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Cost Benefit Analysis for Projects: A step by step approach

Organizations, both for-profit and not-for-profit ones, often contemplate the need to take up new initiatives, develop new policies, bring about changes or create new capabilities to improve their current state of business-as-usual and create new benefits for the organization and stakeholders. All such new initiatives will be taken up as new projects by the organizations. These projects are expected to create new business value or in some cases social value. Every new project or initiative will require fresh investments of efforts and money to be made. Organizations will need to make such decisions prudently by creating a clear justification.  Cost Benefit Analysis (CBA): What is it? Understanding Cost Benefit Analysis Conducting a cost benefit analysis (CBA) or a Benefit-Cost analysis (as may be referred alternatively) is one of the most fundamental methods used to compare the financial cost to be incurred for such new initiatives and benefits to be generated from them.  Origins of Cost Benefit Analysis To undertake new initiatives is an integral part of the evolution of mankind, at a personal level, at a social level or at a business level. On the social front, it may involve initiatives like developing new townships, new buildings, new schools, new hospitals, new monuments, new social infrastructures, and new offices. On the business front, it may involve developing new products, new services or new production capabilities. There has always been a need to make sound and clear decisions. As the accountability of leaders on financial matters continues to rise, the need for doing a cost-benefit-analysis also becomes inevitable. CBA as a practice becomes part of policy matters in government projects in the US dating back in 1936, when Corps of Engineers started doing CBA for Federal Waterway Infrastructure projects. Approach to Cost Benefit Analysis A fundamental approach to do CBA includes estimating all the costs to be incurred in doing the project and carefully evaluating and estimating all the benefits to be garnered from the project. Benefits can include both quantifiable financial benefits and non-quantifiable benefits such improvement in quality of life, ease of living, ease of doing business etc. The purpose of Cost Benefit Analysis We already discussed that every new project needs investments to be made with the expectation of returns from the investments. There are two main applications of conducting a CBA: To determine if an investment decision is sound, calculating if its benefits outweigh its costs and by how much. To provide a basis for comparing alternative investment options, comparing the total expected cost of each option with its total expected benefits, thereby creating a basis for selecting the most desirable/viable option. Costs and Benefits Estimating costs Estimating all costs to be incurred in doing a project is the first important part of CBA. It will involve carefully estimating and listing the required quantity, quality and duration of material, labor, equipment and facilities to be used for completing all the activities of project work. Then we can estimate the costs for each of the above categories of resources. There will also be a need to include cost for contingency, inflation, cost of financing (if needed) and cost of any other services (such as training, liaison etc.) which may be required to complete the project activities. Cost estimation can be done with a considerable amount of accuracy level if all the activities of the project can be identified and all resource quantities can be estimated as stated above.  Estimating benefits Estimating all benefits to be garnered is the second important part of CBA. Every project or investment done is expected to deliver benefits in future. Benefits can include financial benefits by means of increase in profit margins and increase in efficiency of doing things. Benefits can also include non-financial benefits such as increased comfort and ease of doing things, improved moral of people, increased satisfaction levels, more peace, social benefits etc. Financial benefits can be estimated with considerable amount of accuracy, while it will be somewhat challenging to estimate and quantify the non-financial benefits. Comparing costs and benefits After careful and diligent estimation of costs and benefits as stated above, we need to compare the costs to be incurred with benefits to be garnered. If the benefits outweigh the costs considerably, such proposals will be taken up for further consideration by the organizations. Organizations may lay down clear guidelines regarding minimum expected difference between benefits to cost for the projects to be selected for implementation. Organizations may also lay down clear guidelines for evaluating the social benefits (mostly non-financial as explained above) for clear decision-making after doing a CBA. How to do a Cost Benefit Analysis  To conduct cost benefit analysis, we need to estimate and enumerate all costs to be incurred and all benefits to be generated. Then one needs to compare the costs with benefits for arriving at suitable decisions and recommendation about whether the project is worthy of taking up or not. There are two broad methods for doing cost benefit analysis: Non-discounted method (does not consider the effects of interest and time period). Discounted method (considers the time period, interest, inflation etc. while calculating the costs and benefits) We can take a simple example below to illustrate some of these methods.  Analyzing using non-discounted method These are very simple methods without considering the effects of interest and time period.The below illustration shows the costs incurred and benefits over a period of six years.  