Tag Archives: quantitative analysis
Risk-based Management in the World of Threats and Opportunities: A Project Controls Perspective Continue reading
There are 150,000 collisions, 350 traffic deaths, and 20,000 injuries every year in Alberta, Canada (AMA, 2011).
You might be living somewhere in another place or country and you have different numbers. Your statistics might be worse or better.
The thing is, behind this statistics are faces of families and friends, the communities, and workplaces. They are all negatively affected and there is an urgent need to understand and do something.
If one thinks about it long enough, he will realize that the solution to this harmful and deadly consequence is risk-based management. Continue reading
A person’s perspective depends on which side of the fence they are sitting on. With that in mind, a risk can be a threat or an opportunity. Your business sees a threat and your competitor sees an opportunity. It is as simple as that.
Each individual player within the risk universe will see things a bit differently compared to the next person, with some people interpreting things in exactly the opposite fashion. In each case, the person can see only one attribute.
The simplistic objective point of view is that risk is either a threat or an opportunity, depending on the observer’s orientation to the goal. Continue reading
One has to remember that a schedule is a time estimate. It is not the exact actual time value at the time. Experienced professionals try to provide a plausible estimate. Nobody really knows what would be the definitive value.
ML date (or most likely duration) is not the same as expected date (or expected duration). It is but a component of the expected value. With the three point estimates (Triangular or Beta) available, one can calculate the expected duration of an activity, a group of activity, and the whole project’s duration.
It is one of the questions asked more often in risk-based planning and scheduling. Project directors, managers, planners, and schedulers have to know what this term means.
Each time a scheduler tries to explain the concept, he easily gets lost in his own circumlocution. It might be his indirectness compounded by the fact that this particular term shares common but blurred boundaries with some other project and risk management terms.
In view of such difficulties, let us put their words and thoughts on paper so that project practitioners can better understand. Continue reading
Doing nothing is also a decision. It is a decision that sits on your head. “Status quo” is also a decision. No escaping around it! Continue reading
1. The baseline schedule shall represent the most likely schedule
The baseline schedule is the most-likely schedule. It does not have built-in float, buffer duration, or/and dummy activities. It is neither optimistic nor pessimistic (tight or lax).
It has full complement of qualified resources, with no embedded risk or any built-in schedule contingency.
2. An official project BL Schedule shall be a result of Interactive Planning
All baselines set from Gate 2 onward shall be the result of an interactive planning session.
3. Schedule scope shall equal plan scope
The plan scope shall be the same scope reflected in the baseline schedule that follows. Planned scope and the scheduled scope must be in alignment. A schedule cannot have more than the scope in the plan. Otherwise, the project faces a problem (Frago, Schedule Baseline Dilemma Part 1, 2015).
Read the whole article for complete list! Continue reading
Identifying and validating project constraints affecting the schedule is an important part of monitoring and control. Constraints for the most part are project assumptions.
Treat them with caution and respect.
“Once started, the project is actually operating under three big traditional major constraints* of cost, time, and scope (*note that PMBOK had recently came up with six constraints).
Constraints imposed on activities are multiple limitations that will most likely further make it challenging and difficult to manage time.”
The critical path ultimately dictates the duration of the project. For this reason, a planning and scheduling person has to understand how constraints affect the schedule.
Faced with a question on how one would analyze a problematic situation on the spot without going to any existing analytic templates and guidelines, the PIRCAD approach was born. The acronym is odd sounding but easy to remember. It simply … Continue reading
By this time, you should have read the first part of “Risk as a Funtion of Time.” Let us get back to the “time component” of risk and answer a simple question made by a Transport Manager operating the Red … Continue reading