measures are not properly adopted then the project may not reach its objectives. At the project initiation phase, the project manager should identify the project objectives, resources, stakeholders, budget and some other aspects. Then the main project related requirements are to be defined successfully (Costantino, Di Gravio & Nonino 2015). All the project requirements are to be combined altogether. Though, another consideration is also there which is monitoring and control. In order to track the progress of the project accurate monitoring measurements are also required by the project manager. Even during the progress phase if any such change requirements are being identified, then with monitoring approach change management program must be incorporated before the final execution of the project.

In order to pass on this subject all of the topics related to project integration should be properly understood by the student. Therefore, it can be said that, while designing the project on electric power generation from ocean wave, proper combination of the necessary devices are mandatory to be obtained. Moreover, it can be said that to pass this subject concrete idea for project management activities are mandatory.

It is not necessary that every time management of the project will be an easy job to do rather project management can also be a complicated job from the project manager and the project team member’s end. It is the role of the different project departments to play active roles in the successful implementation of the project within time and budget. Project integration management is referred to as a way for making different processes working altogether. Thus, it can be said that this is a combination of numerous valid processes. Through, making proper project trade off a project integration management can be successfully accomplished (Fleming & Koppelman 2016). It means that project never shows a direct path or straightway towards success rather it is the role of the project managers to coordinate the requirements altogether for the successful accomplishment of any project.  Thus, the project managers should coordinate all the project outcomes together to process successfully.  However, if competing objectives are being found then proper project alternatives should be adopted to meet the expectation of the associated stakeholders.   

Your Background

In order to activate the project integration management with any real-world project, it is mandatory for the project team members to combine all the project development phases to make sure that the project has met the project objectives. In coordinating project objectives the integration management requires to create details number of deliverables. This project activity starts with the development of a project charter. As much generic the project charter will be that much chance for the project success will increase. In order to move the project forward the project charter act as a reference document. Then a project scope statement should be created by measuring the necessary success criteria. Though, the success criteria for different projects are varied from each other. Then a project management plan should be created by following some project. For this particular project topic the functional and non functional requirements are to be identified by the project manager at the initiation phase then proper devices that are to be installed for the project success will be combined considering the time schedule. The entire project should be divided in to sub-activities to reduce the workload of the project team members. Based on the complexity of each of the project activity the time periods are allotted for separate project activities. After completion of the project plan a kickoff meeting should be arranged by the project manager. In the kickoff project meeting all the project requirements will be discussed by the project stakeholders to make them more familiar with the project requirements and objectives.

Stakeholders are defined as the project associate who plays active roles during the implementation of the projects. It is mandatory for the project owner to assign stakeholders to any project so that it can meet the project goal within timeline and estimated budget. Regardless of the size of the project the project, the team is allocated and for each of the project activity separate human and physical resources are assigned.

 This is one of the essential parts of any project. The stakeholders will provide services and products necessary for the project success. Reasonably a full picture should be drawn by the project stakeholders to understand their roles and responsibilities and also how their roles are either positively or negatively influencing the project. The project productivity, effects, decisions are also affected by various roles played by the associate project stakeholders.

Stakeholder management plan is a process of systematic identification, analysis, planning and execution of the actions those have been designed to keep the project team members engaged in their job roles. The stakeholder may be individual or they may be in a group. The process of stakeholder management is a set of techniques that can effectively minimize the rate of negative influence (Oppong, Chan & Dansoh 2017). In order to stakeholders management plan for this particular project five different steps are to be followed accordingly such as stakeholder identification, assessing their field of interest and development of professional communication plan. Portfolio, program and project management are the main roles played by the project stakeholders.  

Your Objectives

This particular project on “Generation of power from the Ocean waves” the assigned project managers are the project manager, system developer, electrical engineer, HR manager, system tester, technicians, business analyst and finance manager. The role of the project manager is to monitor and control the entire process of stakeholder management so that the project owner can gain effective commercial revenue. At the project initiation phase the finance manager should make a feasibility study to ensure that whether the project is feasible or not. The technicians and the electrical engineers are responsible for designing the power generation system with proper device allocation. Apart from this, the business analysts are responsible for designing proper promotional activities so that all the associates become knowledgeable concerning the project becomes. During the project team allocation the skills and knowledge of the applicants should be checked by the HR manager. They are responsible for allocating the project team successfully so that the project can be accomplished.

