Performance Reporting
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The measured performance can be qualitative or quantitative. Qualitative measures can be performed by on-site-inspection. Quantitative measures regards mainly time and budget performance. Relevant measurement are made on the early or late actualization of the [[The Critical Path Method (CPM)|critical path]]. The slack of of near-critical path can be measured in relation with the arise of new critical activities. | The measured performance can be qualitative or quantitative. Qualitative measures can be performed by on-site-inspection. Quantitative measures regards mainly time and budget performance. Relevant measurement are made on the early or late actualization of the [[The Critical Path Method (CPM)|critical path]]. The slack of of near-critical path can be measured in relation with the arise of new critical activities. | ||
Economical measurement keeps track on the expenditure performance to compare it with the budget values. However, in order to realistically estimate the performance agains time phased budget we have to consider [[Earned Value Analysis|earned value]] as well. [[Earned Value Analysis|Earned value]] is defined as budgeted cost of the work performed. | Economical measurement keeps track on the expenditure performance to compare it with the budget values. However, in order to realistically estimate the performance agains time phased budget we have to consider [[Earned Value Analysis|earned value]] as well. [[Earned Value Analysis|Earned value]] is defined as budgeted cost of the work performed. | ||
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===Comparing Plan against Actual=== | ===Comparing Plan against Actual=== | ||
As the plans rarely manifest exactly as estimated, it is a priority to detect deviation in useful time. The management must be able take corrective actions as soon the deviation manifests. For this reason is imperative to measure periodically the status of the project to compare the actual toward the expected plans. Consequently, the timing of the status must have a frequency that allows early detection and correction of deviations. A good indication is to generate a status report every one to four weeks to be useful and allow to take proactive actions. | As the plans rarely manifest exactly as estimated, it is a priority to detect deviation in useful time. The management must be able take corrective actions as soon the deviation manifests. For this reason is imperative to measure periodically the status of the project to compare the actual toward the expected plans. Consequently, the timing of the status must have a frequency that allows early detection and correction of deviations. A good indication is to generate a status report every one to four weeks to be useful and allow to take proactive actions. | ||
Revision as of 13:56, 22 September 2017
Project reporting involves all the activities aimed to monitor the progress of a project. The state of each activity is defined by the evaluation of data representing the metrics chosen for the report. The actual data observed in the advancement of the project are compared with the estimated data set as target before the beginning of the project. The main outcome of a functional reporting system is to provide information about the state of a project. These information should be available in a time range that allows the project manager to eventually take effective corrective actions. [1] In a longer time prospective, the purpose of reporting is to register how different decision making process and practices led to failure or success. This insight should then be used as guideline for improvement by replicating good practices and avoiding mistakes[2].
Contents |
Scope of Control
Different knowledge areas are involved as in planning, also in the control activities, these are[3]:
| Area | Role | Reporting documents |
|---|---|---|
| Scope (or Configuration) Management | The scope of work defines what the project is producing or delivering. Reports will take track of scope variation during the implementation. |
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| Technical Support | Technical experts keeps track of their results to interpret clients need and addressing it respecting regulation and adopting good practices. |
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| Time Management | Outlines the sequence and timing of the scope of work through control documents as Progress report |
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| Procurement Management | The procurement function classifies all the purchased items. These are procured to specification, time schedule and budget |
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| Resource Management | Resource management is in charge to integrate the resource estimate with time management to produce resource forecast. Used resourced are closely linked to manpower requirements. |
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| Cost Management | Cost Management allocates budgets and cash-flows to the work packages |
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| Change Control | Set of documents that tracks and revise the progress of the scope of work. |
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| Quality Management | State how the company plans to meet the requirements |
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| Communication Management | The communication functions share information and instruction to the responsible parties. |
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| Human Resource Management | The HR function sets frameworks for the persons employed in the project. |
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| Environmental Management | Takes in account all the external issues that may effect the project. |
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Data acquisition
Data capture is the activity of collecting and reporting information to the project manager on periodical basis. This allows the project management to be aware of the project's progress and status. The purpose of the metrics is to provide the management with the current situation overview and possible future scenarios. Before starting other reporting activities is necessary to understand who is the owner of the report and which kind of performance he/she intend to monitor. Once the metrics are defined is necessary to ensure a good quality of the measured data. The reporting system will resultas accurate as the data captured are.
