How to Perform Assumption Analysis for Projects

How to Perform Assumption Analysis for Projects

 

Assumption Analysis of projects has to do with the process of validating the assumptions made during project planning. It involves documenting the assumptions made during project planning and then determining the risks that may be caused due to inaccuracy instability, or incompleteness of the project assumptions. Assumption analysis can be carried out at any phase of the project lifecycle. 

 

When we talk about assumption analysis for projects, there are some vague decisions that you need to make in order to move on with your project. There are some elements that you need for your project that are needed but they are not in their final state.

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assumption analysis for projects

For such things, you need to accept them the way they are and continue to check on them till the very end of the project.

 

Take, for example, you are planning a project that rests solely on the only programmer that you have in your organisation. You are not sure whether your Programmer will be available when you are commencing the project or not. You will still need to assume that the Programmer will be available. This is needed for you to move on with the project.

If you look at the Federal Government budget for Nigeria. There are some assumptions that are made when budgets are presented year in, year out. They may assume that petrol will sell for $60 per barrel. They may also assume that they will be selling 2.5million barrel per day. All these assumptions are needed for the country to move on for that fiscal year,

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As you move on with the project, you will always need to update assumptions and constraints for the project, This will allow you to make necessary adjustments and move on with your project.

 

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2 Comments

  1. I also have a question here, pertaining to the assumption, now assumed we assumed they are selling a car at the rate of #500.000 today and you have the money at hand you now said let me assume the car will be #50.000 tomorrow and you spent the money lavishly later on you now notice that the car is still #500.000 same price? Is that a gain or loss, I understand that it’s good to be assuming oo can you please explain better on it?

    • All costs are controlled when it comes to projects. You have to spend within the limit of what is approved . When planning project you need to involve stakeholders and Subject Matter Experts in order to acheive project goals.

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