Measuring Performance Presenration

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Institute for International Research

Project 2002 Mohammad Sherbini

Project 2002Measuring Projects

Performance


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Presentation Topics


Why should we measure performance ?

What to measure ?

How to measure ? Case Study.

Who should measure performance ?

Whom to report to ?


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Definitions


Measuring * : to regulate by standards

Performance * : something accomplished.

* Webster Dictionary

It is a management tool

that measures work

performed and results

achieved.


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Why should we measure Performance?


If you cant measure it, you cant manage it.

over 95% of projects were unable to meet on-time

compliance.

One accurate measurement is worth more than a

thousand expert opinions.


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Why should we measure Performance?


Rewards, and recognition should be linked to

performance measurements.

Performance measurements predicts the final cost

needed for the project.


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What to measure ?


X CostTime

Goal / Objective


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What to measure ?


Pre-project measurements:to generate the base-line metrics.

Measurements :To be taken during the project which reveal whetherkey performance milestones are being met.

Post project measurements:to reveal whether the completed project has delivered

the specified project outputs and achieved the

specified outcomes for specified cost.


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What to measure ?


Meaningful

Responsibility linked

Organizationally Acceptable

Comprehensive

Balanced

Timely

Credible

Cost Effective

Compatible

Simple

Criteria for good Performance Measures :


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How to measure ?


Establish

missions

& Goals.

Select key

performance

measures.

Determine data

requirements.

Determine

baseline

performance.

Use benchmarking

to establish targets.Measure actual

performance and

report results.

Review and update

performance

measures.


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What to measure Performance?


1) Benchmarking.

2) Tracking & Monitoring System.

3) Earned Value Analysis (EVA).

Various methods:

4) Balanced Scorecard (BSC).


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1) Benchmarking.


Is being incorporated into the strategic Planning and

Quality Improvement process.

Based of history or similar project or process.

Combine empirical information and expert knowledge

to perform model based benchmarking.


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Benchmarking.


How to ?

Data Collection And Data Analysis.

Plan.

Identification of Best Practice.

Implementation.


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Benchmarking Planning.


Selecting Core Processes.

Preparing for Change.

Forming Benchmarking Team(s). Defining Activities And Measures.


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Benchmarking Identification of Best Practice.


Cost.

Time.

Customer/Organization Satisfaction.


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2) Tracking & Monitoring System.


Systems that monitor and report progress on

implementing goals and objectives.

It is a progress reporting system developed to track

and monitor performance measurement.


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Tracking & Monitoring System.


How to develop a tracking document ?

Set objectives.

Set Goals.

Develop action plans.

Identification of implementation team.

Communication: Comments and Explanation .

Information on current progress status.


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3) Earned Value Analysis (EVA).


It Compares the amount of work was planned with

what was actually accomplished to determine if cost

and schedule performance is as planned.

It integrate scope, cost and schedule measures to helpthe project management team assess project

performance.


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Earned Value Analysis (EVA).


How to ?

Schedule Performance Index (SPI).

Cost Performance Index (CPI).

Cost Variance (CV).

Schedule Variance (SV).

Estimate At Completion (EAC).

By Establishing the following:


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The Original Project Chart.


0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0

Jan-2001 Feb-2001 Mar-2001 Apr-2001 May-2001 Jun-2001 Jul-2001

Project Baseline


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Project Cost after 3 Months 50%


Actual Cost158,138 SR

Budget Cost

172,118 SR

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0


Actual cost Curve


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Budget Cost

172,118 SR

Earned Value

124,316 SR

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0


Earned Value Curve


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Cost Performance Index (CPI) at 50%.



Budget Cost

172,118 SR

Earned Value

124,316 SR

CPI=Earned Value

Actual Cost

CPI= 124,316

158,1380.786


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Schedule Performance Index (SPI) at 50%.



Budget Cost

172,118 SR

Earned Value

124,316 SR

SPI=Earned Value

Budget Cost

SPI= 124,316

172,1180.722


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Schedule Variance (SV) at 50%.



Budget Cost

172,118 SR

Earned Value

124,316 SR

SV= Earned ValueBudget Cost

SV= 124,316172,118 47,802 SR.

-

- =


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Budget Cost

172,118 SR

Earned Value

124,316 SR

Lowest

Budget Value

CPI

0.786=

CPI EAC=

386,396 SR.CPI EAC= 491,597 SR.


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Budget Cost

172,118 SR

Earned Value

124,316 SR

=

SPI * CPI =

386,396

CPI SPI EAC =

680,248

0.786 X 0.722 = 0.568

0.568

Budget Value

SPI CPI

=

High -End


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Budget Cost

386,396 SR

Earned Value

386,408 SR

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0



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4) Balanced Scorecard (BSC).


The balanced scorecard translate the organizations

strategic objectives into a set of performance

indicators.

It monitors both the current performance and itsefforts to improve processes, motivate and educate

employees, and enhance its ability to learn and

improve.


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Balanced Scorecard (BSC).


Strategic Perspectives

Customers

Internal

Business

Processes

Financial

Learning

And

Growth

Mission

Vision

Strategy

What must we excel at?How do our

Customers see us?

Do we get the best deal

for our organization?

Do we continue to improve

and create value?


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Who should measure Performance ?


Project Managers ?

Project Account Controller ?

Financial Manager ?

Owner or Organization ?


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Whom to report to ?


To Organization .

To Project Team Leader(s).

To Project Team members.


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Useful References:


Guidelines for Performance Measurement.DOE/G/120.1-5.Department of Energy, June 1996.

Program Performance Measures: Federal Agency Collection

and Use of Performance Data.GAO/GGD-92-65. General Accounting

Office, May 1992.

Performance Measurement Guide.Department of Treasury, FinancialManagement Service, 1993.

Fundamentals of Project Performance Measurement.By Kemps

Roberts.


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Measuring Projects Performance

Institute for International Research

Project 2002

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Measuring Performance Presenration

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