Yr. 0Yr. 1Yr. 2Yr. 3Yr. 4Yr. 5Yr. 6Discount rate at 10% (0.1)Cost100000000000Benefits250002500025000250002500025000Example of CBA using Non-Discounted MethodTotal Cost = 100000; Total Benefits = 150000 Benefit Cost Ration (BCR) = Total Benefits / Total Costs = 150000/100000 = 1.5 (> than 1) Profit = Total Benefits (Revenue) – Total Costs = 150000 – 100000 = 50000 Payback Period = Time taken to recover the total cost (investments) = 4 years ROI = Return on Investment = Profit/Investment = 50000/100000 = 50%  Using the above simple non-discounted methods we can see that this project looks good with benefits being more than the cost, with positive profits and lower payback period.  But these calculations are too simplistic, and do not account for the time-value of money based on interest rates, inflation. Analyzing using discounted method In the above example, the costs are incurred in the present time, while the benefits will be received in future. These values of money are in different timelines and hence their values cannot be compared directly as it is. We need to bring down all the future values of benefits and costs to their corresponding present values and then we can do a comparison of present values of benefits and costs. The below formula can be used to understand the relationship between present value (PV) and future value (FV) of money. PV = FV/(1+r)n(where r stands for rate of discount of money, n stands for time period) In the below example, the cost and benefits value mentioned are in specific period in time. We need to bring all costs as well as all benefits to their corresponding present values (PV) using the above equation and assuming an interest (discount) rate of 10% for ease of calculation.   Yr. 0Yr. 1Yr. 2Yr. 3Yr. 4Yr. 5Yr. 6Discount rate at 10% (0.1)Cost (FV)100000000000Benefits(FV)250002500025000250002500025000Cost (PV100000000000Benefits(PV)0227272066118782170751552714112Example of CBA using Discounted MethodPV of all costs = 100000 (as it is happening in year 0 only) PV of all revenue = 25000/(1.1) + 25000/(1.1)2 + 25000/(1.1)3+ 25000/(1.1)4+ 25000/(1.1)5 +  25000/(1.1)6 = 22727+20661+18782+17075+15527+14112 =108884 Net Present Value (NPV) = Sum of PV of all benefits – Sum of PV of all costs = 108884 – 100000 = 8884 (> 0)  Hence this project investment will lead to a profit after discounting the effect of interest and any other inflationary factors which are taken as 10%) If NPV is > 0, then the project investments will lead to profit. NPV is one of the most practical methods for doing cost benefit analysis by considering the time-value of money.  IRR (Internal Rate of Return) – IRR is the rate of discount at which the sums of PV of all benefits equals sums of PV of all costs. Or in other words IRR is the rate of discount at which NPV equals 0.  Calculating IRR is a more complex affair. In simpler term IRR denotes expected rate of return from the investments. According to a general guideline, higher the IRR from an investment, the better the opportunity.  How to establish a framework As we discussed above, there are various methods for undertaking cost benefit analysis. Different financial parameters such as Benefit Cost Ratio (BCR), ROI, Payback Period, NPV, IRR etc. need to be calculated for arriving at decisions and making necessary recommendations on whether a specific project should be taken up or not. Every organization is unique in their capabilities to invest and take risk. Organizations can define their specific guidelines or framework for project selection taking into account the above financial parameters, the risks involved in doing the project and most importantly specific nature of the investors. A framework for project selection will include all above factors.  Below are some basic guidelines which are used for decision making during cost benefit analysis (CBA) NPV should more than 0. Higher the NPV, the better is the project. BCR should be more than 1. Higher the BCR, the benefits outweigh the cost more. ROI should be high. Higher the ROI, the better is the investment opportunity. IRR should be high. Higher the IRR, the better is the opportunity. Payback period should be lower. Lower the payback period, the better seems the opportunity. Challenges and considerations while doing CBA How accurate is Cost Benefit Analysis? Cost benefit analysis can be reasonably accurate if these are done by technical and financial experts. Experience and availability of real data about costs and benefits of similar projects from past can greatly enhance the accuracy of cost benefit analysis.  Are there limitations to Cost Benefit Analysis? Since cost benefit analysis requires estimating costs and quantifying future benefits accurately, it requires solid maturity in terms of knowledge and availability of past data. In the absence of experience and data availability, CBA may fall short in its accuracy.  The risks and uncertainties in Cost Benefit Analysis While doing cost and benefit analysis, it will be important to understand risks and uncertainties involved in doing the project. It will also be equally important to understand the uncertainties involved in realizing the benefits once the project is done. Cost benefits analysis need to consider the implications of uncertainties to make it realistic. It may require doing statistical simulations and modeling as well.  Cost Benefit Analysis in the real world We saw that CBA became a formal and mandatory practice as early as 1930s in the US government departments, for numerically evaluating if the benefits will outweigh (and by how much) the costs of doing the project.  Organizations have become highly knowledgeable, experienced, and matured. Availability of past data coupled with ability to process the data using modern mathematical and statistical techniques and computerized tools exists in abundance within organizations.  In today’s world the need for doing CBA has become necessary. Businesses and governments are held more and more responsible and accountable to their citizens and investors for justifying their investment decisions. They can do this only by conducting a thorough cost benefit analysis.  

