Business Loans

Stand By Soft has released RationalPlan 3.15.4, a strong project management software application developed to assist project managers in creating plans, tracking progress, allocating resources, managing budgets and analyzing workload. The new version comes with a significant increase in its execution speed, more task types, silent install possibility on Windows and some more interface improvements.

Important changes of this version:

• Added more task types
• Increased execution speed
• Silent install possibility on Windows
• Bug fixes

RationalPlan added more task types. Until now users could handle tasks that have only fixed units for the assigned resources. This means that once resources were assigned to tasks with a certain amount of units these units were fixed that is do not change on other task changes like duration or work. The functionality was like this: changing task duration resulted in keeping units fixed and adjusting task work; and the reverse changing task work resulted in keeping units fixed and adjusting task duration. With this new feature project managers have the possibility to automatically adjust the units when changing task duration and to keep the task work and the reverse keep the task duration when changing the task work. This feature is useful in the case the project manager assigns a resource on a task that does not performs a regular activity. The manager knows that that task requires “x” hours of work and that the duration is “y” days. In this case the application will automatically compute the needed unit.

The execution speed of RationalPlan was significantly increased. The application has a shorter start time and most of the actions take a lot less time. The most notable increase can be seen on actions that could trigger a reschedule on the current project: delete and paste tasks, duration or constraints changes, dependencies etc.

Starting with current version RationalPlan users can install the products silently that is without any user interaction. This could be useful for an easier deployment on multiple computers. Other changes to the interface of the application were done both for the Windows and the Mac OS X platform. The assignments email notification was also a bit improved. Now resources can see the percent completion of the assigned tasks and the full path of that task relative to the project for a better identification. Further more the project managers can use multiple email addresses when sending the assignments to resources. This is useful if you need to send an email copy to the resource supervisor.

RationalPlan suite includes:
RationalPlan Single Project – project management software for single projects
RationalPlan Multi Project – project management software for multiple projects, projects that are interconnected through dependencies and share common resource
RationalPlan Project Viewer – free project management software viewer, the perfect solution for anyone (from project stakeholders to team workers) to view projects details

RationalPlan is designed as an affordable alternative to Microsoft Project with some extra-features like multiproject management and it is covering project management area from WBS construction, project planning and scheduling to critical path management, over allocated resources detection, progress tracking, cost estimation, etc. Gantt chart support as well as various time line reports are also provided. It offers the most important capabilities of a good project management software while being able to operate on various platforms starting with Windows, Mac OS X, Linux and all other Java enabled platforms.

RationalPlan Project Management Software is available at http://www.rationalplan.com.

###

About Stand By Soft
Stand By Soft was founded in 1997 as a software company specialized in building desktop applications and components.

RationalPlan is a project management software that follows the general recommended guidelines from project management domain. It has been developed to help small and middle sized companies to plan and manage their projects. Our goal is to make the process of planning projects as short and as straightforward as possible, guiding novice project managers through each step but offering enough tools to those more experienced.

Address: Aleea Parului, Nr.4A, Craiova, Dolj, 200346, Romania
Email: marketing@rationalplan.com
Phone: +40727159969
Contact: Ioan Lucian

Article Source:http://www.articlesbase.com/project-management-articles/rationalplan-project-management-software-3154-increased-execution-speed-and-more-task-types-1290522.html

Does the idea of calculating your product costs set off your gag reflex? Almost everyone hates having to deal with the numbers part of our businesses, but it’s too vital to ignore.

If you don’t know what it truly and completely costs to get your product to your warehouse – or garage, as the case may be – you’ll never know what you need to charge your customers to keep yourself in business. On the other hand, if you just take a little time and keep the following steps and details in mind, you’ll have taken a huge and important step on the way to success.

First of all, it’s vital to remember that the price you’re paying your supplier is only part of what your product’s actually costing you. While this may seem obvious to many, it’s amazing how many people overlook this important point, especially when they’re first starting out. You need to know how much it costs to get just one item – one of your T-shirts, for example – to you so you can then send them out to your customers.

