Tools for quantitative analysis

Submitted by chary.vangeepuram on Thu, 03/14/2013 - 03:07

Hi,

are you using any simulation tools in real-life IT projects to quantify schdule/cost risks? what are your experiences with other industries, if not IT?

Thanks,

Chary

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PM in Practice - Real world issues, Best practices
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admin

Fri, 03/15/2013 - 10:13

Its very difficult to quantify risks. There are some tools available, but they are not practical.

Risk may have impact and you can quantify Impact in terms of USD or $. Then you multiply impact with Probablity to get risk exposure. This way you can say that all the risks in my project add up to X USD.

This is the only way I know which works in IT.

Cost impact can be due to one or more of the following:

  1. Effort overrun
  2. Non human resource cost overrun.
  3. Penalties which may apply due to SLA slippages.
  4. Cost overrun due to additional travel required.
  5. Schedule extension may result in cost overrun, due to resources being needed for additional time.