Cost Benefit Analysis for Projects: A step by step approach

8K
Cost Benefit Analysis for Projects: A step by step approach

Organizations, both for-profit and not-for-profit ones, often contemplate the need to take up new initiatives, develop new policies, bring about changes or create new capabilities to improve their current state of business-as-usual and create new benefits for the organization and stakeholders. 

All such new initiatives will be taken up as new projects by the organizations. These projects are expected to create new business value or in some cases social value. Every new project or initiative will require fresh investments of efforts and money to be made. Organizations will need to make such decisions prudently by creating a clear justification.  

Cost Benefit Analysis (CBA): What is it? 

Understanding Cost Benefit Analysis 

Conducting a cost benefit analysis (CBA) or a Benefit-Cost analysis (as may be referred alternatively) is one of the most fundamental methods used to compare the financial cost to be incurred for such new initiatives and benefits to be generated from them.  

Origins of Cost Benefit Analysis 

To undertake new initiatives is an integral part of the evolution of mankind, at a personal level, at a social level or at a business level. On the social front, it may involve initiatives like developing new townships, new buildings, new schools, new hospitals, new monuments, new social infrastructures, and new offices. On the business front, it may involve developing new products, new services or new production capabilities. 

There has always been a need to make sound and clear decisions. As the accountability of leaders on financial matters continues to rise, the need for doing a cost-benefit-analysis also becomes inevitable. CBA as a practice becomes part of policy matters in government projects in the US dating back in 1936, when Corps of Engineers started doing CBA for Federal Waterway Infrastructure projects. 

Approach to Cost Benefit Analysis 

A fundamental approach to do CBA includes estimating all the costs to be incurred in doing the project and carefully evaluating and estimating all the benefits to be garnered from the project. Benefits can include both quantifiable financial benefits and non-quantifiable benefits such improvement in quality of life, ease of living, ease of doing business etc. 

The purpose of Cost Benefit Analysis 

We already discussed that every new project needs investments to be made with the expectation of returns from the investments. There are two main applications of conducting a CBA: 

  1. To determine if an investment decision is sound, calculating if its benefits outweigh its costs and by how much. 
  2. To provide a basis for comparing alternative investment options, comparing the total expected cost of each option with its total expected benefits, thereby creating a basis for selecting the most desirable/viable option. 

Costs and Benefits 

Estimating costs 

Estimating all costs to be incurred in doing a project is the first important part of CBA. It will involve carefully estimating and listing the required quantity, quality and duration of material, labor, equipment and facilities to be used for completing all the activities of project work. Then we can estimate the costs for each of the above categories of resources. There will also be a need to include cost for contingency, inflation, cost of financing (if needed) and cost of any other services (such as training, liaison etc.) which may be required to complete the project activities. 

Cost estimation can be done with a considerable amount of accuracy level if all the activities of the project can be identified and all resource quantities can be estimated as stated above.  

Estimating benefits 

Estimating all benefits to be garnered is the second important part of CBA. Every project or investment done is expected to deliver benefits in future. Benefits can include financial benefits by means of increase in profit margins and increase in efficiency of doing things. Benefits can also include non-financial benefits such as increased comfort and ease of doing things, improved moral of people, increased satisfaction levels, more peace, social benefits etc. Financial benefits can be estimated with considerable amount of accuracy, while it will be somewhat challenging to estimate and quantify the non-financial benefits. 

