Discussion:Risk event management
According to Das (2006), risks will be managed by properly involving all stakeholders that risks touches on in the firm. Human resources department will be notified to ensure it avails 30 employees for the project. Adequate employees will eliminate the schedule risk. The finance department will be involved to ensure more funds are availed for the project. That eliminates the business risk. Resources will be adequately provided for training employees to ensure that they have adequate skills to multitask.
Khatta (2008) says that internal consultation should be involved to eliminate business risk by having the quality manager. That will ensure proactive means corrective measures are made at early stages to avoid errors. Quality management allows for continuous improvement of products hence eliminate internal environment risk that can cause poor quality products. The leader needs to be taken for a project management course to equip him with the dynamics of projects and team management. That will eliminate an opposition that which is technically based.
The sales and marketing department need to do thorough promotion activities (Frenkel, 2005). That will make the product well known in the market reducing rejection rate and eliminating business environment risk. Employees need to be well furnished on how to operate equipment and machines. That helps eliminate the operational risk where employees mishandle equipment and machines leading to breakages.
Probability:
The combined happening of risks will stall while the program is giving it a 100 percent failure (Khatta, 2008). However, the rates of the impact of the aspects of risk events vary. Technical environment risk has the highest risk, standing at 40 percent. Business risks are the next in line for they have a risk of 30 percent. Schedule risks are third in line in the probability of happening with a chance of 15 percent. Internal environment risks have a chance of 10 percent of arriving. Programmatic risks are last in line for they have a low chance of 5 percent.
Rationale for probability:
Das (2006) says that qualitative tests can be used to measure skills and knowledge of employees. Employees should be given oral and written tests to establish their competence level in order to establish the training needs of employees. Employees can also be observed to establish their interpersonal skills that enable them to work in a group. Observation also makes it easy for the firm to see employees who can multitask.
A market survey using questionnaires can serve two important aspects (Frenkel, 2005). Awareness of the product in the market is one aspect. Establish the needs and expectation of customers to help in customer development. Formulating a project framework enables the firm to establish errors in implementation framework. From the framework it is easy to make corrective measures.
Impact:
According to Khatta (2008), implementation of the project will require team management to eliminate schedule risk. Teams will be managed well by proper allocation of resources that reduces business risk. Train employees to be flexible and creative to allow for purposes of creativity in order to reduce operational and technical environment risks. Employees need to be time conscious in their work to reduce environmental risks. Employees need to be taught on how to use resources prudently and eliminate business risks.
Rationale for impact:
Proper allocation of resources eliminates errors in production (Das, 2006). Allocation of resources needs each employee to know what they will be involved in the operation. Four employees should be in charge of storage units.10 employees will be operating machined. Five employees will be involved in maintenance and repairs of equipment and machines. Three employees will be in research and development section. Three employees will be in sales and marketing. Five employees will be in the accounting unit which works in hand with the quality control personnel.
Frenkel (2005) says that training employees equips them with adequate information and expertise which will come handy in the operation of machines and multitasking. Multi tasking and effective operation of machine helps the firm stick to the formulated production schedule. Trained employees are able to prudently use resources in the firm. Making employees to be time conscious makes the production to be on schedule. That means market research; production and availing goods for sale will be as per the set framework. All phases will be implemented within set time to ensure all major activities like completion date of production is met.
Start up point:
According to Khatta (2008), the project should kick off by allocating funds requested in the budget. The finances will be used to conduct a market research of the customer needs and wants. The funds will be used train employees to ensure they have adequate skills and knowledge. The funds will be used to hold a hiring committee in search of the quality assurance manager. Funds will also be used to make purchases for materials, equipment and machines. The funds will be used to do a market promotion for the product. The funds will be used to pay for licenses and other regulatory charges that the product needs to have fulfilled in order to become a free traded commodity.