A simulation approach for managing engineering projects

The Critical Path based Project Management tools do not take an adequate account of risk. Monte Carlo Simulation provides an improved methodology to quantify schedule risk, and as such is a significant advance in project management technology. This paper illustrates the use of this methodology for better understanding, designing, and managing a project such that the detrimental effects of these risks can be minimized. In addition, the results of this methodology are contrasted with that of CPM, PERT, and PROBABILISTIC PERT. This contrast illustrates the shortcomings of these widely used methodologies in a typical Engineering environment.