Does Changing Types Of Materials On A Project Can Be Considered A Risk?

Change is the but constant matter in life.

– Heraclitus, Greek Philosopher

Human nature is such that, if yous inquire me to practice something for you, you lot expect me to have a program and, following your approval of that plan, to attach to it.

That's why project management involves the development of a project management plan, which includes the budget, schedule, stakeholder advice program, and whatsoever other items necessary for a successful project. The programme is approved past the parent arrangement and/or projection sponsor, and changes to the plan mid-projection are unwelcome.

In fact, projection changes are one of the easiest ways to heighten the claret pressure of senior direction. Project plans are intended to provide certainty – of purpose and issue. When the plans change, the expectations must exist revised, and project success is at stake.

Just since modify is the only abiding in life, project changes should be planned into every projection from the beginning. The most likely potential changes, approving procedures, risk assay, budget and schedule implications, and stakeholder communication should all be a role of the plan. You tin can't anticipate every change, simply you accept to be prepared for what yous tin. Thankfully, the Project Management Body of Noesis (PMBOK Guide) gives us direction on how to perform project modify direction.

Project changes must be considered in each of the 3 major phases of project management:

Planning
Execution
Monitoring & Decision-making
Closing

Although the PMBOK Guide contains a fifth process grouping, Initiating, it is pocket-size and not all that relevant to project modify management.

Planning Phase

During planning, a list of configuration items is developed and placed within the project management plan. These are things that require control to ensure that there are no unauthorized changes because they touch on the budget and schedule of the project.

For case, in a house construction project, the house plans are configuration items. If they are inverse by anyone that wants to brand the projection easier for them, the projection's budget and schedule volition screw out of control.

Changes to configuration items are tracked with the following style of data (manually or within software):

Item: House Plans
Engagement	By	Alter
2019/07/26	Bob	Issued for Construction
2019/08/25	Jane	Changed pigment colour
2019/10/12	Bob	Widened the garage

The change command process goes like this:

When someone wants to change a configuration detail, they brand a request to the change control department.
The alter control department documents the change and analyzes the cost and schedule implications, reporting them to the project manager.
The project manager makes the determination to go along with the change asking.
The change command department prepares the asking for change, together with the supporting documentation, to the change control board.
The change control board meets and makes the final determination on whether to approve the change.
The project manager implements the change.

This is the well documented project change management process within the PMBOK Guide, and on large megaprojects this process really happens. I know because I've been a part of information technology. Just since nearly projects aren't megaprojects, suffice it to say the process is a simplified version of this that suits the circumstances. The most important thing is to have an independent set of eyes (in place of the change control board) corroborate the modify because project managers dear to "aureate plate" the product.

Hence, the steps to perform alter control during project planning are:

The project'southward success factors are identified, that is, the items that define whether the projection has succeeded or failed. Being on schedule and budget are almost always at the top of the list, but there are usually others as well, such as the satisfaction of certain stakeholders, or meeting quality goals.
Potential risk events that might affect those success factors are identified. Things like stakeholder'southward changing their requirements, or a plane crashing into the office.
The risks are analyzed co-ordinate to their ii underlying factors, probability and severity.
Risk = Probability x Severity
- When something bad has a high likelihood of happening, it'south risky.
- When something bad is catastrophically bad, it's also risky.
The highest risk events are prioritized into a hazard register and tracked throughout the projection. Gamble triggers are set up and monitored to allow rapid recognition that the risk has occurred, and pre-divers response plans are put into place.

Large megaprojects spend a significant portion of their budget assessing and managing project risks. In contrast, pocket-size to medium sized projects ordinarily spend little or no effort on take a chance analysis, still if it has value on large projects, don't you think information technology would have a corresponding, albeit smaller, value on pocket-size projects? If a minor projection director spends i hour brainstorming well-nigh all of the unexpected things that could happen on their project and potential responses, they have performed chance management.

