The Project Risk Management Methodology: An Overview

Proposal and feasibility

Discuss about The Project risk management methodology.

An event is conducted based on the theme of “green cars”, in which the design is presented at exhibition of futuristic car designs. Six of the students of an academy wishes to create new green and budget electric car to start a new international business. In order to analyze if the project decision is feasible or not, SWOT analysis is conducted:

Strengths	Weaknesses
1. The Entrepreneurial Management Academy can access to the new market with advantage over the competitors those are not focused on green electric cars. Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper 2. The Academy can charge premium on the products which are seen as eco friendly. 3. Green marketing of the electric cars builds of brand equity and loyalty among the customers.	1. Some of the team members have lack of knowledge on technical field 2. There is weak marketing communication channel. 3. There is low brand awareness about the electric cars.
Opportunities	Threats
1. Low taxes are to be given for the eco-friendly cars. 2. There are no charges for congestion. 3. The marketing to segment those are becoming more environment friendly aware.	1. There are rapid changes into the customer preferences. 2. There is uncertainty if green marketing activities are to be acceptable from the government side. 3. There is an increase into cost of inputs.

From the SWOT analysis, it is analyzed that the project decision is feasible for the organization as it would adopt a green environment in the mind of people. The academy is characterized such an electric car which is environmental friendly.

The business needs a product development and launching of greencar which deliverables a pollution free car in the market. The period of time taken to conduct the work is 160 days, started from11st January and end date is 22^nd August, 2018. The total budget of the project is $60,400. There is good employee and vendor relationship exists which is the main cause of successful completion of the work.

The specification of the project is based on development of Greencar. The environmental impact of the car is less pollution, renewable energy (recharge from solar energy), and manufactured using eco-friendly materials. The designing aspects are electric engine, braking system, motor controller, drive system.

In table format, the WBS is:

WBS	Task Name
0	Greencar product development and launch
1	Idea generation
1.1	Identify the requirements of the customer
1.2	Evaluate the quality of existing products
1.3	Defining the objectives of new car
2	Concept design
2.1	Create idea generation
2.2	Refine the concepts
3	Feasibility study
3.1	Check for the strategic feasibility (SWOT)
3.2	Check the marketplace
3.3	Checking the technological capability
3.4	Checking for the financial feasibility
3.5	Checking for resources availability
3.6	Making the decision to proceed the greencar development
4	Detailed design
4.1	Setting the product specifications
4.2	Designing the key characteristics of the product
4.3	Product drawings
4.4	Product prototype
5	Testing of the product
5.1	Testing the product as per user satisfaction
5.2	Testing the key characteristics of the car
5.3	Identification of team for testing the car
6	Finalize design
6.1	Review the product design
6.2	Approval from the board
6.3	Revise the product design
6.4	Freeze the product design
7	Setting up the production of greencar
7.1	Procure the manufacturing abilities
7.2	Design the tools
7.3	Building the tools
7.4	Modification of the product
7.5	Obtain the equipments
7.6	Start up the production
7.7	Testing the plan
7.8	Verification of quality tolerances
7.9	Production in volume
8	Arrangement of the marketing
8.1	Identification of the key benefits of the product
8.2	Identification of potential users
8.3	Planning the marketing strategies
8.4	Production of brochures and adverts
8.5	Produce the advertising campaign
9	Arrangement of distribution
9.1	Establishment of sales chain
9.2	Establishment of business procedures
9.3	Setting up the technical support and capabilities
9.4	Write the user manual
9.5	Write the service manual
9.6	Obtaining the capabilities of staff
9.7	Market growth
9.8	Market maturation
10	Market decline
10.1	Declining the sales
10.2	Refresh of the product
10.3	Launching the product
10.4	Differentiating the service
10.5	Launching the new products
11	Withdrawal of the product
11.1	Decision to withdraw
11.2	Achieve the documentation
12	Final closure
12.1	Final sign off the project
12.2	Final submission of report

