An Integrated Risk-Based Technique for Project Plan Selection

Abstract

Selecting an effective project plan is a significant area in the project management. The present paper introduces a technique to identify the project plan efficient frontier for assessing the alternative project plans and selecting the best plan. The efficient frontier includes two criteria: the project cost and the project time. Besides, the paper presents a scheme to incorporate Directed Acyclic Graph (DAG) into the project risk analysis. This scheme is used to estimate the expected impacts of the occurrence of the project risks on the project cost and the project time. Also, a theoretical model is defined to provide integration between project risk analysis and overall project planning using the breakdown structures. We believe that applying the proposed technique helps the company’s managers in most effective manner dealing with his complicated project plan assessment and selection problems. The application of the technique was implemented in the companies in construction industry in which represented a considerable cost and time improvements.

Keywords

• Project plan selection; Project risk analysis; Quantitative risk analysis; Overall project risk; Efficient Frontier; Directed Acyclic Graph (DAG).