This paper combines various concepts related to (i) project risk management,
(ii) Monte Carlo simulation, (iii) project contingency cost estimation,
and (iv) the relationship between project and programme risks, to illustrate that
the contingency requirements are lower when simulating all the risks in the programme
when comparing it with the individual project contingency requirement.
A case study organisation provided 86 quantified risk registers related to port
and rail capital projects. For each of these risk registers, the project contingency
was estimated using a prescribed risk register template and Monte Carlo simulation
software. The same 86 quantified risk registers were then used to simulate
the programme contingency. The simulation results indicated that the programme
contingency requirement was approximately 8% points lower than that of the
sum of the individual projects. The first implication of this research result is that,
should borrowed capital be used to fund the projects, the interest bill would be
higher when calculating project contingency on a project-by-project basis. The
second is that regularly appearing low probability, high impact risks, should be
identified and these risks should be quantified not in the projects themselves, but
in a centrally managed, programme cost contingency fund.
Pretorius, Suzaan; Steyn, Herman; Bond-Barnard, T.J. (Taryn Jane)(Southern African Institute for Industrial Engineering, 2017-12)
It is widely accepted that project leaders should adapt their behaviour to meet the unique leadership demands of a variety of situations. Recently, vertical, shared, and horizontal styles of leadership have gained prominence, ...
Barry, Marie-Louise; Du Plessis, Yvonne(Journal of Contemporary Management, 2007)
Human resource management and the corresponding soft-skills or competencies are reported to be of significant importance for project management success. One of the measures of these soft-skills, used in recent years, is ...
Du Plessis, Yvonne; Hoole, Crystal(Department of Human Resource Management, University of Johannesburg, 2006)
The aim of this research is to develop an operational 'project management culture' framework, which can be used by project managers and organisations to support project work. One of the main causes of project failure is ...