WBS	Task Name	Duration	Start	Finish	Predecessors
1	Idea generation	11 days	Thu 1/11/18	Thu 1/25/18
1.1	Identify the requirements of the customer	2 days	Thu 1/11/18	Fri 1/12/18
1.2	Evaluate the quality of existing products	5 days	Mon 1/15/18	Fri 1/19/18	2
1.3	Defining the objectives of new car	4 days	Mon 1/22/18	Thu 1/25/18	3
1.4	Milestone 1: Completion of idea generation	0 day	Thu 1/25/18	Thu 1/25/18
2	Concept design	5 days	Fri 1/26/18	Thu 2/1/18
2.1	Create idea generation	3 days	Fri 1/26/18	Tue 1/30/18	4
2.2	Refine the concepts	2 days	Wed 1/31/18	Thu 2/1/18	6
2.3	Milestone 2: Completion of concept design	0 day	Thu 2/1/18	Thu 2/1/18
3	Feasibility study	23 days	Fri 2/2/18	Tue 3/6/18
3.1	Check for the strategic feasibility (SWOT)	5 days	Fri 2/2/18	Thu 2/8/18	7
3.2	Check the marketplace	5 days	Fri 2/9/18	Thu 2/15/18	9
3.3	Checking the technological capability	3 days	Fri 2/16/18	Tue 2/20/18	10,4
3.4	Checking for the financial feasibility	4 days	Wed 2/21/18	Thu 3/1/18	11
3.5	Checking for resources availability	3 days	Fri 3/2/18	Tue 3/6/18	12
3.6	Making the decision to proceed the greencar development	1 day	Fri 2/2/18	Fri 2/2/18	7
3.7	Milestone 3: Completion of feasibility study	0 day	Fri 2/2/18	Fri 2/2/18
4	Detailed design	23 days	Mon 2/5/18	Wed 3/7/18
4.1	Setting the product specifications	4 days	Mon 2/5/18	Fri 2/9/18	14,3
4.2	Designing the key characteristics of the product	5 days	Mon 2/12/18	Fri 2/16/18	16
4.3	Product drawings	6 days	Mon 2/19/18	Mon 2/26/18	17
4.4	Product prototype	7 days	Tue 2/27/18	Wed 3/7/18	18
4.5	Milestone 4: Completion of product prototype	0 day	Wed 3/7/18	Wed 3/7/18
5	Testing of the product	11 days	Thu 3/8/18	Thu 3/22/18
5.1	Testing the product as per user satisfaction	3 days	Thu 3/8/18	Mon 3/12/18	19,13
5.2	Testing the key characteristics of the car	6 days	Tue 3/13/18	Tue 3/20/18	21
5.3	Identification of team for testing the car	2 days	Wed 3/21/18	Thu 3/22/18	22
5.4	Milestone 5: Completion of testing of product	0 day	Thu 3/22/18	Thu 3/22/18
6	Finalize design	13 days	Fri 3/23/18	Tue 4/10/18
6.1	Review the product design	3 days	Fri 3/23/18	Tue 3/27/18	23
6.2	Approval from the board	2 days	Wed 3/28/18	Thu 3/29/18	25
6.3	Revise the product design	5 days	Fri 3/30/18	Thu 4/5/18	26
6.4	Freeze the product design	3 days	Fri 4/6/18	Tue 4/10/18	27
6.5	Milestone 6: Completion of finalize design	0 day	Tue 4/10/18	Tue 4/10/18
7	Setting up the production of greencar	30 days	Fri 4/6/18	Thu 5/17/18
7.1	Procure the manufacturing abilities	3 days	Wed 4/11/18	Fri 4/13/18	28
7.2	Design the tools	6 days	Mon 4/16/18	Mon 4/23/18	30,21
7.3	Building the tools	3 days	Tue 4/24/18	Thu 4/26/18	31
