Section 1: The Value of Considering "What If" in Project PlanningThe Value of Understanding "What If" Analysis:"What If" analysis 🔍 is a crit...
Published on by Hossein Ataei Far, Deputy Manager of the Research, Technology Development, and Industry Relations Center at NWWEC
The Value of Understanding "What If" Analysis:
"What If" analysis 🔍 is a critical technique in project planning and scheduling used to explore different scenarios and their potential impacts on a project's timeline ⏳, resources 🛠️, and overall success 🎯. This method assesses how these scenarios might affect the project, allowing for proactive management and decision-making.
Key Aspects of "What If" Analysis
1- Scenario Testing 📊:
📅 Purpose: To explore how variations in project parameters can impact outcomes.
📅 Process:
🔹Identify Variables: Determine key project variables such as deadlines, resource availability 💼, scope, and budget 💵.
🔹Create Scenarios: Develop hypothetical scenarios by altering these variables. For instance, what if the project deadline is extended, or if a major resource is unavailable?
🔹Analyze Impact: Evaluate how each scenario affects the project’s timeline, cost, quality, and performance.
📅 Example: If a project's deadline is extended by two weeks, scenario testing would examine how this affects the overall project schedule, potential cost overruns, and any impacts on resource allocation.
2-Risk Assessment ⚠️:
📅 Purpose: To identify and evaluate potential risks associated with different scenarios.
📅 Process:
🔹Identify Risks: Determine risks that could arise from each "What If" scenario, such as delays ⏳, increased costs 💰, or quality issues 🔧.
🔹Assess Impact: Analyze how each risk might impact the project. For example, if an alternative supplier is used, there may be risks related to higher costs or quality control.
🔹Evaluate Mitigation: Explore how different scenarios might mitigate or exacerbate identified risks.
📅 Example: Assessing the risk of a critical component shortage could involve evaluating how sourcing from an alternative supplier might impact cost and delivery schedules.
3-Decision Making 🧠:
📅 Purpose: To use data and insights from "What If" analysis to make informed decisions.
📅 Process:
🔹Evaluate Options: Analyze various options and their consequences based on scenario testing and risk assessment.
🔹Make Decisions: Choose the most viable options to address potential issues. This could involve adjusting project plans, reallocating resources, or changing strategies.
📅 Example: Deciding whether to accept a higher-cost alternative supplier or delay the project could be based on the analysis of how each option affects the project timeline and budget.
Study Sources:
### Books
1. **"Risk Management: 10 Principles" by Dr. David Hillson**
- Practical advice on risk management principles and techniques.
2. **"The Project Management Institute’s (PMI) PMBOK Guide"**
- Key resource for project management standards and best practices.
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