Probability of Failure
Maturity (Moderate) = .50
Complexity (Minor) z: .30
Dependency (Moderate) = .50
Consequences of Failure
Cost (Significant) = .70
Schedule (Moderate) = .50
Reliability (Minor) 2 .30
Performance (Moderate) z: .50
Risk Factor = (.43) + (.50) – (.43) (.50) = .715 (High Risk)
Risk Mitigation Strategies
High Risk Mitigation Strategy
1. Plant reorganization takes longer than 1. Develop a comprehensive project tracking program to
anticipated. maintain schedule.
2. Marketing does not approve the prototype 2. Maintain close ties to sales department-keep them in
cups produced. the loop throughout project development and quality
3. New process designs are found to not be 3. Assign sufficient time for quality assessment during
technically feasible. prototype stage.
4. A key project team member could be 4. Develop a strategy for cross-training personnel on
reassigned or no longer able to work on elements of one another?s job or identify suitable
the project. replacement resources within the organization.
5. The project budget could be cut. 5. Maintain close contact with top management regarding
project status, including earned value and other control
6. Factory does not pass OSHA inspections. 6. Schedule preliminary inspection midway through project
to defuse any concerns.
7. Suppliers are unable to fulfill contracts. 7. Qualify multiple suppliers at prototyping stage.
8. New products do not pass QA assessment 8. Assign team member to work with QA department on
testing. interim inspection schedule.
9. Vendors discover our intentions and cut 9. Maintain secrecy surrounding project development!
Prepare a fictional group project. You may use one of the following for your model:
New Product Development Product
Software Development Project
Remodel the LBJ Nursing Unit 2C – Semi-Private Room Conversion Project
1. Facilities ?
2. LBJ Ops Mgr. ?
3. LBJ Nursing ?
4. LBJ Engineering –