ANALYSIS OF UNEXPECTED EVENTS 1
ANALYSIS OF UNEXPECTED EVENTS 4
Analysis of Unexpected Events
Unexpected events are occurrence of an event during the course of a project that would causes harm to a participate or increase the likelihood of a participate of a event be at risk of being harm (Söderholm 2008). It can be directly or indirectly. Directly when one would have physical injuries indirectly when payment is delayed or asked to work extra hours more than the agreed time.
On October 15, 2015, the customer notified the project manager that the first milestone payment would delay by three months. These brought a set back for the project and its way of operating. The project was going to stop for some time. There would be more work load after the three months if the deadline was not pushed. To avoid all of this, the project manager would take a loan from a credit facility to avoid the pressure after the three months. Then after the customers have done their payment, the project manager should pay the loan. The interest should be catered for by the customer.
On March 15, 2016, a notice came that the material pattern for the backpack will not be available to meet the initial production start date. This was going to make the first delivery of the backpacks to have a delay. This would mean a smaller number of the backpacks to be delivered in the first phase. On May 15, 2016, there was a notice that the customers would like to increase the initial delivery from 100 to 150 backpacks. This would cause a pressure to the company to produce more backpacks more than they had plan to. This would change the budget of the project to go high than they had agreed on. This would mean that the project manager would be forced to get the extra capital to be in position to manage to manufacture 50 more backpacks than the agreed (Floricel and Miller 2001). The delivery time would change because in March they were unable to have all the materials that were needed to manufacture 100 backpacks. This was a sign that there would be a delay in manufacturing 150 backpacks.
On March 1, 2016, the project engineering team discovered that the refrigerated module is too large for the designed refrigerated backpacks pouch. This will cause a delay in delivering. The manufacturing team will be forced to change the size of the pouch of the refrigerators. These would cause an extra cost that has not been budget for. This would bring a delay in the production of the backpacks because of correcting the size of the pouch.
On May 27, 2016, the subcontractors assigned to build the radio module for the backpacks have shut down. This was going to cost the company time and money for getting another person to employ. This would take time to first train the person on what is needed to be done. The time for delivery would be delayed, but if there would be no extra time given, this would cause intense pressure to the person to instore the radio modules and the whole company at large. This will cause a change in the budget because there would have an extra amount to be paid that had not been budgeted for.
In conclusion, the main hold backs for the company and the project to work smoothly are; the change of the budget that had been agreed upon, use of personal capital like the company taking loan for the project to continue and the change of the schedule like in time of delivery.
Floricel, S. and R. Miller (2001). “Strategizing for anticipated risks and turbulence in large-scale engineering projects.” International journal of project management 19(8): 445-455.
Söderholm, A. (2008). “Project management of unexpected events.” International journal of project management 26(1): 80-86.