Begin the process by creating a spreadsheet in Excel or a similar program in which you’ll list every single cost associated with getting your product to your door. What’s great about this virtual way of accounting is that you can create equations within the spreadsheet. This means that if, for example, the costs of your labels go up or your shipping costs change because of the price of oil, you simply plug in the adjusted cost and the software re-calculates everything else for you. How great is that?

So, along the left side of your spreadsheet, list all the different products in your line. Across the top, create column headings for all your different product costs – and this means every single one.

Start out with the obvious: How much does your supplier charge you for, say, one finished handbag? That’ll be your first column. Then add in the incidentals, like labeling. Do you have both a sewn-in label and a hangtag for each item? That’s another column. Do you include a little card that tells the story behind your product? If you’re making candles or lotions, is there a special box they go in? If your manufacturer includes all these extras in their price, then don’t worry. But usually these are separate charges and so you need to add them in too.

Remember those shipping costs? It’s amazing how much they can add to your product cost, especially if you do your manufacturing in another country. Find out how much it costs per pound or kilogram (remember the rest of the world’s metric) to ship your product to you. Determine how much an individual product weighs and then you’re ready to calculate how much it will take to get it delivered. Are you just starting out? That means you’ll have to estimate your shipping and freight costs. In that case, it’s a good idea to add about five to seven percent to this cost as a contingency, just to be safe.
If you’re importing your finished products, you’ll also need to have a column for duties and tariffs. They vary widely – from five percent to upwards of 25 percent – depending on your product and the material it’s made out of. Be sure to check out the US International Trade Commission website to find out how much you’ll be charged. If you’re using a broker or agent to help you overseas, you’ll need to add in their commission too.

Once you’ve entered all your costs, create a column in your spreadsheet that tallies them all up for you. Congratulations! You now know what it truly costs to get your product to your door.
Granted, it’s not the most fun part of the business. But think about it – by taking a little time now to set things up right, you finally know what prices you need to charge to arrive at the “promised land” of profit.

Visit Manufacturing the Right Way for more tips.

Marty Stevens-Heebner is president of Manufacturing the Right Way and the creator of the award-winning Rebagz Eco-Chic Handbag line (www.Rebagz.com). To sign up, visit her site at: www.ManufacturingTheRightWay.com.

Article Source:http://www.articlesbase.com/project-management-articles/yes-you-can-how-to-tame-your-product-costs-1393323.html

All projects are brimming with details, and success lies in executing the details successfully. Even if the project is small such as an outdoor deck, permits need to be obtained; blueprints must be drawn; and supplies and labor must be purchased and managed. What seems like a small project can quickly balloon into a large one.

When handling the details, there are many things that you can turn to in order to make your job easier including spreadsheets, white boards, poster boards and power point. Unfortunately, none of these software programs can interact with each other. The problem with doing everything separately is that time is lost when most things have to be figured and calculated by hand.

Of course, all of this manual work trickles down and causes delays throughout the entire project. Deliveries can be delayed, or you could miss an important detail. Someone might even forget to order something that is vital for the next stage of the project. And what happens if something is ordered that is not needed? Cancellation fees and/or storage fees may drive up the cost of the project.

Cash flow can also become a problem when using multiple programs to manage a job. Usually, money is only borrowed when it is needed in order to eliminate unnecessary finance charges. If there is a snitch or discrepancy in the plan, money may be borrowed that isn’t needed yet. All borrowing needs to be done in a timely manner or interest will increase the budget.

Not only are there issues to be kept track of, there is the actual project being done at the worksite. People, tools, payroll, equipment all needs to be managed efficiently. With luck, an experienced project manager can pull off everything with minimal trouble. But there is an easier way.

Construction management software brings everything together and organizes it in one place. With this software, everything is integrated and can be compared with the click of a mouse. Construction software allows you to plan and perfectly execute the project.

Construction software helps you track all funds and expenditures down to the penny. And it makes tax time a breeze as all of the information for the project will we broken down into profit and loss categories.

There are two ways to do construction; years of experience and guesswork, or with construction software to give you the tools to be competitive.

