A Probabilistic Framework for Bayesian Adaptive Forecasting of Project Progress: Fid-Bau Portal

A Probabilistic Framework for Bayesian Adaptive Forecasting of Project Progress

Gardoni, Paolo / Reinschmidt, Kenneth F. / Kumar, Ramesh

Abstract: A methodology to forecast project progress and final time‐to‐completion is developed. An adaptive Bayesian updating method is used to assess the unknown model parameters based on recorded data and pertinent prior information. Recorded data can include equality, upper bound, and lower bound data. The proposed approach properly accounts for all the prevailing uncertainties, including model errors arising from an inaccurate model form or missing variables, measurement errors, statistical uncertainty, and volitional uncertainty.As an illustration of the proposed approach, the project progress and final time‐to‐completion of an example project are forecasted. For this illustration construction of civilian nuclear power plants in the United States is considered. This application considers two cases (1) no information is available prior to observing the actual progress data of a specified plant and (2) the construction progress of eight other nuclear power plants is available. The example shows that an informative prior is important to make accurate predictions when only a few records are available. This is also the time when forecasts are most valuable to the project manager. Having or not having prior information does not have any practical effect on the forecast when progress on a significant portion of the project has been recorded.