Metrics
The data are collected on the base of the performance the manager wants to measure. Usually it is not possible to make measurement on the intended mertics as they do not manifest in quantitative values. For this reason proxy metrics are introduced for measurement purpose. Typically the information that are expressed by the data are related to[4]:
- Activity duration and completion status
- Resource usage rate
- Actual cost of resources and activities
Those measures are then compared with the expected duration, usage and costs defined before the activity execution. When projected and actual data are available is then possible to make a comparison and identify possible deviations. However the control process should not just take in account time and cost variable, but also the inconsistent issues and behaviors that can be identified during the execution of project activities in different knowledge areas, such as Project Value, Quality, or Reputation[5]. If some deviation manifests in the schedule, resource or expenditure metric it should be possible to locate the problem in the organization. The report should be capable to explicate causes and responsibilities for overrun. Additionally the report should indicate the forecast for cost overrun in case of midway overrun.
Maintenance
Once the metrics are defined is necessary to define:
- Who should be responsible to gather and elaborate the data. It could be a project team, contractors, cost engineers or data could come from the company's ERP[6]
- When the data will be assembled and communicated and which is going to be the reporting period (day, week, months, quarter...
Application
Setting a Baseline Plan
As first action to implement progress and performance reporting is to set a baseline. The development of a project baseline is properly a part of planning process. However since it constitute the main input for the comparison with the measured date there cannot be reporting without it. The baseline is an written document that represent commitment to the achievement of some cost and schedule performance. The reference value are acquired from the work breakdown structure. The WBS provides discrete work packages tied to deliverables and organization unit. Furthermore, each work package defines the work, duration and budget. Next the project network schedule time-phase all work, resources and budget into a baseline plan.
Measuring Progress and Performance
The measured performance can be qualitative or quantitative. Qualitative measures can be performed by on-site-inspection. Quantitative measures regards mainly time and budget performance. Relevant measurement are made on the early or late actualization of the critical path. The slack of of near-critical path can be measured in relation with the arise of new critical activities. Economical measurement keeps track on the expenditure performance to compare it with the budget values. However, in order to realistically estimate the performance agains time phased budget we have to consider earned value as well. Earned value is defined as budgeted cost of the work performed.
Comparing Plan against Actual
As the plans rarely manifest exactly as estimated, it is a priority to detect deviation in useful time. The management must be able take corrective actions as soon the deviation manifests. For this reason is imperative to measure periodically the status of the project to compare the actual toward the expected plans. Consequently, the timing of the status must have a frequency that allows early detection and correction of deviations. A good indication is to generate a status report every one to four weeks to be useful and allow to take proactive actions.
The project manager should train and communicate the importance of maintaining reporting system to the project members.
Notes
- ↑ Project Management: Planning and Control Techniques, Third Edition, Wiley, Chichester, 1999, p. 191
- ↑ https://www.nap.edu/read/11344/chapter/4, 22/09/2017
- ↑ Project Management: Planning and Control Techniques, Third Edition, Wiley, Chichester, 1999, p. 193
- ↑ Project Management: The Managerial Process, Third Edition, Clifford Gray and Eric Larson, Mc Graw Hill, 2006, p. 193
- ↑ Definition of a Project Performance Indicators Model: Contribution of Collaborative Engineering Practices, Marcelo Silva Pereira and Rui M. Lima , 2017
- ↑ https://www.defactosoftware.com/erp-software/data-analysis-and-reporting
