MGT 440 Topic 5 Project Procurement And Risk Manageme 368872

Mgt 440 Topic 5 Project Procurement And Risk Management Assignment O

Complete Case 7.3 Trans LAN Project in Larson and Gray by responding to Questions 1, 2, and 3.

Combine items 1 and 2 into a single Risk Assessment Form (see Figure 7.6 in Larson and Gray) and use Microsoft Excel to complete this item. Use Microsoft Excel for the Risk Response Matrix (see Figure 7.8 in Larson and Gray) for question 3. Note that additional items may be added to the Risk Assessment Form and the Risk Response Matrix.

In addition to the requested items in the case, complete the following: Create a Risk Severity Matrix (see Figure 7.7 in Larson and Gray) based on the risks identified on the Risk Assessment Form. Use Microsoft Excel to complete this item. Make any assumptions and document them as necessary.

Based on the information in Appendix 12.1 in Larson and Gray, evaluate what type of contract(s) might be applicable to this project if outsourcing certain aspects to suppliers. Justify your supplier contractual decisions based on the inherent risks related to the selected contract type(s). Make any assumptions and document them accordingly. Provide at least 350 words. APA formatting is not required.

Paper For Above instruction

The management of procurement and risk in project management is critical for ensuring successful project delivery, especially when dealing with complex projects such as the Trans LAN Project described in Larson and Gray's book. The integration of risk assessment tools, such as the Risk Assessment Form, Severity Matrix, and Response Matrix, assists project managers in systematically identifying, analyzing, and mitigating potential risks. Additionally, understanding appropriate contractual arrangements with suppliers aids in avoiding legal and financial pitfalls that could jeopardize project goals.

For the Trans LAN Project, the first step involves developing a comprehensive Risk Assessment Form that consolidates all identified risks. This form includes categories such as technical risks, environmental risks, financial risks, and social risks. Each risk is assessed for its probability and impact, which feeds into the creation of a Risk Severity Matrix. This matrix visually prioritizes risks based on their severity scores, guiding resource allocation toward high-priority issues. For example, technical risks associated with the installation of fiber optic cables in difficult terrain are likely to have high severity given potential delays and cost overruns.

Creating a Risk Response Matrix further enables proactive planning. Responses such as risk avoidance, mitigation, transfer, or acceptance are mapped against each identified risk. For instance, to mitigate the risk of supply chain disruptions, the project might establish multiple suppliers or hold safety stock. This allows the project team to implement targeted strategies to control risk impacts effectively.

In addition to these tools, the project managers must evaluate legal frameworks for outsourcing components of the project. Appendix 12.1 in Larson and Gray discusses various contract types, including fixed-price, cost-reimbursable, and time and materials contracts. Each has inherent risks and benefits that must be assessed in the context of specific project circumstances. For example, fixed-price contracts transfer cost risk to the supplier but may encourage the supplier to cut corners, while cost-reimbursable contracts provide more flexibility but increase financial risk for the client.

Given the risk profile of the Trans LAN Project—such as uncertainties in construction conditions and supply chain variability—hybrid contractual arrangements might be appropriate. A combination of fixed-price contracts for well-defined scope elements and cost-reimbursable contracts for uncertain or innovative tasks can balance the risks. Justification for these choices relies on analyzing the specific risks involved, the reliability of suppliers, and the project's strategic importance.

In conclusion, systematic risk assessment and appropriate contractual strategies are essential components of effective project procurement management. They help reduce uncertainty, transfer risks where appropriate, and promote project success by aligning contractual risk sharing with the nature of the risks involved. Proper documentation of assumptions and adherence to thorough risk mitigation plans ensure that project objectives are maintained within scope, schedule, and budget constraints.

References

  • Larson, E. W., & Gray, C. F. (2021). Project Management: The Managerial Process (8th ed.). McGraw-Hill Education.
  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley & Sons.
  • PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
  • Wysocki, R. K. (2019). Effective Project Management: Traditional, Agile, Extreme (8th ed.). Wiley.
  • Heldman, K. (2018). Project Management JumpStart (3rd ed.). Wiley.
  • Cohen, J., & Bleasdale, A. (2019). Managing risks in complex infrastructure projects. International Journal of Project Management, 37(2), 162-174.
  • OECD. (2016). Risk Management in Infrastructure Projects. Organisation for Economic Co-operation and Development.
  • Fleming, Q. W., & Koppelman, J. M. (2016). Earned Value Project Management (4th ed.). Project Management Institute.
  • Hwang, B. G., & Ng, W. K. (2016). Project management knowledge and skills for sustainable urban development. International Journal of Project Management, 34(4), 622-636.
  • Morris, P. W. G., & Pinto, J. K. (2021). The Wiley Guide to Project, Program, and Portfolio Management. Wiley.

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