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    Technical Risk breakdown structure for the project


    You are the asset manager for a Parcel Post company (e.g. Courier-Post, NZ Courier, Fastway Couriers). You are planning on giving more visibility to your customers in terms of where their parcels are. Currently, your barcode scanning system can track the parcel when

    • the parcel is picked up by the courier van,
    • the courier van drops the parcel in a depot
    • the parcel is picked up at the depot by a courier van
    • the courier van drops the parcel at the destination

    The missing information is tracking of the parcels between the depots (ie when the parcel is on the truck). The proposed solution is as follows:

    • As per current systems, the PARCELs are automatically sorted at the depot and placed in CONTAINERs, which are then loaded onto TRUCKs.
    • The CONTAINERS are to be tagged with RFID tags (currently they are just collapsible metal or plastic boxes without any RFID tags).
    • The TRUCKS currently have GPS tracking devices but do not have sensors to identify which CONTAINERS are loaded. So they need to be fitted with such a device.
    • We need a SOFTWARE developed to track which PARCEL is in which CONTAINER, which CONTAINER is in which TRUCK and the GPS location of the TRUCK.
    • At the destination depot, we need to make sure the CONTAINER is disassociated with the TRUCK when it is unloaded.
    • The current online tracking portal, where customers are tracking their parcel is to be modified to read the new tracking information from the new SOFTWARE.
    • Everybody involved needs to be trained appropriately to maintain the system.

    Here are some other facts about the project

    • We have 100 TRUCKS in operation in the country
    • 40 of the TRUCKS are independently owned and operated by individuals and are contracted out to us. They will be responsible for paying for purchasing and maintenance of the devices installed on their TRUCKS.
    • 60 of the TRUCKS are owned by us.
    • We have 10,000 CONTAINERS. They are mostly sitting at depots and loaded and unloaded to and from the TRUCKS by forklift.
    • Forklift drivers treat the containers very poorly, and they are often knocked and need repair due to rusting, ware and tea and collisions.
    • Maintenance is provided by a third party Nationwide.
    • We need to engage with an external party for developing the SOFTWARE. We have not worked with such a company before.
    • We have not been able to find a local supplier of the RFID tags (for CONTAINERS) and sensors within our price range.
    • We have found a supplier in China, who does not have a local representative and have not sold them to a company in NZ before. We have been communicating via email and have got a quote from them.
    • The project is not time-critical and the most important aspect of the project is for the whole system to work reliably and without a glitch.
    • The budget is limited but we have some freedom to ensure the right technology is purchased and implemented.
    • An internal team comprising 1 Project Manager and 2 Business Analysts have been assigned to you (the Asset Manager).
    • The ultimate responsibility of operating and maintaining the implemented system is on you.


    Using the steps outlined in the lectures slides and the prescribed textbook, complete the following tasks (where required make assumptions to fill in the gaps in the project scenario, but state those assumptions clearly in your submission:

    1. Define the project scope (6 marks)
    2. Establish the project priorities (3 marks)
    3. Develop a work breakdown structure for the project (up to 5 Levels of detail) (6 marks)
    4. Develop a risk breakdown structure for the project using the following risk categories (at least 5 risks per category): (6 marks)
      1. Technical
      2. External
      3. Organisational
      4. Project
    5. Evaluate and prioritise the identified risks (6 Marks)
    6. For the Top 3 risks, propose an appropriate risk treatment. (3 marks)

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