Case Assignment 2 Refer To The Project WBS From Chapter 7

Case Assignment2refer To The Project Wbs From Chapter 7 You Develop

Refer to the project WBS from Chapter 7. You developed the WBS of multiple levels, including work packages at the lowest level based on the initial project requirements below, which were further elaborated. Building a single-family, partially custom-designed home as required by Mrs. and Mr. John Thomas on Strath Dr., Alpharetta, Georgia. The single-family home will have the following features:

  • 3,200 square-feet home with 4 bedrooms and 2.5 bathrooms
  • Flooring: hardwood in the first floor, tiles in the kitchen and bathrooms, carpet in bedrooms
  • Granite kitchen countertops, GE appliances in the kitchen
  • 3-car garage and external landscaping
  • Ceiling 10 ft in the first floor and vaulted 9 ft ceilings in bedrooms

High-level assumptions and constraints:

  • The list of options is limited and the cost of the house would vary based on options selected.
  • The client must choose one from among the models offered.
  • 7-year warranty for structure and 2-year warranty for finishing components.

After the WBS was developed, it is necessary to identify risks associated with the project and include prioritized risks in revising cost and schedule estimates. For this purpose, you were asked to develop a comprehensive risk management plan. Tasks to complete include identifying all risks (using the WBS and challenging project assumptions), developing a risk register, creating a risk breakdown structure, performing qualitative risk assessment, developing risk response strategies for the top ten risks, and performing quantitative risk assessment on a critical risk.

Additionally, resources developed previously should be expanded into a resource breakdown structure (RBS) to estimate the total project budget. This involves identifying in-house and external resources, estimating effort and costs for each lowest-level activity, and rolling up these costs to the higher WBS levels, culminating in an overall project estimate.

Paper For Above instruction

This paper outlines a comprehensive approach to risk management and cost estimation for a residential construction project based on the provided project WBS and RBS structures. The process begins with the identification of potential risks associated with each work package, emphasizing the importance of analyzing assumptions and external factors that could impact project success. Developing a detailed risk register enables systematic tracking and evaluation of these risks, facilitating informed decision-making throughout the project lifecycle.

The creation of a risk breakdown structure (RBS) further refines risk categorization, enabling focused mitigation strategies. A qualitative risk assessment prioritizes these risks based on their probability of occurrence and potential impact, allowing project managers to allocate resources effectively towards top threats. Risk response strategies—such as avoidance, mitigation, transfer, or acceptance—are then developed for the ten most significant risks identified in the prioritization process. These strategies aim to minimize negative impacts on project scope, schedule, and costs.

In tandem with risk management, a resource breakdown structure (RBS) is crucial for precise cost estimation. By cataloging all necessary resources, both in-house and external, for each activity at the lowest WBS level, project managers can accurately estimate the effort and duration required. Estimating costs involves assigning monetary values to resource efforts and aggregating these costs up through the WBS hierarchy. This bottom-up approach enhances the accuracy and reliability of the project budget, accounting for detailed activity-level expenditures.

The combined application of risk management and detailed cost estimation techniques enables a robust project planning process. Managing risks proactively ensures that uncertainties are addressed early, reducing potential delays and cost overruns. Simultaneously, precise resource and cost estimates support effective budgeting and financial control, critical for project success. Implementing these processes promotes transparency and stakeholder confidence, essential in residential construction projects where client preferences and contractual obligations play significant roles.

References

  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
  • PMI (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 7th Edition. Project Management Institute.
  • Schwalbe, K. (2018). Information Technology Project Management. Cengage Learning.
  • Hillson, D., & Murray-Webster, R. (2017). Understanding and Managing Risk Attitude. Routledge.
  • Chapman, C., & Ward, S. (2011). How to Manage Project Opportunity and Risk. Wiley.
  • Harrison, F., & Lock, D. (2017). Advanced Project Management: A Structured, Phase-Driven Approach. Gower Publishing.
  • Heldman, K. (2018). Project Management JumpStart. John Wiley & Sons.
  • Burke, R. (2013). Project Management: Planning and Control Techniques. John Wiley & Sons.
  • Chapman, C., & Ward, S. (2003). Project Risk Management: Processes, Techniques and Insights. Wiley.
  • PMI (2017). Practice Standard for Project Risk Management. Project Management Institute.

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