What-if scenario analysis is a technique used in project management to evaluate the potential impact of changes in project assumptions or variables on project outcomes. It involves testing different scenarios by varying one or more project parameters to determine the effect of each change on project outcomes.
The purpose of what-if scenario analysis is to identify potential risks and uncertainties in a project and to evaluate the impact of those risks on project outcomes. By testing different scenarios, project managers can develop contingency plans and identify potential mitigation strategies to address the risks and uncertainties identified.
For example, a project manager may use what-if scenario analysis to evaluate the impact of a delay in a critical project activity. The project manager would create a new scenario in which the activity is delayed by a certain amount of time and then evaluate the impact of that delay on the project schedule, budget, and other key performance indicators.
What-if scenario analysis can be performed using different tools and techniques, such as spreadsheet models or simulation software. The results of what-if scenario analysis can be used to refine project plans, estimate project costs and schedules more accurately, and to identify potential risks and uncertainties that may impact project outcomes.
Overall, what-if scenario analysis provides project managers with a powerful tool for evaluating project risks and uncertainties and for making more informed decisions based on a comprehensive understanding of the potential impact of different project variables.
Usage
Used for Risk Management
