Kudler Fine Foods - Fault Tree and Event Tree Techniques

Kudler Fine Foods

Tollie N. Thompson Jr.

PM584

May 17, 2011

Elaine Nissley

Kudler Fine Foods

Kudler Fine Foods, in 1998 by Kathy Kudler, who fulfilling her vision of owning a gourmet food store. The vision of the company is to maximize its profitability by providing the finest choice of the best quality food products, and raising its market share in asserts its growth. Kathy has a passion for gourmet foods but noticed that her neighborhood did not have a wide selection of gourmet products to choose from, so she envisioned that a one stop gourmet shopping place with a variety and reasonable prices would be a success. Kathy has two established gourmet stores, and recently opened a third. The paper subject will describe the methods used to identify risks, elements used to identify risks such as fault tree and event tree techniques, risks Kudler Fine Foods are currently experiencing, and means to document the risks.

Risk Identification

The objective of risk identification is to identify, categorize, and document risks that affect a project. Several means of identifying risk in a project are brainstorming, using the work breakdown structure (WBS), and examination of the project scope. Brainstorming is the preferred method of risk identification, and involves the project manager and project team members developing a wide range of risks. Brainstorming is a team-based approach used to cover all potential risks, without ranking the risks in order of severity. The team uses data from previous projects, personal experiences, stakeholder concerns, and empirical data and analysis. The project can use the Microsoft Project software to aid in planning the project, and it includes a WBS as a benefit in managing the project risk. Events in the beginning, ending, and any point within the project that could cause a bottle-neck are a potential risk. Included in the project scope is a list of risks that are included by the project manager and sponsor inherent to the project and from his or her own experiences.

Fault Tree and Event Tree Techniques

Fault tree is a logical diagram showing the relationship between system failures and failures of components of the system. The fault trees are based on deductive logic, which involves defining an undesirable event first, and the casual relationships of failures that led to that event. Fault tree analysis provides a structure for estimating the likelihood of the top event by tracing back the causes until it has been identified in simple events. Event trees are used to show the pattern of events and consequences that follow, after the initiation of an event. Event tree analysis consists of an analysis of possible causes starting at the system level, and working down through the sub-system level. In the case of Kudler Fine Foods, a strength, weakness, opportunity, and threat (SWOT) analysis was conducted. This technique of risk identification focuses on the strengths and opportunities of the project as well as the threats and weaknesses affecting the project.

Kudler Fine Foods Risks

Kudler Fine Foods wants to continue to grow and expand the business for