Cost and schedule risk analysis is fundamental to project success. Whether you’re undertaking a large-scale capital project that takes months to complete or something less resource intensive, understanding the risks that threaten to derail it is crucial.
The Sydney opera house is an incredible feat of architecture. Well ahead of its time when completed and now recognized throughout the world, it’s a building that changed the image of an entire country. Unfortunately, at approximately ten years late (and AUS $95 million over budget), it’s also famous, in scheduling terms, for being something of a disaster.
Managing a large aerospace project is no mean feat. With so many aspects to juggle and keep control of, investing in a specialist software solution will undeniably make your life easier and help ensure that your project is delivered on time and on budget – no matter what comes your way.
Practised by thousands of individuals across the world, project scheduling is perhaps the most common discipline of project planning and control. Every project in every industry is managed according to a schedule, regardless of size or scale, and the use of scheduling software has become a staple ingredient of project planning. With such significance placed upon scheduling activities, you'd be forgiven for thinking that projects are well-planned and successfully-executed, but research tells us that projects often, even usually, overrun their schedules by some margin.
Cost and schedule risk analysis assesses the likely effect of uncertainty, as well as individual risks on overall project costs and time-to-completion. Essential to accurate project control and forecasting, it can also reveal how much contingency is needed to stay within budget and meet deadlines.
Over 65% of mega projects fail, and scheduling errors are a key factor. We recognise that, ultimately, mega construction projects are an incredibly complex and difficult activity, with no quick or simple fixes. However, we are in a position to identify common mega project scheduling mistakes and potential remedies. For this blog post, we’ve considered three things:
We are pleased to introduce Safran Risk 7.2, which introduces a range of new features and changes to our powerful project risk analysis software.
In our latest download, we collaborate with Dr. David Hulett to define cost and schedule risk analysis and identify the common causes of cost and schedule overrun. For the last 25 years, Dr. Hulett has focused on integrated cost-schedule risk analysis and is known as a leader in its methods, concepts and training. The ebook discusses how conducting an in-depth analysis can mitigate risks and demonstrates the benefits in worked examples.
A project schedule is a prediction of future outcomes or states, for example: "by May 18th we will be 24% complete”. It’s a forecast of delivery date, project completion date, engineering completed, start of fabrication, start of construction, delivery of equipment and materials, planned and future performance, resource utilisation, resource availability and more.
Our latest download looks at the ways in which uncertainty can be managed in project schedules. In this white paper, we discuss the problems that arise from traditional methods such as the Critical Path and how Schedule Risk Analysis can mitigate them.