...Performance Measurement Penny Myers MGT 437 April 18, 2011 Performance Measurement Successful companies invest time, money, and resources in projects with the goal of earning a return on investment. The project manager ensures projects stay on schedule and within budget and performance management gives the project manager visibility to ensure they are operating within the agreed upon time and cost constraints and that the project is performing according to plan. Performance measurement is important because it is the process an organization uses to establish parameters to reach desired results (Schied, 2010). Measuring project performance allows the project manager to identify cost and schedule problems and take action to remedy problems quickly. Measuring project performance also provides the organization with a picture of how healthy the project is and can help establish improvement initiatives. When managing a project, triple constraints of budget, time, and performance are important measures. The budget is managed by controlling resources according to the financial plan of the project. Time keeps the team on schedule and allows meeting of deadlines. Performance measurements should be created by project and be based on the scope, goals, and objectives of the stakeholders (Schied, 2010). Measurements are specific to each project but three measurements that could be used to measure performance include speed, accuracy, and volume. Speed shows...
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...Performance Measurement Linda Tate MGT/437 April 21, 2014 Michael Koma Performance Measurement Performance measurement is an essential part of the company; it provides a stage for managers and supervisors, as well as, the performance of its employees. It helps them determine whether or not employees are meeting the company’s expectations. Performance measurement methods differ according to the work surroundings, such as, the company, and the occupation of the employee. It can determine an employee’s employment status, and his or her compensation, as well as, their opportunity for advancement. Because of this performance management should consist of methods that use fair and correct assessments of the employee’s performance. To help employer’s measure employee’s performance, they must establish performance standards, which define what employees need to meet or exceed the company’s expectations (Ruth Mayhew, 2014). This paper will compare and contrast three performance measurements for the working environment of the company, and then the importance of performance measurements within a project. Graphic Rating Scales This is the first performance measurement; it is perfect for production work environments, like fast food restaurants. A list of job duties and performance standards is listed on a scale rating from 1 to 5, which rates the employee’s performance. This method requires preparation and can be completed quickly; this is superb for managers who...
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...should be ignored. Please see the other helpful writing resources in the Tutorials and Guides section of the Center for Writing Excellence. Thank you for using WritePoint. Performance Measurement in Project Management Project Management 437 Performance Measurement in Project Management The need to measure the performance of a project in world of business is an important part of project management. Measuring the performance of a...
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...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...
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...Performance Measurements Performance Measurements To maintain successful balance during a project and determine if the project met the demands of the shareholders, it is important to implement performance measurements. Many types of measurement may be used but three that stand out above the rest are return on investment, productivity, and customer satisfaction. Each of the measurements takes place at crucial points during the project and helps to identify success or failure of the project. The return on investment is an equation used to determine if the reward for risk is worth taking on a project. Project planning occurs by listing the resources necessary to accomplish a certain goal. The investment should not outweigh the return and thus the equation, net benefits divided by cost, multiplied by 100. Benefits can consist of contribution to profits, savings of costs, or an increase in the quantity of output converted to a dollar value. Costs can include the expense incurred for the design and development of the improvement initiative, cost of resources, travel, or training. If the return on investment is not worth the risk, the project may terminate itself before it ever starts (“Measures of Project Management Performance and Value,” 2005). Upon approval by the shareholders based on the return on investment, the project plan is assembled and the productivity measures are taken. The results are determined as the output produced per unit of input and show whether the money...
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...withosection of the Cost Management Plan defines how the project’s costs will be measured. The PMBOK focuses on Earned Value Management for measuring and controlling a project’s costs. Earned Value Management is a broad and powerful tool; as such, we recommend that all project managers take some formal courses in Earned Value Management. In this section you should detail how you will measure the project costs. What Earned Value measurements will be captured and reported upon. Will you use any tools, such as project management software, to assist in capturing Earned Value metrics? How will you forecast future project costs? Will you review cost performance over time, across work packages or schedule activities? Our example in this section measures four Earned Value measurements; Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI) and Cost Performance Index (CPI). For most typical projects these four measurements can provide enough insight for effective management without overburdening the Project Manager with Earned Value calculations and measurements. Schedule Variance (SV) is a measurement of the schedule performance for a project. It’s calculated by taking the Earned Value (EV) and subtracting the Planned Value (PV). Since EV is the actual value earned in the project and the PV is the value our project plan says we should have earned at this point, when we subtract what we planned from the actual we have a good measurement which tells us if we are...
