card to store the desired number of very high resolution images. Here, the bit density is presumed to be a factor of five times greater than the existing state of the art. The potential cost consequence of not achieving the desired bit density is a 20 percent cost impact for additional technology advancement of the storage medium, plus one or more additional redesign, fabrication, and test iterations. The potential schedule consequence of this occurring is a major slip in introducing the digital camera with the desired high-density storage card. The potential technical consequence of this occurring is unacceptable performance because the desired number of high-resolution, high-dynamic-range images cannot be stored with existing density storage cards. (It is presumed here that multiple lower density storage cards cannot be substituted for a single high-density card.) In this example, the resulting probability of occurrence score from Table 17-5 is Level D (concept design analyzed for performance), and from Table 17-6, CC = Level E, CS = Level D, and CT = Level E. Given this information and the risk mapping matrix in Table 17-7, the risk levels relative to cost, schedule, and performance are high, high, and high, respectively, as illustrated in Table 17-8.

Of the results for the two candidate risk issues given in Table 17-8, the higher risk item is the digital storage card. Note also that if the risk level is collapsed to a single value, as is common practice, by taking the maximum of the three risk levels relative to cost, schedule, and technical consequence, then the CCD low-light performance risk is medium, while the digital storage card bit density risk is high.

Had there been n technology risk categories instead of the one used here (technology maturity), then there would have been n X 3 total scores to report for each risk issue. If desired, this could be reduced to n risk scores by using a conservative ranking approach and taking the maximum of the three consequence scores per item. The n X 3 total scores could also have been reduced to 3 risk scores per risk issue by using a conservative ranking approach and taking the maximum score of the n technology risk category scores per item. Similarly, if desired, the n X 3 scores could be reduced to one risk score per risk issue by using a conservative ranking approach and taking the maximum of the n technology risk category scores per item coupled with the maximum of the cost, schedule, and technical consequence.

Finally, given that a medium or higher risk level exists for both the camera CCD low-light performance and the digital storage card bit density, risk handling plans (discussed in Section 17.11) should be developed for both risk issues. (Note: All risk issues should be analyzed before selecting risk handling strategies.)

Another common product of risk analysis is a "watch list." Items placed on a "watch list" often include indicators of the start of the problem and consequences that are likely to occur. An example of this is the cost risk of production due to an immature technical data package. When production starts before the technical data package has been adequately engineered for producibility, the first unit cost may be higher than planned. A typical "watch list" is structured to show the trigger event or item (for example, long-lead items delayed), the related area of impact (production schedule), and later, as they are developed, the risk handling actions taken to reduce the potential for or impact from that event (such as ensuring early identification of long-lead items, placing contractor emphasis on early delivery, etc.).

The "watch list" is periodically reevaluated and items are added, modified, or deleted as appropriate. Should the trigger events occur for items on the "watch list" during a project, there would be immediate cause for risk assessments to be updated and risk handling methods to be selected.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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