Stochastic and Six Sigma Improvements to Project Risk Management

This book is practical, which presents applications of a DMAIC Stochastic Method to project risk management. The book is purposed for experienced project managers, project risk analysts, finance risk managers, and degree students studying the relating subjects. The book has eight chapters: Ch. 1: Reducing risk in a power plant construction project; Ch. 2: Improving performance of an ongoing short film project; Ch. 3: Applying the method to analyse projects' risk and return; Ch. 4: Optimising Net Present Value of a commercial construction project; Ch. 5: Optimising cost and duration of a residential construction project; Ch. 6: Selecting one of four observed production schedules, which generates maximal revenue for a petroleum project; Ch. 7: Resolving the optimal timing for project portfolio; and Ch. 8: Elaborating stochastic cost analysis for a portfolio of ten projects over 12 months. Conclusion: The book offers substantial improvements. Bernstein stated "the risk will always be there, so we must explore many interesting tools that can help us to control risks we cannot avoid taking" (Bernstein and Damodaran 1998). According to Bernstein, the presented method is one such tool.