Risk Management

The specific tasks and milestones required for the project plan

I will lay down the milestones as described below. The measure of success will be to achieve the results as per milestones without compromise on quality. The milestones are as follows:

Activity Duration Start End Resource

Understand Objective of Online Sales Management Program 2 days 10/6/07 12/6/07

Understand Organizational Context 2 days 13/06/2007 8:00:00 AM 14/06/2007 5:00:00 PM Business Analyst

Understand the history of the problem 2 days 15/06/2007 8:00:00 AM 16/06/2007 5:00:00 PM Business Analyst

Prepare Implementation Proposal 3 days 17/06/2007 8:00:00 AM 19/06/2007 5:00:00 PM Business Analyst

Identify the team to work on the Implementation project 3 days 20/06/2007 8:00:00 AM 23/06/2007 5:00:00 PM Business Analyst

Discuss Implementation Budget and Schedule 3 days 24/06/2007 8:00:00 AM 26/06/2007 5:00:00 PM Business Analyst

Develop Implementation Project Charter 1day 26/06/2007 8:00:00 AM 26/06/2007 5:00:00 PM Business Analyst

Approval from the Project Sponsors 3 days 27/06/2007 8:00:00 AM 29/06/2007 5:00:00 PM Project Manager

User Requirements / Analyze Situation 6 days 29/6/2007 8:00:00 AM 3/7/07

Discuss requirements with Users 3 days 4/7/07 6/7/07 Business Analyst

Understand and document user needs 11 days 7/7/07 17/07/2007 5:00:00 PM Business Analyst

Preparation and approval Requirement Specification for program 2 days 18/07/2007 8:00:00 AM 19/07/2007 5:00:00 PM Business Analyst

Design / Customize Online Solution 40 days 20/07/2007 8:00:00 AM 30/08/2007

Approval of Online Program 2 days 31/08/2007 8:00:00 AM 1/9/07 Project Manager

Training / Acceptance of ERP Solution 6 days 1/9/07 6/9/07

Develop User / Training Manual 1 day 6/9/07 6/9/07 Admin Asst

Train Users 3 days 7/9/07 9/9/07 Business Analyst

Approval of Solution Implementation 1 day 10/9/07 10/9/07 Project Manager

Task cost estimates

To complete a project successfully the project must be broken down into its component parts then assign personnel and resources necessary to complete each task. I have listed and organized the tasks, highlighting a reasonable amount of time. Responsibility for completion of each is the responsibility of the team member to which is has been assigned. Task assignments have been clearly documented in the project plan as well as the expected duration of each task. (Risk Management Plan, 2005)

1. Human resources and overall project costs

INITIAL COSTS

Online Programming costs $80,000

Upgrade of Hardware $70,000

Server cost $3,500

Developer/Business Analyst ($165/hr) $200 $33,000

Employee Training ($27/hr) 30hrs $8,100

Total $194,600

ONGOING COSTS (ANNUAL)

Software support fees $2,500

Server maintenance and repair $1,500

Reports development costs $190,000

Total $194,000

SAVINGS/GAINS (ANNUAL)

Production turns improvement (from 15 - 5%) $1,000,000

Raw materials cost due to better reporting/forecasting $1,200,000

Total $2,200,000

Five specific project risks (including size of the project and context within the organization) that could arise as the plan is implemented and assessment of each risk's impact on project outcomes

Risk management process plan will include:

* Identification of the risk

* Analysis of the risk

* Response plan related to the risk

There is always risk involved in projects as there are many unknowns and human factors that come into play that might have an impact on a project. A thorough review and documentation of the risks involved, group think sessions to analyze the risks, and the development of a plan to manage the risks is vital for a project to be successful. This plan will assist in keeping the project on time and within budget targets.

Identification and analysis of risk

Internal risks

Mission and Goals

* Project fit to organization

Online sales management program will help in increasing the productivity of sales and improving the customer delight. Thus it has low risk regarding the mission of the project as it directly supports organization mission and goals.

* Significant work flow

It has high risk as it will significantly change the work flow to the online management of sales.

* Management support

Its risk is low

* Customer perception

Its risk is low as the customer expects this organization to provide the product.

* Project objectives

Medium risk

External risks

* Use of Attractive Technology

Low as technology is readily available.

* Low political risk.

Schedule risks

* Date

Its