Risk management strategy to enhance the project profit margin : case at Valmet Technologies oy, Project Management unit
Rengasamy, Karthik (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023112832259
https://urn.fi/URN:NBN:fi:amk-2023112832259
Tiivistelmä
We, Valmet Technologies Oy, as an organization having customers and suppliers globally, execute several projects. Every project is unique and has different constraints in terms of delivery terms, time schedule, scope of supply, etc. Project execution plays a vital role in completing the project, as it unites the whole project team to complete the project successfully. It is obvious that during the execution, the project is bound to face several risks and uncertainties, i.e., for example, design errors, manufacturing defects, supply management risks, HSE risks (Health Safety & Environment), schedule risks, resource risks, scope risks, and site risks (Installation and Completion). These risks mainly lead to an impact on the project schedule and budget (i.e., erosion in the project margin). Also, this may affect the organization's reputation on the customer front, lose the goodwill at the customer end, and finally act as a bad reference project. So, the business of the organization stands weeks behind the project because of the unsuccessful project.
The purpose of this research is to conduct an appropriate ‘’Risk Management Strategy’’ to avoid the impact to project profit margin and, in the meantime, enhance the opportunities to enhance the profit. The risk management process includes conducting a risk management plan, - risk identification risk – plan risk response - the implementation of the response plan and monitoring the risks. As we have executed several projects, projects of similar size shall be taken as references, analysed the risks faced, capture the lessons learned, and implement in the ongoing project.
Project A and the team shall be taken as support for the research works through meetings, interviews, analysis, and reviews. Risks and opportunities will be registered in the tool called ‘’Radar’’ and an appropriate strategy will be implemented to enhance the positive impact and reduce the negative impact on the project.
The purpose of this research is to conduct an appropriate ‘’Risk Management Strategy’’ to avoid the impact to project profit margin and, in the meantime, enhance the opportunities to enhance the profit. The risk management process includes conducting a risk management plan, - risk identification risk – plan risk response - the implementation of the response plan and monitoring the risks. As we have executed several projects, projects of similar size shall be taken as references, analysed the risks faced, capture the lessons learned, and implement in the ongoing project.
Project A and the team shall be taken as support for the research works through meetings, interviews, analysis, and reviews. Risks and opportunities will be registered in the tool called ‘’Radar’’ and an appropriate strategy will be implemented to enhance the positive impact and reduce the negative impact on the project.