Resource utilization is a metric that measures the uptime of a project resource. It is one of the most important business metrics for service companies such as engineering, software, or consulting firms. Even non-service companies can benefit from the calculation and tracking of the utilization rate. It is a very simple metric that speaks volumes of … [Read more...]
A RACI Chart (pronounced "racy") is a visual representation of the responsibilities of a project. RACI stands for Responsible - Accountable - Consulted - Informed. It is an excellent way to communicate what the responsibilities of each member of the project team are. In a RACI chart, each project task is assigned to each project member within the project … [Read more...]
The art of making a decision is a daily occurrence for most people, both at home and at work. We've all experienced projects where the best path forward is unclear, or there is no option without a major negative side effect. What does the science say about decision making that could help us? Decision making is the process of choosing a course of action from … [Read more...]
Carpenters have hammers, plumbers have wrenches, and programmers have computers. But does a project manager have any tools which help them perform their work better, quicker, or cheaper? Absolutely! In fact, if you don't use these tools you will be at a serious disadvantage to other project managers. And if you do, your career will see an order of … [Read more...]
Resource management is the effective utilization of an organization's resources to accomplish a given task or project. In project management, resource management is one of the most important skills of a project manager. Because a project has a fixed (usually) schedule and budget, the utilization of the project's resources can play an integral role in the success … [Read more...]
How do large corporations make the decision to proceed with a project? What data or metrics do they consider prior to investing billions into a new plant, a new high rise condo, or major I.T. project? Capital budgeting refers to the financial modelling that evaluates the feasibility and compares potential project investments. At the end of the day, … [Read more...]
A project feasibility study is a report that investigates the viability of a project. It seeks to provide its stakeholders with an analysis that results in a go/no-go decision. Feasibility studies are performed in a variety of industries. They are prominent in the oil & gas, mining, or renewable energy industries, or manufacturing industry for new plant … [Read more...]
Staying within budget and schedule is one of the project manager's most important jobs. It is not an understatement to say that if you master this one thing, most other things will fall into place. The secret to doing this well is called earned value management. It is one of the foundational processes of project management, as well as a central component of … [Read more...]
A cost benefit analysis is a project selection method in which a common metric is used to compare a project's costs and the benefits it provides. It is used in public projects (like road building) or projects where the end product is not purely monetary. The cost benefit analysis is performed by computing the net present value of the project with the net present … [Read more...]
Discounted cash flow is an project investment valuation method whereby future cash flows are discounted by a rate that accounts for the time value of money. It is used to make decisions between various available projects, or to determine the economic feasibility of a project. For example, when a business is expecting revenue of $250,000 next year, the current … [Read more...]
