risk management and schedule management e. keith sinkhorn department of engineering 21 february 2007
TRANSCRIPT
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Risk Management and Schedule Management
E. Keith Sinkhorn
Department of Engineering
21 February 2007
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Outline
• Risk Management– Cost of Doing Business– Shared Risk
• Schedule Management• Engineering at CSU-Pueblo
– Industrial Engineering• BSIE• MSISE
– Engineering – Mechatronics• BSE
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Risk Management
• Risk management is the art and science of accounting for business conditions that involve some element of chance.
• In the construction industry, sources of risk can include:
Safety Weather
Resource Availability Liability
Cost Technology
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Cost of Doing Business
• The price of nearly everything comes down to some version of this equation:
Price = cost to provide a service + money the provider makes for providing it
• For a service that involves risk, this equation looks like:Price = cost to provide a service + money the provider expects to make
• The second part of price is the “cost of doing business” with the provider
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Shared Risk
• Insurance premiums are the sum of cost to insure plus the cost of doing business with the insurance company.
• In any business venture involving risk, you should expect to be fairly compensated for accepting risk.
• An employer that will not equitably share risk is not worth working for.
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Risk Management - Safety
• Risk management gets easier with experience.
• Record keeping is key to improvement in the management of risk.
• Always remember that the cost to prevent an accident is cheaper than the cost of an accident occurring.
• According to OSHA, the average cost of an eye injury is about $1,463
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Schedule Management
• Schedule management is a subset of the larger activity of project management.
• Construction contracts tend to be long-term projects involving multiple activities.
• Estimating the durations of these individual activities is crucial.
• Again, record keeping is the best way to improve your estimation of activity times.
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Activity Durations
• You should always estimate an optimistic and pessimistic duration for each activity.– Optimistic – How long will it take if nothing
goes wrong?– Pessimistic – How long will it take if there are
some reasonable obstacles?
• If you have no basis for estimating the pessimistic duration, begin by adding 30%-50% to the optimistic duration.
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Schedule Management
• Identify which activities are critical activities and cannot be delayed without affecting the duration of the entire project.
• Remember not to over-promise and under-deliver. Customers hate that.
• In the long run, a reputation for developing schedules that you can stick to will mean more to you than winning a few bids by over-promising.
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Engineering Opportunities at CSU-Pueblo
• Bachelor of Science in Industrial Engineering– Four year degree accredited by the
Accreditation Board for Engineering and Technology (ABET)
• Master of Science in Industrial and Systems Engineering– Core courses (15 hours) + Track (9 hours) +
Electives (12 hours)
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Engineering Opportunities at CSU-Pueblo
• Bachelor of Science in Engineering with an emphasis in Mechatronics– New hybrid degree– Mechatronic systems are electrical and
mechanical devices integrated with computer controls.
– The Engineering department will pursue ABET accreditation once the first class of graduates is produced.