Comparing costs and benefits 

After careful and diligent estimation of costs and benefits as stated above, we need to compare the costs to be incurred with benefits to be garnered. If the benefits outweigh the costs considerably, such proposals will be taken up for further consideration by the organizations. Organizations may lay down clear guidelines regarding minimum expected difference between benefits to cost for the projects to be selected for implementation. Organizations may also lay down clear guidelines for evaluating the social benefits (mostly non-financial as explained above) for clear decision-making after doing a CBA. 

How to do a Cost Benefit Analysis  

To conduct cost benefit analysis, we need to estimate and enumerate all costs to be incurred and all benefits to be generated. Then one needs to compare the costs with benefits for arriving at suitable decisions and recommendation about whether the project is worthy of taking up or not. 

There are two broad methods for doing cost benefit analysis: 

  1. Non-discounted method (does not consider the effects of interest and time period). 
  2. Discounted method (considers the time period, interest, inflation etc. while calculating the costs and benefits) 

We can take a simple example below to illustrate some of these methods.  

Analyzing using non-discounted method 

These are very simple methods without considering the effects of interest and time period.The below illustration shows the costs incurred and benefits over a period of six years.  


Yr. 0Yr. 1Yr. 2Yr. 3Yr. 4Yr. 5Yr. 6Discount rate at 10% (0.1)
Cost100000000000
Benefits
250002500025000250002500025000

Example of CBA using Non-Discounted Method

Total Cost = 100000; Total Benefits = 150000 

  • Benefit Cost Ration (BCR) = Total Benefits / Total Costs = 150000/100000 = 1.5 (> than 1) 
  • Profit = Total Benefits (Revenue) – Total Costs = 150000 – 100000 = 50000 
  • Payback Period = Time taken to recover the total cost (investments) = 4 years 
  • ROI = Return on Investment = Profit/Investment = 50000/100000 = 50%  

Using the above simple non-discounted methods we can see that this project looks good with benefits being more than the cost, with positive profits and lower payback period.  

But these calculations are too simplistic, and do not account for the time-value of money based on interest rates, inflation. 

Analyzing using discounted method 

In the above example, the costs are incurred in the present time, while the benefits will be received in future. These values of money are in different timelines and hence their values cannot be compared directly as it is. We need to bring down all the future values of benefits and costs to their corresponding present values and then we can do a comparison of present values of benefits and costs. 

The below formula can be used to understand the relationship between present value (PV) and future value (FV) of money. 

  • PV = FV/(1+r)n(where r stands for rate of discount of money, n stands for time period) 

In the below example, the cost and benefits value mentioned are in specific period in time. We need to bring all costs as well as all benefits to their corresponding present values (PV) using the above equation and assuming an interest (discount) rate of 10% for ease of calculation.   


Yr. 0Yr. 1Yr. 2Yr. 3Yr. 4Yr. 5Yr. 6Discount rate at 10% (0.1)
Cost (FV)100000000000
Benefits(FV)
250002500025000250002500025000
Cost (PV100000000000
Benefits(PV)0227272066118782170751552714112

Example of CBA using Discounted Method

  • PV of all costs = 100000 (as it is happening in year 0 only) 
  • PV of all revenue = 25000/(1.1) + 25000/(1.1)2 + 25000/(1.1)3+ 25000/(1.1)4+ 25000/(1.1)5 +  25000/(1.1)6 = 22727+20661+18782+17075+15527+14112 =108884 
  • Net Present Value (NPV) = Sum of PV of all benefits – Sum of PV of all costs = 108884 – 100000 = 8884 (> 0)  

Hence this project investment will lead to a profit after discounting the effect of interest and any other inflationary factors which are taken as 10%) 

If NPV is > 0, then the project investments will lead to profit. NPV is one of the most practical methods for doing cost benefit analysis by considering the time-value of money.  

  • IRR (Internal Rate of Return) – IRR is the rate of discount at which the sums of PV of all benefits equals sums of PV of all costs. Or in other words IRR is the rate of discount at which NPV equals 0.  Calculating IRR is a more complex affair. In simpler term IRR denotes expected rate of return from the investments. According to a general guideline, higher the IRR from an investment, the better the opportunity.  

How to establish a framework 

As we discussed above, there are various methods for undertaking cost benefit analysis. Different financial parameters such as Benefit Cost Ratio (BCR), ROI, Payback Period, NPV, IRR etc. need to be calculated for arriving at decisions and making necessary recommendations on whether a specific project should be taken up or not. 

