1. ENGM91 RISK, QUALITY and HUMAN ASSPECTS Unit 5

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

3. Risk Management Project Hazard Management and Contingency Planning

4. 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

5. Risk For some people risk is part of work
Sometimes work is more risky than others days
For other risk is what they search for away from work
Risk is part of all our lives and work

6. 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

7. 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

8. 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

9. 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

10. 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

11. Managing risk
US DOD Risk Management Process

12. 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

13. 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

14. 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

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

16. 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

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

18. 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

19. Risk Conclusion
Risk
Identify
Analyse
Mitigate
Track

20. Quality Aspects Of
Projects

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

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

31. 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

32. 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.

33. 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.

34. 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.

35. 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.

36. 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.

37. 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.

38. 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.

39. 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.

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

41. Human Aspects of Projects

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

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

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

52. 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

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

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

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

56. 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

57. 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

58. 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

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

60. Unit Conclusion
Risk
Quality
Human Aspect