ENGM91 RISK, QUALITY and HUMAN ASSPECTS Unit 5

Introduction This unit will give an overview of Risk Quality Human Aspect These topics may be covered in depth within other modules

Risk Management Project Hazard Management and Contingency Planning

Risk Management Introduction Will look at the management of risk during the project risks vary in importance the importance of a particular risk depends on the project Risk Management should reduce the danger of risk for the particular project of interest

Risk For some people risk is part of work http://www.youtube.com/watch?v=PMIErnMF0us Sometimes work is more risky than others days http://www.youtube.com/watch?v=r0DGkBdGTmM For other risk is what they search for away from work http://vimeo.com/31481531 Risk is part of all our lives and work

Risk categories Risk types to be found on Project those caused by the inherent difficulties of estimation those due to assumptions made during the planning process those of unforeseen (or at least unplanned) events occurring

Risk categories Estimation errors some tasks are easier to estimate than others manual writing is a reasonably straight forward task software program testing and debugging may not be analysing historic data for similar things can help with deciding the level of accuracy to be assigned to a particular estimation

Risk categories Planning errors assumptions are used when planning, if the assumption are wrong then the plan is at risk e.g. the need for rework may not be planned when a plan is prepared the assumptions that have been made should listed and details given to the affect on the plan if the assumption are incorrect

Risk categories Eventualities some eventualities might never be foreseen it has to be accepted that such eventualities do happen, even if they are rare! Most unforeseen eventualities generally could have been identified and predicted e.g. the required hardware not arriving on time plans should be in place to minimise the damage caused by an unforeseen event

Managing risk There are various models of risk management They are generally similar and identify to main elements risk identification risk management This module will look at the US DOD Model

Managing risk US DOD Risk Management Process

Risk identification Identification of hazards that may affect a project must be the first steps in a risk assessment A hazard is an event that if it occurs may adversely affect the project The risk a hazard presents to a particular project must decided

Risk identification Checklist are often used to help in identifying hazards Knowledge based software is also available to help with the task of hazard identification Some hazards will be generic Other hazards will be project specific

Risk identification Typlical Risk Sources as define by the DOD Threat Requirements Technical Baseline Test and Evaluation Modeling and Simulation (M&S) Technology Logistics Production/Facilities

Risk identification Typlical Risk Sources as define by the DOD cont. Concurrency Industrial Capabilities Cost Management Schedule External Factors Budget Earned Value Management System

Risk analysis Once identified risks should be assessed for their possible affect on the project What is the likelihood of the risk occurring What would be the consequences in terms of performance, schedule, and cost What is the risk level or risk exposure

Risk Mitigation There are five broad categories for risk reduction hazard prevention likelihood reduction risk reduction risk transfer contingency planning

Risk Management Risk Mitigation Planning Risk Tracking preparing contingency plans large project will use a risk manager to do this Risk Tracking ongoing assessment of the importance and relevance of particular risks

Risk Conclusion Risk Identify Analyse Mitigate Track

Quality Aspects Of Projects

Quality Introduction Generally agreed that “quality” is a good thing Quality often thought of as an add on something you have to do ‘cause the boss tells you something that stops the real job from being done The use of the principles of quality help to ensure that the project is a successfully completed

Historical Development of Quality Management 1800’s Individual craftsmen 1920’s Scientific management 1940’s Quality control 1960’s Quality Assurance 1980’s Total quality management 2000’s Whole life management dates are approximate give or take a decade

Total quality management TQM was a significant step in the development of quality management The take up of TQM by business meant that both managers and worker had to change their attitudes and and approach to work

Total quality management This is involving everyone Quality Value for the pound Management A systematic approach to processes Management are responsible for facilitating in such a way that workers can do their job

Total quality management The issue of quality was once seen as something that was only of concern to manufacturing Quality is now just as important in the service sector

Total quality management Customers must be the prime concern Customer satisfaction, successful problem resolution and worker empowerment are key aims in today’s enlightened organisation

Total quality management BS7850 definition of TQM Management philosophy and company practices that aim to harness the human and material resources of an organisation in the most effective way to achieve the objectives of the organisation. The next two slides contain 3 notes that go with this definition

Total quality management The objectives of an organisation may include customer satisfaction business objectives such as growth profit and market share the provision of services to the community but, they should always be compatible with the requirements of society whether legislated or as perceived by the organisation

Total quality management An organisation operates within the community and may directly serve it, this may require a broad conception of the term customer The use of this approach goes under many other names such as continuous quality improvement total quality total business management

TQM fundamental concepts Commitment everyone is included continuous improvement is the key meeting customer need should be of prime importance

TQM fundamental concepts Customer satisfaction Understanding and satisfying customers needs and expectations should be a key objective For most people this will mean customers internal to their organisation, as in most organisation only a small number of people have contract with external customers

TQM fundamental concepts Quality losses Whenever an organisation does not utilise its human, financial, physical and material resources, effectively and efficiently in a given process, then the lost opportunity is referred to as a quality loss.

