What is the Most Popular Technique for What-if Scenario Analysis Analysis?
The schedule network analysis can be started once the project schedule has been developed. Every PMP Certification course explains. There are many ways to analyze the schedule network, including Critical Path Method and Schedule Compression. Another technique for scheduling network analysis is the What-if scenario analysis. We will provide all the details on what-if scenario analysis in this article.
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We will be discussing the most popular what-if analysis technique and the risks associated with it.
What is the objective of What-if Scenario Analy PMP?
The What-if scenario is actually a study of “what if X changed, would it reduce the schedule?” There are many factors and parameters that can impact the project schedule. Some of these factors include risks, experience of the activity assignee, and the number of resources. These factors and parameters are evaluated in what-if scenario analysis to determine if a shorter schedule is possible.
Projects have different assumptions for each activity. This also affects the duration of activities. To check the schedule results, assumptions are made during what-if scenario analysis.
What is the Most Popular Technique?
According to the PMP project management training, Monte-Carlo analysis is one of the most popular what-if scenarios analysis techniques.
Monte-Carlo analysis is a computer program that simulates the outcome of a project using three-point estimates. It is impossible to do this manually because there are many factors and parameters that could affect a project. The parameters and factors are entered into a computer program and alternative outcomes are generated through the program.
Simulation tells you 4 things after inputs have been made to the Monte-Carlo analysis software.
The likelihood of the project being completed on a particular day. The simulation will show you that the probability of the project being completed on a specific date is 80%, 90%, and 95% respectively. The more likely the project will be completed on the given date, the higher the probability.
The likelihood of the project being completed at a given cost. The simulation will show you, for example, that the probability of the project being completed with a budget of 1 million dollars is 80% and that it can be completed with a budget of 1.2 million dollars is 92%, etc.
This what-if scenario analysis technique also calculates the probability that any activity is on the critical path.
It also provides information about the overall project risk.
Monte-Carlo analysis merges multiple paths into one activity. This adds extra risk to the project. This is due to the nature of the analysis method.
We have already seen the what-if scenario analysis network analysis technique, and we have also gone through Monte-Carlo analysis, which is the most well-known technique.
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