Monte Carlo simulation as a risk management tool helps project managers to develop contingencies plans on major projects. Since certain circumstances are out of the project manager's control, such as, delivery or manufacturing delays, it's a good idea to have back-up plans in case these situations occur in order to avoid a delay in the completion of the entire project. Developing these contingency plans involves quantifying the risk of adverse situations and delays.
Quantifying risk involves algorithms, probability and statistics, all of which are not simple calculations. Avoid the timely effort it takes to make these calculations by hand by purchasing Monte Carlo simulation software. Here are the basics of what various types Monte Carlo simulation software provides.
1. Monte Carlo stress testing provides possible outcomes to adverse conditions such as manufacturing and delivery delays.
2. Monte Carlo risk management software allows the project manager to assess both global and local risks.
3. Monte Carlo simulation software allows the project manager to calculate differing scenarios of the project's outcome. The three basic scenarios of any project are the best case, worst case and probable outcomes. Inputting variables into simulation software calculates all three scenarios.
Try out free Monte Carlo simulation software before purchasing the full programFree Monte Carlo simulation software allows you to try out different programs to see which one best suits your company's needs.
Buy the add ins when you purchase Monte Carlo simulation software for ExcelThe Monte Carlo simulation Excel and other simulation programs allow for more extensive changes in the inputs and then reports them in a new summary sheet and histogram.
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