Project situations are dynamic. Things may not happen as planned. Every unforeseen risk that surfaces during project planning and execution impacts the schedule, cost, scope and ultimately return on investment. If there are delays on schedule, material costs can go up, penalties need to be paid, workforce will idle, cash flows will get affected. Alternatives analysis plays major role throughout all phases of the project starting from preparatory work to planning, execution, monitoring & controlling and closing.
Alternatives analysis is the process of achieving the same outcome through different means or ways. For example, if we re-deploy resources from a task with float to another task with zero float to crash that task, there is a possibility of controlling delays. At the same time, there are risks associated with it.
Alternatives analysis comes in handy while doing make or buy analysis, to decide things to make in-house and sub contracted. The associated risks, cost and quality will vary.
Project strategy development has wide application of ‘alternatives analysis’
Application of alternatives analysis is very extensive in project management, product development and research work.