How to calculate your projects’ outcome?
When you render a service, the outcome of the project is essential for carrying out the management of the company.
We’ve already gone through the importance of analyzing metrics, being these the most important indicators when studying your firm’s activity.
The outcome determines the margin of income and effectiveness with which a project is carried out. You can evaluate each task separately or all tasks combined so as to determine the processes to be optimized.
There are several indicators for measuring outcome, such as SPI (which evaluates the work’s scheduling) or CPI (which will indicate if a project is financially viable).
However, in this article we’ll focus on calculating the income margin.
Knowing the time it takes to carry out each task is an essential factor. Knowledge on the capacity of human and technical resources, expertise on what needs to be done and experience are the keys for preparing an accurate estimation.
The budget is the initial kick for determining the outcome of a project. Calculating the cost in work hours and determining the income margin are essential.
The fact of registering worked hours of each member of the team will allow you to determine the real cost of each task. It is also useful for making the estimation of similar tasks in future projects easier.
During the development of a project, it is common to see that additional costs appear, which were not part of the initial budget. Writing down these costs will secure more accurate calculations.
Calculating the outcome
Finally, in order to calculate the outcome of a project or task, you must take away from the budgeting amount the amount of costs for worked hours and for additional costs. This will result in the income margin. If you wish to express the result as percentage, you should simply take this value, multiply it per 100 and divide it by the budgeting amount.
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