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Performance Measurement

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In this paper the subject to compare and contrast will be of three performance measurements, which can be used by the project manager during a project. Performance measurement is a numeric description of the work during a project and the results once the project is complete (Office of Financial Management, 2009). The performance measures provide the project manager and the team about progress in meeting the goals and objectives of the project. Measuring performance allows budget decisions, better management, and accountability for the project manager. The three performance measures, which will be addressed, are quality, key milestones, and target costs.
Quality
Quality is measured by the percentage of what is produced or received, which meets the specification of the project the first time, without any reworking. The measurement of quality entails assessing the effectiveness of the management of quality and determining problem areas, opportunities, savings, and action priorities (Performance management, 2011). Costs indicate the quality of the project. Prevention costs are costs planned and incurred before the project is started. As the project progresses, other costs such as appraisal, failure, internal, and external failure are other types of quality-related costs (Performance management, 2011). These costs are indicators to the project manager alerting him or her of quality suffering because of complaints, waste, rework, and repairs relating to the project. Kerzner (2006) explains that quality must be planned for and designed in on any project. This accounts for 50% of direct labor dollars according to Kerzner (2006). Organizations, which place a high value on quality, understand the importance of building these costs into the budget before the project is started. Cutting corners will decrease quality of the project. Key Milestones Key

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