Intro to Project Management: Agile Project Management - Burndown and Burnup Charts

What This Is

Burndown and Burnup charts are visual tools used in project management to track progress and stay on schedule. These charts help project managers and teams understand how much work remains to be done and whether they're on track to meet deadlines. For example, imagine building a new software application. A burndown chart would show how much code is left to write, while a burnup chart would display the total amount of code written over time. By using these charts, the project manager can identify potential issues and make adjustments to ensure the project stays on track.

Key Terms & Formulas

• Burndown Chart: A chart that shows the amount of work remaining over time, typically used to track progress and identify potential issues.
• Burnup Chart: A chart that shows the amount of work completed over time, typically used to track progress and demonstrate progress to stakeholders.
• Work Remaining (WR): The amount of work left to be done, calculated by subtracting the amount of work completed from the total work scope.
• Work Completed (WC): The amount of work already done, calculated by adding up the amount of work completed each day or iteration.
• Velocity (V): The amount of work completed per iteration or time period, calculated by dividing the work completed by the number of iterations or time periods.
• Remaining Work (RW): The amount of work left to be done, calculated by subtracting the work completed from the total work scope.
• Earned Value (EV): The value of the work completed, calculated by multiplying the work completed by the budgeted cost per unit of work.
• Budget at Completion (BAC): The total budget allocated for the project, calculated by multiplying the total work scope by the budgeted cost per unit of work.
• Cost Performance Index (CPI): A measure of how well the project is performing in terms of cost, calculated by dividing the earned value by the actual cost.
• Earned Value Formula: EV = % complete × BAC
• CPI Formula: CPI = EV / AC (Actual Cost)
• Schedule Performance Index (SPI): A measure of how well the project is performing in terms of schedule, calculated by dividing the earned value by the planned value.

Step-by-Step / Process Flow

1. Create a Work Breakdown Structure (WBS): Break down the project into smaller, manageable tasks to track progress.
2. Estimate the Work Scope: Estimate the total amount of work required to complete the project.
3. Track Work Completed: Record the amount of work completed each day or iteration.
4. Calculate Work Remaining: Subtract the work completed from the total work scope to determine the amount of work left to be done.
5. Create a Burndown or Burnup Chart: Use the work completed and work remaining data to create a chart that shows progress over time.
6. Monitor and Adjust: Regularly review the chart to identify potential issues and make adjustments to stay on track.

Common Mistakes

• Mistake: Not regularly tracking work completed and work remaining.
• Correction: Regularly track work completed and work remaining to ensure accurate progress tracking.
• Mistake: Not using a burndown or burnup chart to visualize progress.
• Correction: Use a burndown or burnup chart to visualize progress and identify potential issues.
• Mistake: Not adjusting the project schedule or budget based on progress.
• Correction: Regularly review progress and adjust the project schedule or budget as needed to stay on track.

Exam Tips

• Tip: Be able to explain the difference between a burndown chart and a burnup chart.
• Tip: Understand how to calculate work remaining and work completed.
• Tip: Be able to explain the concept of velocity and how it relates to burndown and burnup charts.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 means the project is performing better than expected in terms of cost.
2. If the burndown chart shows a steady decrease in work remaining, but the burnup chart shows a slow increase in work completed, what might be the issue? Answer: The team might be spending too much time on each task, causing the burndown chart to decrease slowly, but not completing enough work to show a significant increase on the burnup chart.
3. If the earned value is $100,000 and the budget at completion is $200,000, what is the percent complete? Answer: 50%. Explanation: Using the earned value formula, EV = % complete × BAC, we can calculate the percent complete by dividing the earned value by the budget at completion.

Last-Minute Cram Sheet

• Burndown Chart: Tracks work remaining over time.
• Burnup Chart: Tracks work completed over time.
• Work Remaining (WR): WR = Total Work Scope - Work Completed (WC).
• Work Completed (WC): WC = Total Work Scope - Work Remaining (WR).
• Velocity (V): V = Work Completed (WC) / Number of Iterations or Time Periods.
• Earned Value (EV): EV = % complete × BAC.
• Budget at Completion (BAC): BAC = Total Work Scope × Budgeted Cost per Unit of Work.
• Cost Performance Index (CPI): CPI = EV / AC.
• Schedule Performance Index (SPI): SPI = EV / PV (Planned Value).
• Burndown and burnup charts are not the same as Gantt charts.
• Velocity is not the same as work completed per iteration.
• Earned value is not the same as actual cost.
• CPI is not the same as SPI.