Artwork

Content provided by Andres Diaz. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andres Diaz or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Player FM - Podcast App
Go offline with the Player FM app!

Critical path with AI: what is the most likely date?

6:45
 
Share
 

Manage episode 521411684 series 3670252
Content provided by Andres Diaz. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andres Diaz or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Summary: - Purpose: Explain how to estimate the most probable project end date by combining the critical path method, AI-adjusted estimates, and Monte Carlo simulations, so you can defend commitments with data rather than gut feelings. - Core ideas: - The finish date is a probability distribution, not a single number, and the critical path can shift as the project evolves. - Use a structured process to describe the project, account for uncertainty, and ground decisions in data. - Step-by-step method: 1) Describe the project with a work breakdown structure (WBS) and a network diagram. For each task, collect three PERT estimates: optimistic (O), most likely (M), and pessimistic (P). Compute the initial expected duration as (O + 4M + P) / 6 to reduce optimism bias. 2) Compute the traditional critical path, identify zero-slack activities, and note that the most worrisome task isn’t always on the CP, yet often drives discussions. 3) Add AI-adjusted durations: gather historical data (planned vs actual durations, complexity, deliverable size, team experience, technical context, concurrent load) and train a simple model to predict an adjustment factor per task. Apply this factor to the PERT estimates before simulation. 4) Run a Monte Carlo simulation: for each task, define a distribution from the three estimates and the AI adjustment. In each iteration, sample durations, recalculate the CP, and record the finish date. After thousands of iterations, obtain a distribution of finish dates. The peak gives the most probable date; use percentiles (e.g., 80% for external commitments, 90% for critical contracts) to set commitments. Communicate with a confidence level rather than a single date. - Practical guidance: - This week: add three estimates per task, include two contextual factors (e.g., complexity, team maturity), run the AI-based adjustment, and launch the simulation. Start collecting actual durations to improve the model over time. - Insights and cautions: - The CP often jumps as variability occurs; simple averages are poor predictors—simulation captures these shifts. - Hofstadter’s law (“everything takes longer than you think”) still applies even when accounting for uncertainty. - Consider holidays, team capacity, external dependencies, and resource contention; AI can detect patterns (e.g., parallel reviews causing delays) and adjust durations accordingly. - Negotiation and communication: - Publish three dates from the simulation: (1) the most probable date, (2) the 80% confidence date, and (3) an internal alert date for mitigation if close to the target. - Include a sensitivity analysis (e.g., a tornado diagram) to show which tasks drive most variability and explore which tasks to de-risk first. - Common mistakes to avoid: - Treating the CP as fixed, using ideal hours, underestimating approvals, ignoring integration time, or not updating the model with progress. Update weekly and lightly retrain the AI adjustment. - Cultural takeaway: - Presenting dates with confidence levels reflects maturity and realism; many leaders already negotiate with probability curves. This approach is a precision tool, not luxury. - Actionable challenge: - In your next committee, present (1) the finish-date probability curve, (2) the top three drivers of variability and mitigations, (3) the gap between the target date and the 80% confidence date with the cost to close it. If asked to “cut a week,” respond with data-driven implications. - Closing thought: - The most probable date is designed through the CP, risk analysis, AI learning from context, and a probabilistic simulation that embraces uncertainty. The alternative is over-optimistic planning based on wishful thinking. - Sign-off reminder (for context): subscribe, review, or share the episode. Remeber you can contact me at [email protected]
  continue reading

9 episodes

Artwork
iconShare
 
Manage episode 521411684 series 3670252
Content provided by Andres Diaz. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andres Diaz or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Summary: - Purpose: Explain how to estimate the most probable project end date by combining the critical path method, AI-adjusted estimates, and Monte Carlo simulations, so you can defend commitments with data rather than gut feelings. - Core ideas: - The finish date is a probability distribution, not a single number, and the critical path can shift as the project evolves. - Use a structured process to describe the project, account for uncertainty, and ground decisions in data. - Step-by-step method: 1) Describe the project with a work breakdown structure (WBS) and a network diagram. For each task, collect three PERT estimates: optimistic (O), most likely (M), and pessimistic (P). Compute the initial expected duration as (O + 4M + P) / 6 to reduce optimism bias. 2) Compute the traditional critical path, identify zero-slack activities, and note that the most worrisome task isn’t always on the CP, yet often drives discussions. 3) Add AI-adjusted durations: gather historical data (planned vs actual durations, complexity, deliverable size, team experience, technical context, concurrent load) and train a simple model to predict an adjustment factor per task. Apply this factor to the PERT estimates before simulation. 4) Run a Monte Carlo simulation: for each task, define a distribution from the three estimates and the AI adjustment. In each iteration, sample durations, recalculate the CP, and record the finish date. After thousands of iterations, obtain a distribution of finish dates. The peak gives the most probable date; use percentiles (e.g., 80% for external commitments, 90% for critical contracts) to set commitments. Communicate with a confidence level rather than a single date. - Practical guidance: - This week: add three estimates per task, include two contextual factors (e.g., complexity, team maturity), run the AI-based adjustment, and launch the simulation. Start collecting actual durations to improve the model over time. - Insights and cautions: - The CP often jumps as variability occurs; simple averages are poor predictors—simulation captures these shifts. - Hofstadter’s law (“everything takes longer than you think”) still applies even when accounting for uncertainty. - Consider holidays, team capacity, external dependencies, and resource contention; AI can detect patterns (e.g., parallel reviews causing delays) and adjust durations accordingly. - Negotiation and communication: - Publish three dates from the simulation: (1) the most probable date, (2) the 80% confidence date, and (3) an internal alert date for mitigation if close to the target. - Include a sensitivity analysis (e.g., a tornado diagram) to show which tasks drive most variability and explore which tasks to de-risk first. - Common mistakes to avoid: - Treating the CP as fixed, using ideal hours, underestimating approvals, ignoring integration time, or not updating the model with progress. Update weekly and lightly retrain the AI adjustment. - Cultural takeaway: - Presenting dates with confidence levels reflects maturity and realism; many leaders already negotiate with probability curves. This approach is a precision tool, not luxury. - Actionable challenge: - In your next committee, present (1) the finish-date probability curve, (2) the top three drivers of variability and mitigations, (3) the gap between the target date and the 80% confidence date with the cost to close it. If asked to “cut a week,” respond with data-driven implications. - Closing thought: - The most probable date is designed through the CP, risk analysis, AI learning from context, and a probabilistic simulation that embraces uncertainty. The alternative is over-optimistic planning based on wishful thinking. - Sign-off reminder (for context): subscribe, review, or share the episode. Remeber you can contact me at [email protected]
  continue reading

9 episodes

All episodes

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Quick Reference Guide

Copyright 2025 | Privacy Policy | Terms of Service | | Copyright
Listen to this show while you explore
Play