Alternatives Analysis
Alternatives analysis is a data analysis technique that evaluates multiple options or approaches to determine which best meets project objectives, constraints, and assumptions.
Explanation
Alternatives analysis involves identifying and evaluating multiple possible approaches to accomplish project work. The technique considers factors such as cost, schedule, resource requirements, quality, and risk for each alternative. By systematically comparing options, the project team can select the approach that best balances competing constraints and maximizes value.
This technique is used across many PMBOK processes, including scope definition, schedule development, resource planning, and procurement planning. For example, a team might use alternatives analysis to decide between building in-house versus outsourcing, choosing between different technologies, or evaluating make-versus-buy decisions.
Alternatives analysis typically involves defining evaluation criteria, weighting those criteria according to their importance, scoring each alternative against the criteria, and selecting the option with the best overall score. Decision matrices are commonly used to structure this evaluation.
Key Points
- •Evaluates multiple options against defined criteria
- •Considers cost, schedule, quality, risk, and resource factors
- •Used in make-or-buy decisions, technology selection, and approach planning
- •Often structured using weighted scoring or decision matrices
Exam Tip
When a question asks about evaluating different approaches or making a make-or-buy decision, alternatives analysis is typically the correct answer.
Frequently Asked Questions
Related Topics
Cost-Benefit Analysis
Cost-benefit analysis is a data analysis technique that compares the expected costs of an action or decision against its anticipated benefits to determine its financial viability and value.
Decision-Making Techniques
Decision-making techniques are structured methods used to select a course of action from multiple alternatives, including voting, autocratic, consensus, and multi-criteria approaches.
Matrix Diagrams
Matrix diagrams are a data representation technique that uses a grid format to show relationships between two or more groups of factors, commonly used for responsibility assignments and prioritization.
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