7.4	Modification of the product	6 days	Fri 4/27/18	Thu 5/17/18	32
7.5	Obtain the equipments	4 days	Fri 4/6/18	Wed 4/11/18	27
7.6	Start up the production	2 days	Thu 4/12/18	Fri 4/13/18	34
7.7	Testing the plan	10 days	Mon 4/16/18	Fri 4/27/18	35
7.8	Verification of quality tolerances	9 days	Mon 4/30/18	Thu 5/10/18	36
7.9	Production in volume	5 days	Fri 5/11/18	Thu 5/17/18	37
7.10	Milestone 7: Completion of setting up the production of greencar	0 day	Thu 5/17/18	Thu 5/17/18
8	Arrangement of the marketing	35 days	Fri 5/18/18	Thu 7/5/18
8.1	Identification of the key benefits of the product	8 days	Fri 5/18/18	Tue 5/29/18	38
8.2	Identification of potential users	4 days	Wed 5/30/18	Mon 6/4/18	40
8.3	Planning the marketing strategies	6 days	Tue 6/5/18	Tue 6/12/18	41
8.4	Production of brochures and adverts	3 days	Wed 6/13/18	Fri 6/15/18	42
8.5	Produce the advertising campaign	4 days	Mon 6/18/18	Thu 7/5/18	43
8.6	Milestone 8: Completion of arrangement of the marketing	0 day	Thu 7/5/18	Thu 7/5/18
9	Arrangement of distribution	35 days	Mon 6/18/18	Fri 8/3/18
9.1	Establishment of sales chain	2 days	Fri 7/6/18	Mon 7/9/18	44
9.2	Establishment of business procedures	8 days	Tue 7/10/18	Thu 7/19/18	46,38
9.3	Setting up the technical support and capabilities	7 days	Fri 7/20/18	Mon 7/30/18	47
9.4	Write the user manual	4 days	Tue 7/31/18	Fri 8/3/18	48
9.5	Write the service manual	9 days	Mon 6/18/18	Thu 6/28/18	43
9.6	Obtaining the capabilities of staff	7 days	Fri 6/29/18	Mon 7/9/18	50
9.7	Market growth	2 days	Tue 7/10/18	Wed 7/11/18	51
9.8	Market maturation	2 days	Thu 7/12/18	Fri 7/13/18	52
9.9	Milestone 9: Completion of arrangement of distribution	0 day	Fri 7/13/18	Fri 7/13/18
10	Market decline	21 days	Mon 7/16/18	Mon 8/13/18
10.1	Declining the sales	2 days	Mon 7/16/18	Tue 7/17/18	53
10.2	Refresh of the product	3 days	Wed 7/18/18	Fri 7/20/18	55
10.3	Launching the product	7 days	Mon 7/23/18	Tue 7/31/18	56
10.4	Differentiating the service	3 days	Wed 8/1/18	Fri 8/3/18	57
10.5	Launching the new products	6 days	Mon 8/6/18	Mon 8/13/18	58
10.6	Milestone 10: Completion of market decline	0 day	Mon 8/13/18	Mon 8/13/18
11	Withdrawal of the product	7 days	Tue 8/14/18	Wed 8/22/18
11.1	Decision to withdraw	4 days	Tue 8/14/18	Wed 8/22/18	59
11.2	Achieve the documentation	5 days	Tue 8/14/18	Mon 8/20/18	56
11.3	Milestone 11: Completion of withdrawal of the product	0 day	Mon 8/20/18	Mon 8/20/18
12	Final closure	2 days	Tue 8/21/18	Wed 8/22/18
12.1	Final sign off the project	1 day	Tue 8/21/18	Tue 8/21/18	62
12.2	Final submission of report	1 day	Wed 8/22/18	Wed 8/22/18	64
12.3	Milestone 12: Completion of final closure	0 day	Wed 8/22/18	Wed 8/22/18