Every organization is unique in their capabilities to invest and take risk. Organizations can define their specific guidelines or framework for project selection taking into account the above financial parameters, the risks involved in doing the project and most importantly specific nature of the investors. A framework for project selection will include all above factors.  

Below are some basic guidelines which are used for decision making during cost benefit analysis (CBA) 

  1. NPV should more than 0. Higher the NPV, the better is the project. 
  2. BCR should be more than 1. Higher the BCR, the benefits outweigh the cost more. 
  3. ROI should be high. Higher the ROI, the better is the investment opportunity. 
  4. IRR should be high. Higher the IRR, the better is the opportunity. 
  5. Payback period should be lower. Lower the payback period, the better seems the opportunity. 

Challenges and considerations while doing CBA 

How accurate is Cost Benefit Analysis? 

Cost benefit analysis can be reasonably accurate if these are done by technical and financial experts. Experience and availability of real data about costs and benefits of similar projects from past can greatly enhance the accuracy of cost benefit analysis.  

Are there limitations to Cost Benefit Analysis? 

Since cost benefit analysis requires estimating costs and quantifying future benefits accurately, it requires solid maturity in terms of knowledge and availability of past data. In the absence of experience and data availability, CBA may fall short in its accuracy.  

The risks and uncertainties in Cost Benefit Analysis 

While doing cost and benefit analysis, it will be important to understand risks and uncertainties involved in doing the project. It will also be equally important to understand the uncertainties involved in realizing the benefits once the project is done. Cost benefits analysis need to consider the implications of uncertainties to make it realistic. It may require doing statistical simulations and modeling as well.  

Cost Benefit Analysis in the real world 

We saw that CBA became a formal and mandatory practice as early as 1930s in the US government departments, for numerically evaluating if the benefits will outweigh (and by how much) the costs of doing the project.  

Organizations have become highly knowledgeable, experienced, and matured. Availability of past data coupled with ability to process the data using modern mathematical and statistical techniques and computerized tools exists in abundance within organizations.  

In today’s world the need for doing CBA has become necessary. Businesses and governments are held more and more responsible and accountable to their citizens and investors for justifying their investment decisions. They can do this only by conducting a thorough cost benefit analysis.  

KnowledgeHut

KnowledgeHut

Author

KnowledgeHut is an outcome-focused global ed-tech company. We help organizations and professionals unlock excellence through skills development. We offer training solutions under the people and process, data science, full-stack development, cybersecurity, future technologies and digital transformation verticals.
Website : https://www.knowledgehut.com

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Five Tips To Ace The PMP Certification Exam

A project manager plays a crucial role in a project. From planning the entire project from scratch to managing different teams involved, a project manager is always on his/her toes to ensure that the project is completed successfully. A formal certification in this domain could take you to greater heights in your career. You will be awarded the PMP certificate after you successfully pass the exam. In this article, we’re going to discuss 5 methods in which you can ace the certification exam. Tip #1: Time Management This is a very old principle that is applicable even today. Before beginning your study session, make a list of topics you want to complete at the end of your study session. You need to divide your time efficiently in order to cover all the topics for the examinations. At times, studying for 3 hours at a stretch can be very boring. Instead, divide the three hours into 6-thirty minute sessions. Take a 5-minute break after every session. This will relax your mind and help you study better in the next session. You will also be able to retain the information because you’re not stressing your brain with too much information all at once. Ensure that you devote more time to your preparations over the weekend. Tip #2: PMBOK and Study group The PMBOK (Project Management Body of Knowledge) is a vital book which contains all the guidelines that should be followed in project management. The content mentioned in the book is overseen by Project Management Institute (PMI). This book will help you clearly understand all the concepts required for the certification exam. Apart from this book, you can refer other books or study material from online sources. In order to cover more topics in a short span of time, join a study group. This motivates and also helps you gain more knowledge as the other candidates in the study group could have thorough knowledge about topics you have difficulty in. Learning from them could be faster than referring numerous books and study material. Tip #3: Take practice tests and review them To ensure that you’re completely prepared to write the exam, simulate the exam hall conditions and take practice tests. Request peers not to disturb you for that particular duration. Do not take any break in this period and keep away from distractions. This will give you a feel of how the exam will be like on the D-day. Once you’re done, review the answers you have written and cross check it. Also, practice the topics thoroughly which you didn’t get right in the practice tests. Tip #4: Take the actual exam in sequences When you first get the question paper in the examination, do not waste time by reading all the questions in the beginning. Start solving the easy questions immediately which you can complete in a short span of time. Once this is done, scan the paper once again and solve the questions which are of medium difficulty. After you complete such questions, spend time with the difficult ones. This will help you to solve maximum questions perfectly. In the conventional approach of reading the entire question paper a few times and then attempting the easy ones, you end up losing a significant amount of time in reading the question. In the conventional approach, if you encounter a difficult question which you cannot solve, you will get tensed and won’t be able to concentrate on other questions either. Tip #5: Understand the concepts accurately At times, when we find it difficult to understand the topic, we end up memorizing the topic instead of trying harder to understand it. This approach might work temporarily but, in the long run, you will fail miserably. Especially in the exam hall where tensions will be running high, there is a good chance that you will forget what you memorized. To avoid such situations, spend that extra 15 minutes while studying and understand the topic. This has two perks. Firstly, you don’t need to remember anything and secondly, you can easily apply the concept to any problem given in the paper. A formal certification in any field could boost your career because the certification is proof that you are efficient in solving problems in that particular domain. The PMP certification is a reputed certification that is recognized by organizations around the globe. Hence, this certification will give take you to greater heights in your career.
Five Tips To Ace The PMP Certification Exam

