Project cost overruns and schedule slippage are ubiquitous in our organizations. Survey after survey have revealed that at least one third of projects, irrespective of the industry, do not complete on budget and schedule. The rate of project failure has been universally stubborn over the years, despite the growing maturity of project management as a discipline.
A major reason is that the costs and schedules are underestimated, while the benefits are exaggerated. Increasing uncertainty and risk in today’s environment has made cost and schedule management even more challenging. Project costs and schedules are intricately tied to risks. Ignore risks, and watch your cost soar and schedule slip. This course demonstrates the importance of integrating cost, schedule, and risk for project success. It offers next generation tools that can help you develop more realistic cost and schedule estimates accounting for various types of risks.
The commonly used deterministic models for estimation of cost and schedule do not consider or reveal the breadth of uncertainty. Risk registers and qualitative risk analysis methods are only a first step to account for uncertainty and risks. There is a strong need for more stochastic and sophisticated quantitative methods. Next generation tools and techniques include probability distributions, simulations, tornado diagrams, correlations, decision trees, and optimization methods, among others. First, these tools provide us with meaningful information to obtain more realistic estimates of cost and schedule. Second, they present rational means for establishing contingencies. Third, they offer better insight into how a project may unfold. Fourth, they help us make right project investment decisions in the first place. And finally, they significantly improve the chances of completing projects on time and under budget.