Module 2: Critical Thinking

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Critical Thinking Assignment (70 Points)

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Choose one of the following two assignments to complete this week. Donot do both assignments. Identify your assignment choice in the titleof your submission.

Option #1: Collaboration: Risk Breakdown Structure for a Food Bank Project

Identifying and managing project risks are critical tasks for projectmanagers. From a project management perspective, risks must be managedfrom the start of a project until its completion; therefore, the RiskBreakdown Structure (RBS) is an important tool that project managers useto successfully complete projects. Assume that you are a projectmanager assigned a project to set up a food bank facility for your localcommunity within a two-month period, starting from today. Develop arisk breakdown structure that identifies sources of project risks.Consider Figure 11-4 below and the tasks that might be associated withthis project.

1. Identify the risks in the form of “cause-risk- effect,” as described below:

One of the most common risk-identification mistakes is consideringthings to be risks when they are not. One approach is to treat anythingwith a probability of greater than 80 percent as a certainty. “Lack ofresources” is not a risk, nor is “not enough time to complete theproject.” If it is known that the length of time required to complete aproject is shorter than the time allocated, then this is not a risk—it’sa fact. Such facts should be addressed in the project management planthrough crashing, fast tracking, re-estimating, removing scope, usingother forms of schedule compression, and bringing the situation tomanagement, but not as part of risk management.

“To differentiate risks from facts and to adequately define risks,use the ‘cause-risk- effect’ format for naming risks: As a result of(definitive cause), (uncertain event) may occur, which would/could/maylead to (effect). Such definition of risks provides enough informationfor the team to follow the rest of the project management process. Seethe following examples of risks in the cause-risk-effect format:

1. As a result of lack of clear direction for the scope of work for theXYZ component, there could be rework and wasted efforts, which coulddelay the project completion from two to four weeks.
2. As a result of the amount of work the customer is trying toaccomplish on many projects during this project’s completion, a delay inthe response to our requests for approvals may occur, which couldresult in a two-week delay in project completion. Effects could relateto project objectives, project constraints, and risk tolerances.”(Mulcahy, 2003, p. 90)

2. Discuss and analyze the importance of each of the four types ofrisk identified in Figure 11-4 (technical, management, commercial, andexternal).

3. Create a risk breakdown structure and attach as an appendix (seeattached sample and use the blank RBS linked under this assignment inModule 2).

4. Discuss the importance of creating an RBS.

RBS LEVEL 0	RBS LEVEL 1	RBS LEVEL 2
0. ALL SOURCES OF PROJECT RISK	1. TECHNICAL RISK	1.1 Scope definition
		1.2 Requirements definition
		1.3 Estimates, assumptions, and constraints
		1.4 Technical processes
		1.5 Technology
		1.6 Technical interfaces
		Etc.
	2. MANAGEMENT RISK	2.1 Project management
		2.2 Program/portfolio management
		2.3 Operations management
		2.4 Organization
		2.5 Resourcing
		2.6 Communication
		Etc.
	3. COMMERCIAL RISK	3.1 Contractual terms and conditions
		3.2 Internal procurement
		3.3 Supplies and vendors
		3.4 Subcontracts
		3.5 Client/customer stability
		3.6 Partnerships and joint ventures
		Etc.
	4. EXTERNAL RISK	4.1 Legislation
		4.2 Exchange rates
		4.3 Site/facilities
		4.4 Environmental/weather
		4.5 Competition
		4.6 Regulatory
		Etc.

(Source: PMI, 2017, Figure 11-4)

5. Reach out to at least one other student and discuss your findingsabout project risk management, based on your review of the case study,to gain greater insight into the main considerations in managingprojects. Include the name(s) of the other student(s) with whom youcollaborated, and specify the value added by your collaboration withyour classmate(s) and what new insights you gained. (Your collaboratingcolleagues do not need to choose the same Critical Thinking option asyou do.)

Your well-written paper should meet the following requirements:

• Be 3-4 pages (900-1200 words) in length, not including the coverpage, references page, or appendix. (Remember that the appendix followsthe references page.)
• Be formatted according to the CSU-Global Guide to Writing & APA. (Links to an external site.)
• Cite a minimum of three sources to support your responses, two ofwhich should be current academic, peer-reviewed, scholarly sources.Note: Current research in this class means the most recent five-yearperiod. Although research older than five years may be used, it will notcount toward the assignment requirement. The CSU-Global library is agreat place to find these resources. Additionally, in the Module 1lecture material, you were reminded of what constitutes academic,peer-reviewed, scholarly sources and how to find them in the CSU-GlobalLibrary.
• Demonstrate thoughtful consideration of the ideas and concepts thatare presented in the course, and provide new thoughts and insightsrelated directly to this topic.

Refer to the Critical Thinking Assignment grading rubric below for more information on assignment expectations and grading.

References

Mulcahy, R. (2003). Risk management: Tricks of the trade for project managers: A course in a book. Minneapolis, MN: RMC Pub.

