Broadleaf Capital International is a specialist risk management consultancy. Our expert team brings decades of experience, leading methods and a deep understanding of uncertainty and how it can be understood and managed. We operate around the world.
This case study examines a quantitative risk analysis of the capital costs of a high-voltage power enhancement project. It illustrates the value of integrating quantitative analysis into project workflows, and how the outcomes from the analysis can assist in allocating contingencies to cost items for project cost control. It also demonstrates that the assumptions about the shapes of the distributions used in quantitative analyses may not always be important in terms of their impacts on the outcomes from the analysis.
This case study examines a quantitative risk analysis of the capital costs of a high-voltage power enhancement project. It illustrates the value of integrating quantitative analysis into project workflows, and how the outcomes from the analysis can assist in allocating contingencies to cost items for project cost control. It also demonstrates that the assumptions about the shapes of the distributions used in quantitative analyses may not always be important in terms of their impacts on the outcomes from the analysis.
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.