So, you can either spend more time managing a project the old-fashioned way or you can streamline your system and save time and money at the same time. Be sure to check out construction software reviews to see which software will work for your business.

Samuel Daggle writes articles for construction and manfacturing businesses that are looking for ways to use construction software to improve their business. For more information about specific software packages, check out construction accounting software reviews.

Article Source:http://www.articlesbase.com/project-management-articles/stop-improvising-use-construction-management-software-to-complete-your-projects-1383126.html

The goal of any business is to make money. Whether or not a project is going to make money or lose money is often decided in the planning and beginning stages of a project. When calculating profit an estimate is key.

To come up with an estimate, a project manager usually speaks with the client and talks about the scope of the project. Blueprints and a proposal along with a quote are submitted during a subsequent visit. The proposal can be simple such as a sketchpad with some drawings or elaborate such as a conference room presentation complete with a small-scale model. Regardless, there is a lot of time and effort put into the estimate. If the estimate is not reflective of the work to be done, money can be lost.

Sometimes, a contractor will give an estimate based on the average cost per square foot that he or she thinks it will take to complete the project. Unfortunately, this type of guesswork has a high rate of inaccuracy.

Construction software, namely estimating software, can help. This software helps the builder break down project into specific categories. All the builder has to do is enter the cost for each category. The data is calculated and presented to the builder. The software also has safety features that ensure that no part of the project is forgotten.

The result is a reasonable quote that saves the client money while allowing the contractor to make a profit.

If the proposal is rejected, the contractor can easily go back and tweak the proposal using the software. By playing with numbers and seeing where corners can be cut, the contractor can quickly make a counter offer before another contractor is chosen.

The beauty of this software is that you can reduce costs without slashing large portions of the project. The program allows for subtle changes that can add up into substantial savings. Furthermore, a client will be able to see the reduced cost without being able to pick up on areas where you are cutting costs.

Estimation software reduces the amount of time that it takes to prepare estimates. Because of this, contractors can concentrate on building and making money rather than chasing numbers. Without the software, a large project will require an estimator or two. This means that such labor will need to be hired or the owner will have to take a break from another paying job to create estimates.

Software helps the contractor make good, profitable estimates in less time than the old-fashioned way. To find good software for your company’s estimation needs check out construction software reviews.

Samuel Daggle writes articles for construction and manfacturing businesses that are looking for ways to use construction accounting software to improve their business. For more information about specific software packages, check out construction software reviews.

Article Source:http://www.articlesbase.com/project-management-articles/construction-management-software-starting-off-on-the-right-foot-1383170.html

The PRINCE2 Manual has been updated in June 2009. There are no major differences between the 2005 and 2009 versions of PRINCE2 methodology. The PRINCE2 methodology has been refreshed and not re-written.

PRINCE2 keeps its core value of being a universal method that can be applied to any project regardless of type, scale, culture or geography. The improvements are based on user feedback on what was liked/disliked about PRINCE2 and on the different challenges that face today’s projects.

The key improvements to PRINCE2 2009 are:

• PRINCE2 is less prescriptive and more flexible
• PRINCE2 is less theoretical and more practical
• PRINCE2 now has a set of clearly defined principles. These principles can be used as a check that PRINCE2 is being applied in the spirit in which the method has been designed – not too rigidly nor superficially
• The need to tailor the method is explicitly stated and guidance on how to tailor is provided
• The linkage with other standards and bodies of knowledge is clearly shown
• The importance of the soft aspects of project management are emphasised
• PRINCE2 is not bureaucratic – the method requires information and decisions, not documents and meetings.

The changes are being referred to as “evolutionary rather than revolutionary” and PRINCE2 will still be recognisably the same as the current version, even though extensive changes have been made throughout to update and rationalise the method.