The scope of the project is to identify the current environmental issues that are increasing the rate of pollution and greenhouse gages at the same time. Due to the excessive usage of the non-renewable resources this is occurring all over the world. The way through which the rate of pollutants and another harmful emission can be minimized will be defined in this specific project scope. In addition to this, proper resources, stakeholders, communication plan, quality, time and cost management plan for this specific project are also designed here. It is expected that, if the proper project scope is being prepared and followed accordingly then the project will surely meet the success criteria within estimated budget time as well.  The project scope mainly deals with the products and services. The project scope management program is comprised of certain phrases such as collection of project requirements, defining project scope, creating work breakdown structure, scope control technique analysis and project scope verification. It is defined that if proper project scopes are being designed then the project manager will be able to meet the project success criteria and preliminary assumptions. The project scope should be designed considering the project triple constraints and other assumptions.

Scope management plan is referred to as the initiation or staring approach that is documented to initiate any project and to lead that project towards the direction of success. The scope defines all of those activities that are going to undertake by the project manager and must be followed accordingly by the rest of the project team members (Ingason 2015). Scope management program is comprised of three phases such as scope planning, scope execution and scope control. This is always defined as a part of the scope management program and never developed as a separate section.   With the successful analysis of the scope management plan the project manager will be able to show the direction through which the project will progress, the tools needed for the implementation of the project, the enterprise environmental factors required for the implementation of the project and the process assets along with the control process. For this particular project the scopes are to define the devices that can design the system used for converting the ocean wave into power. Not only this, but also in order to guide the project until it ends the project scope should be followed to measure the project baseline. Besides this, the team allocated for the project is also done in the scope planning phase. In order to carry out the project work successfully, resources (Human and physical) are needed to be considered by the project managers and the rest of the project team members. The resources associated with any project include people, equipment, facilities, funding, facilities, etc. In addition to this some other additional projects are material goods and capital that has to be invested. Lack of resource identification and over-allocation of resources both may cause the loss of the project. Therefore based on the project requirements at the project initiation phase the project related resources are to be selected and allocated by the project managers. The project sponsors will invest the particular amount needed for project initiation. Resource management is an important aspect of project planning which focuses on the supply that is used basically for producing the required deliverables to the clients within estimated time as well as the budget (Heldman 2018). The assigned resource manager is responsible for managing the resources to avoid unnecessary project costs. Though, the process of resource management is not limited by equipment, resources and costs but also consider the time frame estimated for the successful accomplishment of the project. For “Ocean wave for power generation project” the resources those have been assigned include Buoyant Moore device, wave power, renewable energy source overtopping system etc. The other specifications estimated for this project include brush motors (magnet type), high torque and related voltage of DC 12V, mounting screw and shaft. In addition to this, the other specifications assigned for this project include the sealed battery (aid battery), the device to control the temperature of the system etc. in addition to this electrical engineers and some technical experts are also hired who will take part in the project actively. For each project activity, based on their complexity different resources are being assigned and it is their responsibility to accomplish the assigned work within estimated time to avoid over-allocation of a budget.If these specifications are properly followed then the project will definitely meet the success criteria and project objective. Project management is an important aspect that should have to be followed by the project manager within the 10 different project management process areas of the project manager (Hornstein 2015). There must be proper control over the time of the project to make sure that no additional cost will be required rather wasted. Different ways such as project plan schedule management, sequential activity setting, control over the schedule etc are available and among them the most suitable way should be selected and applied by the project managers (Kucharska & Kowalczyk 2016). In order to plan the project schedule proper steps are also to be followed by the project head to avoid extra overrunning cost. As much additional time will be required accordingly additional costs will be needed. Project time management is required to be followed by the project manager to accomplish the project within a timeline successfully. The process that is included in the project time management are defining the project activities, proper arrangement of those activities, estimation of resources for those activities, duration estimation for the activities, development of project schedule and addition of proper control measures for the project activities (Mir & Pinnington 2014). Specifically for this project the activities that are going to be considered should be decomposed and also approved after getting permission from the experts associated with the project of Ocean waver power generation. Not only this but the other things that are to be measured for the project include activity listing, activity attribution and milestone listing, can be said that if all of these measures are properly followed by the project manager then the project will definitely meet the project objectives those have been set at the preliminary period. Specifically for this particular project the total time that has been measured is 6 months or 0.5 years. It is expected, that if all the project specifications are properly followed by the project manager then the developed system will surely be able to deliver the expectation of the project manager and the project executives. Not only one resource but all the assigned resources are required to accomplish their job roles within the estimated time period. The project manager is responsible for managing the project time to avoid over cost. External project dependencies are the other important measures must be considered by the project manager and the project team members as well. The alternative analysis, bottom-up estimation are other perspectives that are to be followed by the project team members.   Cost is the most important actor for initiating any project rather it can be said that without proper cost estimation no project can even initiate. The project sponsors are responsible for investing the necessary amount of cost for the successful initiation of any project. Cost management is the way through which the cost of the project can be properly managed as well as controlled accordingly. After figuring out the details outline of the project the cost estimation project becomes much easier for the finance manager assigned for any project. While developing the cost structure for the project it is mandatory for the project manager to plan for every aspect such as inflation planning, addition cost estimation for natural disaster and other possible natural accidental events, unexpected project costs, tracking the real time progress of the project. For this particular project the cost structure that has been estimated showing that the total cost needed for the project are implementations of $80 Million. This estimation has been developed by the project finance manager. A risk is a probability of threat of damage, injury and the liability rather the loss of the actual expectation from the successful implementation of the project. Both the internal as well as external vulnerabilities can cause risks to the projects. Thus, the project manager should take all necessary actions so that the project risks can be completely avoided rather at least minimized. Risk management is the process of identifying, analysing and prioritizing the risks that may occur during the project life cycle period.  It is not mandatory that each tie the risk management will become reactive rather the process of risk management can also be defined as a part of project management (Qazi et al. 2016). The phases that are followed for processing the risk management program includes risk identification, risk analysis, risk prioritization and risk mitigation techniques. For"Ocean wave power generation"project, at the project initiation phase the potential risks are to be identified, then those are required to be analysed clearly. After proper analysis of the risks based on their possible impact those should be prioritized or ranked accordingly.  Based on the negative impact the risks should be prioritized and then accordingly proper mitigation strategies should be planned by the project manager.

