Second Level Review-I

Abstract

In this chapter, the focus shifts to the project tools. Often, the project tools are operationally treated ‘larger than life’ but from a management perspective, they are seen as ‘operational enhancements’. The mantras touch upon how one needs to balance both the perspectives. We then move on to understanding a typical business situation involving an ‘on-time’ and, an ‘on-budget’ project requirement with changing boundary conditions. In doing so, we come across various concepts such as the critical path analysis, crashing strategies, and costing challenges in Schedule Optimization. We introduce the Quick Solutions three-parameter-framework of Consulting Connoisseurs for risk management. The chapter then demonstrates how modeling and simulation could also be used to evaluate risks. In the process, we touch upon how the reworking of budgets needs to be done and how risk management needs to be factored in the corporate context in terms of probability and costs using modeling and simulation. In doing so, we have also delved into probabilistic evaluation in a practical scenario and have cursorily touched upon the PERT methodology as well.