Some of the most visible changes include:

• The addition of 7 guiding Principles that underpin any PRINCE2 project
• The 8 components have been changed to 7 themes (Change Control and Configuration Management have been merged)
• The 8 processes have shrunk to 7 (Planning has been merged into the Plans theme)
• The 3 techniques have been merged into the themes chapters
• The 36 management products have shrunk to 27
• A new section has been added on Tailoring PRINCE2

Learn to use Prince2 at http://www.prince2.wikke41guides.com/

Article Source:http://www.articlesbase.com/project-management-articles/prince2-edition-2009-whats-new-1378324.html

If your companies have business spread across the globe than tracking details of projects, work performed, time schedules and employee outside the office is also very important. This required online time tracking software which can be used at any time. By using online Zeiterfassung software you can access the timesheets of projects and employee at any time. The manager can easily plan project time and employee according to work load and timeline of project. Software also helps you to properly submit biding price of any project so that on successful completion of project you can get profit form project.

When you choose the Zeiterfassung software properly check the functionality provided by the company because lots of different types of products are available. The software should be simple to operate and it should provide user interface so that you can also request some specific report like particular date or day. It should also provide different types of reporting facilities. Like some time tracking software provide time reports via mobile also. So these types of software increase your access to time reports and organize schedules of your important projects.

If you have choose the perfect time tracking software than it will helps a lots to make coordination between time, work and employee. Like if your any project have very less time for completion than you can increase the number the employee so that project can be completed before deadline. This is why time tracking is very important to efficiently handle the project. Whether you have small business with lesser number of employee or big company, the efficient method to keep track of project time lines is to use proper time tracking software. These provide simple and effective way to get organized project and employee related information.

For reviews and download of different Zeiterfassung software and simple Excel Arbeitszeit software for tracking work time, visit arbeitszeit-zeiterfassung.de.

Article Source:http://www.articlesbase.com/project-management-articles/time-tracking-software-to-organize-your-project-schedules-1340513.html

Every organization has work to do – even an organization consisting of a single work-at-home entrepreneur. That work falls into one of two categories:

• Work that is ongoing and repetitive (Operations)
• Work that is temporary and unique (Projects)

Creating a new web site is a project; managing that site once it’s up and running is operations. Seems clear enough, right? Those of us who live in the real world know that very often it’s hard to tell when the project stops and operations begins. The care and feeding of a web site is one big ongoing cycle: Launch the site. Review the data. Make improvements. Launch the improvements. Review the data. Make more improvements. Repeat as necessary.

Temporary
So, where do we draw the line? Let’s look at the meaning of “temporary,” which, by the way, doesn’t necessarily mean short term. The implication is  that there is a definite beginning and a definite end. Projects are not ongoing efforts – even for a small home business.

The goal of a project is to achieve the objective and close out the project. Projects are the means by which a business strategy is implemented. They are not concerned with sustaining the business; that’s the job of operations.

Remember two things about the temporary nature of projects:
1. The window of opportunity for a project is usually temporary.
2. Most project teams are created to implement the project and then disbanded at its completion.

Unique
If you’re trying to do something that’s never been done before, you’re probably creating a project. Even though your company makes two-way radios, for instance, you’d still require a project to create the web site(s) for a new product launch. Or, what if you’ve decided to sell an existing line of radios via distributors as well as directly to the public? Same thing; you’re doing something unique and that requires a project.

So, get that web site launched – and then turn it over to operations for tweaking to sustain the business.

To learn more about project management, visit the Project Management Institute.

Bye for now!

~ Deborah

DEBORAH YOUNG invites you to share in the conversation by subscribing to her blog and following along on Twitter. The object for all of us is to have some fun and learn a few things along the way!

Chart Your Course Now at deboraheyoung.com

Follow me on Twitter @uptowndownsouth

Interested in a new business venture? Highly motivated entrepreneurs make money online by learning to market anything to anyone, anywhere in the world.

Article Source:http://www.articlesbase.com/project-management-articles/project-management-for-internet-marketing-1346412.html

Project management is a tough job. Where else would you be expected to manage something that is temporary, has not been done before, is loosely defined, is constantly changing, is laden with complexity risk and unrealistic expectations and is set within fixed constraints including resources, budget, time, process, organisation and culture?

Projects depend very much on the team and teamwork. One of the fundamental roles of the project manager is to provide feedback to team members on their performance. Feedback is supposed to show someone the impact of their behaviour with a view to helping them improve performance in the future.

