Tornado Diagram Sensitivity Analysis PMP

In this video, you will learn what is a tornado diagram. And if you haven't done so already, make sure you subscribe to our channel and hit the notification bell. So a tornado diagram is also sometimes called a tornado plot, tornado chart, or butterfly chart. This is a special type of bar chart where the data is in categories that's listed vertically instead of horizontally. The categories are ordered so that the largest bar is going to appear at the top of the chart, the second largest bar is going to be second from the top, and so on. So this is why it's called a tornado, because the final chart kind of resembles the shape of a tornado. Let's now take a look at an example. So what we can see here is that this chart has the largest horizontal bar at the top, then the second, and the third is the smallest one. And the shape here kind of looks like a tornado. So a tornado chart can be used for analyzing sensitivity in other project constraints such as time, cost, quality, or risk, or whatever the objective may be. The longer the bar, the larger the sensitivity of the project objective to the factor. The factor that has the greatest effect is located at the top, and the bar indicates the low and high value of that factor. It assists the project manager in focusing on the most critical variables of the project, sort and prioritize the variables according to their impact on the project objectives. This will allow the project manager to realize how much the value of the project is impacted by uncertainties of the project and decide how to invest in additional efforts. So the tornado diagram is also a great risk management tool because it allows you to compare the relative importance of different variables and which variables will have the biggest effect on your project outcomes. This will allow you to focus your efforts on those variables that will have the greatest effect on your project as the project manager. Lastly, the tornado diagram is also a form of sensitivity analysis. The goal of the sensitivity analysis is to determine which risk will have the biggest impact on your project, and so when you are planning out your risk management, you will focus on just those risks that have the biggest impact on your project. Okay, so now that you know what the tornado diagram is, and if you want to learn more tips just like this, be sure to sign up for our free project management course at www.exampm.com/free. And this is where I will teach you how you can obtain your certification as a project manager in the next 6 weeks or less and share much more greater tips and tricks with you as well. So I'll see you in the training.