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Integrating ISO 31000:2018 Risk Management Throughout the Organization

Integrating ISO 31000:2018 Risk Management Throughout the Organization

Guest Post by Robert Pojasek (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In 2012, ISO’s ‘Joint Technical Coordinating Group’ (JTCG) completed work to provide a high-level structure, text, and common terms and definitions for all future and revised management system standards. All Technical Committees developing management system standards were required to follow Annex SL found in the ISO/IEC Directives, Part 1, Annex SL[i].   

As we approach 2019, it is abundantly clear that the high-level structure mandate has been followed by the Technical Committees with mixed results. All the new and revised management systems used the 10-clause structure and all of them include the same definition of risk and risk management.  However, the way risk management was used in the different management system standards varied considerably. What can an organization learn from this exercise? [Read more…]

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Fundamentals of Applying a Structured Approach

Fundamentals of Applying a Structured Approach

In reviewing several previous articles in this article series, it’s apparent there is much in common with product development, project management and process improvement.

Let’s look at a brief list that considers a structured approach vs. unstructured

While this list is pretty “high-level” it reveals the importance of project leadership, governance and management.  A structured approach (for example a phase-gate structure, DMAIC or agile/scrum) enables management and planning, which enables governance and governance enables leadership.

Some structured approaches may be more suitable than others depending on the type of project.  However, any structure (with leadership, governance and management in mind) is probably better than none.

 

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Robust Design with Monte Carlo Analysis

Robust Design with Monte Carlo Analysis

When an objective requires a tool to be used, that is idea. Certain projects can greatly benefit from use of Monte Carlo analysis. This in depth knowledge can create solutions where it is not readily apparent. If you are considering going this far, we can help you decide if the value is worthwhile. And we can help you apply it in a simple yet powerful way. [Read more…]

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Taking a Lean Approach to PM Optimization

How You Have Your PMs Addressing The Right Issues, Make The Effective

In the previous articles, we looked at what type of analysis to use to evaluate the effectiveness of the PMs and if they are cost effective. Once the PMs have been optimized to ensure they are addressing the right failure modes, then they need to be made efficient. Below is an excerpt from a recent article in SMRP’s Solutions Magazine on how to make PM efficient using the lean tools.

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Less is More

Less is More

Less is More – Efficiency in Project Management Plans

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

We’ve all seen it…a filing cabinet full of project management plans and procedures from the last job that people have tried to adapt and modify to meet the current project. Amazing that such a plethora can give the impression of effectiveness and, to a skeptic, surprising if they are relevant, read or assimilated. [Read more…]

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5 Steps to Create a Measles Chart

5 Steps to Create a Measles Chart

Measles Chart Basics

The clever Dr. John Snow mapped cholera cases during the epidemic of 1854 on a street map of the area. This type of mapping now called a measles chart, or defect location check sheet, or defect map, is useful when exploring the effect of location data.

The name measles chart may have come from the habit of using an image of drawing of a product and adding small red dots to signify defect locations.

[Read more…]

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Is Your PM Worth Doing? Use a PM Cost Benefit Analysis to Find Out

How To Determine If The PM Activity Being Performed Is Worth Doing

Would you spend $100 every week to prevent a possible issue that will result in a loss of $10?  Probably not, so why is that we do that with our maintenance programs every single day?  Often, PM and PdM activities are put into place without any thought to the economic impact of the activity.  While in theory the PM or PdM activities will prevent or mitigate the consequences of the failure, is implementing one of these activities the right thing to do?

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Understanding the ‘Risk Management’ Process

Understanding the ‘Risk Management’ Process

Guest Post by Robert Pojasek (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

There are two widely-used risk management standards:

  • ISO 31000:2018
  • COSO ERM 2017

In my previous blog[i], I presented details on how these risk management standards address the development of a risk-aware culture – a necessary foundation for risk management success. As promised, this blog will address the risk management “process.” This is how the organization addresses specific risks. [Read more…]

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Multi-voting: When More than One Vote is Better

Multi-voting: When More than One Vote is Better

In brainstorming, you may face a large number of unique ideas even after affinity diagraming. Multi-voting is a great tool to gain consensus on the top priority ideas with your team.

For less than 10 or so items we could use a rank ordering method, yet that method becomes cumbersome when there are a lot of items to prioritize. There are a couple of ways to conduct multiple-voting. Mastering this technique will help your team quickly focus on what is truly important. [Read more…]

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Project Ain’t Broke: Don’t Fix It: But Are You Maintaining It?

Project Ain’t Broke: Don’t Fix It: But Are You Maintaining It?

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Projects go wrong and in our binary world projects either succeed or fail.  There is a plethora of articles, opinions and reasons for such success and failure but why, and how, is this possible when we have more and more ‘qualified’ project managers?

When a project is still moving or hasn’t fallen apart it may be categorised as “it ain’t broke” and optimistic project managers may conclude “no need to fix it“.  However, we all know that preventive maintenance will allow for successful operation and minimise breakdowns and avoid trouble, “a stitch in time saves nine“. [Read more…]