Many of us do not know how to do feedback properly. This is not surprising as we tend to get very little practice. It is very common for feedback to be given rarely or for it to be part of an annual performance review process. Feedback is often therefore, too little, too late. And many of us avoid giving feedback altogether as we see it as a potential source of conflict.  The problem is that poorly delivered feedback can alienate team members and stop them functioning effectively. And the malaise can spread quickly through the team.

Part of the problem is the ‘back’ in feedback. Feedback tends to focus on past events. As such, it can be a limited and static affair. In projects, we cannot afford to be limited or static or to focus on the past. While we might hope to learn from the past, it’s history and can’t be changed. So given these difficulties, why not try a little Feedforward?

Feedforward is a term coined by Marshal Goldsmith in his article “Try Feedforward Instead of Feedback”. Feedforward has a helping perspective and focuses on the future. It is thus particularly suitable for a project environment for the following reasons:

• The focus must always be on the future and the next deadline.
• We can’t afford to lose anyone – everyone must be kept on board.
• Often we are stuck with the resources that we have and we must make the most of them.
• Team morale can be delicately balanced and poorly delivered feedback can be a tipping point.
• We must be resilient. Project teams must have a high bounceability quotient. The alienation caused by poorly delivered feedback can impact on a team’s ability to bounce back.

There are many good reasons to try a little Feedforward with your project teams including:

1. It comes from a much more positive perspective i.e. we are all in this together so let’s help each other out. This changes the whole dynamic of the relationship.
2. It is not judgemental.
3. The negative connotations of past failures are banished. There is no such thing as failure just Feedforward.
4. It is much easier to deliver. People are less defensive when discussing future performance. Feedforward is taken less personally and provokes less resistance.
5. It is faster. Dwelling on past events can consume a lot of time. It can be much quicker to suggest a few well thought out ideas for the future.
6. What’s the point on focussing on past failures? Isn’t it much better to focus on the future we desire?
7. Feedforward is much more aligned with coaching and is therefore better at building the kind of relationships needed to develop the team towards maximum performance.
8. Most people actually like to be helped to improve their performance as this will ultimately make them more successful in their careers.
9. Communication, the soul of successful projects, will be greatly enhanced.
10. Why invest time and energy in something that we all hate?

Consider the following example from an IT project.

A team member called Tom was responsible for installing and configuring a new server. During the install, Tom forgot to install the anti-virus software. As a result, the server became infected with multiple viruses and ground to a halt. The problems were difficult to diagnose and fix and the project lost two full days from the schedule due to the testing phase being interrupted.

What is the project manager Bob, to do with Tom? The feedback approach will delve into what happened, the consequences and the impact on the schedule. The negatives are restated and emphasised. Let me ask you this question? In situations like this, who usually knows most about the facts of what happened and the consequences? Of course, its Tom and Tom will more than likely deeply regret his error and most definitely will not make that mistake again. So it can be reasonably stated that this approach is useless.

Now let’s try Feedforward. The Feedforward approach will focus on the future. Remember, there is no such thing as failure, just Feedforward. Bob might say something like the following to Tom. “I remember when I was a techie, I used to compile a checklist of tasks when installing servers. There are so many things to be considered, that it is very easy to forget about something. Actually, it would be great for this project and future projects if we had a standard checklist for all installs”.

This is a completely different approach.  Tom will more than likely see this as a great idea that he will take on board. He will probably also see this as an opportunity to do something that will help him and others now and in the future. The whole situation has been turned around and has become an opportunity for Tom to develop, grow and shine!  And just look at the positive results for relationships. Tom’s and Bob’s relationship can only be stronger. When the news spreads around the wider team, it will most likely strengthen more relationships and the regard the team have for Bob.

Altogether a much better outcome, wouldn’t you think?

© Tom Ferguson 2009

Tom has over fifteen year’s project management experience across both the public and private sectors. He holds a Masters in Project Management from the University of Limerick, a B.Sc. in Information Technology from Dublin City University and a Diploma in Executive Coaching from the Irish Management Institute (IMI).

