Project Management

























Processes of Risk Management                                                                                                3

Procedures for Implementing TQM                                                                                          5

Barriers in implementing TQM                                                                                                 7

References                                                                                                                                8

Processes of Risk Management

Risks are unknown events which can either be negative or positive. Naturally, people tend to focus more on project risks that are negative which can be classified further as threats rather than on project risks that are positive otherwise classified as opportunities. Business leaders should strive to have a clear understanding of project risks in order to decrease problems that occur in projects by more than 80%. Concrete practices in management, a scope that is well-defined and proper incorporated input from stakeholders are some of the ingredients for a proper risk management process (Wrona, 2011).

According to a research carried out by Cranfield University, they identify risk as the possibility of an occurrence and what follows it. On the other hand, risk management refers to the act of practicing the use of tools, methods and processes to manage risks in businesses  (CranfieldUniversity, n.d). Business is the structured effort of groups or individuals aimed at producing as well as selling goods plus services to a society for a profit (Pride, Hughes, & Kapoor, 2009).

In addition good communication passed down from the management to the employees and other parties like stakeholders and shareholders will cut down on project risks that are not expected as well as other surprises. Risk management will also aid in resolving problems when there is an occurrence of change since these changes are anticipated for and the necessary actions are under review and approval. This puts in check any rash decisions that could be made (Wrona, 2011).

Risk management on enterprises has in the recent past had its focus on risks that were operational. This led to a process of risk management that was fragmented in many companies whereas divisions for individual businesses assessed as well as prioritized the risks pertinent to the operations of their businesses. However, the trend has been changing with time due to the realization of the companies that it was essential to lay emphasis on adding value rather than loss prevention. This is as a result of the augmenting competitive nature of the business environment and its fast changing mode (Flanagan, 2010).

Risk management in businesses ought to be an extremely crucial process for this is common ground for the occurrence of risks. It is more so very important to implement effective and strategic measures in order to successfully achieve the desired objectives. The aim of risk management is to identify any mishaps and evaluating them to come up with a solution. In addition it will focus on implementing strategies on how to go about those risks.  (CranfieldUniversity, n.d).

Despite the similarities of the types of businesses around, every kind of business faces its unique challenges. The first step should always be trying to identify the risks surrounding a business. Afterwards, carrying out an assessment of an event that could likely occur and acquiring the knowledge to act in its response. Systems that deal with the risk consequences should be put in place and the effectiveness closely monitored (CranfieldUniversity, n.d).

The risk management process helps anticipate disaster, accidents or losses thus minimizing the cost on fighting them. It positively gives a timely and budgetary control over the business plan as well as the allocation of resources. It also improves on the planning of the business, the making of decisions and prioritization. An early identification of risks creates an increased awareness of what to observe in order to recognize potential problems in advance and to readily see opportunities (CranfieldUniversity, n.d).

The first step in the process of risk management is involving every individual in the process of planning. Having a list of risks items ranging from the highest to the lowest depending with the potentiality of the impact of each one of them will help team members correctly identify these risks. However, one limitation to this step is that the majority of team members assume that some risks should not be listed down for they are known (Wrona, 2011).

The second and the third steps involve collecting the project risks list and compiling them to form one list with the exception of the duplicates and assessing the likelihood of an occurrence of each listed item as the third process. It is easier done by using numerical rating.  Each item is assigned on scales ranging from one to four or using subjective terms for instance high, medium, low (Wrona, 2011).

Step four involves breaking down into smaller groups, the team for planning and giving each of them a portion from the master list and letting each of these small groups identify the warning signs of risks in their lists. These warning signs should be recorded including the minor ones. The fifth step is for the sub-groups to classify the preventive actions that are likely to be taken on the threats (Wrona, 2011).

In step six the sub-groups are left to come up with an emergency plan for the majority of the risks and not necessarily for all. This plan includes the possible actions to be effected in case of an occurrence of a risk or else a trigger. Additionally, this plan solemnly applies to certain risks whose scores exceed a given cut-off point. Thus, this process keeps the exercise manageable. It would as well not be effective if it consumes a lot of time thus making time a crucial factor in this process of risk management (Wrona, 2011).

The last step, the seventh is determining the individuals responsible for each risk that had earlier been listed down. These individuals are supposed to have looked out for triggers and responded to them in case they occurred. The response ought to be an implementation of the contingency plan. Though these individuals or rather the risk owners are often project managers it is advisable for every team member to watch out for triggers as well as collaboratively work on them for the achievement of the best results (Wrona, 2011).

A case study on valve plants in the United States reveals that if proper risk management is not considered they would have to tackle severe accidents in future. The executive operations director for the Nuclear Regulatory Commission Bill Borchardt urges nuclear plants in the U.S. to borrow a leaf from the case that occurred in Japan regarding the Fukushima reactors. The nuclear plants in the U.S. lacked backup power during blackouts. In Fukushima an earthquake as well as a tsunami led to loss of normal power thus forcing them to use batteries of which after their exhaustion there was lack of cooling systems required for reactor cores and fuel pools (Hart, 2011).

