Reserve Analysis Notes: Definitions & Explanations PDF | Download eBooks
Study Reserve Analysis lecture notes PDF with project management definitions and explanation to study What is Reserve Analysis?. Study reserve analysis explanation with project management terms to review project management course for online MBA programs.
Reserve Analysis Definition:
Reserve analysis is used to determine the amount of contingency and management reserve needed for the project.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Reserve Analysis Notes:
After estimating the duration and cost estimates, it is important to consider the situations of uncertainty. Based on the uncertainty and risks involved in a project, extra time and cost for the activities should be determined. The data regarding these reserves must be analyzed using reserve analysis. Just like cost/budget, some reserves must be considered in project schedule on account of uncertainties in the schedule. Contingency reserve in schedule is the amount of time that is allocated in order to effectively cope up with the uncertainty or already identified risk. Contingency reserve can be both fixed and a percentage of the estimated duration of the activity. However, the contingency reserves can be reduced, eliminated or modified as the project progresses.
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