Project management and the project quality management are two complimentary activities associated with the project. Both of these activities can satisfy the consumers with the underlying belief that only quality can lead a project towards success. In order to pass the subject proper ideas regarding the quality management are very much important to be considered by the project managers. The process of quality management helps to ensure the success of the project at the project progress period. It can be said that even a project is found to be completed within time but lags quality measures then the project will never be identified as a successful one.  

The project quality management is a process through which the quality of any project can be measured by the project leads (Oppong Chan & Dansoh 2017). If during the progress period any such disputes are identified then the project manager should take proper actions in terms of the change management plan to make sure that no such issue is occurring in the further cases.  

From the past few years the rate of carbon footprints and the other harmful greenhouse gas emission increasing in a massive form which is needed to be controlled to avoid the environmental pollution. Instead of using non-renewable resources as mush the renewable resources will be used by the engineers that much chances for the environmental pollution will decrease. The project manager should make sure that while converting the Ocean wave to electric power no such pollutants are emitting from the system. Not only this but also a suction pipe should be installed by the system designer to avoid or filter the minimum pollutants that may emit from the system. The project manager, who will be assigned to the project are responsible for designing the quality management program including the quality measurement and quality monitoring plan.  During the project progress period the quality of the project whether it is meeting the requirements and objectives or not should be analysed by the project manager also. 

