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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.

  • 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.
  • provide a specific example that determines total project cost with 4 cost elements using the 3-point cost analysis method.
  • Show each step of the process and the associated tables to depict the data.
  • 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 estimates 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.

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