I have been having a running discussion with one of my colleagues regarding project and cost, specifically the cost of a project that is under consideration for termination.  A project is going through a gate review. During this review we find that the objectives are not met by this phase and further action has little […]

There is a saying: “if you change form, fit or function, you change the part number.” On the surface this seems like a good saying. People use this saying as rule of thumb to determine if a new part number is required.  Taking out new part numbers cost the company some administrative time and effort […]

Several quality tools can help to evoke the risks that may be associated with your project. One such tool usually associated with cause and effect is the Ishikawa diagram. We can use this tool to explore risks as well. We will explore what happens (cause) and how it will impact (affect) our project and product. […]

We can use value analysis and value engineering techniques to improve our product cost structure and ultimately our value proposition.  The analysis phase of this activity is called value analysis. The design phase of this activity is called value engineering.  We are a bit constrained during these activities since as we have a product already […]

We perform risk audits on projects to ascertain whether we are deviating from the desired budget, schedule, and quality levels we specified at the start of the project. At the 50,000 foot level, risk auditing looks like the following: Define the problem Choose an audit team leader Choose an audit team or let the leader […]

A contingency in project management is a reaction plan to an untoward event; in short, we plan ahead for the failure of a given task. In order for a trigger to “fire,” we must set a threshold value that activates the trigger; otherwise, the trigger should never fire. Thresholds can be set based on financial, […]

Risks need to be assessed in regard to their business impacts, so that business decisions can be made promptly.  Strategies should be built and decided based on the quantitative value of the risk. Managers must decide on whether to spend $500,000 to avoid a delay in a project.  How long that delay is impacts the […]

Many organizations have a series of activities or processes (design reviews, analyses, verifications, validations, etc.) that they go through to produce the end product or service. The work will start with some kind of development process, which may be a matter of days, months or years, depending on the complexity of the product or service. […]

The trigger is a new concept to those acquainted with the FMEA approach to problem elimination. The trigger event (or threshold) is how we know we need to invoke our risk reduction activities and is direct responsibility of the person monitoring. Risk Response and Contingency Budgets Each risk dollar amount at stake is multiplied by […]

We recommend a modified version of the FMEA approach to assessing the risk. The approach is tailored to the needs of project and program managers. We will model the time line as a control plan with minimal controls other than the typical tollgate reviews and, perhaps, team meetings. We know from personal experience that treating […]