Project Management Institute. (2017). A guide to the project management body of knowledge: (PMBOK® guide) (6th ed.). Newtown Square, PA, USA: Project Management Institute.

Option #2: Collaboration: Risk Breakdown Structure for an International Training Facility Project

Identifying and managing project risks are critical tasks for projectmanagers. From a project management perspective, risks must be managedfrom the start of a project until its completion; therefore, a RiskBreakdown Structure (RBS) is an important tool that project managers useto successfully complete projects. Assume that you are a projectmanager who is to manage a project to set up a training facility inChina to teach project management classes. This project is to becompleted within a two- month period, starting from today.

1. Identify the risks in the form of “cause-risk-effect,” as described below:

One of the most common risk-identification mistakes is consideringthings to be risks when they are not. One approach is to treat anythingwith a probability of greater than 80 percent as a certainty. “Lack ofresources” is not a risk, nor is “not enough time to complete theproject.” If it is known that the length of time required to complete aproject is shorter than the time allocated, then this is not a risk—it’sa fact. Such facts should be addressed in the project management planthrough crashing, fast tracking, re-estimating, removing scope, usingother forms of schedule compression, and bringing the situation tomanagement, but not as part of risk management.

“To differentiate risks from facts and to adequately define risks,use the ‘cause-risk- effect’ format for naming risks: As a result of(definitive cause), (uncertain event) may occur, which would/could/maylead to (effect). Such definition of risks provides enough informationfor the team to follow the rest of the project management process. Seethe following examples of risks in the cause-risk-effect format:

1. As a result of lack of clear direction for the scope of work for theXYZ component, there could be rework and wasted efforts, which coulddelay the project completion from two to four weeks.
2. As a result of the amount of work the customer is trying toaccomplish on many projects during this project’s completion, a delay inthe response to our requests for approvals may occur, which couldresult in a two-week delay in project completion. Effects could relateto project objectives, project constraints, and risk tolerances.”(Mulcahy, 2003, p. 90)

2. Discuss and analyze the importance of each of the four types ofrisk identified in Figure 11-4 (technical, management, commercial, andexternal).

3. Create a risk breakdown structure and attach as an appendix (seeattached sample and use the blank RBS linked under this assignment inModule 2).

4. Discuss the importance of creating an RBS.

RBS LEVEL 0	RBS LEVEL 1	RBS LEVEL 2
0. ALL SOURCES OF PROJECT RISK	1. TECHNICAL RISK	1.1 Scope definition
		1.2 Requirements definition
		1.3 Estimates, assumptions, and constraints
		1.4 Technical processes
		1.5 Technology
		1.6 Technical interfaces
		Etc.
	2. MANAGEMENT RISK	2.1 Project management
		2.2 Program/portfolio management
		2.3 Operations management
		2.4 Organization
		2.5 Resourcing
		2.6 Communication
		Etc.
	3. COMMERCIAL RISK	3.1 Contractual terms and conditions
		3.2 Internal procurement
		3.3 Supplies and vendors
		3.4 Subcontracts
		3.5 Client/customer stability
		3.6 Partnerships and joint ventures
		Etc.
	4. EXTERNAL RISK	4.1 Legislation
		4.2 Exchange rates
		4.3 Site/facilities
		4.4 Environmental/weather
		4.5 Competition
		4.6 Regulatory
		Etc.

(Source: PMBOK, 2017, Figure 11-4)

5. Reach out to at least one other student and discuss your findingsabout project risk management, based on your review of the case study,to gain greater insight into the main considerations in managingprojects. Include the name(s) of the other student(s) with whom youcollaborated, and specify the value added by your collaboration withyour classmate(s) and what new insights you gained. (Your collaboratingcolleague(s) do not need to choose the same Critical Thinking option asyou do.)

Your well-written paper should meet the following requirements:

• Be 3-4 pages (900-1200 words) in length, not including the coverpage, references page, or appendix. (Remember that the appendix followsthe references page.)
• Be formatted according to the CSU-Global Guide to Writing & APA (Links to an external site.).
• Cite a minimum of three sources to support your responses, two ofwhich should be current academic, peer-reviewed, scholarly sources.Note: Current research in this class means the most recent five-yearperiod. Although research older than five years may be used, it will notcount toward the assignment requirement. The CSU-Global library is agreat place to find these resources. Additionally, in the Module 1lecture material, you were reminded of what constitutes academic,peer-reviewed, scholarly sources and how to find them in the CSU-GlobalLibrary.
• Demonstrate thoughtful consideration of the ideas and concepts thatare presented in the course, and provide new thoughts and insightsrelated directly to this topic.

Refer to the Critical Thinking Assignment grading rubric below for more information on assignment expectations and grading.

References

Mulcahy, R. (2003). Risk management: Tricks of the trade for project managers: A course in a book. Minneapolis, MN: RMC Pub.

Project Management Institute. (2017). A guide to the project management body of knowledge: (PMBOK® guide) (6th ed.). Newtown Square, PA, USA: Project Management Institute.