Calculating Schedule Margin
Moderator: Intaver Support
Calculating Schedule Margin
Can RiskyProject automatically calculate schedule margin?

 Posts: 927
 Joined: Wed Nov 09, 2005 9:55 am
Re: Calculating Schedule Margin
Schedule margin normally refers to tasks that are not related to delivering project scope that are added to the project to account for unmanaged risk and uncertainty and increase the chance that the project will be delivered on time.
Required schedule margin can be calculated as part of your Monte Carlo Simulation, where margin are calculates as the difference between the original plan and percentile (e.g. P80) specified by as an acceptable level by your organization or ownership group. By using percentiles rather than adding fixed amounts to the calculated margin accurately account for the expected value of the project risk.
You can calculate the required margin for any activity including summary activities or the project in the Project Options > Calculation > Low and high times, durations, and cost are calculated based options. In the example below, P80 will be used to calculate the High Results
After a Monte Carlo simulation, the Result Gantt will include both the deterministic and simulation results. The required margin to account for unmanaged risk at any level of the project, is the difference between the calculated High Duration and the Base Duration.
If we look at the results from one of our sample files (Drilling.alm), we can see how this works. For the summary activity Well 00/B056G/N092N we have:
Base Dur (original estimate)= 23.5 days
High Dur (calculated P80)= 29.65 days
Schedule Margin = 29.65 – 23.5= 6.15 days
Required schedule margin can be calculated as part of your Monte Carlo Simulation, where margin are calculates as the difference between the original plan and percentile (e.g. P80) specified by as an acceptable level by your organization or ownership group. By using percentiles rather than adding fixed amounts to the calculated margin accurately account for the expected value of the project risk.
You can calculate the required margin for any activity including summary activities or the project in the Project Options > Calculation > Low and high times, durations, and cost are calculated based options. In the example below, P80 will be used to calculate the High Results
After a Monte Carlo simulation, the Result Gantt will include both the deterministic and simulation results. The required margin to account for unmanaged risk at any level of the project, is the difference between the calculated High Duration and the Base Duration.
If we look at the results from one of our sample files (Drilling.alm), we can see how this works. For the summary activity Well 00/B056G/N092N we have:
Base Dur (original estimate)= 23.5 days
High Dur (calculated P80)= 29.65 days
Schedule Margin = 29.65 – 23.5= 6.15 days
Intaver Support Team
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com