WBS	Task Name	Early Start	Late Finish	Total Slack
1	Idea generation	Thu 1/11/18	Thu 1/25/18	0 days
1.1	Identify the requirements of the customer	Thu 1/11/18	Fri 1/12/18	0 days
1.2	Evaluate the quality of existing products	Mon 1/15/18	Fri 1/19/18	0 days
1.3	Defining the objectives of new car	Mon 1/22/18	Thu 1/25/18	0 days
2	Concept design	Fri 1/26/18	Thu 2/1/18	0 days
2.1	Create idea generation	Fri 1/26/18	Tue 1/30/18	0 days
2.2	Refine the concepts	Wed 1/31/18	Thu 2/1/18	0 days
3	Feasibility study	Fri 2/2/18	Wed 3/7/18	0 days
3.1	Check for the strategic feasibility (SWOT)	Fri 2/2/18	Fri 2/9/18	1 day
3.2	Check the marketplace	Fri 2/9/18	Fri 2/16/18	1 day
3.3	Checking the technological capability	Fri 2/16/18	Wed 2/21/18	1 day
3.4	Checking for the financial feasibility	Wed 2/21/18	Fri 3/2/18	1 day
3.5	Checking for resources availability	Fri 3/2/18	Wed 3/7/18	1 day
3.6	Making the decision to proceed the greencar development	Fri 2/2/18	Fri 2/2/18	0 days
4	Detailed design	Mon 2/5/18	Wed 3/7/18	0 days
4.1	Setting the product specifications	Mon 2/5/18	Fri 2/9/18	0 days
4.2	Designing the key characteristics of the product	Mon 2/12/18	Fri 2/16/18	0 days
4.3	Product drawings	Mon 2/19/18	Mon 2/26/18	0 days
4.4	Product prototype	Tue 2/27/18	Wed 3/7/18	0 days
5	Testing of the product	Thu 3/8/18	Thu 3/22/18	0 days
5.1	Testing the product as per user satisfaction	Thu 3/8/18	Mon 3/12/18	0 days
5.2	Testing the key characteristics of the car	Tue 3/13/18	Tue 3/20/18	0 days
5.3	Identification of team for testing the car	Wed 3/21/18	Thu 3/22/18	0 days
6	Finalize design	Fri 3/23/18	Mon 7/16/18	0 days
6.1	Review the product design	Fri 3/23/18	Tue 3/27/18	0 days
6.2	Approval from the board	Wed 3/28/18	Thu 3/29/18	0 days
6.3	Revise the product design	Fri 3/30/18	Thu 4/5/18	0 days
6.4	Freeze the product design	Fri 4/6/18	Mon 7/16/18	69 days
7	Setting up the production of greencar	Fri 4/6/18	Wed 8/22/18	0 days
7.1	Procure the manufacturing abilities	Wed 4/11/18	Thu 7/19/18	69 days
7.2	Design the tools	Mon 4/16/18	Fri 7/27/18	69 days
7.3	Building the tools	Tue 4/24/18	Wed 8/1/18	69 days
