Overview: as well as issues that highlight the

Overview:

This plan establishes the framework for how the
project team identifies, analyzes, mitigates, and otherwise manages risks
associated with the Printed Circuit Board Assembly Line Move project.  It identifies risks to project success, provides
guidance for prioritizing the associated risks, and outlines how risk
management activities will be performed, recorded, and monitored throughout the
project’s lifecycle.

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This project is
assessed as high-risk; it has an overall risk of score of .783 on a scale of 0.000
to 1.000.  A quantitative method is used
to score the probability and consequences of failure.  Identified factors that can significantly
affect the probability of the project’s success, as well as issues that
highlight the effects of project failure, feed into this numeric risk
calculation.

 

Risk Management Process:

The
project team used a systematic process to identify and rank project risks.  The major risks, those that are likely to
occur and have a moderate-to-significant impact, were added to the project
schedule and assigned a risk manager to implement responses and controls as
required.  The project team, led by the
project manager, will analyze, manage, and communicate risks throughout the project’s
life.  Risks will be identified early in
order to minimize impact and unnecessary downstream time delays and costs.  Upon the completion of the project, the
project manager (John Fredo) will identify improvements that can be made to the
risk management process and record them for future projects.

 

Risk
Identification:

The
project team used the Crawford Slip method to identify risks, a process during
which each team member and stakeholder provided equally weighted input to generate
a large volume of information in a short span of time; this was the primary
method employed due to the relatively short timeline to initiate and complete
this project.  The risk identification process
involved the project team and stakeholders.  The organization’s culture, environmental
factors, and the project management plan and scope were evaluated, with particular
consideration given to project deliverables, schedule, assumptions, limitations/constraints,
work breakdown structure, cost estimates, and resourcing.  Additionally, the project team examined like
projects conducted by similar companies in the past to assess the common risks
and risk mitigation strategies (both successful and unsuccessful).

 

Major Risks:

1. Insufficient “bank” (6 months) of
inventory for the transition period:
Increased operator labor hours (overtime) on the production line leading up to
layoffs poses a significant risk to build up the necessary 6 months of
inventory to fulfill customer needs during the production line transition
(downtime).

 

2. Delayed productivity of equipment in
China: Major delays in shipping,
setup, or validation, or damages during transport that require untimely repairs
to equipment (pick and place machine, wave solder, and the actual assembly
line) would pose a significant risk to production levels and unit revenues.

 

3. Supplier training: Partial or incomplete training of the new
supplier poses a significant risk to ongoing operations and production beyond
completion of the move/project.  If the
appropriate team members are not selected, the mission and dynamic of the team
may suffer.  With the team members
knowing they are training their replacements, they may be less than willing to
give their best efforts, or worse – they may intentionally undermine the
training process.   If the new supplier
is not correctly and completely trained on the production line tasks and
processes, it will adversely impact production numbers and quality.  This would negatively affect PNB’s customer
relations.

 

Risk Analysis of Probability and Consequences:

All
risks are assessed to identify possible outcomes.  The probability and impact of each identified
risk is assessed by the project team and stakeholders.  Risks are categorized as follows:

     Likelihood

·       
High – Greater than 70% probability of
occurrence

·       
Medium – 30% to 70% probability of occurrence

·       
Low – Below 30% probability of occurrence

     Impact

·       
High – Potential to significantly impact
project cost, schedule, or performance

·       
Medium – Potential to moderately impact
project cost, schedule, performance

·       
Low – Little-to-no potential impact on project
cost, schedule, or performance

 

Risk
Response Planning:

Each major
risk (those that are medium-to-high likelihood and/or consequences) is assigned
to a project team member for monitoring purposes to ensure that the risk is
addressed.  For each major risk, one of
the following approaches is used to address it: Avoid –eliminate the cause; Mitigate
– Identify methods to reduce risk probability and/or impact; Accept – Take no action; or Transfer – Move risk consequences to
another party through insurance, subcontract, outsourcing, etc.

1. Insufficient “bank” (6 months) of
inventory for the transition period: Mitigate,
assigned to Tom Tabbler.  The
project team can mitigate this risk by providing employees timely communication
on the future of the facility and their employment, informing them of layoffs
prior to the 60 days required by the state and compensating them at levels to
retain their skills up to the last day needed at the Syracuse facility (severance
packages for those who work to the production line’s Syracuse closure, job
transition services, medical benefits for an extended period of time beyond
layoff dates, etc.).

 

2. Delayed productivity of equipment in
China: Accept and Transfer, assigned to
Mary Price.  The project team is accepting this risk by
providing the inspection department the requested weeks to conduct the rigorous
quality testing and ensure we not only have an operational production line to
meet demands, but to also maintain our ISO 9001 and ISO 14001
certifications.  The project team is
inquiring with customs and selecting a reputable and experienced international
transportation company early in the project plan in order to mitigate delays in
processing and shipping time. 
Additionally, the project team is insuring the equipment shipment with
all-risk, door-to-door protection, transferring risk of shipment damage to an
insurer.

 

3. Supplier training: Mitigate, assigned to Kristen Super.  The project team is mitigating this risk by
heavily compensating the hourly team members who are selected to complete this
activity/mission.  Given the relatively
even skill levels of the hourly employees in each production segment, the
project team is selecting team members based on employee work ethic,
punctuality and attendance records, and past performance, as well as interest
levels.  To ensure there is sufficient
time to provide thorough training, the team will travel to China to meet the
supplier’s production team.  While the
equipment is in transport status, the teams will conduct classroom based
training (teaching) to provide the overview and technical descriptions and
schematics of the equipment.  Upon
arrival of the equipment, the teams will be given four weeks to conduct a left
seat / right seat training, during which the Phillipe Broadband Networks (PBN)
training team will demonstrate and then observe execution of tasks.  The PBN training team will stay in China
until validation is complete.  If remedial
training is needed due to residual quality issues associated with operator
errors, offers may be made to members of the PBN training team to stay longer.  Additionally, we are filming the production
process to create training materials for future use as employee turnover occurs
within the supplier’s organization.

 

Risk
Monitoring, Controlling, Reporting, and Documentation:

Project risk levels will be monitored and
reported throughout the project’s lifecycle; the risk management plan will be
maintained during all phases and will be reviewed during each project meeting.  All scope change requests will be assessed
for possible risks, threats, opportunities, and impact; management will be
notified of material and important changes to the risk status of the printed
circuit board assembly line move.

 

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