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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.

risk-assessments

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

  1. drill down to activity level histograms that calculate probabilities for early-finish
  2. determine the effects of accelerating specific elements of the work such that no work is unnecessarily accelerated
  3. calculate man-power required fro remaining or acclerated effort
  4. 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

  1. the disconnect between the design and build communities discourages collaboration.
  2. 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
  • Risk-registers
  • 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.