Performance Measurements Mgt 437
Performance Measurements
MGT/437
June 11, 2013
Roy Chuang
Performance measurements
Performance measurements are used to characterize and define performance in a project. They are used to track and manage progress toward achieving specific project goals. Performance measurements help determine how decision-making processes of a project led to its success or failure, understanding these can help organizations make future improvements. It is a project manager 's responsibility to measure performance based on the triple constraints of time, budget, and quality of a project. There are many performance measurements a project manager can use based on the type of project at hand, this paper compares and contrasts the following measurements - * Earned Value * Customer Satisfaction * Requirements Performance
Earned Value Earned Value measures work performed in terms of schedule and budget of a project. It helps identify schedule and budget mishaps in all areas of a project. "Earned Value is an approach where you monitor the project plan, actual work, and work-completed value to see if a project is on track. Earned Value shows how much of the budget and time should have been spent, with regard to the amount of work done so far" (Haughey, 2013). It measures current performance in a project, which helps project managers determine what the future performance will be. Using earned value, project managers can determine how much work is completed vs., how much was expected to be completed at a certain point in a project. Based on the earned value, project managers can make changes to the way the project is progressing in terms of specific tasks, schedule, and budget to bring it back on track for successful completion. "Earned Value provides the project manager with an objective way of measuring performance and predicting future outcomes. This can enable him or her to report progress with greater confidence and highlight any overrun earlier. This in
MGT/437
June 11, 2013
Roy Chuang
Performance measurements
Performance measurements are used to characterize and define performance in a project. They are used to track and manage progress toward achieving specific project goals. Performance measurements help determine how decision-making processes of a project led to its success or failure, understanding these can help organizations make future improvements. It is a project manager 's responsibility to measure performance based on the triple constraints of time, budget, and quality of a project. There are many performance measurements a project manager can use based on the type of project at hand, this paper compares and contrasts the following measurements - * Earned Value * Customer Satisfaction * Requirements Performance
Earned Value Earned Value measures work performed in terms of schedule and budget of a project. It helps identify schedule and budget mishaps in all areas of a project. "Earned Value is an approach where you monitor the project plan, actual work, and work-completed value to see if a project is on track. Earned Value shows how much of the budget and time should have been spent, with regard to the amount of work done so far" (Haughey, 2013). It measures current performance in a project, which helps project managers determine what the future performance will be. Using earned value, project managers can determine how much work is completed vs., how much was expected to be completed at a certain point in a project. Based on the earned value, project managers can make changes to the way the project is progressing in terms of specific tasks, schedule, and budget to bring it back on track for successful completion. "Earned Value provides the project manager with an objective way of measuring performance and predicting future outcomes. This can enable him or her to report progress with greater confidence and highlight any overrun earlier. This in
References: Haughey, D. (2013). What is earned value?. Retrieved from http://www.projectsmart.co.uk/what-is-earned-value.html Karim, S. (2012, 2). Best practices improve customer experiences. Retrieved from http://blogs.pmi.org/blog/voices_on_project_management/2012/02/best-practices- improve-custome.html Pennypacker, J. (n.d.). Comprehensive list of measures. Retrieved from http://www.pmsolutions.com/audio/PM_Performance_and_Value_List_of_Measures.pdf