TQM fundamental concepts Participation by all This concept builds on the first one, commitment An organisation needs to harness the strengths and abilities of all its members to ensure maximum effectiveness and efficiency Everyone should be given recognition as a valuable member of the chain that links all members of the organisation.

TQM fundamental concepts Process measurement Process measurement should be applied to all organisational activities, when need. Data is generally expensive to collect if it is not used don’t collect it. Only relevant data, that is used should be collected.

TQM fundamental concepts Process measurement (cont.) Many organisation act on subjective information this generally results in failure Basing action on objective data will generally result in success When being given information it is important to decide is it perceived or fact.

TQM fundamental concepts Continuous improvement An organisation has to continually strive to improve all of it aspects This generally translates into people, product and process improvement An organisation should never be satisfied, improvements must be always sought and monitored.

TQM fundamental concepts Problem identification Problems must be identified and resolved quickly in an effective and efficient manner This should apply to both actual and potential problems Problem identification should be continuous.

TQM fundamental concepts Alignment of corporate objectives and individual attitudes Removal of prejudices and restrictive approval that inhibit the effectiveness of the organisation needs continuous attention.

TQM fundamental concepts Personal accountability Individuals within an organisation should recognise and accept their responsibilities within it. While recognising the responsibility and authority of others. personal development The organisation must strive to develop the individuals within it, so that they meet its needs, while being sympathetic to personal development wishes and needs of the individual.

Quality Conclusion Quality is important Quality matters But quality cannot be used in isolation Quality is part of all aspects of an organisation

Human Aspects of Projects

Human Aspects of Projects Introduction organisational behaviour staff selection, development and motivation creating effective team staff motivation is often the key to success many risks associated with staffing that can affect a projects success ability of staff to do the job is important when allocating tasks

Understanding behaviour How people behave within organisations should be understood. People are the key to successful projects There have been many studies on how people behave and act within organisations Different environments affect how people act Main early theorists: Taylor, Mayo and McGregor

Background to Organisational Behaviour Organisation behaviour studies started by Frederick Taylor in late 19th century and early 20th century Studied mainly manual workers selecting the best person for the job instructing person in best methods giving incentives in the form of higher wages Major work centred on Bethlehem Steel Works

Background to Organisational Behaviour Elton Mayo Researched how workers output varied with different conditions Major work carried out at Hawthorne Works of Western Electric in Chicago Hence came about the Hawthorne Effect

Background to Organisational Behaviour Donald McGregor Developed the idea of Theory X and Theory Y Theory X average human dislikes work need coercion, direction and control people tend to avoid responsibility Theory Y work is natural coercion, direction and control not only way of managing average human can learn to accept responsibility capacity to use imagination and be creative

Selecting the right person Belbin suggests that skills rather than experience is important Belbin distinguishes between those that are eligible for a job and those that are suitable Therefore don’t be narrow minded in the selection process

Motivation Taylorist model This is reflected in him advocating piece rate working Rewards have to be related in a simple and direct way to work produced this is not easy to do when developing a computer system

Motivation Hierarchy of Need developed by Abraham Maslow (1908 - 1970) Published 1954 Modified by Maslow 1970 different people are motivated by different things As lower level needs are satisfied then higher level needs emerge therefore team members needs will vary

Motivation (Maslow) Self Actualisation Esteem Belonging / Love Safety Physiological

Motivation (Maslow) Self Actualisation Cognitive & Asthetic Esteem Belonging / Love Safety Physiological

Motivation Herzberg’s two factor theory hygiene or maintenance factors these can make you dissatisfied if they are not right e.g. level of pay or the working conditions motivators things that make you feel the job is worth while e.g. sense of achievement or the nature of the work itself

Motivation How can understanding what motivates different types and groups of people make a managers job easier?

Improving motivation Setting specific goals Providing feedback Job design Job enlargement Job enrichment

Becoming a team Tuckman and Jensen’s classification forming storming norming performing adjourning

Team roles Belbin’s suggestion on the people types found in a balanced team The chair The plant The Monitor-evaluator The shaper The team worker The resource investigator The completer finisher The company worker

Group performance Additive tasks Compensatory tasks effort of all participants are added together Compensatory tasks judgements of individual group members are pooled so that errors are compensated for

Group performance Disjunctive tasks Conjunctive tasks there is only one correct answer someone must find this and the others recognise this fact Conjunctive tasks progress governed by the slowest performer

Human Aspects Conclusion Human Aspects in projects organisational behaviour motivation teams group performance

Unit Conclusion Risk Quality Human Aspect