...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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...BRIEFING FOR MEMBERS MEASURING SOCIAL VALUE What do we mean by measuring social value? Over the last twenty years there has been increasing importance attached to measuring the social value and social impact that various organisations create. The demand for measuring this value comes from all sides: funders who want to direct their money to the most effective projects, policy makers and government officials have to account for their spending decisions, and social organisations need to demonstrate their impact to funders, partners and beneficiaries1. This has led to a growing interest in terms such as „value for money‟, „value added‟ and „outcomes‟ as ways to measure a organisations performance. In many ways the distinction between „output‟ and „outcomes‟ encapsulates what is meant by measuring social value. Outputs: These are the activities done by an organisation, usually listed in an action plan or set of objectives. For example providing homeless people with food and shelter or organising a conference to discuss long term care services for the elderly. Outcomes: These are the long term observed effects of the outputs and are often the „real‟ changes that organisations are trying to make. For example homeless people no longer living on the street and now in employment is an outcome. Likewise a new policy implemented by a government or a new project that improves the quality of long term care for elderly people is an outcome. Unfortunately there is no single authoritative definition...
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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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...measure the performance in each field that it is involved in. While it may seem that measuring the success of any business can be done by looking at the financial statements, in order to truly succeed in any industry the performance of each task should be measured constantly. Performance measurements can greatly benefit any kind of organization that is seeking profit. Based on the results after each measurement, the firm can figure out a specific strategy that will help to accomplish goals more efficiently. Depending on what needs to be measured, there are different measuring methods available. The fields that usually require an additional measurement in order the see the performance of the business are financial performances, competitiveness, innovation, quality of service and even flexibility. Those can be measured by looking at profitability, relative market growth, reliability, and market ratios. For most project managers, the performance of their employees plays the most significant role in any task. Therefore, knowing how to measure worker’s performance in projects is vital. Also, in many corporations, the employees depend on each other in order to fully complete a specific task, which leads them to work in teams. When a project is done in teams it becomes much more difficult for the manager to figure out the exact work effort each employee has dedicated for the project. However, there are still ways to do so. In order to measure a teamwork performance, the project manager...
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...significant deviations” (Robbins et al., page 308). In other words, you measure the results you are getting and compare this with your objectives and then make any necessary adjustments. Managers who control the finances of an organization are often referred to as “controllers.” These managers use financial control measures on a daily basis. Project managers also use control mechanisms to monitor their projects. Control measures are determined at the beginning of a project and used throughout the life of a project to monitor time, budget, and project scope. The control measures give the project team valuable feedback on how they are doing. Just as feedback is a critical component in good communication, feedback is also a key factor in developing management controls. Measurement controls can be set up in virtually any area of an organization. One area that most people have experience with is the annual performance appraisal. An employee’s direct manager has traditionally conducted performance appraisals. Some companies are now successfully implementing a 360-degree feedback process, which involves other employees in the performance appraisal. Why is Control important? Control is important because it is the final link in the four management functions. It is the only way manager’s now, if there...
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...• o Budgeted At Completion (BAC) o How much was originally planned for this project to cost. No one formula exists. Is derived by looking at the total budgeted cost for the project. o No one formula exists. Is derived by looking at the total budgeted cost for the project. • o Planned Value (aka Budgeted Cost of Work Scheduled) (PV or BCWS) o How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time. Planned % Complete x BAC o Planned % Complete x BAC • o Earned Value (aka Budgeted Cost of Work Performed) (EV or BCWP) o How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule. EV = Actual % Complete x BAC o EV = Actual % Complete x BAC • o Actual Cost (aka Actual Cost of Work Performed) (AC or ACWP) o The money spent during a given period of time. Sum of the costs for the given period of time. o Sum of the costs for the given period of time. • o Cost Variance (CV) o The difference between what we expected to spend and what was actually spent. CV = EV-AC o CV = EV-AC • o Schedule Variance (SV) o The difference between where we planned to be in the schedule and where we are in the schedule SV = EV-PV o SV = EV-PV • o Cost Performance Index (CPI) o The rate at which the project performance is meeting cost expectations during a given period of time. CPI = EV ÷ AC o...
