QUESTION 3 a) Explain the risk management procedure. Set out the risks associated with attending the annual Engineering Institute of Zambia symposium in Livingstone. Draw a risk register (log) and populate it with at least four perceived risks. Analyse these risks and rank them. b) You are planning the manufacture of modification to an existing product. Your analysis has come up with the following information. What contingency reserve would you use? Project data Cost contingency There is a 30 percent probability of a delay in the receipt of parts, with a cost to the project of ZMW90,000. There is a 20 percent probability that the parts will cost ZMW 100,000 less than expected. There is a 25 percent probability that two parts will not fit together when installed, costing an extra ZMW30,500. There is a 30 percent probability that the manufacture may be simpler than expected, saving ZMW20,500. There is a 5 percent probability of a design defect, causing ZMW 50,000 of rework. Total cost contingency
QUESTION 3
a) Explain the risk management procedure. Set out the risks associated with attending
the annual Engineering Institute of Zambia symposium in Livingstone. Draw a risk
register (log) and populate it with at least four perceived risks. Analyse these risks
and rank them.
b) You are planning the manufacture of modification to an existing product. Your
analysis has come up with the following information. What contingency reserve
would you use?
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Project data |
Cost |
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There is a 30 percent probability of a delay in the |
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|
There is a 20 percent probability that the parts will |
|
|
There is a 25 percent probability that two parts will |
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There is a 30 percent probability that the |
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There is a 5 percent probability of a design defect, |
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|
Total cost contingency |
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