Risk-assessments, combined with CPM cost-loaded timelines are the most practical means of project control
RepOne encourages implementation of vigorous risk-assessments of CPM schedules as an exigent level of risk-optimization strategy to protect your investments. By itself, a CPM duration driven schedule does little more than guess at start and finish dates, without any consideration other than total-float. A resource-driven CPM schedule; with loaded-costs and production rates will trump any duration driven schedule, but still falls far short of a risk assessment.
We understand that resource-driven schedules are the exception. This is unfortunate for those who a higher level of risk management, or seek to benchmark and conduct productivity assessments. Nonetheless; a non-resource or cost-loaded CPM schedule can be risk-optimized in much the same way, only lacking variables from productivity rates and costs.
Many schedulers use work-arounds for their cost-loaded schedules that are not based on productivity rates. Even these schedules can benefit from risk-profiling. With the knowledge of a risk-assessment stakeholders can
- drill down to activity level histograms that calculate probabilities for early-finish
- determine the effects of accelerating specific elements of the work such that no work is unnecessarily accelerated
- calculate man-power required fro remaining or acclerated effort
- calculate the cost of acclerating to multiple early-finish scenarios
Risk-optimized capital projects are those that maintain robust programs for integration into project timelines and implementation into action. The advantage risk-driven schedules have over stand alone CPM include probability analyisis that CPM is not set up to do. The biggest reason why risk-assessments are not used more frequently is because
- the disconnect between the design and build communities discourages collaboration.
- people simply don’t know what risk-assessments are, or how they are used
A robust regular risk-assessment program for your portfolio and enterprise includes
- Regular risk-workshops
- Histograms and simulations
- Monte Carlo simulated histograms and risk-registers built from risk-workshops between RepOne
RepOne offers risk-assessments for capital construction projects from your CPM schedule, or any RepOne schedule.