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...PROCUREMENT PERFORMANCE MEASUREMENT……………………………………………………………………...6 5.1. DEFINITIONS…………………………………………………………………….6 5.2. WHY MEASURING PROCUREMENT PERFORMANCE……………….7 5.3. CHARACTERISTICS OF PERFORMANCE INDICATORS……………..9 5.4. BOARDROOM ALIGNEMENT…………………………………………….10 5.4 EXEMPLE OF A DETAILED FRAMEWORK FOR MEASURING PROCUREMENTPERFORMANCE…………………………………………...10 6. MESEARING SSFR PROCUREMENT PERFORMANCE………………….13 6.1. SIMPLIFIED PROPOSED FRAMEWORK FOR PROCUREMENT PERFROMANCEMESUREMENT………………………………………………...13 6.2. CHALLENGES FACED BY RSSB PROCUREMENT IN THE AREAS OF IMPROVEMENT……………………………………………………………………19 7. CONCLUSIONS AND RECOMMENDATIONS……………………………...20 7.1. CONCLUSION…………………………………………………………….……20 7.2. RECOMMENDATIONS…………………………………………………….…23 8. BIBLIOGRAPHY. …………………………………………………………….…24 MEASURING PROCUREMENT PERFORMANCE IN RWANDA CASE STUDY: SOCIAL SECURITY FUND OF RWANDA: 2010-2011 Abstract For decades procurement performance has been attracting great attention from different stakeholders due to poor performance resulting from non adherence to proper processes and procedures. It had been also proved that performance measurement is the key driver to improving quality of services while its absence or use of inappropriate means can act as a barrier to change and may lead to deterioration of the purchasing function and that Organisations which do not have performance means in their processes, procedures, and plans experience lower performance and...
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...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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...* Question 1 0 out of 0 points | | | Which of the following is true about the agile method? | | | | | Selected Answer: | c. It is used when project teams want to use the predicative approach to a project. | Correct Answer: | d. It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product. | Response Feedback: | An agile approach is often used for projects in which the business team cannot clearly express the scope early in the product life cycle, but the team does want to provide a potentially shippable product earlier rather than later. An agile project team typically uses several iterations or deliveries of software instead of waiting until the end of the project to provide one product. | | | | | * Question 2 0 out of 0 points | | | Which of the following is a pre-initiation task? | | | | | Selected Answer: | b. Developing a business case for a project | Correct Answer: | b. Developing a business case for a project | Response Feedback: | It is good practice to lay the groundwork for a project before it officially starts. Senior managers often perform several tasks, sometimes called pre-initiation tasks which include the development of a business case for a project. | | | | | * Question 3 0 out of 0 points | | | A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint. | | | | | Selected...
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...Performance Management Plan HRM/531 July 14, 2014 Patrice Cloutuer Construction Company performance Management Plan Clayton Commercial Construction Company has requested our recommendations for a performance management plan. We at Atwood and Allen have been working with Marylee Luther for the past several weeks by implementing various recommendations to this construction business to expand to Arizona. Clayton Commercial Company is currently located in Detroit Michigan, has 650 employees, and planning to increase 20% which would open 130 new jobs with their expansion in Arizona, and a turnover rate of 20%. Clayton Construction has a annual net revenue of 10 million dollars and expect their current -3% revenue growth to remain the same. Our recommendations would include the framework that can lead to build a evaluation system, the philosophy of performance management, and the feedback for an effective performance management plan. Performance Management Plan Atwood and Allen would recommend a performance management for the construction industry this system must gather related data to improve their goals through performance objectives by goal setting, measuring and assessment. Clayton Construction performance management system should include five elements in their system: Cost, cost growth, cost factors and budget factors; Schedule, schedule growth, duration, schedule factor, and duration factor; Safety, zero recordable and zero lost workdays; Change, change cost...
