Project Management

A Project Team performs a cost benefit analysis

Cost-Benefit Analysis for Business Cases (Definition, Steps, Example)

When you prepare a project in line with PMI or other established project management methodologies, you will have to create a project business case. This business case is usually a study on the expected qualitative and financial benefits of a single project or different project options. An essential part of this process is the cost-benefit …

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Payback Period Calculator – PbP for Even & Uneven Cash Flows

Do you need to calculate the number of periods an investment requires to reach the break-even point? The Payback Period (PbP or PBP) indicates the period in which a full repayment or amortization of an investment is achieved. This indicator is used not only for the assessment of project options and business cases in project …

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What Is the Benefit Cost Ratio (BCR)? Definition, Formula, Example.

The Benefit Cost Ratio (BCR), also referred to as Benefit-to-Cost Ratio is an indicator that is typically used within a cost benefit analysis. In project management, the benefit cost ratio can support the cost-benefit analysis of a business case. The PMI Project Management Body of Knowledge lists the BCR under project success measures, next to …

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Net Present Value Title Pic

What Is the Net Present Value (NPV) & How Is It Calculated?

When you perform a cost-benefit analysis and need to compare different investment alternatives with each other, you might consider using the net present value (NPV) as one of the profitability indicators. In project management, the NPV is commonly used and also listed in PMI’s Project Management Body of Knowledge (source: PMBOK®, 6th edition, part 1, …

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Progressive Elaboration (schedule)

What Is Progressive Elaboration in Project Management? Definition & Examples

Progressive elaboration is a process of the Project Planning Process Group set out in the Project Management Institute’s Project Management Body of Knowledge (PMBOK®, 6th edition, ch. 3). It refers to the ongoing improvement of a project plan based on new learnings and insights obtained during the project lifecycle. If you have come across changes …

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PMBOK Knowledge Areas

The 10 Knowledge Areas & 49 Processes (PMBOK®, 6th ed.)

The PMI framework of project management consists of 49 processes which are categorized in 10 knowledge areas as set out in the Project Management Body of Knowledge (PMBOK®, 6th edition). This is based on the philosophy that project management consists of a one-off and recurring processes for which the PMBOK describes common good practices. When …

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To-complete-performance index

What Is the To-Complete-Performance-Index (TCPI)? Definition, Formula & Calculator.

When you are in the process of project cost controlling – either in a real-life situation or during your PMP exam preparation – you will probably wonder what exactly the to-complete-performance index is and how you can use this indicator. In this article, we will introduce the TCPI, its definition and formula. You can also …

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Estimate at Completion Title

Estimate at Completion (EAC) – with Formulae & Examples

If you want to forecast the project cost for the completion of the entire project, you will need the indicators “estimate at completion (EAC)” and “to-complete performance index (TCPI)”. Both are part of the data analysis techniques of the control costs process in the PMI’s Project Management Body of Knowledge (PMBOK®, 6th edition, p. 263-265). …

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