A project manager plays a crucial role in a projec... Read More

Four Tips To Prepare For PRINCE2 Certification Exam

PRINCE stands for PRojects IN Controlled Environments. In simpler terms, it is one of the leading project management methods in the market at present. The government of United Kingdom first used this methodology in their processes. It was later adopted by the private sector. It follows the product-based planning approach. A certification in this methodology could help you upgrade your knowledge about the domain and to seek better job opportunities. A few tips to ace the certification exam are: Tip #1: Last-minute prep Students have a habit of studying a few topics right before entering the exam hall or once they reach the exam hall. They believe that they will able to remember it clearly once they study the topic at the last minute. This is a myth and do not follow it at any cost. Last minute prep only ruins your confidence as you feel you haven’t prepared enough. It will be very difficult to recollect the topic that you had studied in the last minute. This will get you worked up and leave you confused. The end result will be that you won’t be able to perform properly in the rest of the questions as well. To avoid all these troubles, study well in advance and only revise once if you like after reaching the venue. Tip #2: Enroll for an offline/online training course The PRINCE2 Foundation certification is easier compared to the Practitioner certification. One of the best ways to prepare for the practitioner certification is to join a training institute or an online training program. The benefits of doing this are plenty. You will gain access to a tonne of study material. There will be trainers in the online as well as offline course who have taken the exam and could give you crucial tips which they have gained from their experience over the years. You might be reluctant to spend the extra money and time initially but, in the end, it will all be worth it. The institutes will also give mock tests in which you can apply the knowledge and tips you have gained in the classes. Tip #3: Practice makes a man perfect You could join an institute, you could buy a tonne of study material, and you could search for many tips and tricks. In the end, if you don’t practice these on a regular basis, it is futile. In order to ace the exam with flying colours, you need to practice the topics on a daily basis. Make sure you prepare a schedule and stick to it. A week before the exam, take a break from everything else and focus only on the exam. It is 2.5 hours that can completely change your future. The practice tests are also crucial as they give you a feel of the difficulty of questions in the actual paper. Hence, spending the extra few hours on preparation will all be worth it in the end. Tip #4: Ensure you clearly understand the different aspects During the exam prep, ensure that you know the different roles and responsibilities and also all the responsibilities of a particular role in the project management team. Understanding the sequence of all processes is also crucial. This includes figuring out who is responsible for a particular activity in a project. There are many themes included in the PRINCE2 manual. For the Foundation Exam, you need to be thorough with all the purpose statements mentioned at the beginning of each process/theme. The process by which a principle is used in a specific method should also be known to you. Another essential aspect of the Practitioner exam is product planning. You need to have a thorough idea on the diagrams and product descriptions under product planning. Though you don’t need to draw diagrams in a multiple-choice question, it will be easier to solve the problems if you can efficiently draw the diagrams. A formal certification is always necessary from a career point of view as it helps you to gain better job opportunities and improve your pay grade. It is also an indication that you have thoroughly grasped all the concepts of project management. Being proficient in a particular project management methodology is a vital addition to your skill set.
Four Tips To Prepare For PRINCE2 Certification Exa...

PRINCE stands for PRojects IN Controlled Environme... Read More