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Measuring Project PerformanceMeasuring Project Performance

Measuring project performance is an important part of project and program management. It allows the PMO and project manager to identify cost and schedule problems early and take steps for remedial action. It starts with setting the standards for the size of work packages, applying credit for work performed, and which earned value metrics to track, which should be included in the project’s budget.

Measuring project performance provides the organization with a clear picture of the health of its projects and can instil confidence in the project teams. Additionally, these performance measures can help the PMO establish continuous improvement initiatives in areas where projects commonly perform at lower levels. The usefulness of measuring project performance is evident and as long as organizations do not become overwhelmed with them, these measures will remain important contributors to organizational success.

Performance Evaluation Techniques,

Measuring the performance of a project stage involves looking backwards, at the progress made against plans, and forwards, at what still needs to be completed with what time and resources. There are many techniques available to measure project progress, including:

Highlight Report,

The Project Manager produces this report on management stage progress for the Project Board. The Project Board will determine the frequency of Highlight Reports required, either for the whole Project or stage by stage, and document this in the Communication Management Strategy.

Exception Report,

A description of the exception situation, its impact, options recommendation and impact of the recommendation. This report is prepared by the Project Manager for the Project Board. 

Milestone chart,

This is chart showing key planned and actual milestones in a project.

S- Curve,

This is a graph showing cumulative actual figures (for example, costs or hours) plotted against time. The curve is usually shaped like the letter ‘S’, reflecting the fact that a project typically consumes fewer resources and costs at the start and end of the project, and more in the middle. The steeper the curve, the more resources required. When planned and actual figures are shown on the same chart, this can be used to identify potential overspend or forecast areas where tolerances may be exceeded.

Earned Value Management

This is a technique to measure the scope, schedule and cost performance compared with plans, by comparing the completed products and their actual cost and time taken against their schedule and cost estimates.

Checkpoint Report

The Team Manager will produce this to provide the Project Manager with details of progress against the Work Package.Let us help you Measure Project Performance

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