Step 1: Collect and Review Primary Information
February 12, 2025
What is Hypothesis Testing ? Hypothesis testing is one of the statistical method used to confirm the effect that critical few inputs have on the outputs. Hypothesis testing must be used when the inputs are measured discretely. The outputs may be discrete or continuous. However the inputs must be discrete, if the inputs are continuous […]
What Will the New Normal look Like for Businesses and is it All Chaos and Confusion? As the shuttered economies worldwide prepare to emerge from the lockdowns, the New Normal or the State of Affairs is coming into sharper focus. With uncertainty looming large as most countries are still reporting new cases and there is […]
Automation of business processes has become the single objective of every multinational corporation. Automation saves a lot of money in the long run. It also streamlines the process and makes it more robust. In the recent past, two technologies have helped companies automate their accounts payable departments. These two technologies are optical character recognition and […]
Introduction The waiting line or queue management is a critical part of service industry. It deals with issue of treatment of customers in sense reduce wait time and improvement of service. Queue management deals with cases where the customer arrival is random; therefore, service rendered to them is also random. A service organization can reduce […]
The crash in the value of the Turkish lira is not really a surprise. President Erdogan has been following loose monetary policies despite receiving warnings from several monetary experts. In a way, this economic turmoil has been self-inflicted. Turkey has increased its money supply to about 300% in the past seven years! The rationale behind […]
The Project Risk Assessment Matrix is one of the required documents to complete the Define phase of the DMAIC methodology.
The procedure has been designed in such a way to ensure that people implementing the project have given a thought to what can possibly go wrong and begin thinking of mitigation plans.
Here is a step by step review of how to prepare the Project Risk Assessment Matrix:
The first step in the process begins with the listing down of all the risks that the participants can think of. This is usually done in a brainstorming session.
Participants are typically given a list which contains common categories of risks. The participants are then advised to think of whatever risk they can foresee in the project category by category. This is done over and over again to ensure that the list is exhaustive.
Once the list of the possible risks that a project may face is available, the next step is to rate the risks.
The risks are rated on two parameters viz. probability of occurring and impact of occurring.
In both cases the score is given out of 5, with 5 being certainty that the risk will occur or have a very high impact if they do occur. The scores are then multiplied and then arranged in a descending order.
All risks are not equally important from the six sigma project point of view. Hence they need to be classified and efforts need to be focussed only on the ones that are priority. There is usually a standard matrix that classifies the risks into the following 4 categories based on the parameters:
There are three basic strategies which help mitigate risks successfully. They are:
Your email address will not be published. Required fields are marked *