Monday, February 20, 2012

The Combination of MS-Project and Excel to analyze Risk Management during the Period of the Project Lifecycle

I think this article will  be useful for all project managers and project controllers.
In this article, I am willing to tell you that we can apply the combination of MS- Project and Excel instead of Primavera for small and medium size projects because the price of Primavera software is very expensive. Let me bring you an example as follows:

We can track and monitor the cost and time of the projects by using of MS –Project where this software is able to calculate so many factors related to the cost and the time such as:

BCWS: The budgeted cost of work scheduled
ACWP: The actual cost of work performed
BCWP: The budgeted cost of work performed
SV: The schedule variance
CV: Cost variance
TCPI: The complete performance index

But we cannot forecast any risk in related to the time and the cost which are caused the failure of the project, by using of MS – Project . There are so many tricks in excel to predict and analyze the risk of the cost and the time where we firstly obtain the data by MS-Project (such as above parameters), then we will be able to manage the risk of the projects by using of these tricks. Of course, at the first, we should be as well as familiar with some concepts and methodologies such as Monte Carlo Simulation Model or Fuzzy Logic.

To be continued..........