Project management - Assignment PDF

Running head: PROJECT MANAGEMENT
PROJECT MANAGEMENT
Name of Student
Name of University
Author’s Note

1PROJECT MANAGEMENT
Introduction
Risk management is a factor that is supposed to be considering during the process of a
project selection as well as the production schedule of the project that has been selected. The risk
management in the process of project selections requires considering two factors (Carvalho &
Rabechini, 2015). It is based on various points of decision making like the potential of
profitability as well as its cost in life cycle. This is because they have a very limited inflow of the
funds. Selection of project is usually considered as critical hence risk management creates huge
impacts on the selection of project (Kotula, Ho & Dey, 2015). Project selection is carried out on
the basis of numerous decision making points like the potential for profitability as well as the
cost of life cycle (Kerzner & Kerzner, 2017). The funds inflow is very limited; the selection of
project is a critical task. A key point for decision making which is mostly left out is the risk
level. During the process of project selection the process of risk management should be
conducted.
A production schedule can be defined as a specific plan in every time period like staffing,
production, inventory and many more (Kliem & Ludin, 2019). This schedule translates the
demands of customers into a particular plan that us build, this plan is carried out using various
planned orders in a specific genuine environment of component scheduling (Lientz & Rea,
2016). Production as well as manufacturing runs of various timelines. Organizations receive
various orders, in some cases concurrently and the steps are planned in the schedule of
manufacturing (Young, 2016). This is done in order to ensure that the part of various processes is
done by maintaining a proper sequence and in an effective manner.
Literature review

2PROJECT MANAGEMENT
Production scheduling is referred to making a schedule of various activities for the
products, various manufactured goods, assemblies and many more for a particular period.
According to Turner (2016), and some more researchers, this should be performed in every
planning phase like production planning, planning of material and planning of manufacturing.
Some of the activities of project scheduling are supposed to be carried out in every field, or for
some organizations, the purchasing logistics is carried out. The project selection usually has
various divisions, these divisions are to be performed in an effective manner along with carrying
out an effective project risk management so that any issues in the risk management do not occur
and hence the project selection does not have any delay (Turner, 2016). According to Hopkin
(2018), there are two considerations that are found out as impacts of risk management in the
process of project selection. Project selection is considered as one of the vital parts of the entire
process in project management.
As per Carvalho, Patah and Souza (2015), project risk management has numerous
impacts on the concept of project selection. Some impacts that have been identified by are poor
user adoption, unrealized benefits, unhappy clients, overspent budgets, project failure,
reputational damage and many more. User adoption is defined as the strategy of getting the team
members to carry out a specific process, using the tools that have been mandated and then stick
to a particular methodology (Carvalho, Patah & Souza, 2015). In case they do not do this, the
project would have poor results; this is because the colleagues have not been working to best
practice way to manage the risk. According to Samset and Volden (2016), project selection is
actually based various points of decision making like the potential of project for profitability as
well as its cost of life cycle. The inflow of various funds is usually very limited and selection of
project is a critical method. In case an organization is aiming in implementing a specific project

3PROJECT MANAGEMENT
which increases the capacity of a manufacturing plant, the project would include installing new
equipments as well as building workforce capacity (Heldman, 2018). After executing the project
in a successful manner for some months, the risk management is carried out, and then the project
is closed successfully. This happens when in a theoretical manner; the project provides value to
the sponsor of the project. In some cases, during the selection of project, the stakeholders do not
consider the risk of less demand of the product that has been manufactured. The excess plant
capacity that has been provided by the project would be wastage. In this case, the expenses spent
on new project could be used on another project which would give more returns. Hence it is
important to conduct the risk management as well as project selection in a simultaneous manner.
According to Heldman (2018), two project selection techniques that are commonly used are
mathematical models and measurement models. In various workplaces, the models of benefit
measurement are usually conducted, including the cost benefit analysis; cash flow analysis,
weighted scoring models and time value of money. According to Badewi (2016), the cost benefit
analysis gives organizations with a specific net gain. In order to compute entire gain during the
process of selection of project, the benefit value is subtracted from cost. While using this
particular method, it must be made sure that the total cost is calculated including the Life Cycle
Cost as well as Cost of Quality. The overall gain is completely proportional to the level of risk,
which depicts that more the risk, the gain is high as well. As a result the risk management as well
as project selection is factored in the ultimate decision.
According to Schwalbe (2015), every project is usually evaluated on the basis of the
criteria that have been set. Suppose the factors of a project decision are marketability, profit
potential, cost of quality, life-cycle cost as well as risk of not completing the project. Every
project is evaluated on the basis of these criteria. The potential of profit could be deducted from