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11.3 Perform Qualitative Risk Analysis: Logistics and Supply Chain Management. Because So Many Large Engineering

Perform Qualitative Risk Analysis is a process that prioritizes project risks by assessing their probability of occurrence and impact, as well as other characteristics. It focuses efforts on high priority risks. The key inputs, tools and techniques, and outputs of this ongoing process are depicted in a figure. Logistics and supply chain management is important because large infrastructure projects use multiple international contractors, so managing material flow is critical to success. Long lead items may need to be ordered 1-2 years in advance. Technology like webcams can improve stakeholder relations on construction projects by allowing public progress updates. Some projects do trial engagements with multiple sellers before committing to one.

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33 views

11.3 Perform Qualitative Risk Analysis: Logistics and Supply Chain Management. Because So Many Large Engineering

Perform Qualitative Risk Analysis is a process that prioritizes project risks by assessing their probability of occurrence and impact, as well as other characteristics. It focuses efforts on high priority risks. The key inputs, tools and techniques, and outputs of this ongoing process are depicted in a figure. Logistics and supply chain management is important because large infrastructure projects use multiple international contractors, so managing material flow is critical to success. Long lead items may need to be ordered 1-2 years in advance. Technology like webcams can improve stakeholder relations on construction projects by allowing public progress updates. Some projects do trial engagements with multiple sellers before committing to one.

Uploaded by

Ankit Vats
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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11.

3 PERFORM QUALITATIVE RISK ANALYSIS


Perform Qualitative Risk Analysis is the process of prioritizing individual project risks for further
analysis or action
by assessing their probability of occurrence and impact as well as other characteristics. The key
benefit of this
process is that it focuses efforts on high-priority risks. This process is performed throughout the
project. The inputs,
tools and techniques, and outputs of the process are depicted in Figure 11-8. Figure 11-9
depicts the data flow
diagram for the process.
Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs

uu Logistics and supply chain management. Because so many large engineering,


construction infrastructure
projects are done through multiple international contractors, the management of the flow of
materials becomes
critical to successful completion. For long-lead items, both the manufacture of the items and
their transportation
to the project site become schedule-drivers. In the IT field, a long-lead item may require
ordering 2 to 3 months
in advance. In complex construction projects, long-lead items may require ordering 1 to 2 years
in advance or
longer. For these projects, long-lead items may be procured in advance of other procurement
contracts to meet
the planned project completion date. It is possible to begin contracting for these long-lead
materials, supplies,
or equipment before the final design of the end product itself is completed based on the known
requirements
identified in the top-level design. The management of the supply chain is an area of increasing
emphasis by the
contractor’s project team. Not only are primary sources of supplies identified early in the project,
but secondary,
back-up sources are also generally identified. Many countries around the world require
international contractors
to purchase certain minimum percentages of material and supplies from local vendors.
uu Technology and stakeholder relations. Publicly funded projects are under increasing
scrutiny. A trend in
infrastructure and commercial construction projects is the use of technology including web
cameras (webcams)
to improve stakeholder communications and relations. During construction, one or more
webcams are installed
on the site, with periodic updates to a publicly available website. The progress on the project
can be viewed on
the Internet by all stakeholders. Video data can also be stored, allowing analysis if a claim
arises. Some projects
have discovered that the use of webcams minimizes disputes relating to the construction work
on site, as the
webcam has recorded the events, so there should be no disagreement about the facts of the
matter.
uu Trial engagements. Not every seller is well suited for an organization’s environment.
Therefore, some projects
will engage several candidate sellers for initial deliverables and work products on a paid basis
before making the
full commitment to a larger portion of the project scope. This accelerates momentum by allowing
the buyer to
evaluate potential partners, while simultaneously making progress on project work.

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