Hungarian Risk Management Company SzigmaSzervíz Ltd uses The Szigma IntegRisk® method, which incorporates Microsoft Project® 2013 and @RISK to help their client, a manufacturing company,ensure the highest level of income / profit by assessing and tackling different risks that occur during maintenance work.
The Szigma IntegRisk® method is an integrated risk assessment, treatment and monitoring technique for supporting management decisions on strategic, tactic and operational level.
Dr. István Fekete, Managing Director for SzigmaSzervíz, believes that a combination of @RISK and Szigma IntegRisk® facilitates an integrated approach to quantifying schedule risks in case there are not historical data available.
After running simulations and analysis with @RISK, SzigmaSzervíz discovered key pieces of information that were critical for the company’s decision makers to take into account–including the fact that if the duration of maintenance activities is longer than planned, the restart of the production is delayed–causing significant income/profit deficit for the manufacturing company. More specifically, if the maintenance work is delayed by 4 days from the scheduled date due to inadequately managed risks, the profit before tax might decrease. However, undertaking risk management activity opens up the possibility of meeting the original deadline of maintenance works and avoiding the € 5M loss.
According to Mr. Fekete the key benefits of @RISK are as follows:
- A wide distribution gallery can be chosen for defining the probability distributions of input parameters
- Good communication between Microsoft Project® and @RISK
- Easy application
- Useful reporting opportunities for decision makers
- Combining Szigma Integrisk® and @RISK makes it possible to produce reliable output data if no historical data is available
Read the complete case study here.