Cost of Resolution in the Context of Project Management Key Performance Indicators

The Cost of Resolution is an important Key Performance Indicator (KPI) in project management.

The Cost of Resolution refers to the total resources - usually monetary - expended on resolving issues, conflicts, or problems that arise during the project lifecycle. It includes costs associated with additional labor, materials, equipment, or software needed to rectify any issues, as well as any indirect costs such as delay penalties or lost opportunities.

Monitoring the Cost of Resolution allows project managers to understand their project's efficiency in handling and resolving issues. It also provides valuable insights for improving resource allocation and planning for future projects.

Formula to Calculate Cost of Resolution

The Cost of Resolution is calculated by summing the costs incurred in resolving each issue identified during a specific period. Here's the formula:

Cost of Resolution = Sum of all Resolution Costs for each Issue

The Sum of all Resolution Costs for each Issue includes all direct and indirect costs associated with resolving each issue that has arisen in the specified period.

By tracking the Cost of Resolution, project managers can identify cost-effective strategies for issue resolution and manage their budgets more effectively, making it a valuable KPI in Project Management.