Monte Carlo Schedule Risk Analysis. Part 3: Why go through Monte Carlo schedule risk analysis
This video shows how to use RiskyProject project risk management and risk analysis software to create realistic risk adjusted project schedules.
We often asked the question, why go through Monte Carlo schedule risk analysis. What can it reveal to a project manager that critical path methodology (CPM) does not. In real life projects can have multiple possible critical paths, and this most important when you have several parallel activities that link to a single successor. For example, you may have many components that have to be developed before you can assemble and test a prototype. In your original schedule, you have identified the activity with the longest activity as being on the critical path. But in reality, depending upon risks and uncertainties associated with the activities, any of them have a chance of taking longer than expected and becoming critical. In this video, we use a simple example and show how in a probabilistic analysis using Monte Carlo that because of the this phenomena, your original estimate to complete all of these activities is not realistic and should be adjusted to account for this.
For more information how to perform schedule risk analysis using RiskyProject software please visit Intaver Institute web site: http://www.intaver.com.
About Intaver Institute.
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
We often asked the question, why go through Monte Carlo schedule risk analysis. What can it reveal to a project manager that critical path methodology (CPM) does not. In real life projects can have multiple possible critical paths, and this most important when you have several parallel activities that link to a single successor. For example, you may have many components that have to be developed before you can assemble and test a prototype. In your original schedule, you have identified the activity with the longest activity as being on the critical path. But in reality, depending upon risks and uncertainties associated with the activities, any of them have a chance of taking longer than expected and becoming critical. In this video, we use a simple example and show how in a probabilistic analysis using Monte Carlo that because of the this phenomena, your original estimate to complete all of these activities is not realistic and should be adjusted to account for this.
For more information how to perform schedule risk analysis using RiskyProject software please visit Intaver Institute web site: http://www.intaver.com.
About Intaver Institute.
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
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