Question

Chapter 17: Project Management

3)List the steps in risk management. 


8)List the main advantages of PERT. List the main limitations. 


14)What is the main benefit of a project organization over more traditional forms of operations management for project work? 


Answer 1

3.Step 1: Identify the Risk:the first step is to identify the risks that the business is exposed to in its operating environment. There are many different types of risks – legal risks, environmental risks, market risks, regulatory risks, and much more. It is important to identify as many of these risk factors as possible.

Step 2: Analyze the risk: once a risk has been identified it needs to be analyzed. The scope of the risk must be determined. It is also important to understand the link between the risk and different factors within the organization.

Step 3: Evaluate or Rank the Risk:risks need to be ranked and prioritized. Most risk management solutions have different categories of risks, depending on the severity of the risk.

Step 4: Treat the Risk: every risk needs to be eliminated or contained as much as possible. This is done by connecting with the experts of the field to which the risk belongs to

Step 5: Monitor and Review the risk: not all risks can be eliminated – some risks are always present. Market risks and environmental risks are just two examples of risks that always need to be monitored.

8.The advantages of PERT are mentioned below:

Planning For Large Projects

Visibility of Critical Path

Analysis of Activities

Coordinating Ability

The What - if -Analysis

Various Demerits of PERT are mentioned below:

Time Focused Method

Subjective Analysis

Inaccuracy due to Prediction

Expensive

Other Issues

14. The main benifit of project organization is better efficiency in delivering services: Project management provides a “roadmap” that is easily followed and leads toproject completion