Leverage the results of the assumption and constraint analysis

The Assumption and Constraint Analysis is a crucial component of project management and is particularly important in preparing for the PMI Risk Management Professional (PMI-RMP®) examination. The technique involves scrutinizing all the project variables and determining how they might impact the project and its successful execution. As a part of the Risk Identification process, it can uncover potential risks waiting to surface.

Defining Assumptions and Constraints

Let’s start by defining assumptions and constraints:

• Assumptions: These are factors that, for planning purposes, are considered to be true or certain. They provide a foundation for planning and decision-making. However, it is important to note that assumptions may prove to be incorrect at some point during the project, which could then potentially bring about risks.
• Constraints: These are factors that will limit the team’s options, including limitations on time, budget, resources, technologies, and people involved in the project. When constraints are not adequately controlled, they can also lead to risks.

Analyzing Assumptions and Constraints

Now let’s dive more deeply into how to leverage the results of this analysis:

1. Assumptions Analysis

   First, the project team has to document all assumed facts at the beginning of the project. These can stem from past experiences, similar project outcomes, or industry standards. For instance, an assumption could be that the required team will be available to work on the project, or it could be the cost of certain materials or the project’s expected completion date.

   Then, these assumptions are assessed for their validity. A project manager identifies which assumptions are most uncertain and which would have the greatest impact on the project if they are incorrect. This analysis helps to identify potential risks.

   For example, if your project heavily relies on a particular material, there might be an inherent risk of material shortage or price hikes. Identifying this risk in the assumption analysis will allow you to plan mitigation strategies or prepare contingency plans.

2. Constraint Analysis

   First, the project team identifies the different project constraints. This could include the predefined budget, the predetermined time frame, resources, technical constraints, or even legal or regulatory constraints.

   Then each potential constraint is evaluated to understand how it could be a risk and what impact it could have on the project. Constraints need to be closely monitored throughout the project lifecycle, as they can give rise to risks if they change or if they are underestimated.

   For example, if you operate with a very tight budget, any unexpected cost could potentially escalate into a risk. Similarly, if your project heavily depends on a scarce resource, sudden market fluctuations could impact the availability or cost of those resources, posing a risk.

Leveraging the Results

Once the risks have been identified using the assumption and constraint analysis, you can leverage these results in the Risk Register as part of your project risk management. This will include risk categorization, prioritization, and responses.

Summary of the Process

The table below summarizes this process:

Conclusion

In conclusion, understanding and leveraging the results of the assumption and constraint analysis allows proactive risk management. It allows project managers and teams to create a robust risk management plan, thus improving the chance of successful project completion. In preparation for the PMI-RMP® examination, candidates must be able to understand the importance of assumption and constraint analysis, as well as be able to engage in a thorough and detailed analysis when identifying and managing potential risks.