Assignment
Instructions
As a project manager, keep it simple. 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.
A. 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.
B. Provide a specific example that determines total project cost with 4 cost elements using the 3-point cost analysis method.
C. Show each step of the process and the associated tables to depict the data.
D. 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:
o Project cost element table with associated 3-point estimates, mean, and variances.
o 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 following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.