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An Innovative DSS for the Contingency Reserve Estimation in Stochastic Regime

  • Fahimeh Allahi
  • Lucia CassettariEmail author
  • Marco Mosca
  • Roberto Mosca
Conference paper

Abstract

The problem of sizing and managing contingency reserve is always critical in project management, because of its impact on the project margin. A correct assessment of the contingency reserve to be allocated is, therefore, a main requirement to lead to success the project manager actions. In this research, the Authors propose an innovative Decision Support System to size, starting from an objective phase of risk assessment, the correct contingency reserve. The proposed solution provides the project manager a clear vision of the residual risk of cost overruns to be managed. The Decision Support System uses Failure Mode Effect Analysis and Monte Carlo Simulation.

Keywords

Contingency cost Decision Support System Monte Carlo simulation Project management Risk analysis Stochastic estimation 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Fahimeh Allahi
    • 1
  • Lucia Cassettari
    • 1
    Email author
  • Marco Mosca
    • 2
  • Roberto Mosca
    • 1
  1. 1.Department of Mechanical Engineering, Energetics, Management and Transports (DIME)University of GenoaGenoaItaly
  2. 2.Polytechnic SchoolUniversity of GenoaGenoaItaly

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