7.4	Modification of the product	Fri 4/27/18	Wed 8/22/18	69 days
7.5	Obtain the equipments	Fri 4/6/18	Wed 4/11/18	0 days
7.6	Start up the production	Thu 4/12/18	Fri 4/13/18	0 days
7.7	Testing the plan	Mon 4/16/18	Fri 4/27/18	0 days
7.8	Verification of quality tolerances	Mon 4/30/18	Thu 5/10/18	0 days
7.9	Production in volume	Fri 5/11/18	Thu 5/17/18	0 days
8	Arrangement of the marketing	Fri 5/18/18	Tue 7/24/18	0 days
8.1	Identification of the key benefits of the product	Fri 5/18/18	Tue 5/29/18	0 days
8.2	Identification of potential users	Wed 5/30/18	Mon 6/4/18	0 days
8.3	Planning the marketing strategies	Tue 6/5/18	Tue 6/12/18	0 days
8.4	Production of brochures and adverts	Wed 6/13/18	Fri 6/15/18	0 days
8.5	Produce the advertising campaign	Mon 6/18/18	Tue 7/24/18	13 days
9	Arrangement of distribution	Mon 6/18/18	Wed 8/22/18	0 days
9.1	Establishment of sales chain	Fri 7/6/18	Thu 7/26/18	13 days
9.2	Establishment of business procedures	Tue 7/10/18	Tue 8/7/18	13 days
9.3	Setting up the technical support and capabilities	Fri 7/20/18	Thu 8/16/18	13 days
9.4	Write the user manual	Tue 7/31/18	Wed 8/22/18	13 days
9.5	Write the service manual	Mon 6/18/18	Thu 6/28/18	0 days
9.6	Obtaining the capabilities of staff	Fri 6/29/18	Mon 7/9/18	0 days
9.7	Market growth	Tue 7/10/18	Wed 7/11/18	0 days
9.8	Market maturation	Thu 7/12/18	Fri 7/13/18	0 days
10	Market decline	Mon 7/16/18	Mon 8/13/18	0 days
10.1	Declining the sales	Mon 7/16/18	Tue 7/17/18	0 days
10.2	Refresh of the product	Wed 7/18/18	Fri 7/20/18	0 days
10.3	Launching the product	Mon 7/23/18	Tue 7/31/18	0 days
10.4	Differentiating the service	Wed 8/1/18	Fri 8/3/18	0 days
10.5	Launching the new products	Mon 8/6/18	Mon 8/13/18	0 days
11	Withdrawal of the product	Tue 8/14/18	Wed 8/22/18	0 days
11.1	Decision to withdraw	Tue 8/14/18	Wed 8/22/18	0 days
11.2	Achieve the documentation	Mon 7/23/18	Mon 8/20/18	0 days
12	Final closure	Tue 8/21/18	Wed 8/22/18	0 days
12.1	Final sign off the project	Tue 8/21/18	Tue 8/21/18	0 days
12.2	Final submission of report	Wed 8/22/18	Wed 8/22/18	0 days

