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Pareto

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Pareto
In general terms, Pareto coined the 80/20 rule whereby 20% of the issues cause 80% of your problems. So the idea is to identify and focus your resources on the issues which are causing most of your problems. The Pareto bar chart will visually display from left to right a rank-order of which factors are most critical to be addressed. (Heldman, 2013, p.502) More specifically, a Pareto diagram displays “the magnitude of the change on the vertical axis and the root causes along the horizontal axis” (Kendrick, 2009, p.26). In our text, examples are provided in which a Pareto chart represents magnitude in terms of “weeks impacted” along the vertical axis, and its relationship to scope, resource, and schedule. Another Pareto diagram is narrowed to display how each specific subcategory relates to the magnitude of change. (Kendrick, 2009, p.35-36)
A “probability and impact matrix” combines the likelihood of occurrence with the impact that the event would have in order to determine the need for, and at what level of detail, a risk response plan is required. A numbering system such as 1-5 could be used or something more simple such as low-medium-high. How a “probability and impact matrix” is defined will vary by organization and should be developed during the planning stage. (Heldman, 2013, p.254)
As is evident, tables and charts can be used to rank risk by schedule, scope, and budget. These visual representations can be used to quickly identify areas of concern. One of my teachers from a previous class at UMUC pointed out that stakeholders, and in particular non-technical or upper management personnel, want information presented in a clear, easy to understand, format. They shouldn’t have to decipher information being presented to them. This is an example of why the Gantt charts used with MS Project are so popular.
References
Heldman, K. (2013). PMP…...

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