Probabilistic Cash Flow of Project Portfolio

September 4, 2015 Q: Probabilistic Cash Flow of Project Portfolio Can I present a probabilistic cash flow chart as a result of Monte Carlo simulations not for individual projects, but for complete project portfolio? A: Probabilistic cash flow chart is generated for individual project only. Cash flow analysis is performed as part of project's Monte Carlo simulation. The issue is uncertainties in each project can be defined differently and it can lead to incorrect results, when we summarize them for project portfolio. However we are currently working on new version of the software, which will define common uncertainty "bands" for project portfolio. If these "bands" are shared for all project within a portfolio, it is possible to define standardized set of uncertainties for project portfolio. Just to remind you, RiskyProject performs Monte Carlo simulation of project schedule and generate statistical distribution of fixed and variable costs on each time interval. In can be done weekly, monthly, by-monthly, etc. The results of each project is presented in form of chart: Dark blue color of each bar present low estimate of post for the given period of time, lighter color will present base cost, and very light color will present low cost. You can also be presented with cash flow of current schedule (red line). It is planned (original) cash flow. Actual cash flow can be shown as a green line, if the project has actuals. You can click on each chart to see detailed statistical distribution for cost of each time interval. http://www.intaver.com/IntaverFrm/viewtopic.php?f=6&t=1106