Simulating Outcomes-The Innovation
The cost / risk model uses probability to predict the range and probability of the total project cost. Project budgeting used to consist of predicting the cost of activities. A more accurate method is to use estimating ranges. These ranges can be used to build a matrix of millions of possible scenarios. The result is a curve depicting the percent likelihood of success at a specific total cost.
Unique Perspectives – Patent Pending
Great Budget Software builds a model to simulate different scenarios to more accurately predict the total cost of the project. This is managed with an estimated cost of each activity and capturing the assumptions made in determining the estimated cost. The more risk or uncertainty in estimating the cost, the wider the range of possible eventual costs for the activity. These ranges are collected and used to build a table of probability. Ranges are created by running thousands to millions of scenarios.