Estimation of both cost and schedule is relevant for this project. Cost estimation is required to determine the total cost needed to conduct the event on green cars. It is required to estimate strength and weakness of the project work. The accuracy of cost estimation makes the success of project. Schedule estimation is required to determine the start and end date of the project work. Without schedule estimation, how long the project will be taken is not estimated. When the project will finish within estimated schedule, then the project will success.

WBS	Task Name	Resource Names	Cost
0	Greencar product development and launch		$60,400.00
1	Idea generation		$3,440.00
1.1	Identify the requirements of the customer	Event Manager, Project Manager	$960.00
1.2	Evaluate the quality of existing products	Project Manager	$1,200.00
1.3	Defining the objectives of new car	Marketing Manager, Project Manager	$1,280.00
2	Concept design		$1,360.00
2.1	Create idea generation	Project Manager	$720.00
2.2	Refine the concepts	Marketing Manager, Project Manager	$640.00
3	Feasibility study		$7,120.00
3.1	Check for the strategic feasibility (SWOT)	Executive Manager, Marketing Manager, Project Manager	$1,440.00
3.2	Check the marketplace	Executive Manager, Marketing Manager	$1,200.00
3.3	Checking the technological capability	Executive Manager, Marketing Manager, Project Manager	$960.00
3.4	Checking for the financial feasibility	Project Manager	$960.00
3.5	Checking for resources availability	Executive Manager, Project Manager, Chartered financial accountant	$2,160.00
3.6	Making the decision to proceed the greencar development	Executive Manager, Project Manager	$400.00
4	Detailed design		$6,800.00
4.1	Setting the product specifications	Executive Manager, Project Manager	$800.00
4.2	Designing the key characteristics of the product	Project Manager	$1,200.00
4.3	Product drawings	Designer, Project Manager	$1,440.00
4.4	Product prototype	Customer Service Manager, Designer, Tester	$3,360.00
5	Testing of the product		$2,320.00
5.1	Testing the product as per user satisfaction	Designer, Marketing Manager, Tester	$1,200.00
5.2	Testing the key characteristics of the car	Tester	$480.00
5.3	Identification of team for testing the car	Project Manager, Tester	$640.00
6	Finalize design		$4,240.00
6.1	Review the product design	Project Manager, Tester	$960.00
6.2	Approval from the board	Project Manager	$480.00
6.3	Revise the product design	Marketing Manager, Project Manager	$1,600.00
6.4	Freeze the product design	Customer Service Manager, Event Manager	$1,200.00
7	Setting up the production of greencar		$14,240.00
7.1	Procure the manufacturing abilities	Event Manager, Executive Manager	$1,200.00
7.2	Design the tools	Designer	$1,440.00
7.3	Building the tools	Project Manager	$720.00
7.4	Modification of the product	Designer, Executive Manager	$2,400.00
7.5	Obtain the equipments	Marketing Manager, Project Manager	$1,280.00
7.6	Start up the production	Project Manager	$480.00
7.7	Testing the plan	Tester	$800.00
7.8	Verification of quality tolerances	Designer, Executive Manager, Tester	$4,320.00
7.9	Production in volume	Marketing Manager, Project Manager	$1,600.00
8	Arrangement of the marketing		$4,960.00
8.1	Identification of the key benefits of the product	Project Manager	$1,920.00
8.2	Identification of potential users	Project Manager	$960.00
8.3	Planning the marketing strategies	Marketing Manager	$480.00
8.4	Production of brochures and adverts	Marketing Manager, Project Manager	$960.00
8.5	Produce the advertising campaign	Marketing Manager, Project Manager	$640.00
9	Arrangement of distribution		$8,880.00
9.1	Establishment of sales chain	Customer Service Manager, Marketing Manager	$480.00
9.2	Establishment of business procedures	Marketing Manager, Project Manager	$1,280.00
9.3	Setting up the technical support and capabilities	Project Manager	$1,680.00
9.4	Write the user manual	Project Manager	$960.00
9.5	Write the service manual	Project Manager	$2,160.00
9.6	Obtaining the capabilities of staff	Executive Manager, Project Manager	$2,000.00
9.7	Market growth	Marketing Manager	$160.00
9.8	Market maturation	Marketing Manager	$160.00
10	Market decline		$4,480.00
10.1	Declining the sales	Customer Service Manager, Project Manager	$800.00
10.2	Refresh of the product	Customer Service Manager, Executive Manager	$960.00
10.3	Launching the product	Marketing Manager	$560.00
10.4	Differentiating the service	Marketing Manager	$240.00
10.5	Launching the new products	Marketing Manager, Project Manager	$1,920.00
11	Withdrawal of the product		$1,280.00
11.1	Decision to withdraw	Marketing Manager	$320.00
11.2	Achieve the documentation	Marketing Manager, Project Manager	$960.00
12	Final closure		$1,280.00
12.1	Final sign off the project	Chartered financial accountant, Project Manager	$560.00
12.2	Final submission of report	Chartered financial accountant, Executive Manager, Project Manager	$720.00

The market risk affects the cost of equity funding which will directly affects the cost of the project. Scope change in the project also affects time and cost, as scope change will affect the activities of the project which will result into delay of the project plan. When the project will delay by 1-2 days, then it raises the total estimated cost off the project.

An activity schedule performance is done by noting of the dates the project begins and ends. The statuses of the individual activities are checked on regular basis to analyze if the project is on track or not. Cost and schedule variance metrics are required to check the progress of the project work.

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Plan (Schedule)

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Monitor performance in the project

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