Borchardt added that U.S. power plants are not protected well enough against natural disasters, severe accidents, and station blackouts. He also added that a report would be provided after a period of 90 days demonstrating the recommendations and procedures intended to be carried out on those plants in order to come up with a clear review concerning the safety of these plants (Hart, 2011).

Lochbaum on the other hand said that out of the 104 reactors in the U.S. only 11 reactors were designed to stand a blackout of eight hours similar to the Fukushima reactors. However, the rest could merely last four hours in case of a blackout. In this case then, the whole plant loses electricity leading to greater loss in terms of cost and time. In addition, a risk of flooding is prone to occur and this will not only affect the systems inside the plant but also outside as well (Hart, 2011).

The plant stands a higher chance to lose property in case disaster like fire broke out within the premises. The process of producing valve involves heating and melting down thus an effective system for fire protection is essential. However, valve plants in the U.S. do not seem to realize the effects that could be posed by the gaps created by poor identification and evaluation of risks in their premises. Risk identification and evaluation determine how risks can be of significance to the business while on the other hand looking out for preventive or curative measures. It is done by stating the intensity of the probability or consequences of every risk ranging them from high to low. Scaling can come in handy otherwise called risk maps to plot the significance of an occurrence of a risk. For instance, one can have a scale of ten rating 1 for least significant and 10 for the most significant (Pride, Hughes, & Kapoor, 2009).

On the other hand power plants in the U.S. need to set their priorities right for easy and effective allocation of money and time. The increase in amount of raw materials, man hours and tools will not increase output if they lack protection. An assessment into productivity of each worker per hour should be carried out to determine their levels of output. In addition, after the assessment and getting the data required expertise will play a major role in determining the decisions to be made basing their present decisions on the past decisions. This will include a workforce from other fields for instance an electrician or an architect. The expertise will also provide the needed application and feedback thus an assurance of consistency (Hubbard, 2009).

Risk management in businesses is very essential. It is more so very important to implement effective and strategic measures in order to successfully achieve the desired objectives. The aim of risk management is to identify any mishaps and evaluating them to come up with a solution. In addition it will focus on implementing strategies on how to go about those risks as well as protecting the business from losses. Failure to do this also leads to disciplinary action to individuals and firms. There are set rules to censure fines or banning these firms from delivering financial services for instance the Financial Services Authority

Rules (Cox, 2007).


Procedures for implementing TQM

Total Quality Management (TQM) is the management philosophy that includes a constant improvement approach to conduct business using a new model for management. This philosophy has its origin from the constant improvement philosophy whose focus was on quality which is the main element of business. TQM emphasizes on the product and service quality. It as well embraces an extensive range of activities involved in management for instance ways in which to manage people plus organizations focusing not only on measurements but also on the whole process (PHCCEducationalFoundation, 1996).

The procedures involved in implementing TQM are based on the different groups of individuals that make up an organization. These are customers, employees and the business leaders. The first step is setting the required stages for successful implementation of TQM by using measurements en route for determining the state of goals in the enterprise. Besides, expertise in the application of tools for analysis, and the involvement of the employees, customers, vendors and volunteers are significant sources of innovations and improvement ideas that are of quality. Once the goals have been set it is the duty of the business leader to ensure that they have been met (Patricia, 2010).

It is important to ensure that improvement on quality is not stagnant and the processes involved in generating products along with services are continuously analyzed. An entire constant management is not attainable without visible, active and consistent leadership by the executive leaders in all ranks. Failure to improve on the quality of an enterprise, a business or an organization will see the loss of customers and stakeholders to someone else willing to do so (PHCCEducationalFoundation, 1996).

Effective leadership entails good communication of the decisions made on the implementing of the new mode of management to the employees and other bodies concerned. If there is communication breakdown in most cases the change is likely to fail. Implementation requires total cooperation by the staff. The business leader determines the tasks to be undertaken by every member and resources are assigned for action to take place. In case there is difficulty in reaching a conclusive decision the leader can divide the team into equal sizes and assign them duties of coming up with proposals for solutions with their key assumptions and recommendations (Brummer, Lindstedt, & Marttunen, 2010).

In addition, quality is only achieved once there is a guarantee of high priority continuous improvement (CI) as well as comprehensible need by the management. Continuous improvement aims at reducing waste, costs in addition to increasing productivity. The initial phase is uncomplicated but fundamental. For instance, at construction sites work is sliced into a chain of stages or phases. These stages often start with groundbreaking and finalize with completion. During each phase a team is assigned work at the jobsite and once it is done another crew or contractor is handed the work (PHCCEducationalFoundation, 1996).

Establishing responsibility by assigning duties to every individual or team ensures that tasks are accomplished. This clearly demonstrates that a product or the owner and customer have been defined thus the spirit of continuous improvement. In addition it is crucial to supply standard first-class products to customers or owners of the business. Besides ensuring that the products supplied are of the best quality the management should not merely rely on quality but more so evaluate the root of any problems or errors that may occur (PHCCEducationalFoundation, 1996).