In addition, he has been certified as a Project Management Professional (PMP) by the Project Management Institute (PMI) and as a Certified Training Professional (CTP) by the Irish Computer Society.

Tom runs his own company dedicated to collaborating with organisations to make their projects work. For more information, please visit http://www.pmedge.ie

Article Source:http://www.articlesbase.com/project-management-articles/project-managers-forget-about-feedback-and-try-a-little-feedforward-instead-1351432.html

As soon as the project manager has received his brief or project instructions, he must produce a document which distils what is generally a vast amount of information into a concise, informative and well-organized form that can be distributed to all members of the project team and indeed all the stakeholders in the project. This document is called a project management plan (PMP), but is also sometimes just called a project plan, or in some organizations a coordination procedure.

The PMP is one of the key documents required by the project manager and his/her team. It lists the phases and encapsulates all the main parameters, standards and requirements of the project in terms of time, cost and quality/performance by setting out the ‘Why’, ‘What’, ‘When’, ‘Who’, ‘Where’ and ‘How’ of the project. In some organizations the PMP also includes the ‘How much’, that is the cost of the project. There may, however, be good commercial reasons for restricting this information to key members of the project team.

The contents of a PMP vary depending on the type of project. While it can run to several volumes for a large petrochemical project, it need not be more than a slim binder for a small, unsophisticated project.

There are, however, a number of areas and aspects which should always feature in such a document. With the permission of the British Standards Institution, the main headings of what is termed the Model Project Plan are given below, but augmented and rearranged in the sections given above.

General

1. Foreword
2. Contents, distribution and amendment record
3. Introduction
   1. Project diary
   2. Project history

The Why

1. Project aims and objectives
   1. Business case

The What

1. General description
   1. Scope
   2. Project requirement
   3. Project security and privacy
   4. Project management philosophy
   5. Management reporting system

The When

1. Programme management
   1. Programme method
   2. Program software
   3. Project life cycle
   4. Key dates
   5. Milestones and milestone slip chart
   6. Bar chart and network if available

The Who

1. Project organization
2. Project resource management
3. Project team organization
   1. Project staff directory
   2. Organizational chart
   3. Terms of reference (TOR)
      1. for staff
      2. for the project manager
      3. for the committees and working group

The Where

1. Delivery requirements
   1. Site requirements and conditions
   2. Shipping requirements
   3. Major restrictions

The How

1. Project approvals required and authorization limits
2. Project harmonization
3. Project implementation strategy
   1. Implementation plans
   2. System integration
   3. Completed project work
   4. Acceptance procedure
   5. Procurement strategy
      1. Cultural and environmental restraints
      2. Political restraints
      3. Contract management
      4. Communications management
      5. Configuration management
         1. Configuration control requirements
         2. Configuration management system
         3. Financial management
         4. Risk management
            1. Major perceived risks
            2. Technical management
            3. Tests and evaluations
               1. Warranties and guarantees
               2. Reliability management (see also BS 5760: Part 1)
                  1. Availability, reliability and maintainability (ARM)
                  2. Quality management
                  3. Health and safety management
                  4. Environmental issues
                  5. Integrated logistic support (ILS) management
                  6. Close-out procedure

The numbering of the main headings should be standardized for all projects in the organization. In this way the reader will quickly learn to associate a clause number with a subject. This will not only enable him/her to find the required information quickly, but will also help the project manager when he/she has to write the PMP. The numbering system will in effect serve as a convenient checklist. If a particular item or heading is not required, it is best simply to enter ‘not applicable’ (or NA), leaving the standardized numbering system intact.

Apart from giving all the essential information about the project between two covers, for quick reference, the PMP serves another very useful function. In many organizations the scope, technical and contractual terms of the project are agreed in the initial stages by the proposals or sales department. It is only when the project becomes a reality that the project manager is appointed. By having to assimilate all these data and write such a PMP (usually within two weeks of the hand-over meeting), the project manager will inevitably obtain a thorough understanding of the project requirements as he/she digests the often voluminous documentation agreed with the client or sponsor.

