The Seven Most Frequent Causes of Simulation Analysis Failure—And How to Avoid Them

Published Online:https://doi.org/10.1287/inte.11.3.59

A US Government Accounting Office Report (GAO Report LCD-75-11) identified 519 federally funded models. Development of these models cost about $39 million. Fifty-seven of these models, each costing over $100,000 to develop, were selected for review. GAO found that although successfully developed models can be of assistance in the management of federal programs, many of these model development efforts experienced: 1. Failure to define an achievable goal, 2. Incomplete mix of essential skills, 3. Inadequate level of user participation, 4. Inappropriate levels of detail, 5. Inappropriate language, 6. Using an unverified or invalid model and 7. Failure to use modem tools and techniques.

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