Application of Monte Carlo Simulation in Project Management – Part I: Introduction

This is Part I of my blog on Application of Monte Carlo Simulation Method/Technique in Project Management series. In Part I (this article), I will provide you a very high level overview of the method, identify a few of its drawbacks, and list a few tools currently available in the market in this space. In Part II, I’ll try to apply the method in one specific area of Project Management – uncertainty analysis of project cost estimation. I’ll do so using a widely used productivity tool, MS Excel.

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Contingencies to Address Project Uncertainties

Uncertainty is an inevitable and integral part of even simplest of all projects. Let’s discuss about the Project Plan. A Project Plan is developed usually at the early stage of a project life cycle based on a number of facts and a set of relevant assumptions.

Software Cost Estimating Models

A Primer on Software Cost Estimation Models

There are several models can be found in the literature that deal with software cost estimation. At a very high level, these models estimate software costs in three main steps: (i) they somehow estimate/predict the software size (ii) then they determine the effort required using some productivity rate (iii) once size and effort have been determined, they convert these quantities into dollar figures and duration.