Clearly not every project requires the exact breakdown given in this list and each organization can augment or expand this list to suit the project. If there are any subsequent changes, it is essential that the PMP is amended as soon as changes become apparent so that every member of the project team is immediately aware of the latest revision. These changes must be numbered on the amendment record at the front of the PMP and annotated on the relevant page and clause with the same amendment number or letter.

The contents of the project management plan are neatly summarized in the first verse of the little poem from the Elephant’s Child by Rudyard Kipling:

• I keep six honest serving-men
• (They taught me all I knew);
• Their names are What and Why and When,
• And How and Where and Who.

If you wish to find projects management solutions and services Visit: projequip: projects management solutions, where you can find HQ project management articles and news

Article Source:http://www.articlesbase.com/project-management-articles/project-management-plan-1351533.html

Every day we take risks. If we cross the street we risk being run over. If we go down the stairs, we risk missing a step and tumbling down. Taking risks is such a common occurrence, that we tend to ignore it. Indeed, life would be unbearable if we constantly worried whether we should or should not carry out a certain task or take an action, because the risk is, or is not, acceptable.

With projects, however, this luxury of ignoring the risks cannot be permitted. By their very nature, because projects are inherently unique and often incorporate new techniques and procedures, they are risk prone and risk has to be considered right from the start. It then has to be subjected to a disciplined regular review and investigative procedure known as risk management.

Before applying risk management procedures, many organizations produce a Risk Management Plan. This is a document produced at the start of the project which sets out the strategic requirements for risk assessment and the whole risk management procedure. In certain situations the risk management plan should be produced at the estimating or contract tender stage to ensure that adequate provisions are made in the cost build-up of the tender document.

The Project Management Plan (PMP) should include a resume of the Risk Management Plan, which will first of all define the scope and areas to which risk management applies, particularly the risk types to be investigated. It will also specify which techniques will be used for risk identification and assessment, whether SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is required and which risks (if any) require a more rigorous quantitative analysis such as Monte Carlo methods.

The Risk Management Plan will set out the type, content and frequency of reports, the roles of risk owners and the definition of the impact and probability criteria in qualitative and/or quantitative terms covering cost, time and quality/performance.

The main contents of a Risk Management Plan are as follows:

• General introduction explaining the need for the risk management process;
• Project description. Only required if it is a stand-alone document and not part of the PMP;
• Types of risks. Political, technical, financial, environmental, security, safety, programme etc.;
• Risk processes. Qualitative and/or quantitative methods, max. nos of risks to be listed;
• Tools and techniques. Risk identification methods, size of P-I matrix, computer analysis etc.;
• Risk reports. Updating periods of Risk Register, exception reports, change reports etc.;
• Attachments. Important project requirements, dangers, exceptional problems etc.

The Risk Management Plan of an organization should follow a standard pattern in order to increase its familiarity (rather like standard conditions of contract) but each project will require a bespoke version to cover its specific requirements and anticipated risks.

Risk management consists of stages, which, if followed religiously, will enable one to obtain a better understanding of those project risks which could jeopardize the cost, time, quality and safety criteria of the project. The first three stages are often referred to as qualitative analysis and are by far the most important stages of the process.

Stage 1 Risk awareness: This is the stage at which the project team begins to appreciate that there are risks to be considered. The risks may be pointed out by an outsider, or the team may be able to draw on their own collective experience. The important point is that once this attitude of mind has been achieved, i.e. that the project, or certain facets of it, are at risk, it leads very quickly to . . .

Stage 2 Risk identification: This is essentially a team effort at which the scope of the project, as set out in the specification, contract and WBS is examined and each aspect investigated for a possible risk.

Stage 3 Risk assessment: This is the qualitative stage at which the two main attributes of a risk, probability and impact, are examined.

Stage 4 Risk evaluation

Stage 5 Risk management: Having listed and evaluated the risks and established a table of priorities, the next stage is to decide how to manage the risks.

If you wish to find projects management solutions and services Visit: projequip: projects management solutions, where you can find HQ project management articles and news

Article Source:http://www.articlesbase.com/project-management-articles/general-introduction-to-risk-management-1351562.html