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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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...Text Version A Handbook for Measuring Employee Performance ALIGNING EMPLOYEE PERFORMANCE PLANS WITH ORGANIZATIONAL GOALS Workforce Compensation and Performance Service Executive Resources and Employee Development ■ Performance Management Implementation ■ September 2011 table of contents FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 contents CHAPTER 1 PERFORMANCE MANAGEMENT: BACKGROUND AND CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Employee Performance Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 CHAPTER 2 DISTINGUISHING ACTIVITIES FROM ACCOMPLISHMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The Beekeepers and Their Bees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Using Balanced Measures ................................................. Categories of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 CHAPTER 3 DEVELOPING EMPLOYEE PERFORMANCE PLANS . . . . . . . . . . . . . . . . . . . . 20 Step 1: Look at the Overall Picture ....................................... Step 2: Determine Work Unit Accomplishments . . . . . . . . . . . . . . . . ....
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...(A). Measuring is the first step in developing a quality improvement plan for any health care facility or organization. Measuring performance assessments establish a working foundation and insight as to how the foundation is doing respectively to taking on the quality improvement project. During the measurement phase of a quality improvement project, the health care organization gathers performance data and information to determine how the organization is doing respectively to quality. After an organization gathers the necessary data and information pertaining to quality improvement, the organization can move into the assessment phase of a quality improvement project. The assessment phase helps the organization establish whether quality performance...
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...methodology 6 HandSpring Project (Visor) 7 Visor Challenges 7 The Odds situation 8 Measuring R&D Performance 9 Measuring Visor’s Project Performance 9 Prototyping of Palm V 11 The Decision 12 Executive Summary This case deals with IDEO company situation analysis. It starts with describing the IDEO corporation as an environment and the process that they use to perform the work. IDEO is a flat organization to an extreme. They have no hierarchy and discouraged formal titles, which is something that stressed more on the competiveness of the designers and engineers. They believed that prototyping is the key for the design process. They start with collaboration and brainstorming sessions in order to generate the most effective ideas and thoughts. They also have the customer involved with them in all the processes to keep him updated and aware of the steps that are taken. They have a 5 phase methodology to follow when starting a new project which are: Phase 0: Understand and observe, Phase 1: Visualize and realize, Phase 2:Evaluate and refine, Phase 3:Detailed Engineering and Phase 4: Manufacture. Theses five phase are explained more in the following pages IDEO has just finished a great breakthrough in the palm industry. They created a new handheld PDA that worked with a lithium rechargeable battery. This product had a great customer acceptance and was a success, however it lacked a lot of features that are believed needed by the users. The Visor project started with the...
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...What is Balanced Scorecard? In the early 1990s, Balanced Scorecard was developed as a new approach to performance measurement due to troubles of short-termism and past orientation in management accounting (Kaplan and Norton 1992). Balanced scorecard is a strategic planning and management system that is widely used in business and industry, government, and nonprofit organizations to side with business activities to improve internal and external communications and monitor organization performance against strategic goals (Balanced Scorecard Basics n.d) The balanced scorecard has changed from its simple performance measurement structure to a full strategic planning and management system. The balanced scorecard has evolved from its early application as a simple performance measure framework to a full strategic planning, a simple public presentation-measuring framework to a full strategic planning (Balanced Scorecard Basics n.d).The new balanced scorecard transforms an eye-catching but unreceptive document into the "marching orders" for the organization on a daily basis. It offers a framework that provides performance measurements as well as helping planners identify what should be through and considered. It also enables executives to truly implement their policies (Balanced Scorecard Basics n.d) The balanced scorecard does not only focus on attaining financial objectives, furthermore, it emphasizes the nonfinancial objectives that an organization must accomplish to convene and...
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