BOOK REVIEW:

Book Title:  Integrated Cost-Schedule Risk Analysis
Authors:  David Hulett
Publisher:  Gower Publishing Limited
List Price:  US$124.95 – hard cover
Publication  Date: 2011
ISBN: 978-0-566-09166-7
Reviewer: Benjamin Rohe
Review Date: December 2011

 

 

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Introduction to the Book

Integrated Cost and Schedule Risk Analysis by David Hulett is a good read for those unfamiliar with the process of performing risk analysis of projects, and for those who are experienced in the process and perform the task day to day.

Overview of Book’s Structure

The book is an easy read (for anyone willing to pick up the book with that title voluntarily). It is composed of 11 chapters, beginning with the question why conduct cost risk in the first place. This is followed by a high level explanation of what Monte Carlo is and how it applies to risking projects. The book then discusses the collection of high quality data and the human challenges faced while trying to acquire it. The correlation between identified project elements is discussed, and the book elaborates on how it is typically derived using the “risk driver” method.

In the latter part of the book, you’ll find discussion about what is typically involved in preparing for an integrated cost and schedule risk analysis session, how to conduct one, and then how to interpret the results. Each chapter wraps up with an appropriate summary including a chapter at the end recapping the book.

Highlights: What I liked!

This book is written primarily for the engineering-minded project team member with either no experience, or some experience dealing with Cost and Schedule Risk on capital projects. If this is the first time a reader has heard of a Monte Carlo analysis, there will be plenty of places in the book where he/she will have to re-read in order to understand the content. It is however, written in a clear and concise manner and there is little to be misconstrued. Experienced project team members that routinely perform Cost and Schedule Risk sessions will certainly find a few key takeaways.

Discussions about interfaces and motivations around human interactions to obtain relevant data for the risk assessment are powerful, and this type of analysis will not be located in procedures laid out by your typical company. Anyone performing the function of estimate coordinator would certainly have an advantage when interfacing with project team members or third party companies that perform the risk assessments. Helpful data output graphs and tables are provided to illustrate the author’s points.

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About the Reviewer: Benjamin Rohe   Benjamin Rohe, MBA, has worked overseas in Iraq and Angola and has experience in logistics, infrastructure, and oil and gas. Benjamin is currently working in Project Controls for a major oil and gas firm specializing in obtaining funding for major capital projects. He can be contacted at benrohe@yahoo.com. ___________________ Editor’s note:  Book reviews are the result of cooperation between PM World Today and the graduate programs in project management at the University of Texas at Dallas and the University of Maryland in the United States.  Authors and publishers provide books to PM World Today, a copy of each book is delivered to the universities who give them to graduate students or alumni for review.  The reviewer provides a book review in our standard format; the reviews are then published in PM World Today.  Since the reviewers are generally mid-career professionals, they normally represent the intended audience for most PM books.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact editor@pmworldtoday.org.