Automated statistical analysis in stochastic project scheduling simulation

This paper describes a stochastic simulation-based scheduling system (S3) that: (1) integrates the deterministic critical path method (CPM), the probabilistic program evaluation and review technique (PERT), and the stochastic discrete event simulation (DES) approaches into a single system and lets the scheduler make an informed decision as to which method is better suited to the company's risk-taking culture; (2) automatically determines the minimum number of simulation runs in DES mode and therefore optimizes the simulation process; and (3) provides a terminal method that tests the statistical significance of the differences between simulations, hence eliminating outliers and therefore increasing the accuracy of the DES process. The system is based on an earlier version of the system called stochastic project scheduling simulation and makes use of all the capabilities of this system. The study is of value to practitioners because S3 produces a realistic prediction of the probability of completing a project in a specified time. The study is also of relevance to researchers in that it allows researchers to compare the outcome of CPM, PERT, and DES under different conditions such as different variability or skewness in the activity duration data, the configuration of the network, or the distribution of the activity durations.