To complete this assignment, students will select only one industry/business to review, analyze, and assess risks using the LSS tools/techniques, quantitative risk assessment, and your creative ideas. Suppose you are the operation and quality coordinator in the organization, with the current COVID-19 situation, new government with some new policies. To stimulate the overall performance, the company CEO provided a budget for each department to improve productivity of its employees/workers. The results must show at least 7% increase in outputs within the next 6 months.
Your selection can be a specific organization or overall industry, for example
Overall industry – Automotive, Pharmaceutical, Hotel and hospitality, E-commerce, Social Media, Retail, Wholesale, Education, or others.
Specific business – GM, Toyota, Ford, Johnson & Johnson, Pfizer, Marriott International, Sheraton Hotels and Resorts, Amazon.com, Facebook, Google, Walmart, Target, Costco, or others.
The writing must include answers of these 5 items:
- Reviewing general information of your selection, about 150-200 words on demographic data (e.g. organization, nature of its business, products/services, annual revenue, current situation, quality dimension,…)
- Assessing risk factors – consider your selection and construct a risk analysis that examines the various forms of potential risk (technical, financial, operational, perimeter, strategic risks,…) related to the existing of the business. How would your analysis change if your overall business’ revenue was down 5% due to the COVID-19 situation?
- Qualitative risk assessment – Imagine that you are a member of a project team that has been charged to improve productivity of your operation sections by purchasing new application/software system. Using a qualitative risk analysis matrix, develop a risk assessment for a project based on the following information:
Identified risk factors Likelihood
1. Your manager/supervisor resigned 1. High
2. Chance of economic downturn 2. Low
3. Budget cut 3. Medium
4. Project scope changes 4. High
5. Poor spec. performance 5. Low
Based on this information, how would you rate the consequences of each of the identified risk factors? Why? Construct the risk matrix and classify each of the risk factors in the matrix.
Tips: Using the handout – Risk Analysis (Unit Two/Supplement/Handout), pages 2-4, for guideline in drawing a simple 3×3 risk matrix with Probability and Consequences as the two axes. Depending on how you view the consequences of each of the above risks, it is possible to classify them into one of the quadrants of the qualitative risk matrix. The key is that students justify their classifications by giving a logical reason for the consequences they perceive for each risk factor, should the problem actually occur.
- Developing Risk Mitigation Strategies. Develop a preliminary risk mitigation strategy for each of the risk factors identified in Problem 2. If you were to prioritize your efforts, which risk factors would you address first? Why?
- Quantitative Risk Assessment. Assume the following information:
Probability of Failure Consequences of Failure
Maturity = .3 Cost = .1
Complexity = .3 Schedule = .7
Dependency = .5 Performance = .5
Calculate the overall risk factor for this project. Would you assess this level of risk as low, moderate, or high? Why?