To finalize the planning process, the project direction plan, which includes the configuration management items, change control process, and risk analysis, is submitted to the projection sponsor (the person one level higher up the project manager, higher up the projection) within the parent system for approval. Once the project management program is approved, it becomes a configuration item itself and cannot be inverse without re-approval by the project sponsor.

Project Execution Phase

During the execution phase, change requests are continually generated and fed into the projection change management process.

Change requests originate from the project team and are fed to the project manager, who can either solve the problem by re-allocating resources and then forth, or proceed to making the projection projection alter asking.

Change requests can include defect repairs, or corrective and preventive activity.

The modify control process documents the change in a document called a alter log. This log tracks information most the change such as who requested information technology, why they requested it, and if/when information technology was approved. If the project budget or schedule has been changed, or the project direction plan updated, the process every bit determined in the planning phase is implemented.

The alter command board analyzes the change asking and makes a conclusion. Once the decision has been made, the project management plan is updated and submitted for re-approval to the project sponsor.

Project Monitoring & Controlling Stage

Project command refers to the systematic monitoring of project cost and schedule status and comparison it against the toll and schedule baseline to determine whether the project is on track or not.

Hence, the monitoring and controlling role attempts to prevent projection changes earlier they occur, or to obtain early warning to notify stakeholders of an upcoming projection change.

This happens using a procedure called earned value management (EVM).

In EVM, specific progress reporting periods are determined (often weekly) at which time four variables are extracted from each task of the projection:

Budget at Completion (BAC) is the task budget.
Planned Value (PV) is the expected progress expressed as the chore upkeep. For example, if a task lasts from Sep. 1 to Sep. 10 and it's Sep. 6 today, the chore's PV = threescore% of the task budget.
Earned Value (EV) is the bodily progress expressed as the job upkeep. For example, if the task is actually 75% complete, EV = 75% of the task budget.
Actual Price (Air-conditioning) is the actual cost of the task. Well-nigh organizations track this quite well simply if not y'all may need to collect receipts or implement a toll tracking system with the project squad.

The electric current projection status at the point of analysis (usually today) is determined using iv variables. Each task is calculated separately and averaged to determine the whole project status:

Schedule Variance (SV) tells you how far ahead or behind schedule the project is.
Schedule Performance Alphabetize (SPI) tells you how far alee or backside schedule the project is as a percent of the project. Information technology is a "schedule efficiency."
Cost Variance (CV) tells yous how far over or under budget the project is.
Cost Functioning Index (CPI) tells you how far over or under budget the project is as a per centum of the project budget. It is a "cost efficiency."

In one case the current status is determined, it is extrapolated to determine what the overall project values are trending to using the following four variables.

Estimate to Complete (ETC) is the remaining funds necessary to complete the project.
Estimate at Completion (EAC) is the anticipated final projection upkeep. This is one of the nearly heavily used metrics.
Variance at Completion (VAC) is the final project Cost Variance (CV).
To Consummate Performance Index (TCPI) is the Price Functioning Index (CPI) necessary to end on upkeep.

When the CV and SV are negative, the projection is over upkeep and behind schedule. The CPI and SPI volition exist below 1. The EAC tells you where the trend is heading.

And the VAC tells yous how much more money you lot need to enquire for.

The major benefit of earned value management, exterior of the swell picture of project health, is the early alert signs of project distress that it gives y'all, at the time when implementing project change management is at its least painful betoken.

Project Closing Phase

Project closure is one of the well-nigh neglected, yet most visible, phases of the projection to senior management. This is considering the project upkeep has run out and project managers experience they can brand it upwardly by skipping closure paperwork that won't fail the projection.

Fair enough. Most of the time it won't.

But since projection change management are so integral to project success, the closure phase should re-evaluate each project alter and determine if the change was a success, how well information technology was implemented, and what could exist done differently adjacent fourth dimension.

Projects that go according to program present no learning opportunities. Information technology'due south the changes that should exist evaluated with a retrospective that will benefit hereafter projects. This is supported within the PMBOK Guide, in the course of a lessons learned annals, adult every bit an output to the Close Project or Phase procedure.