This article provides insight as to the logic and calculations behind Project KPI's and overall Health.
Milestone Health
Milestone health is based on the greatest number of days a milestone on the project is past due. So, if a project has multiple past due milestones, the milestone that is the most past due is used.
As an example, if a project has 3 milestones and 1 is complete, one is 1 day past due, and 1 is 3 days past due, the milestone that is 3 days past due will be used to calculate the milestone health.
Milestone Health = Not Applicable if no milestones or project is not in progress
= Healthy if no milestones are past due or a milestone is only 1 day past due
= Needs Review if milestones are 7 or less days past due
= Unhealthy if over 7 days past due
Risk Health
To calculate risk health, we first need to calculate the risk score of each risk, which is based on the risk criticality and risk probability. The higher the risk criticality and risk probability, the hire the risk score.
Risk Criticality Values:
1 = Very Low
2 = Low
3 = Medium
4 = High
5 = Very High
Risk Probability Values:
1 = Very Low
2 = Low
3 = Medium
4 = High
5 = Very High
6 = Issue
Risk Score = (criticality of risk) X (probability of risk)
So, a risk with a Low criticality and a High probability will have a risk score of 2 x 4 = 8
We then need to calculate the risk score for the whole project, which is just the average of all risk scores
So consider a project with 3 risks with the following criticality and probability.
| Risk | Criticality | Probability | Risk Score |
| Risk 1 | Very Low (1) | Low (2) | 2 |
| Risk 2 | Medium (3) | Medium (3) | 9 |
| Risk 3 | High (4) | Very Low (1) | 4 |
The project Risk score = (2 + 9 + 4)/3 = 5
This Risk Score is then used to calculate the Risk Health
Risk Health = Not Applicable if no risks or project is not in progress
= Healthy if risk score is 6 or less
= Needs Review if risk score is greater than 6 but less or equal to 9
= Unhealthy if risk score 10 or greater
Status Log Health
While the status log is not part of the overall project health calculation, it is still calculated so you can see if a project is regularly having its status updated.
Status Health = Not Applicable if the project is not in progress or there are no status log entries and the project started 7 or less days ago
= Healthy = The last status log entry was 7 or less days ago
= Needs Review = The last status log entry was 8 to 14 days ago
= Unhealthy = The last status log entry was over 14 days ago
Project Health
To calculate the project health, we first need to calculate the project health score, which is based on the project risk and project milestone health values, which can be Unhealthy, Need Review, or Healthy. These statuses have the following values associated with them:
Unhealthy: 2
Needs Review: 1
Healthy: 0
Project Health Score = N/A if there are no milestone or risk health values
= Risk Health Status if there is no Milestone Health Status
= Milestone Health Status if there is not Risk Health Status
= (Risk Health Status + Milestone Health Status) / 2
The health score is then used to calculate the health status
Project Health Status = N/A if score is N/A or project is not in progress
= Healthy if score is .5 or less or project is Complete
= Needs Review if score is greater than .5 or less than or equal to 1.5
= Unhealthy if score is greater than 1.5
Examples:
| Risk Status | Milestone Status | Project Health Score | Project Health Status |
| NA | NA | NA | NA |
| Healthy (0) | NA | 0 | Healthy |
| NA | Needs Review (1) | 1 | Needs Review |
| Healthy (0) | Unhealthy (2) | 1 | Needs Review |
| Healthy (0) | Healthy (0) | 0 | Healthy |
| Healthy (0) | Needs Review (1) | .5 | Healthy |
| Unhealthy (2) | Needs Review (1) | 1.5 | Needs Review |
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