risk analysis

BEST PROCESS MAP FOR OBTAINING THE OPTIMUM VALUE FOR A FUTURE INVESTMENT

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"BEST PROCESS MAP FOR OBTAINING THE OPTIMUM VALUE FOR A FUTURE INVESTMENT" by Piero Anticona

Abstract: Investors always look for the optimum return of the capital invested. They still run feasibility studies to determine which is the best alternative among different projects that offer the best IRR, VPN, ROI, ROCE, or other financial scoring models.

Some projects or programs get rejected because of the value of the alternative chosen is high, and sometimes the process for estimating and budgeting does not obtain the optimum result.

Customer Spotlight: Aerospace & Defense

In 2014, the enterprise software for operating systems across the desktops of a large Aerospace & Defense company was being upgraded from XP to Windows 7.  While the upgrade was beneficial from a company-wide technology perspective, it effectively made the company’s current Schedule Risk Assessment and Analysis tool – Primavera Risk Analytics (PRA / formerly known as Pertmaster) – obsolete. Team leaders were faced with a decision to either upgrade their current software or look at something brand new.  They decided to explore their available options.