Integration

In order to pass the subject the project is required to be structured accurately. In this digital era, procurement and planning have become a major concern for the successful accomplishment of the projects. Procurement management is important to meet the project goal by living up the expectation of the project stakeholders.

Project procurement management is referred to as a combination of planning, alignment, procure and management. For continuous project improvement the project procurement is very much important. This is basically a systematic approach which is used for buying goods and getting services those are required for the sustainable success of the companies (Ross 2017). Not only this but also, professional procurement management plan can add values to the business practices and also can save both time and money of the project sponsors. Certain major themes are there should be maintained for the successful implementation of the project. Firstly the project requirements are to be identified according to the requested proposal. For successful procurement project management sustainability of the project should be considered. The sustainability of any project is dependent upon cost, quality and the delivery approach used by the project manager.

The aim of this particular project is to generate power from the Ocean Wave renewable energy source. In order to design the procurement management plan for this project both the textbook and computer is required. No, procurement does not imply the purchase of particular resource rather for this specific project a four step plan should be implemented by the project executive. In this process all the findings are combines into a document.

At the initiation phase, a smooth procurement management plan should be developed to reach the project goal. Then, the needs of the stakeholders will be analysed based on the recent project capabilities. Not only this but also, procurement policies are also to be defined by the project manager to make the commercially successful. This will declare the process following which the entire project will be successfully carried out.

The process of professional communication is referred to as a Critical Success Factor (CSF). It has been found that with the help of proper communication a professional relationship between the project manager and the project team members can be established. Based on the type of the project the communication medium should be chosen by the project manager. Concerning the type of the information that is going to be processed the communication management program should be designed by the project manager. It is identified that around 90 percent of the time is spent by the project managers in communication. Communication process also deals with leadership and motivation. With professional communication the project team members can also be motivated.

Definition of Project Integration Management

Communication management plan is one of the most important factors that have to be applied by the project manager effectively. Both the business effectiveness and business efficiency will increase if proper communication program is being adopted by the project manager associated with the project. It is found that almost 80 to 90 percent of total time the project managers spent communicating with the rest of the project team members (Takey & de Carvalho 2015). The project related frequent issues can be easily identified if proper communication approach is applied by the project associates.  However, a proper structure of communication management must be designed to reduce the rate of project-related risks. Based on the needs of the stakeholders and the consumers as well as the project communication plan should have to be designed by the project managers. Effective project communication strategies will help to determine the project scope by making the requirements clear and concise at the same time. Different types of communication process are there such as pull, push, interactive etc. The process of communication varies with the stakeholder’s roles.

Specifically for the ocean wave power generation project, 5Cs communication plan is needed to be designed by the project manager to avoid communication misunderstanding. The skill of professional communication can increase the listening cultural and control power of the project stakeholders. The fundamental processes of communication include clarity, proper understandings and skill handling capability. The assigned project manager should use open communication to deliver an interactive platform to the stakeholders. If open communication is followed then all the associates will feel free to share their point of views with the rest of the project team members. A stakeholder’s register is needed to be prepared by the project manager considering the meeting purposes, meeting timings and communication medium and communication strategy as well. Direct communication resolves the issues with time consumptions. Moreover, it can be said that with the help of proper communication management the positive and negative aspects of this power generation project can be managed completely.

Conclusions

From the overall discussion it can be concluded that if all the above mentioned project categories are properly followed and maintained accordingly then the project manager will be able to implement the project within the estimated time and budget. In order to plan any project the main components will be considered includes resources management, communication management, stakeholders management etc. With proper integration management all the individual project activities and segments will be combined altogether. For the ocean wave power generation project, the stakeholders will be identified initially based upon the project requirements. Besides two different types of project stakeholders selection proper resources are to be allocated for each of the identified project activities. Again, for each of the project activities proper cost is also allotted. It is the role of the project manager to avoid overrunning project cost and time as well. Apart from this, in order to avoid intra project and inter-project conflict proper communication matrix is also developed for this project. The success of any project is always being measured with the quality and rate of risks associated with it. For this project also proper risk management, time, cost and quality management program is being developed.

How Does This Apply to My Work in This Subject?

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