Titanic – Risk Management

Group 2

Project Objectives: Luxurious First Class Liner Largest ship ever built Integrated Mail system Break-even within 2 years £1.5 million Budget

Deliverables & Milestone 6 months for design 3 years for Construction

Matrix of Priority

Time Performance Cost

Constrain

Enhance

Accept

Technical Requirements: Decks : 9 in total. Width : 92.5 feet. Height : 175 feet from

keel to top of funnels. Gross tonnage : 46.328

tons. Boilers : 29 Watertight

compartments : 16, all the way to F-deck.

Passengers : capacity of more than 3500 people

Engines : 2x 4 cylindered, 30.000 hp, 1 Parsons turbine, 16.000 hp.

Propellers : 3. Top speed : 23 knots. Shipyard: Brand New

Shipyard in Belfast

Limits & Exclusion: Limited labour

Limited Riveters Limited Resources Limited time

due to 3 ships built at the same time

RISK BREAK-DOWN STRUCTURE

TITANIC PROJECT

Organisational Voyage

Funding

LeadershipRessources

Marketing

Climate

Emergency procedure

Construction

Project Management

Materials

Labour

Time

Cost Leadership

Communication

Planning

Budgeting & Estimations

Communication

Lifeboats

Design

CONSTRUCTION Materials – Low Quality Labour – Insufficient & Unqualified Time – Delay Cost – Over Budget

VOYAGE Climate – Bad Weather, Icebergs Communication – Miscommunication Emergency Procedure – No Contingency Plan Lifeboat – Not Enough

RISK ASSESSMENT FORM

RISK RESPONSE DEVELOPMENT

RISK SEVERITY MATRIXLI

KEH

OO

D

IMPACT

Risk Response Control ‘Literature often refers to unexpected events

as low probability, high impact situations. Yet, this does not necessarily mean that the event is purely unforeseeable or unknown’ (Geraldi, Kelley, and Kutsch,2010).

Project Managers and team members need to be vigilant in monitoring potential risks and identify new land mines that could derail a project (Larson and Gray, 2011).

Risk Response ControlLand Mines of the Titanic’s Maiden Voyage Poor Design and Construction Unique weather conditions Evacuation Procedures & Lifeboats Communication Ineffectiveness

Evacuation Procedures & Lifeboats

14 Standard Wooden lifeboats on the Titanic 40 People per lifeboat

Two emergency cutters 40 People per cutter

Four Englehardt Collapsable Lifeboats 47 Person per lifeboat

Titanic had a capacity capability of 3,547 Total Lifeboat Capacity 2,095

Communication Ineffectiveness

Senior Wireless OperatorJohn Jack Phillips

Junior Wireless OperatorHarold Bride

Communication Timeline 14th April 1912 5am Radio Fixed and contact from Athina 9:30pm Warning from Masba 10:55pm Warning from Californian Despite being knowledgeable about the risks in a

project, they elect to shelve some under the rationale, ‘it will not happen to me’.

Conclusion Was the Project a Failure?

A ship was built On time

Underestimate the risks: Safety Control Communication

References Geraldi, J. G,Kelley, L.L and Kutsch, E. (2010) The Titanic sunk, so what? Project

manager response to unexpected events, International Journal of Project Management, Issue 28, pp.547-558.

Larson, E.W, and Gray, F.C. (2011) Project Management The Managerial Process, 5th International Edition, McGraw Hill, New York

Brown, P.L. (2011) Titanic: Sinking the Myths, BBC History [Online]. Available at: http://www.bbc.co.uk/history/british/britain_wwone/titanic_01.shtml#two (last accessed 2nd November, 2011).

Johnson, D.A. (1998) The Radio Legacy of the RMS Titanic, [Online]. Available at: http://www.avsia.com/djohnson/titanic.html (last accessed 30th October, 2011)

Holland, M.K, (2005) Titanic Lessons for IT projects, 1st Edition, Multi-Media Publications, Lakefield, Ontario.

Holland, M.K. (2011) Avoiding Project Disasters: Titanic Lessons for Modern Projects. [PowerPoint Presentation Online]. Presented at APM London and South East branches. Available at: www.lessons-from-history.com (last accessed 1st November, 2011).

References Kinghorn, J. (2007) The IMM. The Atlantic Transport Line 1881-1934 [Online].

Available at: www.atlantictansportline.us/content/immc.htm (last accessed 29th October, 2011).

Holland, M.K. (2011) Avoiding Project Disasters: Titanic Lessons for Modern Projects. [PowerPoint Presentation Online]. Presented at APM London and South East branches. Available at: www.lessons-from-history.com (last accessed 1st November, 2011).

Kinghorn, J. (2007) The IMM. The Atlantic Transport Line 1881-1934 [Online]. Available at: Miller, S. A. (2011) Project Management Of The RMS Titanic And The Olympic Ships. [online] Available at http://www.sheepguardingllama.com/2008/02/project-management-of-the-rms-titanic-and-the-olympic-ships/ (Accessed 2 November 2011).

Titanic Lifeboats, [Online]. Available at: http://www.titanic-titanic.com/lifeboats.shtml (last accessed 2nd November, 2011).