Finding the root problem and correcting it is done through setting the datum and measuring it against the product or work accomplished by every individual. This promotes a collaborative approach by everyone towards working together in accomplishing tasks in the business enterprise. However, before embarking on any step it is always advisable to pre-plan. This ensures budgetary control and identification of personnel that is capable to run the process of TQM. It is also easier to identify risks that could be triggered hence have a plan to control these risks thus saving time plus money (PHCCEducationalFoundation, 1996).

Many organizations make a mistake of attempting to hastily implement improvement processes by fixing everything at once hence failing. According to Carter, 20% of business processes lead to a waste of 80% while 4% of them contribute to more than half (50%) of the problems encountered in businesses. He argues that business leaders should not strive to advance everything whereas the time spent to solve a problem by 5-9 employees is approximately 80 hours (Carter, 2006).

Carter adds that most teams lack proficiency in the application of the improvement tools as well as in identifying problems. They focus more on the trivial many problems rather than few problems that are vital and significant for investment. These teams will on one hand focus on problems that are hard to solve using TQM tools and on the other hand pain problem of one team to another. In such cases, a lot of time will be spent and the teams will most probably get exhausted and finally give up. Otherwise, breakthrough improvement should be the way to follow for it saves time as well as money. This involves a reduction of cycle and idle time for product creation and service delivery, reduction of faults on product service and delivery and reducing the cost on products by cutting down on waste as well as amendments on the product in the course of the processes (Carter, 2006).

In Boston a leading CPA firm realized a drop in their computer field and decided to turn to TQM. They took several steps to implement the program starting with an introduction of the concepts to its members via a seminar. When they established that all the members were devoted to it, the firm hired a consultant to conduct the training with a careful choice of the training option that was mainly cost-effective. The firm designated an internal TQM monitor but as the services progressed they hired a permanent director for quality services (Levine, 1993).

Barriers in implementing TQM

            Identifying problems and analyzing them poses difficulties to some companies due to a general impression that these problems were bound to occur thus no need to find out the underlying cause. Experts of TQM give remedy for success in management through the application of quality improvement methods and though these steps appear obvious, in reality they are difficult to effect and consume a lot of time. Nevertheless, it is mandatory to exercise the TQM philosophy all through an entire organization for it needs key changes in the operation of companies (Rahim, 1994).

Poor planning causes a rise in the intensity of chronic waste. Most companies are either unwilling or not in a position to draw up effective plans needed to improve quality. It is more so commonly believed that planning is too detailed and theoretical thus a time waster for the real deal or action. Others perform detailed planning before implementation but fail to study or identify ahead of time the stages needed for the processes (Rahim, 1994).

The management may fail to be fully committed towards the implementation process. Business leaders are the pace setters and once they lack devotion and waiver the whole team is likely to divert its attention from the process of continuous improvement. In most cases top management is complacent unless there is an air of competition and are then forced to act. In other instances top managers are not trained and lack the experience needed for quality improvement and can therefore fail to recognize the impact of TQM on profitability as well as on customer satisfaction (Rahim, 1994).

Resistance of the workforce due to misconception or lack of training to embrace the new technology causes the TQM course to lose its credibility. They fail to be acquainted with the real benefits coupled with TQM and instead perceive it as a productivity program set to reduce costs. In addition the resistance could be as a result of poor interrelations between the management along with non-management staff. This also affects teamwork which is the sole ingredient for TQM process to take effect. In addition, teams may lack authority and direction due to poor or no communication hence causing a status of confusion (Rahim, 1994).



Brummer, V., Lindstedt, M., & Marttunen, M. (2010, August 20). Decision making, systems thinking and decision support. Retrieved July 13, 2011, from

Carter, W. L. (2006). The Biggest Mistake Companies Make When Implementing TQM/Process Improvements. Retrieved July 13, 2011, from

Cox, D. W. (2007). Frontiers of risk management. United Kingdom: Euromoney Books.

CranfieldUniversity. (n.d). Managing risk. Retrieved June 17, 2011, from

Flanagan, J. (2010). White Paper: The case for an enterprise-wide approach to risk management. London: Turner & Townsend plc.

Hart, K. (2011). Senate energy committee warned of backup power issues at US nuclear plants. Charlottesville: SNL Financial LC.

Hubbard, W. D. (2009). The failure of risk management. New York: John Wiley and Sons.

Levine, C. (1993). How TQM worked for one firm. Business And Economics–Accounting , 176 (3), 73.

Patricia. (2010, January 7). 12 Steps to Implementing a Quality Management System. Retrieved July 13, 2011, from

PHCCEducationalFoundation. (1996). Total Quality Management:A Continuous Improvement Process. Retrieved July 12, 2011, from

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2009). Business. Florence: Cengage Learning.

Rahim, M. (1994, March 1). Common barriers to implementation and development of a TQM program. Retrieved July 13, 2011, from

Wrona, V. (2011). Your Risk Management Process: A Practical and Effective Approach. Retrieved July 12, 2011, from Exploring trends and developments in project management today.:


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