This tutorial is drawn from Broadleaf’s long experience with project range analysis, also referred to as quantitative risk analysis or probabilistic risk analysis. It describes some key lessons about project range analysis, and what constitutes good practice. The material covers the analysis of both costs and schedules; the same principles apply to both.
The range analysis process has six steps, each of which is discussed briefly in the tutorial:
- Understand the risks
- Construct a quantitative model and identify the inputs it requires
- Gather inputs and run the model
- Check and validate the model
- Reconcile the outcomes with reality
- Revise the model and its parameters as necessary
The steps for cost and schedule range analysis are similar. Where there are important differences, they are noted in the discussion.
Read the full tutorial here.
Other related material
There is a wide range of material on our web site relating to range analysis, including general resources and case studies. We have prepared two summaries to facilitate easier access.
Resources and cases relating to projects are summarised here. This tutorial also summarises general resources relevant to both project and commercial applications.
Case studies specific to commercial applications are summarised here.