Definition

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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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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Product Owner looking at a whiteboard

What Is the Product Owner Role in Agile Projects?

In traditional waterfall projects, all requirements need to be identified and fixed upfront while deviations must pass the change management processes. This is not the case in agile projects: teams applying agile approaches claim to embrace changes and often actively seek feedback on products and increments to enhance and improve them during the project. In …

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Product Manager vs Product owner

Product Manager vs Product Owner – What Is the Difference?

When it comes to job titles and roles, organizations tend to be quite creative in assigning great-looking labels to certain roles (and printing them on business cards). Over the past one to three decades, the title “product manager” has grown in popularity. Meanwhile, the responsibility of the role changed from being responsible for a product …

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Schedule performance index, cost performance index, formula, example

Schedule & Cost Performance Index, with Formulae & Examples (SPI/CPI)

An important part of project management concerns the forecasting and management of cost. In fact, this is often one of the most prominent topics in project status reports and discussions with project sponsors and stakeholders, given the importance of budget constraints. Schedule Performance Index (SPI) and Cost Performance Index (CPI) are useful and comparatively simple …

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