ECM and CPM

[Karmal S.]

Is event chain methodology an extension of Critical Path Method (CMP)? If yes, what is the difference between event chain methodology and Monte Carlo analysis of project schedules?

[Intaver Support]

Event chain methodology is based on CPM and Monte Carlo simulation. It also includes a number of other principles which simplify modeling uncertainties in project schedules and make it much more accurate.

Among such principles:
a. Analysis of the moment of the risk
b. Managing chain of events
c. Event chain diagrams as a visualization of events
d. Recalculation of probability of events based on actual data.

Event chain methodology is an uncertainty modeling and schedule network analysis technique that is focused on identifying and managing events and event chains that affect project schedules.
PMBOK guide (Project Management Institute, 2004) includes a number of such schedule network analysis techniques:
1. CPM
2. Schedule compression
3. CCPM (Critical Chain)
4. What if scenario analysis
5. Resource leveling

Event chain methodology is another such technique. It helps to mitigate the negative impact of psychological heuristics and biases, as well as to allow for easy modeling of uncertainties in the project schedules.

[RNewman]

Please clarify,

Are critical event chains calculated as part of critical path? That is are the critical event chains become part of the critical path or is it something entirely different?

Thanks

RN

[Intaver Support]

Just to clarify, critical event chains are linked activities that due to risk events have a high potential to effect the project. Critical event chain methodology does not use CPM (critical path methodology) as it is possible that critical event chains can lie outside of the calculated critical path.

[RNewman]

OK, thank you. The similar names can be confusing