Conclusions

1. The traditional network techniques CPM and PERT can be significantly improved by the use of Monte Carlo simulation.

2. Monte Carlo simulation of the entire project should be preferred above Monte Carlo simulation related to just one path - established a priori -through the network of activities.

3. It is useful to pay attention to Secondary and Tertiary Paths which have the least total slack compared to the Primary Path (which has zero slack), in view of the variability in activity durations.

4. The frequency of occurrence of other paths than the Primary Path in the Monte Carlo simulation, reflecting the risk involved, is relevant for the project manager's decision as to how much attention has to be paid to activities on those paths.

5. The outcome of the Monte Carlo simulation of the entire project - the probability distribution of the project duration - constitutes important information for the financing party who has to estimate the risk of financing problems due to late completion of the project.

6. If the probability of completion on time is very low, a limited number of mitigations to reduce the duration of critical activities can be accounted for. This enables to keep the probability of timely completion at an acceptable level during all project stages.

7. Allowing for limited human resources in the project team can reveal at an early stage if the deadline for completion has te be relaxed or, alternatively, more human resources have to be made available.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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