Conference Expo: Why Conduct Integrated Cost & Schedule Risk Analysis?

• Presentation Focus: Why Conduct Integrated Cost & Schedule Risk Analysis?
• RP 57R-09 Overview: Details steps for conducting an integrated cost and schedule risk analysis.

• Challenges of developing cost-loaded schedules.
• Benefits of the combined model approach.
• Results obtained from using this approach.

Cost-Loaded Schedule Challenges:

• Time-consuming for those used to resource-loaded schedules.
• Requires adding activities and constraints for time-independent costs.
• Compromises schedule integrity.
• Changes necessitate extensive rework and reconciliation.

Proposed Practical Approach:

• Develop a risk model with linked cost and schedule modules.
• Link time-dependent costs (e.g., labor, rented equipment) to driving activities.
• Model time-independent costs (e.g., materials, placed equipment) separately.

Advantages of Combined Model Approach:

• Concurrent modeling of cost and schedule.
• Allows analysis of Joint Confidence Level (JCL) without a cost-loaded schedule.
• Speeds up model development and analysis.
• Enables independent or joint completion and analysis of cost and schedule models.
• Facilitates calculation of schedule impact on cost.

🤝 This session occured at the JUNE 2024 AACE Conference Expon in the USA, featuring Ian Nicholson from Emerald Associates.