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...Performance Measurement Robert Campbell MGT/437 March 14, 2011 Sunil Mehta Performance Measurement According to NY Government (n.d.) website, “Strategic, performance measurement-based management systems allow an organization to align its business activities to its strategy, and to monitor performance toward strategic goals over time” (para. 1). Each measurement should be objective, easy to understand, controllable by minimizing outside influences, timely, accurate, cost-effective, useful, motivating, and trackable (NY Government, n.d.). The use of performance measurement is important because the stock market’s volatility has shown that financial measurement is not the only measurement. By using measurement techniques companies can compare themselves to established norms. In this discussion there will be a look at three different types of performance measurement systems, what they do and how they are used. These systems identified are the balanced scorecard, performance dashboards, and the economic value added. The balanced scorecard is a strategic planning and management measurement style widely used throughout the business world to bring its business activities in line with the vision and strategy of the organization (Balanced Scorecard Institute, 1998-2010). According to the Balanced Scorecard Institute (1998-2010) the implementation increases focus on strategy and results, increases organizational performance by measuring what is important, and aligns strategy...
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...Accurate Pricing * Define implementation support (amount, schedule, information on trainer(s) such as their communication efficiency and experience with product and company)= Define Your Support * Clarify roles, responsibilities, and costs for data migration strategy if desired. Sometimes, being selective with which data or how much data to migrate can influence the ease of transition = Clarify the data * Server options (e.g., client server, application service provider (ASP), software as a service (SAS)) = Server options * Ability to integrate with other products (e.g., practice management software, billing systems, and public health interfaces) = Does it play well with your other products * Privacy and security capabilities and back-up planning = Plan a backup plan * Linking payments and EHR incentive rewards to implementation milestones and performance goals = Link for...
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...RESULTS BASED MANAGEMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES: A REVIEW OF EXPERIENCE BACKGROUND REPORT In order to respond to the need for an overview of the rapid evolution of RBM, the DAC Working Party on Aid Evaluation initiated a study of performance management systems. The ensuing draft report was presented to the February 2000 meeting of the WP-EV and the document was subsequently revised. It was written by Ms. Annette Binnendijk, consultant to the DAC WP-EV. This review constitutes the first phase of the project; a second phase involving key informant interviews in a number of agencies is due for completion by November 2001. TABLE OF CONTENTS PREFACE.......................................................................................................................................................... 3 I. II. III. IV. V. VI. RESULTS BASED MANAGEMENT IN THE OECD COUNTRIES -- An overview of key concepts, definitions and issues -- ........................................................................ 5 RESULTS BASED MANAGEMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES -- Introduction --...................................................................................................................................... 9 PERFORMANCE MEASUREMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES -- The project level --............................................................................................................................ 15 PERFORMANCE MEASUREMENT IN THE...
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...A Review of Project Performance Measurement Introduction The management of engineering projects in any type of industry is becoming a challenge to professional engineers and technical managers as competitions for business opportunities arise in an increasingly competitive market place for effective project management and control systems in compliance with clients’ contractual requirements. Never before have the pressures on project managers been as great as they are today to successfully satisfy the criteria of time, cost and quality in the completion of the projects for which they are responsible. Delayed Projects cost 1, 64,000 direct jobs and Rs. 2.5 lakh crore investment says ASSOCHAM. India lost the job opportunities of employing more than 1,64,000 people with eighteen major projects in sectors like steel, power, auto getting stuck due to procedures relating to land acquiring and forest & environment clearances, an Assocham Eco Pulse (AEP) Study has stated. According to AEP study “Delayed Projects and lost job opportunities”, the 18 strangled projects of India Inc. to the tune of Rs. 2,44,815.5 crore remained on papers, in the form of MoUs and agreements over the past three-four years, however the smooth implementation could have created job opportunities for at least 1, 64, 000 people directly and 2,70,000 people indirectly. The technology being used in today’s projects is increasing in complexity as the state of the art of technology is being pushed to the limit...
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...Speed, accuracy, and volume are important indicators of project performance and are similar because they are indicators of how a projects performance can be evaluated irrespective of the timeframe and budget. Each also can be applied to a large range of projects and allow benchmarks to be established that represent the performance a project leader expects. Benchmarks should always be SMART (Specific, measurable, assignable, realistic, and time-oriented). Speed, accuracy, and volume are specific, measureable, and assignable because they are indicators that can be gauged, and someone can be accountable and responsible for his success (Performance Measurement in Project Management, 2007). Differences exist in these three measurements and the way they are quantified. One difference is in the type of measurements. Speed represents a rate, such as miles per hour. Volume represents a number such as number of attendees, and accuracy is whether something goes according to plan such as a wedding. Accuracy can relate to quality of a finished product and in that case another performance measure may be more appropriate (Performance Measurement in Project Management, 2007). Many methods can be used to measure project performance. Earned Value Management analyzes scope, cost, and schedule throughout the lifecycle of the project. It provides accurate forecasts and performance problems. PERT charts show a projects schedule, sequence of tasks to be performed at the same time and the critical...
