Breaking News

Canada's Consumer Price Index Rises a Less-Than-Forecast 2% in November

Larsen & Toubro Institute of Project Management Uses Palisade's

London, United Kingdom, Thursday, June 13, 2013 -- (Business Wire India) 
The Larsen & Toubro Limited (L&T) Institute of Project Management, a centre of
excellence in project management, has developed a methodology to enable service
providers in the Indian engineering outsourcing industry to determine risks that
impact their ability to accurately define project scope and schedule. The L&T
Institute used @RISK, Palisade's Monte Carlo simulation tool, for this study.
Using this approach, service providers can accurately determine project scope,
schedules and therefore delivery at the start of their customer projects.  
Over the last 20 years, the Indian engineering outsourcing industry has
established itself as a provider of reliable services. However during this time,
the complexity of software technologies has grown along with customer
expectations – greatly increasing the risks related to successful project
development and execution, which left unchecked could significantly impact the
growth and reputation of the engineering outsourcing industry.  
Aside from the market uncertainties emanating from political, economic, social,
regulatory and environmental factors, there are many sources of uncertainty that
affect service providers in the engineering outsourcing industry. They include
technology-induced risk factors; and relationships between engineering
outsourcing teams and customers due to a cultural mismatch or lack of synergy
between expectations of sales and delivery teams. People interaction and
processes also create uncertainty caused by personal aspects of knowledge
workers (e.g. their drivers and motivations), organisational structures of
service providers and customers, trust between teams, continuous on-boarding and
attrition of personnel and the like. Furthermore, gaps in technical
understanding and alignment of project objectives across outsourcing and
customer teams also add to uncertainty.  
These uncertainties give rise to a combination of project scope and schedule
risks during execution that greatly impact the successful delivery of customer
assignments and in turn the customer satisfaction delivered by engineering
outsourcing service providers.  
Using @RISK as its solution of choice for quantitative statistical modelling,
the Institute, set up a study based on a typical outsourced design project of
800 hours and included 15 key activities that are characteristic of such an
assignment – ranging from panel, process and layout studies; fixture design;
review of design with simulation and client teams, design quality control,
preparation for assembly through to final quality control. For each of these
activities, the study considered the impact of eight key risk triggers such as
lack of clarity on project requirements from customers, skill resource
availability, environmental risks and technology.  
“We chose @RISK for its ease of use and compatibility with Microsoft Excel,”
said Dr. Chakradhar Iyyunni, Deputy General Manager and Faculty at the L&T
Institute of Project Management. “@RISK imports all the analysis into Excel,
which means that we can use all the formulae in the software alongside all the
@RISK features – a powerful combination for statistical analysis.” 
Using a three-point estimation (optimistic, most likely and pessimistic) for
each of the 15 activities, the team was able to construct probability
distributions in @RISK to represent the uncertainty around each activity. They
then conducted simulations consisting of 15000 iterations each as part of the
experiment. This means the team was able to examine 15000 different scenarios
with the click of a mouse. 
This study concluded that this kind of three-point estimation using Monte Carlo
simulation was a better way of creating robust project delivery schedules as
opposed to a detailed risk analysis exercise, especially for short duration
projects that are the norm in the engineering outsourcing industry. This is also
a more vigorous way of deriving risk schedules. For instance, it takes into
consideration the risk perception and control available to the teams, which are
mostly seen as ad hoc methods in other risk analysis methodologies. Furthermore,
this approach would not put additional burden on delivery teams to conduct
detailed risk analysis.  
Based on the success of this experiment, the Institute is looking to use @RISK
to develop an approach that helps outsourcing project teams to develop risk
mitigation strategies. 
About Palisade Corporation 
Palisade is the market leader in risk and decision analysis software for
Microsoft Excel and Microsoft Project. Headquartered in Ithaca, New York, where
the company was founded, Palisade also maintains offices in London, England;
Sydney, Australia; and offers special services to Latin American customers.
Palisade users can be found in over 100 countries, and include the likes of
AT&T, Hewlett Packard, Hitachi, IBM, Proctor & Gamble, Dow Chemical, Citigroup,
Bristol Myers-Squibb, PricewaterhouseCoopers, Unilever, London Underground,
Infineon and Statoil.  
About Larsen & Toubro Institute of Project Management 
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in
India's private sector. Set up as a centre of excellence in project management,
the L&T Institute of Project Management provides high quality education and
research in the field and collaborates with leading institutes of repute across
the globe for research in this area. and 
For further information, please visit: 
Media contact details 
Vidushi Patel,
Vanilla Public Relations Ltd.,
+44 7958 474632, 
Nicola Males,
Vanilla Public Relations Ltd.,
+44 7976 652491, 
Contributed via: Bloomberg Publisher WEB Service 
Provider ID: eec9372d128645a1884907e14bcd7d1f 
-0- Jun/14/2013 04:44 GMT
Press spacebar to pause and continue. Press esc to stop.