Reference no: EM132810653
Assignment: 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 5-7 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:
• Fully define and describe the steps of the risk driver method and the 3-point method.
• Compare and contrast each method giving pros and cons.
• Develop sample project cost estimate using a spreadsheet as well as discuss contingencies.
• Include a table with the following data to support your example:
• Project cost element table with associated 3-point estimates, mean, and variances.
• Total project standard deviation and total project mean.
• Discuss how to prioritize risks to cost, risk mitigation and schedule.
• Cumulative probability distribution (10%-90%) table for the total project cost.