I notice that there seem to be quite a few PP members who list a professional relationship with Japan Gas Co. Dr. Tomoichi Sato, who teaches at Tokyo University and does risk analysis research for Japan Gas Co. sent me the following email a few days ago:
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>Dear Devaux-san,
>For your information, I have posted two articles about your concept of Drag
>and Drag Cost on my blog:
> http://brevis.exblog.jp/20000432/ [1]
> http://brevis.exblog.jp/20044525/ [2]
> (sorry, in Japanese)
>These articles have been so far welcomed by readers. More than 1,000
>visitors came per day, which means hit articles to me. I've found much
>public interests are around these subject in Japan.
>I am also thinking to write an introduction to DIPP concept in coming
>weeks, hoping to attract more attentions to your idea.
>Regards,
>Tomoichi Sato
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Dr. Sato has actually already written about the DIPP, extending it into the field of risk management theory in several papers and presentations. This one, in English and titled "Risk-based Project Value Analysis -- Contributed Value and Procurement Cost [3]" (PDF), introduces the concept of a risk-based project value index (RPV), and says in the introduction:
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"(T)his analysis method... calculate(s) risk-based project value (RPV) at any starting moment of tasks... RPV analysis has three areas of powerful application: (1) contributed value analysis, (2) procurement cost analysis, and (3) project portfolio management. Contributed value of a task to the project can be derived as RPV increase between start and finish of the task, thus enabling more appropriate basis for earned value analysis for product development projects. Procurement decisions should be made based on ‘Critical cost’ of the source which is calculated with cost and associated risk factor. Summation of all the planned and ongoing projects’ RPV represents project portfolio value of a company. Project priority should be given based on value of ‘Extended DIPP’, remaining RPV divided by cost ETC."
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It's excellent and important reading for anyone interested in risk analysis.
I suspect that it will still be a while before any mainstream software package gets around to including DIPP analysis (never mind RPV). But it is pretty ridiculous that supposedly high-end packages such as Primavera, Plan View and Asta fail to include such foundational CPM metrics as critical path drag and drag cost. Maybe Spider Project (which does!) will just have to kick their derrieres in the marketplace till the light dawns.
Fraternally in project management,
Steve the Bajan