Assignment: Risk Driver Method of Project Cost Risk Analysis or the Traditional 3-Point Cost Analysis on Your Latest Project
Instructions
As a project manager, you are considering using either the risk driver method of project cost risk analysis or the traditional 3-point cost analysis on your latest project.
1. Write a paper with a minimum of 8 pages comparing and contrasting the steps of the traditional 3-point cost analysis method and the risk driver method.
2. Provide a specific example that determines total project cost with 4 cost elements using the 3-point cost analysis method.
3. Show each step of the process and the associated tables to depict the data.
4. Your paper should do the following:
a. Fully define and describe the steps of the risk driver method and the 3-point method.
b. Compare and contrast each method giving pros and cons.
c. Develop sample project cost estimates using a spreadsheet as well as discuss contingencies.
d. Include a table with the following data to support your example:
i. Project cost element table with associated 3-point estimates, mean, and variances.
ii. Total project standard deviation and total project mean.
e. Discuss how to prioritize risks to cost, risk mitigation and schedule.
f. Cumulative probability distribution (10%-90%) table for the total project cost.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.