Managers of large, complex projects often face the following challenges: Can the project timeline be accelerated? Will this push introduce more risk, or bring benefits? Simulation techniques such as a Monte Carlo analysis can help many better understand the probability of when a project can be completed, as well as identify key activities to improve schedule performance.

However, when using this tool, it is critical to select the appropriate inputs — and use sound professional judgment. Despite the strength of the Monte Carlo simulation as a tool, sound professional judgment is still required.

Authors:
Mark Cohen, senior manager, Deloitte Financial Advisory Services LLP
John Stone, manager, Deloitte Financial Advisory Services LLP

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Services: Financial Advisory
Industries: U.S. Federal Government
Industries: U.S. State Government