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...and PMBOK® Guide are trademarks of the Project Management Institute, Inc. PMI® has not endorsed and did not participate in the development of this product. Integration Management Process Name Develop Project Charter Inputs Outputs Tools and Techniques Project Statement of Work Business Case Project Charter Experts Judgment Project Management Plan Experts Judgment Project Management Plan Approved Change Requests Deliverables Work Performance Information Experts Judgment Project Management Information System Enterprise Environmental Factors Change Requests Organizational Process Assets Project Management Plan Updates Contracts Enterprise Environmental Factors Organizational Process Assets Develop Project Management Plan Project Charter Outputs From Planning Processes Enterprise Environmental Factors Organizational Process Assets Direct and Manage Project Execution Project Document Updates Project Management Plan Performance Reports Change Requests Project Management Plan Updates Enterprise Environmental Factors Monitor and Control Project Work Experts Judgment Project Document Updates Organizational Process Assets Project Management Plan Work Performance Information Change Requests Status Updates Project Management Plan Updates Change Requests Perform Integrated Change Control Experts Judgment Change Control Meetings Project Document Updates Enterprise Environmental...
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...authorizes a project or phase. Documenting initial requirements that satisfy stakeholder's needs and expectations. Finalizing all activities across all Process Groups to formally complete the project or phase Project Management Plan Accepted Deliverables Organizational Process Assets Expert Judgment Tool & Techniques Outputs Inputs Inputs Project Statement of Work Business Case Contract (when applicable) Enterprise Environmental Factors Organizational Process Assets Tool & Techniques Outputs Expert Judgment 4.6 Close Project or Phase Closing Process Group 4.1 Develop Project Charter Initiating Process Group Final Product, Service, or Result Transition Organizational Process Assets Updates Project Charter Reviewing all change requests, approving, and managing changes to deliverables, org process assets, documents, and the PM Plan Project Management Plan Work Performance Information Change Requests Enterprise Environmental Factors Organizational Process Assets Expert Judgment Change Control Meetings Tool & Techniques Inputs Documenting actions necessary to define, prepare, integrate, and coordinate all other plans Project Charter Inputs Outputs from Planning Processes Enterprise Environmental Factors Organizational Process Assets Tool & Techniques Outputs Expert Judgment 4.5 Perform Integrated Change Control Monitoring & Controlling Process Group 4.2 Develop Project Management Plan Change Request Status Updates Project Management Plan Updates Project Document...
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...Project Management Office Summit Measures and Metrics for PMO Success 0011 0010 1010 1101 0001 0100 1011 Jim Kendrick, PMP, CMC President and Practice Leader © 2009 P2C2 Group, Inc. kendrick@p2c2group.com 301-942-7985 Also See Related Blog Articles http://jimkendrick.blogspot.com Web www.p2c2group.com Blog http://jimkendrick.blogspot.com Phone 301‐942‐7985 Email kendrick@p2c2group.com LinkedIn http://www.linkedin.com/in/jimkendrick Location Washington, DC Metro Area Measures & Metrics (c) 2009 kendrick@p2c2group.com Managing projects and portfolios without metrics is like sailing a ship without a compass! 0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 2 Why PMOs need measurement and metrics You already know … 0011 0010 1010 1101 0001 0100 1011 • 63% of projects have schedule delays • 49% of projects exceed budget or do not meet business objectives • 45% of projects face cost overruns • 23% of all projects FAIL Data published by Standish Group International, Inc., as reported in Computer World, February 17, 2003 http://www.computerworld.com/printthis/2003/0,4814,78517,00.html Measures & Metrics (c) 2009 kendrick@p2c2group.com 3 Most organizations have problems with their measures and metrics 0011 0010 1010 1101 0001 0100 1011 • • • • • • • • • Too much data Measures aren’t useful Too much time to collect and report data Data...
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...Project Management Project Management I. Introduction This takes place as part of the executing process group. This is the process of tracking, reviewing, and regulating the progressed in order to meet the performance objectives defined in the project management plan. In addition to reviewing the work that is being performed, this process also makes sure that the deliverables themselves, plus the way in which they are being delivered according to the project management plan. This is a macro integration process and looks at the progress of the overall project taking corrective action as and when needed via change requests. The focus here is on identifying any variances from the project management plan, to carry out problem-solving in order to determine appropriate corrective and preventative action, perform root cause analysis of such variances, and to manage the time and cost reserve allocations. The corrective action that the project manager should be making here is based on how the project has been progressing and from this how things are forecast to continue. The results of the work being undertaken are compared to the baseline is within the plan and appropriate adjustments made to ensure that the two are harmonized. Such adjustments and changes to the work are both identified and implemented within this process. Another key aspect here is to ensure that risks are being managed properly, new risks identified, and that the overall project performance...
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