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Book report

04/07/2011 | Channel: Technology, Logistics / Packaging, E-Business / IT, Retail, Business, Manufacturing, Aerospace, Automotive, Engineering, Shipping, Construction, Food & Drink

This issue of ESCM features a money-saving offer for readers. Using this unique code - G11EEY35 – readers can qualify for a 35 per cent discount on selected titles from www.gowerpublishing.com/partnerescm

Integrated Cost-Schedule Risk Analysis
David Hulett


Project managers tend to believe their cost estimates - whether they have exceeded budgets in the past or not. It is dangerous to accept the engineering cost estimates, which are often optimistic or unrealistic. Though cost estimates incorporate contingency reserves below-the-line, these estimates of reserves often do not benefit from a rigorous assessment of risk to project costs. Risks to cost come from multiple sources including uncertain project duration, which is often ignored in cost risk analyses. In short, experience shows that cost estimating on projects is rarely successful - cost overruns routinely occur. There are effective ways to estimate the impact on the cost of complex projects from project risks of all types, including traditional cost-type risks and the indirect but often substantial impact from risks usually thought of as affecting project schedules. Integrated cost-schedule risk analysis helps us determine how likely the project will go over budget with the current plan, how much contingency reserve is required to achieve a desired level of certainty, and which risks are most important so the project manager can mitigate them and achieve a better result. Integrated Cost-Schedule Risk Analysis provides solutions for these and other challenges. This book follows on from David Hulett’s highly-praised Practical Schedule Risk Analysis. It focuses on the way that schedule risk can generate cost risk, and how to handle this relationship. It also applies the Risk Driver Method to the analysis so that you can clearly and transparently identify the key risks, rather than just the most risky cost line items. With detailed worked examples and over 70 illustrations, Integrated Cost-Schedule Risk Analysis offers the definitive guide to this critically important aspect of project management from surely the world’s leading commentator.

About the Author: David T. Hulett is internationally recognised as a leading expert in risk management, leader in risk management activities of the Project Management Institute (project manager of the Risk Management chapter of the PMBOK Guide, 2000 and 3rd editions), deputy PM of the Practice Standard for Project Risk Management (ongoing), core committee member for the Practice Standard for Project Scheduling and frequent conference speaker. He has a consulting and training practice with clients in many industries around the world.

Critical Chain
Eliyahu M. Goldratt


This fast-paced business novel does for project management what The Goal and It’s Not Luck have done for production and marketing. Goldratt’s novels have traditionally slain sacred cows and delivered new ways of looking at processes which seem like common sense once you read them. Critical Chain is no exception. In perhaps Eli’s most readable book yet, two of the established principles of project management, the engineering estimate and project milestones, are found wanting and dismissed, and other established principles are up for scrutiny - as Goldratt once more applies his Theory of Constraints. The approach is radical, yet clear, understandable and logical. New techniques are introduced, and Project Buffers, Feeding Buffers, Limit Multitasking, Improved Communications and Correct Measurements make them work. Goldratt even handles the complicated statistics of dispersed variability versus accumulated variability so deftly you won’t even be aware of learning about them - they’ll just seem like more common sense! Critical Chain is critical reading for anyone who deals with projects. If you use block diagrams, drawings or charts to keep track of your activities, you are managing a project - and this book is for you.

About the Author: Dr Eliyahu M Goldratt is an internationally recognised leader in the development of new business management concepts and systems, originator of the Theory of Constraints (TOC), and author of The Goal, It’s Not Luck, and several other successful books explaining the Thinking Process at the heart
of TOC.

Reviews:
‘Anyone who doesn’t snap up a copy is missing a wonderful opportunity for professional and personal development.’ – Assembly

‘This book is valuable to two main audiences: project managers and senior managers...useful for dealing with one of the most difficult and pressing management challenges: developing highly innovated new products.’ – Harvard Business Review

‘Eli Goldratt’s first novel,The Goal, shook up the factory floor...Goldratt essentially adds a discipline for understanding what drives project performance and therefore what the focus of a project manager’s attention should be.” - Harvard Business Review

‘Critical Chain will revolutionize project management.’ – World Aero-Engine Review

‘... would be of use to project managers who require more sensitive project management methods than those they currently employ ... would also be useful for those who are not convinced of the benefit of project management methods.’ – British Journal of Healthcare, Computing & Information Management