ABSTRACT
Project analysts must take risk and uncertainty into consideration when dealing with industrial projects. An industrial project analyst should be able to identify, analyze, quantify, evaluate, track, and develop mitigation strategies for project risks. Cost estimates include various tangible and intangible components of a project, such as machines, inventory, training, raw materials, design, and personnel wages. Unexpected engineering change orders and other changes in a project environment may necessitate schedule changes, which introduce uncertainties to the project. Performance measurement involves observing the value of parameters during a project, and comparing the actual performance, based on the observed parameters, with the expected performance. The basic convention for constructing a tree diagram is that the flow should be chronological from left to right. Decision tree analysis is used to evaluate sequential decision problems. The probability at the end of each path is computed by multiplying the individual probabilities along the path.
